Gov. Scott Walker's administration says the projected shortfall in Wisconsin's various Medicaid programs serving the poor, elderly and disabled has improved by more than $300 million.

Walker's Department of Health Services said in a letter Tuesday to the co-chairs of the Legislature's budget committee that the projected $554 million shortfall in state and federal money has improved to $232 million over the past three months.

DHS Secretary Dennis Smith says in the letter that the numbers improved for a number of reasons, including lower-than-anticipated increases in people enrolling in the various programs, less costly Medicare Part B payments and an overall drop in costs per enrollee.

Smith cautions that the savings represents a change of only 2 percent of the total amount spent over two years on Medicaid.

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