What's happening
This bill phases out the local share of Medicaid costs over five years and requires most savings to be used for property tax reductions or rebates.
Why it matters
Major shift in Medicaid funding responsibility. By eliminating the local share of Medicaid costs over five years, the bill fundamentally changes how Medicaid is financed in New York, moving the burden away from counties and local governments to the state level. This could have significant implications for local budgets and state fiscal planning.
Tie to property tax relief. The requirement that at least 75% of local government savings be used for property tax reductions or rebates ensures that residents directly benefit from the change, potentially making homeownership more affordable and addressing longstanding concerns over New York’s high property taxes.
Mandated timeline and oversight. The bill phases the changes in annually from 2022 to 2026, with clearly defined reduction percentages each year, and authorizes the state comptroller to set and communicate the minimum required property tax reductions. This structured approach aims to provide predictability and transparency for local governments and taxpayers.
Impact on local government operations and services. As local governments will no longer be responsible for a substantial portion of Medicaid expenses, they may have increased fiscal flexibility. However, the requirement to allocate most savings to tax relief could limit their ability to use freed-up funds for other services, infrastructure, or debt reduction.
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Who cares
Headline styles
End Local Medicaid Payments
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Print number 1677a
- Amend and recommit to social services
- Referred to social services
- Referred to social services
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
End Local Medicaid Payments
In Assembly Committee · Ways And Means · Sponsor Crystal Peoples-Stokes
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1677--A
2017-2018 Regular Sessions
IN SENATE
January 10, 2017
Introduced by Sens. RITCHIE, O'MARA, TEDISCO -- read twice and ordered printed, and when printed to be committed to the Committee on Social Services -- recommitted to the Committee on Social Services in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
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, in relation to a five year elimination of the local share for medicaid
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (iv) of subdivision (c) of section 1 of part C of 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, is amended and seven new subdivisions (c-2), (c-3), (c-4), (c-5), (c-6), (c-7) and (c-8) are added to read as follows:
(iv) 2009 (January 1, 2009 through December 31, 2009), and each succeeding calendar year through 2021: prior year's trend factor percentage plus 3%.
(c-2) Notwithstanding the provisions of section 368-a of the social services law, or any other provision of law, commencing with the period January 1, 2022 through December 31, 2022, calendar year social services district medical assistance expenditure amounts for each social services district shall be reduced by 20% from the 2021 expenditures. No less than 75% of the savings from this medical assistance expenditure reduction shall be used for property tax levy reductions, or property tax rebates, effective in the local government's 2023 fiscal year.
(c-3) Notwithstanding the provisions of section 368-a of the social services law, or any other provision of law, commencing with the period
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03613-02-8
S. 1677--A 2
January 1, 2023 through December 31, 2023, calendar year social services district medical assistance expenditure amounts for each social services district shall be reduced by 40% from the 2021 expenditures. No less than 75% of the annual savings from this medical assistance expenditure reduction, compared to the prior year medical assistance expenditure, shall be used for property tax levy reductions, or property tax rebates, effective in the local government's 2024 fiscal year.
(c-4) Notwithstanding the provisions of section 368-a of the social services law, or any other provision of law, commencing with the period January 1, 2024 through December 31, 2024, calendar year social services district medical assistance expenditure amounts for each social services district shall be reduced by 60% from the 2021 expenditures. No less than 75% of the annual savings from this medical assistance expenditure reduction, compared to the prior year medical assistance expenditure, shall be used for property tax levy reductions, or property tax rebates, effective in the local government's 2025 fiscal year.
(c-5) Notwithstanding the provisions of section 368-a of the social services law, or any other provision of law, commencing with the period January 1, 2025 through December 31, 2025, calendar year social services district medical assistance expenditure amounts for each social services district shall be reduced by 80% from the 2021 expenditures. No less than 75% of the annual savings from this medical assistance expenditure reduction, compared to the prior year medical assistance expenditure, shall be used for property tax levy reductions, or property tax rebates, effective in the local government's 2026 fiscal year.
(c-6) Notwithstanding the provisions of section 368-a of the social services law, or any other provision of law, commencing with the period January 1, 2026 through December 31, 2026, calendar year social services district medical assistance expenditure amounts for each social services district shall be reduced by 100% from the 2021 expenditures; and shall remain eliminated each year thereafter. No less than 75% of the annual savings from this medical assistance expenditure reduction, compared to the prior year medical assistance expenditure, shall be used for property tax levy reductions, or property tax rebates, effective in the local government's 2027 fiscal year.
(c-7) Notwithstanding the provisions of section seven of this act, any county that opted into the local sales tax intercept methodology shall receive a proportionate reduction in the sales tax intercept as described in subdivisions (c-2), (c-3), (c-4), (c-5) and (c-6) of this section and use these recaptured funds for property tax reductions in the same manner as other local jurisdictions as described.
(c-8) The minimum amount of annual property tax levy reductions resulting from savings achieved as defined in subdivisions (c-2), (c-3), (c-4), (c-5) and (c-6) of this section, shall be determined by the state comptroller and transmitted to each local government one hundred eighty days in advance of the start of the fiscal year for which the property tax reduction is to be effective.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend chapter 58 of the laws of 2005, relat- ing to authorizing reimbursements for expenditures made by or on behalf of social services districts for medical assistance for needy persons and the administration thereof, in relation to a five year elimination of the local share for medicaid
Purpose or general idea of bill
This bill would amend chapter 59 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 in relation to a five year elimination of the local share for Medicaid.
Summary of specific provisions
Section 1 amends the laws of 2005, relating to authorizing reimburse- ments for expenditures made by or on behalf of social services districts for medical assistance for needy persons, and seven new subdivisions (c2) thru (c8) are added. The subsections reduce the medical assistance expenditure amounts for each social services district and implement an incremental five year plan in which the medical expenditure reduction amounts for each social services district is increased 20% per year. This section also provides that the savings from this reduction shall be used for property tax levy reductions or property tax rebates and the minimum amount of annual property tax levy reductions resulting from the savings shall be determined by the state comptroller and transmitted to each local government.
Section 2 provides the effective date.
Justification
In 2011 a series of resolutions and statements from a cross section of municipal governments in New York State, along with the New York State Association of Counties, brought forward the issue of New York's Medi- caid spending. They found that New York's Medicaid program spends in excess of $52 billion dollars a year, almost 20% of state spending, and the local share of about $7.3 billion would grow by 37% over the next five years. This figure is unsustainable to local governments and they are desperate in need of relief. Increased costs have precipitated a situation in New York where our population of 19.4 million exceeds the combined Medicaid expenditures of California with a population of 37.1 million and Texas with a population of 25 million. Increased costs illustrate the need for the state to have a greater role in managing Medicaid and reducing this mandates burden on localities thus it is essential that this bill pass.
Prior legislative history
2015-2016: S.2956-A Reported and Committed to Finance./A3206-A Held for Consideration in Ways and Means. 2013-2014: S.1588A
Fiscal implications
None.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.