State budget problem made easier with CHIPs funding

State budget problem made easier with CHIPs funding

MONTGOMERY, AL (WSFA) - When the federal government passed a continuing resolution to keep the federal government operational for the next few weeks, a long term funding program for CHIPs was also passed.

CHIPs, known in Alabama as ALL KIDS, pays for the health insurance of around 150,000 kids.

The program was out of money, and if the Feds did not fund the program, state lawmakers would have found themselves in the unenviable position of both scraping together funding (estimated at $40 to $45 million), while also seeing children lose health insurance.

With the Federal government paying for the program the path to passing a state budget is easier but will not be simple.

The state must now figure out what to do with the state prison system. In total, the system is requesting $80 million, with $30 million in a supplemental appropriation for this year and $50 million for next year.

The state did hold over more than $90 million of funds thanks to the BP spill settlement.

The budgets are expected to be in committee in two weeks.

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