SPRINGFIELD -- Baystate Health is set to lose $1 million under Gov. Charlie Baker's midyear budget cuts.

"Getting (cut) for the relatively small allocation that our local delegation worked hard to get for us feels like a step backward," said Ben Craft, senior director of government and public affairs for Baystate Health.

Baker announced $98 million in midyear budget cuts on Tuesday. The governor said he believes the state budget is out of balance after the state Legislature overrode most of his budget vetoes in July and underfunded certain accounts -- for example, corrections and MassHealth. He said weak revenues are not enough to support the level of spending that lawmakers approved.

Democratic leaders in the House and Senate disagree and say they believe the budget is balanced and Baker's cuts are premature.

Baker said he had to make some "tough decisions." Much of what he cut was local earmarks -- like the $1 million earmark for Baystate that Springfield-area legislators proposed earlier in the year.

"We did everything we could to protect and preserve existing programs, and we're able to continue to support historic levels of investment in local aid, chapter 70 (education) spending, substance abuse spending and a number of other areas as well," Baker said Thursday.

Baystate has argued for years that it needs more money to supplement the $40 million it loses annually to treating Medicaid patients, since the federal and state reimbursement is lower than the cost for treating these patients. The Springfield-based medical system also notes that insurance reimbursement rates to Boston area hospitals are higher than those in Western Massachusetts. Baystate Health eliminated more than 300 jobs in September in an attempt to close a budget gap.

Craft said the $1 million appropriation was an attempt by local lawmakers to help Baystate address its budget problems.

"We think this was an effort by our local government to recognize the challenges we have and the disparities in Medicaid funding," Craft said. "We're finally feeling like there's some recognition in Boston of the role we play in providing Medicaid services here."

Craft said he hopes lawmakers consider restoring some of the money for Baystate if the Legislature passes a supplemental budget after lawmakers return in January.

Also lost to Baker's cuts was $120,000 for a pilot program to put substance abuse recovery coaches in Western Massachusetts emergency rooms.

The program was announced in September but had not started because the state had yet to release the funds.

The program would have hired two full-time recovery coaches, who could help steer addicts who come into the emergency room suffering from drug overdoses into substance abuse treatment. The program, developed in partnership with the Center for Human Development and Behavioral Health Network, would operate out of Baystate Medical Center. Organizers were also talking to Mercy Medical Center about participating.

State Sen. Eric Lesser, D-Longmeadow, who spearheaded the program, called the cut "unfortunate."

"It's a very small amount of money in the overall budget, and we're facing a crisis with heroin addiction in Western Massachusetts," Lesser said. "I really think that it was a mistake for the governor to cut that."

Similar programs exist in hospitals in eastern Massachusetts, but there are none in the western part of the state.

The goal of the program, Lesser said, would be to help people at the moment they are most in need -- when they are coming out of an overdose -- so they can work on breaking the underlying addiction rather than cycling in and out of emergency rooms.

Lesser said he will push for the funding to be restored through a supplemental budget.