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Ala. House Panel OKs Deep State Government Cuts

Montgomery, AL – An Alabama House budget writing committee has approved a $1.39 billion budget that's $430 million less than the spending plan for the current fiscal year.

It could mean layoffs for hundreds of state employees and cuts of key services such as medicine for Medicaid patient and elimination of a Department of Human Resources program that provides assistance to poor children.

The budget approved Wednesday by the Ways and Means-General Fund Committee cuts about $175 million from the state Medicaid budget. State Health Officer Don Williams, who is leading a Medicaid transition team, said he is trying to determine what programs federal rules will allow to be cut.

The executive director of the State Employees Association, Mac McArthur, said he doesn't see how substantial layoffs of state employees can be avoided.

(Copyright 2012 by The Associated Press. All Rights Reserved.)

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