AUGUSTA (AP) – A federal audit shows that Maine overbilled the Medicaid program by more than $44 million in 2002 and 2003, but the state insists that Maine’s Bureau of Child and Family Services calculated the costs correctly.

Gov. John Baldacci says he doesn’t plan to ask lawmakers for $29.7 million to repay the state’s share of the alleged overbilling because he plans to contest the audit findings. State lawmakers are already facing a $95 million budget shortfall.

At issue are charges by the Bureau of Child and Family Services for work it did to help Mainers who are served by Medicaid. The audit by the Inspector General’s Office in the U.S. Department of Health and Human Services says the state overbilled and inappropriately billed Medicaid for services provided by the bureau.

State officials disagree.

“It’s far from settled as far as we’re concerned,” said Deputy Commissioner Kristen Figueroa of the state Department of Health and Human Services. “We’re going to continue to fight.”

Legislative leaders in both parties expressed support for the decision to challenge the findings and said they hope the state prevails.

“I have faith in the department,” said Senate President Beth Edmonds, D-Freeport. “The only legitimate thing they can do” is fight the federal government’s bid for reimbursement.

It could take months for the state and federal governments to resolve the issue. The audit has been forwarded to the Centers for Medicare and Medicaid Services. The state must submit a response this month.

Maine’s handling of the Medicaid program has been a source of controversy. In 2003, a series of reports documented sloppy bookkeeping.

In 2005, the state launched a new Medicaid billing system that sent incorrect payments or nothing at all to health care providers. The state is in the process of outsourcing management of its Medicaid computer system.