"If the program isn't approved by May 11th, up to $45 million a day – 40 percent of the average $110 million in General Funds used daily to pay the state's bills -- will have to be set aside in anticipation of the program's approval before the end of the fiscal year," Hynes said. "The need to save this money could cause significant payment delays for vendors providing all other goods and services."

Since November, the Legislature and the Governor have been unable to approve an additional $1.2 billion in spending authority to fully implement the second phase of the Hospital Assessment Program. That delay, coupled with the need to meet a June 7 repayment deadline for a short-term loan the state took out to carry out the Hospital Assessment Program, means dollars usually designated for daily bills will need to be diverted, Hynes explained. Under the Hospital Assessment Program, the state advances payments to the hospitals in order to generate new federal monetary reimbursements to the state and its health care network.

Hynes raised his ongoing concern to members of the Senate Appropriations II Committee at a hearing Wednesday evening. During that hearing Hynes also raised concerns about the state's continuing significant Medicaid bill deficit. Hynes said the state finished Fiscal Year 2006 owing $2.3 billion in Medicaid bills and likely will finish the current fiscal year owing $2 billion.

Hynes recommended the Auditor General conduct an audit of the state agency responsible for the state's Medicaid bills, noting a great disparity between that agency's statements and the view held by the medical community regarding how long they must wait to be reimbursed for health care services they provide.

"There's a great disconnect and distrust between the health care provider community and the agency," Hynes said. "Health care providers are being told they are being paid within 50 days or less. It is clear from the calls coming into the Comptroller's Office seeking payment that they've been waiting much longer than that."

Hynes said he was open to working with Republicans and Democrats to resolve the state's Medicaid spending deficit, but said his many efforts to resolve the matter have been rebuffed by the Administration.