A change in Medicaid leads the list of budget cuts proposed by Governor Bob Holden for the next fiscal year. State Budget Director Linda Luebbering says the Governor proposes $260-Million in budget cuts. Most of those cuts center on Medicaid costs. Luebbering says the proposal would treat Medicaid more like a private health care system. That is expected to save the state $150-Million. Luebbering says increased health-care costs, the rising expense of prisons, and flat revenues have created the anticipated one billion dollar shortfall that must be plugged in the fiscal year that begins July first.