What's happening
This bill changes how social services districts calculate medical assistance expenditures, potentially reducing required local spending starting after 2016.
Why it matters
Potential for Local Tax Relief. By allowing counties to subtract any decrease in required medical assistance spending from their expenditure calculations, the bill could reduce local tax levy pressure, possibly leading to lower property taxes or freeing up funds for other local needs.
Shifts Fiscal Responsibility. The changes may shift more of the financial burden for Medicaid and similar programs from county governments to the state, altering how these social services are funded and potentially impacting state and local budget negotiations.
Encourages Cost Control. By setting a floor at zero and allowing reductions based on prior spending, the bill incentivizes counties to control or reduce their medical assistance expenditures, potentially driving more efficient use of public resources.
Impacts Future Planning. Counties may need to adjust financial planning and budgeting practices, as this change could affect how they forecast expenditures and set aside reserves for social service obligations in the years after 2016.
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Who cares
Headline styles
Change Medicaid Spending Formula
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 59
History
- Referred to local government
- Referred to local government
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.
Change Medicaid Spending Formula
In Assembly Committee · Health · Sponsor Amy Paulin
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5313
2017-2018 Regular Sessions
IN SENATE
March 20, 2017
Introduced by Sens. GALLIVAN, AKSHAR, AVELLA, CARLUCCI, GRIFFO, LARKIN, MARCHIONE, ORTT, RANZENHOFER, RITCHIE, SEWARD, YOUNG -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
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
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision (c-1) 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 and the administration thereof, as added by section 1 of part F of chapter 56 of the laws of 2012, is amended to read as follows:
(c-1) Notwithstanding any provisions of subdivision (c) of this section to the contrary, effective April 1, 2013, for the period January 1, 2013 through December 31, 2013 and for each calendar year thereafter, the medical assistance expenditure amount for the social services district for such period shall be [equal to] the greater of (i) zero; or (ii) the previous calendar year's medical assistance expenditure amount minus five percent of the medical assistance expenditure amount for the period January 1, 2016 through December 31, 2017, except that:
(1) for the period January 1, 2013 through December 31, 2013, the previous calendar year medical assistance expenditure amount will be increased by 2%;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00231-01-7
S. 5313 2
(2) for the period January 1, 2014 through December 31, 2014, the previous calendar year medical assistance expenditure amount will be increased by 1%; and
(3) for the period January 1, 2017 through December 31, 2017, the previous calendar year medical assistance expenditure amount will be unchanged.
§ 2. Paragraph (c) of subdivision 3 of section 3-c of the general municipal law is amended by adding a new subparagraph (viii) to read as follows:
(viii) Subtract the amount that the prior fiscal year's medical assistance expenditure amount exceeds the current fiscal year's medical assistance expenditure amount, provided that this shall only apply to counties and shall only apply to fiscal years that begin after two thousand sixteen.
§ 3. This act shall take effect immediately, provided, however, that the amendments to section 3-c of the general municipal law made by section two of this act shall not affect the repeal of such section and shall be deemed repealed therewith.
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, 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 2017. 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 governments continue to be required to contribute a significant share of the total program cost. Currently, counties and New York City pay approximately $7.3 billion per year.
The FY 2012-2013 budget began to address this unfunded mandate by phasing out the 3% increase in county Medicaid costs each year, This will allow counties to work within the 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 2017 until 2034, reversing a long trend of year-to-year increases that were caused, in part, by Medicaid cost sharing.
Legislative history
2015-16: S.429-B/A.1734-B Referred to Local Government/Referred to Health 2013-14: S.153-A/A 4196-A Referred to Finance/Referred to Health 2011-12: S.5889D Committed to Finance
Fiscal implications
To be determined.
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.