What's happening
This bill reduces county medical assistance expenditures (excluding NYC) and requires equivalent property tax levy reductions if those expenditures decrease.
Why it matters
Directly links reductions in county Medicaid (medical assistance) spending to property tax relief, ensuring that any savings from lower county obligations cannot be redirected to other uses. This could result in immediate, tangible tax reductions for residents if the state or federal government lowers counties' Medicaid costs.
Excludes New York City from these mandates, focusing the fiscal impact and potential tax changes solely on counties outside NYC. This distinction matters because NYC's Medicaid funding and property tax structures are significantly different from the rest of the state.
Mandates a formula-driven reduction: counties must reduce their property tax levy by the same dollar amount as any decrease in their mandated Medicaid contributions. This ties local government budgeting more tightly to state and federal healthcare policy decisions, potentially limiting local fiscal flexibility.
Could have implications for county budgeting and services. By requiring that all Medicaid savings go to property tax cuts, counties may have less discretion to allocate funds to other priorities, potentially affecting local programs if Medicaid costs decrease significantly.
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Who cares
Headline styles
Lower County Medicaid Costs
Plain English, a few words. Used as the page title.
Sponsors
History
- 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.
Cut County Medicaid Costs
In Assembly Committee · Local Governments · Sponsor Colin Schmitt
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
967
2019-2020 Regular Sessions
IN SENATE
January 9, 2019
Introduced by Sens. YOUNG, AKSHAR, CARLUCCI, FUNKE, GALLIVAN, RITCHIE -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 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 medical assistance expenditure amounts; and to amend the general municipal law, in relation to county property tax levy reductions resulting from medical assistance program expenditure reductions
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 1 of part C of chapter 58 of the laws of 2005, authorizing reimbursements for expenditures made by or on behalf of social services districts for medical assistance for needy persons and the administration thereof, is amended by adding a new subdivision (c-2) to read as follows:
(c-2) Notwithstanding any provisions of subdivision (c) or (c-1) of this section to the contrary, and excluding a social services district that constitutes a city of one million or more, effective April 1, 2020, for the period January 1, 2020 through December 31, 2020, and for each calendar year thereafter, the medical assistance expenditure amount for the social services district for such period shall be the greater of (1) zero; or (2) the previous calendar year's medical assistance expenditure amount minus twenty percent of the medical assistance expenditure amount for the period January 1, 2019 through December 31, 2019.
§ 2. The general municipal law is amended by adding a new section 3-e to read as follows:
§ 3-e. County property tax levy reduction resulting from medical assistance program expenditure reductions. Notwithstanding any other provision of law to the contrary, in the event a county's local contrib-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04029-01-9
S. 967 2
ution to New York state's share of payments under the medical assistance program are reduced or eliminated as a result of changes in federal or state statute, the amount of such reduction or elimination shall be applied as an equal dollar amount reduction in the property tax levy of such county.
§ 3. 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 authorizing reimburse- ments for expenditures made by or on behalf of social services districts for medical assistance for needy persons and the administration thereof, in relation to medical assistance expenditure amounts; and to amend the general municipal law, in relation to county property tax levy reductions resulting from medical assistance program expenditure reductions
Purpose
This bill provides for a takeover of the local share of Medicaid outside of New York City over a five-year period beginning in calendar year 2019. This bill also ensures that any cost savings to a county that takes effect due to federal or state action that reduces the county's contribution for Medicaid costs are passed on as real property tax reductions.
Summary of provisions
Section 1: Section 1 of chapter 58 of the laws of 2005 is amended by adding a new subdivision (c-2) to provide for the takeover of the local share of Medicaid costs outside of New York City over a five-year peri- od.
Section 2: Adds a new section 3-e to the general municipal law which provides that in the event federal or state statute is modified to elim- inate or reduce a county's local contributions to New York's share of payments under the Medicaid assistance program, the amount of the reduction shall be applied as a correlating reduction in the property tax levy of such county.
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. The State is responsible for program design and, over the course of several years, the overall administration of the program has been gradu- ally shifting to the state. The counties' Medicaid share is currently capped at 2015 levels. However, counties outside of New York City still contributed $2.3 billion to the program in FY 2018.
This bill would enact a responsible, phased-in state takeover of the county share of Medicaid, over a five-year period, lifting substantial property tax pressure on counties. Furthermore, the bill ensures that New York's tax burden on local property taxpayers is alleviated by requiring that any reduction in county Medicaid costs resulting from state or federal legislative action be passed on to resident property taxpayers on a dollar for dollar basis.
Legislative history
2018: S.8411 Passed Senate
Fiscal implications
None in FY 2020.
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.