Gov. Jim Douglas wants to use federal assistance money to close a $48 million shortfall in this year’s budget.
Douglas say Vermont could receive $48 million in federal stimulus funding for Medicaid, which would in turn free state money up for other uses.
Still, some lawmakers are upset with some of the budget cuts being proposed by the Douglas administration to close the rest of the budget gap.
The governor is proposing spending cuts in some human services programs, including state pharmacy benefits and a family program that used to be called welfare.
Still, overall human services spending would be increased to accommodate the growing number of Vermonters seeking services because of the tough economic situation.