A hospital association that provides healthcare for uninsured and low-income residents said it will not be able to function under the financial restrictions of the recently-passed state budget.

The Safety-Net Association of Pennsylvania (SNAP) sustained a $90.8 million cut in state funds with the passage of the governor's budget, said Charles DeBrunner, SNAP president.

The hospitals in the association are not performing well financially, and as a result, some hospitals may have to drop healthcare programs for uninsured and low-income residents, DeBrunner said.

"This cut is unsustainable," he said.

This budget cut comes at a particularly bad time because of the current economic status in Pennsylvania, DeBrunner said.

An increasing number of residents find themselves out of work or in a job that does not offer healthcare coverage, and consequently, more and more residents may need the medical assistance that SNAP gives, he said.

In addition to the economic concerns, DeBrunner said the medical malpractice insurance crisis that faces the state exacerbates this healthcare problem.

DeBrunner sent a letter to Gov. Ed Rendell petitioning him to allocate more state financial aid on SNAP's behalf. The governor will resubmit a new version of the budget next Tuesday. DeBrunner said he hopes that the governor's new budget will include increased state money for the association.

If SNAP does not receive additional state funding, there will be a great impediment to low-income healthcare in Pennsylvania, he said.

"It will not be business as usual," DeBrunner said.

A $2.4 billion deficit confronted the state, which necessitated the reduction of spending, said Jay Pagni, spokesman for the Department of Public Welfare.

"Part of cost-saving measures includes cutting funds to hospitals," Pagni said.

SNAP was not the only association to lose state funding, he said. There were other significant cuts in state subsidies, he added.

In addition to SNAP, there are other programs such as Medicaid and Children's Health Insurance Program (CHIP) that offer healthcare assistance in the state, Pagni said.

The budget cuts were seen as the most realistic way to prevent the growth of debt, he said.

Despite the proposed cut in SNAP's funds, no one will be removed from state medical assistance, said Tom Hickey, Rendell's spokesman. The governor's plans for the future of SNAP's funds will be revealed in his new budget plan, he said.

"Budgetary cuts were necessary in the face of a $2.4 billion deficit," Hickey said.