Friday's public hearing drew more than 300 people to the Capitol Auditorium and most of those signed up to testify called on budget writers to restore $35 million cut from Medicaid in the current fiscal year.

"We understand that resources are limited," said Shaun Bills of Idaho Falls, president of the Case Management Association of Idaho. "We also understand an ounce of prevention is worth a pound of cure."

The testimony, often emotional and sometimes tearful, echoed last year's first-ever public testimony taken by the Joint Finance-Appropriations Committee. And, as in 2011, people from all regions of Idaho spoke about the consequences of Medicaid cuts to the developmentally disabled, mentally ill and children. The committee planned to take 2 1/2 hours of testimony and expected to hear from about 50 of those attending.

Testimony came from recipients, family members, providers and advocates.

"We have substituted public defenders for therapists," said Howard Belodoff, a Boise lawyer who won the landmark "Jeff D" case, which forced the state to boost Medicaid funding for children.

Katherine Hansen, executive director of Community Partnerships of Idaho, has two specific suggestions that would cost $1.8 million in fiscal 2013, which begins in July.

The two changes:

First, reinstating services for the developmentally disabled who also are mentally ill. Now, recipients must choose one of the two services and are no longer eligible for both.

Second, restoring job coaching services. "Many of the individuals are losing their jobs, having their hours reduced, or having to move to waiting lists."

Paula Marcotte of Nampa echoed Hansen, said forcing recipients to choose between treatment for schizophrenia and a developmentally disability is causing "severe negative impacts."

"It's time we renew, restore and rebuild," Marcotte said.

Several people testified in favor of funding a suicide hotline, including Stephanie Clark of Boise. Clark, the mother of triplets, said her children will never know her grandmother because she killed herself.

Lori Olson of St. Anthony tearfully described the recent suicide of her brother-in-law, saying, "The medication that the physician had prescribed was a stimulant."

Dakota Parsons, a high school student from Teton County, said he's losing his Medicaid helper because his hours have been cut back. "Please help me," said Parsons, who said he is on the Honor Roll and aspires to be a scientist.

Some testimony also covered restoring funds for K-12 education. Idaho Education Association President Penni Cyr said teachers are pleased Superintendent of Public Instruction Tom Luna supports funding $19.7 for teacher pay that was stripped from the 2013 budget under Luna's "Students Come First" laws.

But Cyr said teachers are concerned Luna is only proposing the change for one year, when subsequent cuts remain in the law in coming years.

Cyr criticized Gov. Butch Otter's budget, which calls for putting $60 million into state savings accounts. "We believe that this is not the time to refill the state's Rainy Day accounts, or to make it a top priority."

Alex Neiwirth of the Idaho Association of Government Employees knocked Otter's plan for $45 million in unspecified tax cuts. Neiwirth noted that agency heads have been telling the committee that employee retention has been a problem. He predicted that will get worse if pay isn't boosted. Otter has recommended a one-time pool equal to 3 percent of pay for bonuses, but only if revenue targets are met.

"As this economy turns around and more jobs become available, the state will lose employees in droves," Neiwirth said. "Morale is very low."