Governor John Kasichâs first budget proposal slashes Medicaid payments to doctors, hospitals and nursing homes in an overhaul of the program, which consumes nearly a third of the stateâs spending. Already facing a July first deadline for the last of special federal assistance, the governor says that unless things change, Medicaid expenses will become unsustainable. The proposed budget would cut more than four hundred million dollars from nursing home funding, with more focus on at-home care.