June 8, 2010. The federal government’s failure to extend its increased share of state Medicaid costs would leave New York with an additional $1.06 billion in state budget cuts – on top of the cuts already on the table as part of Governor Paterson’s 2010-2011 gap closing plan. In this analysis, FPI calculates that if the state decided to fill the additional $1 billion dollar gap through workforce reductions, the number of layoffs would be in the 15,000-16,000 range. Another alternative, reductions to Medicaid reimbursement rates, would result in large numbers of hospital and nursing home layoffs and would seriously undermine patient care.