Governor orders deeper budget cuts -, South Georgia News, Weather, Sports

Governor orders deeper budget cuts

By Ben Roberts - bio | email

ATLANTA, GA (WALB) – Governor Sonny Perdue announced major changes to his budget plan Thursday afternoon. He's dropping a proposed tax on hospital revenue that hospitals fought, but they may like the replacement even less.

Perdue now wants to decrease Medicaid reimbursement rates and do away with the sales tax exemption for non-profit hospitals. He said, "hospitals would have seen approximately a net impact of just about $55 million under the fee with the increased provider rates that we would have provided. This alternative is going to cost them $274 million."

The Governor is also proposing an additional $340 million dollars in cuts, that's another 3% for most state departments.

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