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Tuesday, March 10, 2020

Allegany County Legislature opposes proposed Medicaid Growth Cap

The Allegany County Legislature voted Monday afternoon to oppose a Medicaid Growth Cap proposed by state government. The resolution is shown below:

 

RESOLUTION CALLING ON THE GOVERNOR AND NEW YORK STATE LEGISLATURE TO PRESERVE THE ZERO PERCENT MEDICAID GROWTH CAP FOR ALL COUNTIES AND NEW YORK CITY

 

Offered by: Ways & Means Committee
            WHEREAS, spending in New York State for Medicaid is the single largest expense in the State budget; and
            WHEREAS, the funding to support the Medicaid program is provided by a combination of federal, state, and local resources; and
            WHEREAS, the required county and New York City contribution is $7.6 billion annually; and
            WHEREAS, the local share of Medicaid funding paid in New York is the highest of any state in the country and is more than what 43 individual states pay in state share for their Medicaid programs; and
            WHEREAS, this large local funding share for Medicaid and other state programs is a major contributor to New York’s high local tax burden compared to other states; and 
            WHEREAS, the Governor and legislative leaders recognize the fiscal burden the financing of Medicaid is for local taxpayers and initiated steps to relieve part of that burden by capping the growth of local costs in this program; and   
            WHEREAS, one of the most prominent property tax reduction and mandate relief initiatives in state history was Governor Cuomo’s establishment of the zero percent Medicaid growth cap; and
            WHEREAS, this zero percent growth cap enables counties to keep funding for the growing cost of many vital state programs and services, while continuing local quality of life services demanded by taxpayers; and  
            WHEREAS, the Medicaid budget is facing billions of dollars in annual deficits over the next several years; and
            WHEREAS, these Medicaid deficits are contributing to the largest budget deficit the State has faced since the Great Recession; and
            WHEREAS, the Governor’s Executive Budget Recommendation is proposing a variety of ways to address these combined fiscal shortfalls; and
            WHEREAS, budget proposals advanced by the Governor rely on $150 million in Medicaid program costs assumed by local taxpayers; and include: 
·         Using county government federal enhanced Medicaid match savings;
·         Losing state Medicaid growth cap if counties breach the state property tax cap
·         Shifting the local share of Medicaid growth above 3 percent to counties, if counties cannot contain costs under 3 percent; and 
            WHEREAS, counties do not have tools to control the Medicaid program growth; some of these limitations include: 
·         The ability to audit the Medicaid program;
·         The ability to control the cost of prescription drugs;
·         The ability to set provider reimbursement rates;
·         The ability to modify eligibility and benefit levels for Medicaid recipients;
·         The ability to control changing demographics across the state;
·         The ability to control provider contracts; and
 
            WHEREAS, if state experts in the Medicaid program are unable to develop solutions to control growth in the Medicaid program, it will be impossible for counties to do so since they do not have this authority to control costs, now, therefore, be it
            RESOLVED:
            1.         That the Allegany County Board of Legislators urges the Governor and legislative leaders to maintain the zero percent Medicaid growth cap for counties and New York City as they address state budget shortfalls in order to keep downward pressure on the local tax burden.  
            2.         That the Clerk of this Board is directed to send a certified copy of this resolution to Governor Andrew Cuomo, members of the New York State Legislature, Senator George Borrello, Senator Kirsten Gillibrand, Senator Charles Schumer,  Assemblyman Joseph M. Giglio, United States Representative Tom Reed, members of the New York State Senate Health Committee (Gustavo Rivera, Alessandra Biaggi, David Carlucci, Todd Kaminsky, and Jen Metzger), members of the New York State Assembly Health Committee (Dick Gottfried, Sandy Galef, Amy Paulin, Aileen Gunter, Phil Steck, and Ed Braunstein), the New York State Association of Counties, and the InterCounty Association of WNY.