For the past 12 years, agencies have had to absorb the cost of merit raises ($33 million) and inflation ($61 million). By making agencies eat this cost, the savings of nearly $100 million can be used for other priorities of government. No one knows how much longer this practice can continue.
For FY 03, the DSH (uncompensated care) cap is set at $631 million. This only allows a growth range of $7 million before the cap is reached. After the cap is reached, all additional expenditures will be 100% State General Fund.
Revenue shortfall in SELF Fund used for teacher and faculty pay raises will amount to $18 million in FY 03.