The first three years of Medicaid expansion will be federally funded, but Kiss said it is important to begin looking now at funding and cost-containment strategies for the program.
"Three years from now, these will be state dollars," he said.
While tax collections and Lottery revenues lagged in the 2012-13 budget year and so far in the first two months of the current budget year, McKown said there are a number of positives in the state budget.
The state's two Rainy Day Funds, set aside for use in the event of natural or fiscal disasters, currently total $907.77 million, making them the third-best funded as a percentage of the state general revenue in the U.S., at nearly 22 percent of the state's $4.1 billion budget.
"That seems like a lot, but that would last us about 2 1/2 months if everything shut down and we didn't have a way to collect revenue," McKown said of the funds.
Likewise, the state has gotten through the budget crunch to date with no furloughs or layoffs of state employees, while maintaining strong bond ratings, and adequately funding its pension plans for public school and state employees.
McKown compared that with Illinois, which has a $100 billion unfunded liability in its state pension plans.
"They're going to run out of cash soon," he said.
Reach Phil Kabler at ph...@wvgazette.com or 304-348-1220.