Originally Posted - January 13, 2006


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Budget Proposal Contains $1.1 Billion In Medicaid Savings

ALBANY---According to Gov. George E. Pataki, his proposed budget for 2008-07 will include more than $1.1 billion in Medicaid savings -- $775 million for New York City and $391 million for counties across the state. The new savings are a direct result of the local Medicaid cap and acceleration of the state's takeover of costs of the Family Health Plus, which were part of the state budget enacted last year.

Under the new cap enacted by the Governor and Legislature last year, counties and New York City will benefit from a cap on their local share of Medicaid costs equaling 3.5 percent growth beginning in 2006, dropping to 3.25% in 2007, and 3% in 2008. This means that this coming year, counties and New York City will pay no more than 3.5% in additional Medicaid costs, even though Medicaid is projected to grow statewide by 10% this year.

"We proposed and fought to enact these Medicaid reforms so that we could provide real and immediate relief from escalating Medicaid costs to property taxpayers across the State," Gov. Pataki said. "While it will mean additional costs in this upcoming state budget, I'm proud that our budget will deliver on our promise and provide more than $1.1 billion in new Medicaid relief to counties and New York City this year."

The Governor noted that the substantial new savings being provided to counties and New York City this year gives localities a real opportunity to reduce their spending on Medicaid - a program that for years local officials have said is a direct cause of annual property tax increases. This year, the Governor said, local governments should dedicate these new savings to reducing property taxes and/or meeting other critical local needs.

"Our new Medicaid reforms will dramatically rein in what was one of the fastest growing fiscal responsibilities for counties and New York City by providing immediate and significant relief from Medicaid costs," the Governor added. "I would urge local leaders to use these funds to offer county property tax relief -- and in New York City to invest the City's $775 million in new savings into the City's schools."

The Legislature enacted Governor Pataki's proposals to cap local Medicaid costs virtually unchanged in last year's final state budget. The Governor worked closely with Legislative leaders and the New York State Association of Counties (NYSAC) to ensure its speedy and successful approval.

Below is a county-by-county and New York City breakout of the new Medicaid savings that will be included in the Governor's Executive Budget. 01-13-06

Local Fiscal Relief
Cap & FHP
County2006-07
SAVINGS
Albany$8,985,000
Allegany$2,403,000
Broome$8,503,000
Cattaraugus$4,119,000
Cayuga$3,458,000
Chautauqua$6,584,000
Chemung$4,074,000
Chenago$2,643,000
Clinton$4,081,000
Columbia$2,037,000
Cortland$2,496,000
Delaware$2,011,000
Dutchess$7,148,000
Erie$30,614,000
Essex$1,942,000
Franklin$2,257,000
Fulton$3,144,000
Genesee$2,616,000
Greene$2,274,000
Hamilton$115,000
Herkimer$3,268,000
Jefferson$4,533,000
Lewis$1,573,000
Livingston$2,399,000
Madison$3,005,000
Monroe$29,534,000
Montgomery$2,517,000
Nassau$35,764,000
Niagra$8,887,000
Oneida$11,156,000
Onondaga$18,159,000
Ontario$3,524,000
Orange$12,994,000
Orleans$2,282,000
Oswego$6,899,000
Otsego$2,718,000
Putnam$1,493,000
Rensselaer$3,928,000
Rockland$12,312,000
St. Lawrence$5,604,000
Saratoga$6,052,000
Schenectady$5,370,000
Schoharie$1,347,000
Schuyler$1,058,000
Seneca$1,367,000
Steuben$4,933,000
Suffolk$42,199,000
Sullivan$4,402,000
Tioga$2,058,000
Tompkins$2,693,000
Ulster$4,870,000
Warren$3,449,000
Washington$2,841,000
Wayne$3,689,000
Westchester$28,331,000
Wyoming$1,520,000
Yates$1,164,000
Rest Of State$391,396,000
New York City$774,647,000
New York State$1,166,043,000

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