This bill has been amended

Bill S153-2013

Relates to calculating social services district medical assistance expenditure amounts

Relates to calculating social services district medical assistance expenditure amounts.

Details

Actions

  • Jan 8, 2014: REFERRED TO FINANCE
  • Jan 9, 2013: REFERRED TO FINANCE

Memo

BILL NUMBER:S153

TITLE OF BILL: An act to amend chapter 58 of the laws of 2005, relating to authorizing reimbursements for expenditures made by or on behalf of social services districts for medical assistance for needy persons and the administration thereof, and to amend the general municipal law, in relation to calculating social services district medical assistance expenditure amounts

PURPOSE: This bill provides for a takeover of the local share of Medicaid over a twenty year period beginning in 2016. This bill also provides that all savings from this takeover are passed along to property tax payers by reducing the allowable levy under the property tax cap.

SUMMARY OF PROVISIONS: Section 1: Subdivision c-1 of section 1 of chapter 58 of the laws of 2005 is amended to provide a for a twenty year takeover of the local share of Medicaid costs.

Section 2: Subsection 3 of section 3-c of the General Municipal Law is amended to provide for a reduction in the allowable tax levy limit for counties equal to the amount of the reduction in each counties local share of Medicaid costs.

JUSTIFICATION: Since the enactment of the Medicaid program in 1965 local social service districts (counties and the City of New York) have been required to share in both the cost and administrative operation of the program. Over the years, the cost of the program has grown exponentially while responsibility for program design and administration has been gradually shifted to the state.

Despite this shift of responsibility, county and New York City governments continue to be required to contribute a significant share of the total program cost. Currently, counties and New York City pay approximately $7.3 billion per year.

The FY 2012-2013 budget began to address this unfunded mandate by phasing Out the 3% increase in county Medicaid costs each year. This will allow counties to work within the recently enacted cap on property taxes without slashing essential local services such as senior services, veteran's services, law enforcement, parks, and road maintenance.

However, even after this freeze on local Medicaid costs being fully implemented in 2015, over $7.5 billion of Medicaid costs will still fall on local governments and thus property taxpayers. This bill would address these remaining costs by having the state government assume responsibility of 5% of the costs each year for twenty years.

Furthermore, this bill ensures that these local savings are passed along to property tax payers by reducing the allowable property tax

levy for counties by the amount they will save from reduced Medicaid costs. In many counties this will mean year-to-year reductions in the property tax levy from 2016 until 2035, reversing a long trend of year to year increases that were caused, in part, by Medicaid cost sharing.

LEGISLATIVE HISTORY: 2011-12: S.5889D

EFFECTIVE DATE: This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 153 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________
Introduced by Sen. GALLIVAN -- read twice and ordered printed, and when printed to be committed to the Committee on Finance AN ACT to amend chapter 58 of the laws of 2005, relating to authorizing reimbursements for expenditures made by or on behalf of social services districts for medical assistance for needy persons and the administration thereof, and to amend the general municipal law, in relation to calculating social services district medical assistance expenditure amounts THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision (c-1) of section 1 of part C of chapter 58 of the laws of 2005, relating to authorizing reimbursements for expendi- tures made by or on behalf of social services districts for medical assistance for needy persons and the administration thereof, as added by section 1 of part F of chapter 56 of the laws of 2012, is amended to read as follows: (c-1) Notwithstanding any provisions of subdivision (c) of this section to the contrary, effective April 1, 2013, for the period January 1, 2013 through December 31, 2013 and for each calendar year thereafter, the medical assistance expenditure amount for the social services district for such period shall be [equal to] the GREATER OF (I) ZERO; OR (II) THE previous calendar year's medical assistance expenditure amount MINUS FIVE PERCENT OF THE MEDICAL ASSISTANCE EXPENDITURE AMOUNT FOR THE PERIOD JANUARY 1, 2016 THROUGH DECEMBER 31, 2016, except that: (1) for the period January 1, 2013 through December 31, 2013, the previous calendar year medical assistance expenditure amount will be increased by 2%; (2) for the period January 1, 2014 through December 31, 2014, the previous calendar year medical assistance expenditure amount will be increased by 1%; AND
(3) FOR THE PERIOD JANUARY 1, 2016 THROUGH DECEMBER 31, 2016, THE PREVIOUS CALENDAR YEAR MEDICAL ASSISTANCE EXPENDITURE AMOUNT WILL BE UNCHANGED. S 2. Paragraph (c) of subdivision 3 of section 3-c of the general municipal law is amended by adding a new subparagraph (viii) to read as follows: (VIII) SUBTRACT THE AMOUNT THAT THE PRIOR FISCAL YEAR'S MEDICAL ASSISTANCE EXPENDITURE AMOUNT EXCEEDS THE CURRENT FISCAL YEAR'S MEDICAL ASSISTANCE EXPENDITURE AMOUNT, PROVIDED THAT THIS SHALL ONLY APPLY TO COUNTIES AND SHALL ONLY APPLY TO FISCAL YEARS THAT BEGIN AFTER TWO THOU- SAND SIXTEEN. S 3. This act shall take effect immediately, provided, however, that section one of this act shall take effect on the same date and in the same manner as section 1 of part F of chapter 56 of the laws of 2012, takes effect; and provided further, however, that the amendments to section 3-c of the general municipal law made by section two of this act shall not affect the repeal of such section and shall be deemed repealed therewith.

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