The Kentucky legislature is debating ways to address the hole in the state’s Medicaid budget. The options under consideration include immediate across-the-board budget cuts as well as eventual cuts to non-education programs if the governor’s proposed Medicaid savings for 2012 are not achieved. But before enacting painful cuts that are on top of several years of reductions, Kentucky leaders should consider revenue options that are a sensible part of a more balanced approach to the state’s budget challenges.