The federal government’s proposed economic recovery package could spell relief for one of Niagara County’s biggest budget-busting concerns.
Under provisions of the stimulus plan being considered by President-elect Barack Obama and members of Congress, Niagara County would receive nearly $10 million in additional aid to offset costs associated with the federally mandated Medicaid program in 2009 and 2010.
The commitment of Medicaid funds was announced Thursday by U.S. Sen. Charles Schumer who said federal lawmakers are now working on a recovery package that calls for an increase of about $100 billion in the Federal Medical Assistance Percentage over the next two years. The measure, if successful, would mean an extra $5 billion for New York state.
New York is one of 11 states in the country that require counties to cover a portion of Medicaid expenses. According to Schumer’s figures, the local share of Medicaid in Niagara County in 2009 is $42.1 million, or 60.4 percent of the county’s property tax revenue.
“It’s a large chunk of change for every one of our localities,” Schumer said.
Schumer said he’s pushing for a provision in the legislation that would allow municipalities that share Medicaid costs with states to receive their portion of the assistance directly. If successful, Schumer said the program would provide, over the next two years, more than $70 million in budget relief for counties in Western New York and about $9.8 million in additional Medicaid funding for Niagara County alone.
Schumer said he wants to make sure the counties — which have long been forced to fund part of New York’s Medicaid burden — receive their fair share of the additional aid. He said the Medicaid assistance proposal is being viewed in Congress as a way to help counties close anticipated budget gaps without having to cut jobs, eliminate services or, worst of all, raise local property taxes.
“The localities would get money directly in their pockets without the state skimming off a piece,” Schumer said.
According to the New York state Association of Counties, Medicaid is the single largest mandated program in county budgets, representing $7 billion annually for counties across the state, including New York City. For counties outside of NYC, it represents $2 billion.
“This is a lifeline to counties, which are seeing a dramatic increase in demand for health and human services at a time when we are experiencing state budget cuts and lagging sales tax revenues,” said NYSAC President Sarah Purdy. “This funding will help us continue to serve those who are most vulnerable during this economic crisis without having to turn to our property taxpayers, who are struggling to survive this recession themselves.”
Niagara County Legislator and Majority Leader Richard Updegrove, R-Lockport, said he’s glad Schumer recognizes Medicaid’s impact on county budgets in New York and would welcome any help the county could get for the costly program.
“In New York state, Medicaid is a property tax where it is not a property tax in other states,” he said.
Updegrove said he would like to see federal officials take the initiative a step further by mandating changes in the way New York state operates its Medicaid system, which is among the most expensive in the nation. Without real reform, Updegrove said Medicaid will continue to be what it is now: a mandated program that places a tremendous strain on the wallets of county taxpayers.
“Obviously, it will be beneficial to have this money for two years,” he said. “But, it doesn’t fix the problem.”
Contact reporter Mark Scheer at 282-2311, ext. 2250.
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