Accounting tricks that balanced Pa.’s budget — but only on paper
HARRISBURG — When Pennsylvania lawmakers passed a state budget on Sunday, leaders praised it for being a fiscally responsible $50.8 billion product that doesn’t dip into the state’s rainy day fund. That’s a misleading picture. To reach that number, they had to employ some accounting tricks. The biggest involves delaying two months’ worth of payments — each costing about $1.3 billion — to the state’s Medicaid managed care organizations. In the Capitol, it’s a process called a “cycle roll.” Managed care organizations, or MCOs, are responsible for organizing ...