RALEIGH — The Christmas decorations are laid out a home in the heart of Raleigh, but the Christmas cheer is on hold.

This house is one of many group homes scattered throughout the state. It’s a full-service home, providing a place to live for mentally challenged, disabled, or elderly North Carolina residents.

These folks who need help with everything from taking their medicine to daily hygiene.

“There is not another option,” said group home owner Mary Ann Crandell. “This is the only way.”

Because of the way the current state budget is written, many of Crandell’s residents could lose their Medicaid funding to live in these homes.

They said this means they could be out on the street as of Jan. 1, 2013.

“Most of the people who are here are the ones — as they say — that are born and bred here,” said Crandall, “and now they need North Carolina.”

At issue is about $7 million dollars of funding. That is just a very small percentage of the multi-billion dollar bottom line of state budget. But there are questions if lawmakers need to fix it or if the governor can find the money herself.

For his part, Speaker of the House Thom Tillis said the clock is ticking and he has asked the governor to call lawmakers back for a special session.

“Its a very simple fix,” said Tillis. “There is no question that the General Assembly believed that these patients were going to be covered. It’s a technical correction that we need to make and I would just like to go ahead and do that.”

But in the meantime the residents say they sit and wait- and worry.

“If I’m out there on the streets, I don’t know what would happen,” says group home resident Laura Starners. “I really don’t. I can imagine. But that’s about it.”

Gov. Bev Perdue’s office has indicated she will release a plan for a funding fix by the end of the week.