Date: 01/26/2012
Final
Presentation by the OSPB
COMMITTEE ON JOINT FINANCE
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11:58 AM -- Presentation by the Office of State Planning and Budgeting (OSPB)
Mr. Henry Sobanet, Director of the Office of State Planning and Budgeting (OSPB), and Eric Scheminske, Deputy Director, distributed their presentation to the committee (Attachment F). Mr. Sobanet gave an overview of the main topics represented in their presentation which included the process of OSPB's budget preparation, its management efficiency program, Regional Tourism Act duties, and reforms to its economic publications. The budget that OSPB's presented to the JBC showed a growth rate of under 3 percent for its operating budget, with the major growth area being Medicaid. Mr. Sobanet spoke about the implementation of a LEAN management plan and stated that they have hired vendors to train and work with state employees on this process. Currently there are 50 LEAN projects being conducted with the vendor and an additional 30 projects or so will be finished by state employees by March 2013. Senator King asked about the competition between Medicaid funding and K-12 education funding and suggested that an examination of Medicaid allocations and expenditures be conducted. Mr. Sobanet noted that the new Director of Healthcare Policy and Financing is currently analyzing where cost-savings can be found in the administration of the Medicaid program. Senator King requested that Mr. Sobanet provide the committee with an analysis of Medicaid expenditures and allocations so that the committee can examine the analysis as part of its SMART Act responsibilities.
12:09 PM
Representative Conti asked about the possibility of implementing Medicaid spending reductions at a state level, even though it's a federal program. Mr. Sobanet explained that eligibility requirements are constrained by federal health care reform law. Mr. Sobanet then talked about the need to avoid provider rate cuts in this budget because of a possible cost shift to private insurance. Representative Acree asked for analysis of overpayments to providers and the rate of recovery of these overpayments. Mr. Sobanet answered that the department realized $65 million from its recovery efforts in 2011 which recovered overpayments due to fraud, over-billing and simple errors. Mr. Sobanet will put together a breakout of this $65 million by category.
12:13 PM
The committee adjourned.