BUFFALO, N.Y. -- Organizers of the Buffalo Pride Parade have rejected a request from Gov. Kathy Hochul and her administration to participate in the event in her hometown.

The decision is in direct response to a budget battle that has been brewing for months now. The executive proposal plans to move forward with an already delayed policy, put in place by her predecessor, that would among other things make the state responsible for prescription drug reimbursements.

Under the current 340B program, "safety net providers," who provide medical care to underserved communities, are allowed to buy prescription drugs at cost and get reimbursed by Medicaid for the full cost. The difference is a major source of revenue for these organizations.

Buffalo-based Evergreen Health Center is among the largest safety net providers in upstate New York and its clientele is traditionally from the LGBTQ+ community. It is one of the primary sponsors of the parade and the Pride Center of WNY is an affiliate.

"We have not arrived at this decision lightly and we are saddened to have to make this stand," the organization wrote in a statement.

The state has promised to make sure the organizations that include Federally Qualified Health Centers will still get the same money and the new policy will streamline things, making the prescription process less confusing and expensive for consumers. The providers are skeptical of the long-term viability of the plan and of New York's ability to secure the funding quickly from the federal government.

"This isn’t about money," the statement continues. "It’s about our ability to meet the needs of this community, prevent illness, end the AIDS epidemic and help our patients thrive. An attack on the program is an attack on communities who need it: communities of color, LGBTQ patients, people living with HIV, refugees, and people with intellectual and developmental disabilities. In good faith to those we serve, we cannot welcome policies that run counter to our mission of supporting LGBTQ+ people and their health." 

The parade organizers recognized Hochul's "long-standing support" of the community but said it could welcome policies that run counter to their mission.

"Governor Hochul is a steadfast supporter of the LGBTQ+ community and has the record to back it up, using newly-signed legislation and state funding to lift up LGBTQ+ individuals in every corner of the State. Due to pending litigation from Evergreen Health on this particular issue, we will not comment further," a Hochul spokesperson said.

Evergreen is one of two facilities suing the state to try to postpone the policy from going to effect on April 1. The Senate and Assembly propose a modified plan to allow the 340B program to stay in place amid statewide structural changes, based on compromising legislation sponsored by Senate Health Committee Chair Gustavo Rivera.