County leaders from the capital region and across the State today embraced a new legislative proposal that provides for a multi-year phase out of the county share of the State’s Medicaid program.
The proposal provides for a gradual State takeover of the full financial costs of Medicaid, which is currently financed at the local level through property taxes.
“Right now county taxpayers pay more than $7.3 billion to the State for Medicaid, and that cost automatically grows by 3 percent each year. In some counties, Medicaid takes up the entire property tax levy. The growth in Medicaid alone for these counties exceeds the property tax cap,” said NYSAC President William J. Ryan, a Westchester County legislator. “The only way to achieve property tax relief is to reduce State mandates, and the program to reform first is Medicaid.”
The proposal is being sponsored by Senators Patrick M. Gallivan (R-Erie) and Roy McDonald (R-Saratoga), and Assemblywoman Amy Paulin (D-Westchester), who said the legislation was designed to “structurally reform the cost of New York State’s Medicaid system by incrementally transferring full responsibility for funding the $53 billion program to the State.”
“The challenges facing county government have never been greater. With the loss of federal stimulus funds, combined with the urgency of enacting a property tax cap, State action on Mandate relief is critical for our communities,” said Monroe County Executive Maggie Brooks, president of the New York State County Executives Association.
The new legislation takes advantage of the Medicaid spending cap provision enacted in this year’s State Budget prohibiting the State from increasing spending on Medicaid by more than the ten year rolling average of the medical component of the consumer price index. In addition, the federal Affordable Care Act provides an historic opportunity for the State to restructure Medicaid in a way that standardizes services and reduces costs.
“Stabilizing and reducing property taxes is our mission, especially in this economy. NYSAC Commends Senators Roy McDonald and Patrick Gallivan, and Assemblywoman Amy Paulin for this bi-partisan legislation to relieve local taxpayers,” said NYSAC Executive Director Stephen J. Acquario.
The New York State Association of Counties (NYSAC), founded in 1925, is a bi-partisan municipal association representing the counties of New York State. NYSAC is the only statewide association representing the interests of nearly 5,000 elected and appointed officials, including county executives, legislators, supervisors, administrators, commissioners and other employees who deliver essential services to the public.
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