Schumer pushes for Chenango's stimulus share
WASHINGTON – U.S. Senator Charles E. Schumer is pulling for New York State counties to receive $370 million directly - without going through Albany - as part of President-elect Barack Obama’s suggested economic stimulus package for states.
About $2 million would be directed to Chenango County.
“We are pushing for that number, and it looks like we have a good chance to get it,” said the Senator in a press conference call to reporters last Thursday. “This should greatly reduce the need for tax increases or layoffs in the localities. It is a large chunk of change for every one of our counties.”
The stimulus would come from the Federal Medical Assistance Percentage. FMAP is traditionally directed to the state and then to counties, which share the cost of Medicaid in New York State. Obama’s financial team and members of Congress, including the Senator from New York, negotiated approximately $100 billion in FMAP funding for states during a two-hour meeting on January 8.
Obama has been promoting a $775 billion spending and tax-cutting plan to stimulate the nation’s overall economy.
Schumer said that he has spoken to many people in the state over the past several weeks who are worried about higher property taxes and cuts in social programs this year.
“In our tough times, tax revenues go down and local governments are then forced between a rock and a hard place, cutting services when needed or increasing taxes. Both are losers,” he said. “The federal government can do something to directly help the localities. ... It was my number one priority that I talked about in the meeting, to make sure we increase direct aid to locals to alleviate the strains on their budgets ... without Albany skimming off any piece.”
Upon hearing the news, Chenango County Board of Supervisors Chairman Richard B. Decker, R-N. Norwich, said he hoped it could happen.
“That sounds like good news. ... If it’s money that is intended to offset the cost of Medicaid, it is a big boon to us. Medicaid is a huge percentage of our budget. I would thank Schumer for thinking of upstate first,” he said.
Schumer said the relief would flow through local communities, creating jobs, financing the purchase of medical supplies and services, and help to ease budget gaps and prevent property tax hikes.
New York State is one of two states where counties and local municipalities pay a higher percentage of Medicaid costs than the state government does. Only 17 states in the U.S. ask counties to pay a local share of the state’s Medicaid program at all.
According to the New York State Association of Counties, local property taxpayers in New York pay nearly 80 percent higher local taxes above the national average. Chenango County paid more than $9 million, or 39.4 percent of its property tax collection for Medicaid last year. In the surrounding counties, Broome’s local share was 59.4; Otsego’s was 91 percent and Delaware County used up 33.8 percent of its levy for Medicaid.
“It’s one of the things that local government hates the most (paying for Medicaid). They know that Medicaid helps people who need it, but they know that the costs are out of control,” Schumer said.
The announcement prompted an immediate response from the New York State Association of Counties which applauded the senator for “extending a lifeline” to counties.
“(We) 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, the Yates County Administrator. “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.”
If New York State Gov. David Paterson’s budget proposals hold, counties in the Southern Tier can expect to pay approximately $115.9 million for Medicaid services in 2009, using an average of 56 percent of their property tax revenue to fund the obligations. A $100 billion increase in FMAP nationwide would provide the Southern Tier with approximately $27 million in budget relief.
NYC would get about $5 billion.
About $2 million would be directed to Chenango County.
“We are pushing for that number, and it looks like we have a good chance to get it,” said the Senator in a press conference call to reporters last Thursday. “This should greatly reduce the need for tax increases or layoffs in the localities. It is a large chunk of change for every one of our counties.”
The stimulus would come from the Federal Medical Assistance Percentage. FMAP is traditionally directed to the state and then to counties, which share the cost of Medicaid in New York State. Obama’s financial team and members of Congress, including the Senator from New York, negotiated approximately $100 billion in FMAP funding for states during a two-hour meeting on January 8.
Obama has been promoting a $775 billion spending and tax-cutting plan to stimulate the nation’s overall economy.
Schumer said that he has spoken to many people in the state over the past several weeks who are worried about higher property taxes and cuts in social programs this year.
“In our tough times, tax revenues go down and local governments are then forced between a rock and a hard place, cutting services when needed or increasing taxes. Both are losers,” he said. “The federal government can do something to directly help the localities. ... It was my number one priority that I talked about in the meeting, to make sure we increase direct aid to locals to alleviate the strains on their budgets ... without Albany skimming off any piece.”
Upon hearing the news, Chenango County Board of Supervisors Chairman Richard B. Decker, R-N. Norwich, said he hoped it could happen.
“That sounds like good news. ... If it’s money that is intended to offset the cost of Medicaid, it is a big boon to us. Medicaid is a huge percentage of our budget. I would thank Schumer for thinking of upstate first,” he said.
Schumer said the relief would flow through local communities, creating jobs, financing the purchase of medical supplies and services, and help to ease budget gaps and prevent property tax hikes.
New York State is one of two states where counties and local municipalities pay a higher percentage of Medicaid costs than the state government does. Only 17 states in the U.S. ask counties to pay a local share of the state’s Medicaid program at all.
According to the New York State Association of Counties, local property taxpayers in New York pay nearly 80 percent higher local taxes above the national average. Chenango County paid more than $9 million, or 39.4 percent of its property tax collection for Medicaid last year. In the surrounding counties, Broome’s local share was 59.4; Otsego’s was 91 percent and Delaware County used up 33.8 percent of its levy for Medicaid.
“It’s one of the things that local government hates the most (paying for Medicaid). They know that Medicaid helps people who need it, but they know that the costs are out of control,” Schumer said.
The announcement prompted an immediate response from the New York State Association of Counties which applauded the senator for “extending a lifeline” to counties.
“(We) 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, the Yates County Administrator. “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.”
If New York State Gov. David Paterson’s budget proposals hold, counties in the Southern Tier can expect to pay approximately $115.9 million for Medicaid services in 2009, using an average of 56 percent of their property tax revenue to fund the obligations. A $100 billion increase in FMAP nationwide would provide the Southern Tier with approximately $27 million in budget relief.
NYC would get about $5 billion.
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