SANTA FE >> The agency managing New Mexico's largest health care program is asking for less -- not more -- state money to operate in the upcoming budget year.
 
It's the first time in more than a decade the Human Services Department isn't seeking an increase in state aid for Medicaid, which provides health care for a fourth of New Mexico's population.
Agency officials said a reduction is possible in part because of low price inflation, more available federal money and lower usage of services by Medicaid recipients.
 
"I hope people see it as a good thing. It's not as though we're cutting services or changing anything. It's really just something that we've been able to manage a little bit differently," said Deputy Secretary Brent Earnest.
 
The department has requested about $1 billion in state money for Medicaid in the fiscal year that starts next July. That's nearly $19 million, or 1.8 percent, less than this year.
 
Agencies submitted budget requests to Gov. Susana Martinez's administration at the start of the month and those will be used to develop the governor's spending recommendations to the Legislature, which meets in January to approve a state budget for next year. Lawmakers also review the agency requests in making budget decisions.
 
The Medicaid agency's proposed budget reduction is notable because the state plans to expand the health care program starting in January. Nearly 90,000 uninsured New Mexicans are expected to enroll next year under terms of a federal health care overhaul championed by President Barack Obama.
The federal government will pick up the full costs of the expansion initially and that will gradually drop to 90 percent in 2020. The total costs of Medicaid -- federal and state spending -- are expected to increase by about $670 million next year because of the expansion, according to the Legislative Finance Committee.
 
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