WASHINGTON -- Burgeoning spending by most states on Medicaid and prisons is soaking up more and more funds that otherwise would go to other programs, such as higher education, says a report released yesterday by the National Conference of State Legislatures.

"The most important information from state budgets for fiscal 1994 is the way Medicaid and corrections are crowding out funding for higher education." says the report, entitled "State Budget and Tax Actions 1993."

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