Relates to calculating social services district medical assistance expenditure amounts

13 Co-sponsors

• Tony Avella
• David Carlucci
• Hugh T. Farley
• Joseph A. Griffo
• Mark Grisanti
• William J. Larkin Jr.
• George Latimer
• Tom Libous
• George D. Maziarz
• Michael H. Ranzenhofer
• Patty Ritchie
• James L. Seward
• Catharine Young

BILL NUMBER:S153A

Title of bill

An act to amend chapter 58 of the laws of 2005, relating to authorizing reimbursements for expenditures made by or on behalf of social services districts for medical assistance for needy persons and the administration thereof, and to amend the general municipal law, in relation to calculating social services district medical assistance expenditure amounts

Purpose

This bill provides for a takeover of the local share of Medicaid over a twenty year period beginning in 2016. This bill also provides that all savings from this takeover are passed along to property taxpayers by reducing the allowable levy under the property tax cap.

Summary of provisions

Section 1: Subdivision c-1 of section 1 of chapter 58 of the laws of 2005 is amended to provide for a twenty year takeover of the local share of Medicaid costs.

Section 2: Subsection 3 of section 3-c of the General Municipal Law is amended to provide for a reduction in the allowable tax levy limit for counties equal to the amount of the reduction in each county's local share of Medicaid costs.

Justification

Since the enactment of the Medicaid program in 1965, local social service districts (counties and the City of New York) have been required to share in both the cost and administrative operation of the program. Over the years, the cost of the program has grown exponentially while responsibility for program design and administration has been gradually shifted to the state.

Despite this shift of responsibility, county and New York City govern- ments continue to be required to contribute a significant share of the total program cost. Currently, counties and New York City pay approxi- mately $7.3 billion per year.

The FY 2012-2013 budget began to address this unfunded mandate by phas- ing out the 3% increase in county Medicaid costs each year. This will allow counties to work within the recently enacted cap on property taxes without slashing essential local services such as senior services, veterans' services, law enforcement, parks, and road maintenance.

However, even after this freeze on local Medicaid costs being fully implemented in 2015, over $7.5 billion of Medicaid costs will still fall on local governments and thus property taxpayers. This bill would address these remaining costs by having the state government assume responsibility of 5% of the costs each year for twenty years.

Furthermore, this bill ensures that these local savings are passed along to property taxpayers by reducing the allowable property tax levy for counties by the amount they will save from reduced Medicaid costs. In many counties this will mean year-to-year reductions in the property tax levy from 2016 until 2035, reversing a long trend of year-to-year increases that were caused, in part, by Medicaid cost sharing.

Legislative history

2011-12: S.5889D

Effective date

This act shall take effect immediately.