MADISON, WI (WTAQ) - The Department of Health Services reports the state’s Medicaid deficit is not going to be nearly as bad as predicted.

A $372 million deficit projected last June is now being put at about $35.5 million.

That information is in a letter to the leaders of the Legislature’s Joint Finance Committee from DHS Secretary Dennis Smith.

Several factors have contributed to the lower numbers. The federal government has sent $27 million to Wisconsin in retroactive service claims.

Smith also says fewer people than anticipated have joined the Family Care program since the enrollment cap was lifted last April. The number of people receiving full Medicaid benefits dropped by 7,100 between January of last year and August of this year.