Feds approve cuts to Arizona medicaid

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TUCSON, Ariz. -- Governor Brewer, celebrating a key concession by the Obama administration that allows the state to help balance the budget.

In a letter to the governor health Secretary Kathleen Sebelius says arizona doesn't need federal approval to eliminate 250,000 people from it's medicaid rolls.

Republican lawmakers targeted childless adults enrolled in the AHCCCS program to save more than $540 million.

Also Wednesday, the legislature signed off on a package of business tax cuts that will cost the state of $538 million in revenue over the next seven years.