Business Notes

Kathy Betts may not consider herself a Massachusetts miracle worker, but in discovering a way to balance the state's budget without raising taxes she solved a problem that has confounded the craftiest politicians. Betts, a part- time employee of the state's department of public welfare, spotted a new federal law that reimburses states providing hospital care for needy patients. The resulting Medicaid payments to Massachusetts will total $489 million, enough to erase the state's entire budget deficit -- with $39 million to spare. Governor William Weld plans to award Betts $10,000, which she will save for the education of her two children. "I'm still in a state of shock," said Betts, 38. Weld also proposed an incentive-award program for state workers.