Governor Pataki and NYS legislators were finalizing the State fiscal year 2000-01 budget agreement as Skyline News went to press. The Governor and legislative leaders hope to finish work on the budget before legislators recess this week for religious holidays. Agreement has apparently been reached on extending the Medicaid managed care statute relating to regular managed care plans through 2003, with several changes included, championed by the Assembly, to help prevent disenrollment from Medicaid. GNYHA had strongly opposed extending the statute permanently, and is pleased that the Governor and Legislature have agreed on a sunset date. Still outstanding is an agreement on extending authorization for mental health special needs plans (SNPs). GNYHA has strongly opposed extending the authorization for the Office of Mental Health to proceed as currently planned, given the serious flaws in the design of the mental health SNPs. In other news, the budget will contain some relief to help counties offset the cost of Family Health Plus in the short term, but will not actually remove the counties' responsibility to help finance the program. In addition, budget negotiators have agreed to restore the filled mental health shared staffing provisions that were proposed to be cut in the Executive budget proposal; however, the budget will not restore funding for psychiatric residency positions. Finally, an agreement was reached on legislative proposals to increase Medicaid reimbursement rates for physicians.