Even with the Governor's proposal to add $90 million in state general revenue and $70 million in general improvement funds, it still leaves a $138 million shortfall.
The Department of Human Services says that would mean 75,000 adults would be cut from medicaid services.
Arkansas Advocates For Children and Families said one way to help these families is by extending Medicaid coverage.
"Up to 138 percent of the poverty level, which is about 31,000 for a family of four, those families served by the Arkansas Health Networks Programs that is on the list of potential cuts, they could be covered through the medicaid expansion," said Anna Strong.
DHS suggest a three-pronged approach to cutting $130 million out of its budget:
The big ones include cutting provider payment rates by 3 percent, eliminating adult dental care, dropping ArHealthNetworks coverage for working adults, freezing eligibility for home and community based waiver services for the aged and those with disabilities, and cutting level 3 nursing care for those not wholly dependent on help for activities of daily living.
The final determination will be made during the 2013 regular session.