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ATLANTA (AP) -- The defeat in Congress of a sweeping jobs bill could rip a $375 million hole in Georgia's budget.

The legislation contained an extension of Medicaid dollars. Georgia is counting on the money to help balance the $17.7 billion state budget that Gov. Sonny Perdue signed into law earlier this month.

That budget - which covers the fiscal year that begins July 1 - is already lean, having weathered several rounds of cuts to keep pace with tumbling tax collections.

Advocates say a new round of Medicaid cuts force some struggling hospitals to shut their doors or prompt doctors to deny services to Medicaid patients.

Congress defeated the bill - which also would have extended unemployment benefits - by a 57-41 vote last week.

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