State Medicaid costs expected to go up

SANTA FE — Medicaid health care spending is expected to put an increased strain on New Mexico state finances in the coming fiscal year, even with generous federal provisions of the Obama administration left in place.

In documents released Thursday, the state Human Services Department, which oversees Medicaid, has requested an $84 million increase in general fund spending for the budget year that starts in July 2018.

The demands could make it more difficult for the state to sustain spending on courts, classrooms and universities. Congress may remove some of the pressure by extending support to the nationwide Children’s Health Insurance Program.

New Mexico is on track to collect $25 million more in the coming fiscal year than it currently spends, as surging oil production pulls state government out of a budget crisis.