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ALBANY---Gov. George E. Pataki has detailed the more than $1.1 billion in new Medicaid relief that will be provided to counties and New York City this year during his address to the New York State Association of Counties (NYSAC) annual conference in Albany.
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. These savings will grow dramatically in the next several years and will provide nearly $9 billion in new savings to counties and New York City during the next five years.
"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. "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 a report issued by the State Comptroller shows that county property tax growth was cut in half in 2006, as compared to the prior five years, in large part because of the new Medicaid cap enacted last year.
"Our new Medicaid reforms have dramatically reined 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. "We're proud that the latest evidence shows that our actions last year are providing relief to county taxpayers. I would urge county leaders to continue to target these funds to property tax relief -- and in New York City to invest their new savings into the City's schools."
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 percent in 2007, and 3 percent in 2008. This means that this coming year, counties and New York City will pay no more than 3.5 percent in additional Medicaid costs, even though Medicaid is projected to grow statewide by approximately 10 percent this year.
This year the Medicaid cap and Family Health Plus takeover will save local governments more than $1.1 billion in Medicaid savings -- $775 million for New York City and $391 million for counties (see county-by-county breakout below) across the State.
The Governor also highlighted new proposals in his Executive Budget that would help counties. These include:
Expanded Shared Municipal Services (SMSI) Incentive Program: To help contain property tax growth, the Governor's Executive Budget would increase this program from $2.75 million to $25 million. Under the program, local governments can apply to the Department of State for grants to support the costs of implementing cooperative efforts including mergers, consolidation and shared services initiatives. In addition to increasing the existing SMSI program from $2.75 million to $5.5 million, the redesigned program would also target incentive awards to specific areas including: $4 million for shared highway services; $4.5 million for local employee health insurance savings initiatives; $1 million for the development of countywide shared services programs; and, $10 million for grants to support local government consolidations/mergers.
Comprehensive Mandate Relief Agenda: The Governor's Budget includes a comprehensive mandate relief program that would yield substantial county property tax savings. It includes full repeal of the Wicks Law that would give local governments the flexibility to achieve cost savings ranging from 10 to 30 percent on public works projects. In addition, the mandate relief proposals would reform binding arbitration practices, relieve localities of certain litigation costs, and provide localities with more flexible local procurement options.
New Pension Reform Task Force: Rising pension costs continue to put pressure on county property taxes. The Governor's Executive Budget proposes the creation of a new Pension Reform Taskforce made up of representatives from state, county and local government, public employee unions and retirees. The taskforce will ultimately propose reforms to strengthen the public pension system while maintaining current benefits, and provide the framework for additional relief to taxpayers.
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.
County Fiscal Relief-Medicaid Cap & FHP
County 2006-07 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
Chenango $ 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
Niagara $ 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
TOTAL $ 1,166,043,000
1-31-06
© 2005 North
Country Gazette
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