Topeka ? Kansas has lost $32.4 million in funds for the health care program that serves the poor and disabled, and could lose upwards of $80 million more, officials said Tuesday.

The losses are attributable to federal audits of how Kansas spent funds under Medicaid’s school-based health programs from Oct. 1, 1997 to Sept. 30, 2003.

State Sen. Jim Barone, D-Frontenac, said he feared the lost funds would result in a loss of needed services.

“Somebody has to be shorted that $32 million; some Kansas citizen, someplace,” Barone said during a meeting of the Legislative Budget Committee.

But Scott Bruner, director of the Kansas Medicaid assistance programs, said the state was trying to handle the problem without reducing services.

“We’re trying to manage cash flow as best we can knowing that there are shortages coming down the road,” Brunner said.

He said, however, that lawmakers may be asked to replace the lost federal funds with state tax dollars when the next legislative session starts in January.

The audits by the U.S. Health and Human Services Office of Inspector General have focused on Medicaid funds spent in school districts.

One audit claims that in some instances payments were made for the services that weren’t delivered. State officials have denied that allegation. In other areas, federal guidelines weren’t followed, according to the audits.

The state has challenged some of the federal findings, but accepted others, which has resulted in a $32.4 million reduction in how much the state receives in Medicaid funds from the federal government. The reduction represents less than three percent of what the state receives annually from the feds in Medicaid.

One audit being challenged by the state could increase the state’s liability by $70 million to $80 million more, officials said.

Bruner said Kansas is among many states facing similar kinds of audits as the federal government tries to tighten Medicaid expenditures.