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March 08, 2013

N.Y. Budget Fight Brewing Over Cuts to Disability Nonprofits

New York state legislators are crafting budget plans that would restore $120-million in proposed reductions to financing for nonprofit groups that provide services for people with developmental disabilities, reports The New York Times.

Governor Andrew M. Cuomo, facing a $500-million budget gap, proposed a 6 percent cut in the reimbursement rate for disability charities following negotiations with U.S. officials who say the state has long overbilled Medicaid for care of people with disabilities. Federal authorities have criticized the state's oversight of nonprofit providers.

Mr. Cuomo said the cuts would not affect services, telling reporters Thursday that "in many areas the state was actually spending more money than it needed to be spending," but leading lawmakers have expressed concern that vital programs for the disabled will be curtailed.