Accounting Gimmick Called Illegal

Good.

As part of its plan to do that, the state Department of Health Services is proposing delaying $127 million in payments to health vendors such as HMOs that are supposed to be made in May or June 2011, during the current two-year budget. Instead, the state would push those costs into the future and pay the providers in the next two-year budget, starting in July 2011. But if the state doesn’t delay the payments, it could have to find new money or cuts to keep those costs from being added to the health programs’ shortfall.

Delaying payments has been a frequent tactic to help balance past budgets approved by Legislatures and governors. But if lawmakers don’t approve this latest delay of payments, the Legislative Audit Bureau believes it would run counter to state law, according to the new report.