Groups that treat people with addictions, mental health problems and developmental disabilities are bracing for state budget cuts they say could force them to reduce staffing and services for some of Nebraska’s most vulnerable residents.

The cuts became final last week when lawmakers fell short of the votes needed to override Gov. Pete Ricketts’ line-item budget vetoes.

Now, service providers are scrounging for places to cut in the face of rising costs and unpaid Medicaid claims from the state’s new managed care system, Heritage Health.

Annette Dubas of the Nebraska Association of Behavioral Health Organizations, says the cuts will create major challenges for providers that are already struggling with increased costs.

The Department of Health and Human Services says it will work with providers to try to minimize the impact.