Faced with a $13.7 billion deficit for the next fiscal year beginning April 1, Governor David Paterson proposed a 2009 state budget that will reduce funding for AIDS services, including a $65 million reduction of the AIDS Drug Assistance Program (ADAP), which pays for HIV meds and some medical services for uninsured people not eligible for Medicaid, reports the Gay City News.

“With the incidence of HIV infection on the rise, particularly among communities of color, women and young gay men, it is ill advised to cut funding to HIV/AIDS treatment and prevention,” said Marjorie J. Hill, PhD, chief executive officer of Gay Men’s Health Crisis (GMHC), in a written statement. “On the contrary, additional investments in HIV/AIDS programs will not only work to save lives and create improved health outcomes, but will also save the state money in the long run by cutting down on costs for acute medical care.”

According to the article, the state plans to recover from the ADAP cut through rebates from drug companies and additional federal funds. According to Henry J. Kaiser Family Foundation data, the state’s contribution to the 2007 ADAP budget was $45 million. The federal government gave $136 million and rebates from drug companies accounted for $59 million.