Tennessee could see funding shortfalls if the federal government doesn’t get the national deficit under control. A state commission released a report yesterday looking at trends in funding for federal programs. It found that as budget pressures increase, the feds will likely start cutting money for things like Medicaid or Medicare.
Cliff Lippard is fiscal director for the Tennessee Advisory Commission on Intergovernmental Relations. He says the problem is that states will have to make up the difference.
“Just because that money comes under pressure, doesn’t mean the responsibility goes away. So there’s a serious concern that the states could be left with the responsibility but without the funding they’ve had in the past from the federal government to pay for these services.”
The report analyzed funding trends, but it didn’t predict possible budget deficits for Tennessee, nor did it make recommendations in how to prepare for possible federal budget cuts.
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