State Medicaid Shortfall Jumps By $135 Million

Gov. Pat McCrory's administration says this year's Medicaid shortfall is now more than double what was previously thought.

Administration officials blame a forecasting error last year.

The Department of Health and Human Services and state budget office said Thursday the current year's shortfall is now $248 million, or $135 million more than previously expected.

The agencies attribute the difference to a forecasting model error that overestimated the amount of federal money coming to the state. A statement said the mistake was made during Gov. Beverly Perdue's administration.

The shortfall means any possible increase in April tax collections will likely have to go narrow the gap. The forecast mistake also means higher estimates for Medicaid spending for the next two years. Lawmakers are currently working on the state budget.

(Copyright 2013 by The Associated Press. All Rights Reserved.)