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FOR IMMEDIATE RELEASE
March 11, 2003
PR- 069-03
www.nyc.gov


MAYOR MICHAEL R. BLOOMBERG AND NEW YORK STATE ASSOCIATION OF COUNTIES ANNOUNCE PROPOSAL TO CAP MEDICAID COSTS TO COUNTIES

County Leaders From Across New York State Gather at City Hall to Call on Albany to Freeze Medicaid Costs for Counties at 2001 Levels

Mayor Michael R. Bloomberg and the New York State Association of Counties (NYSAC) today announced a proposal to cap Medicaid costs for New York City and the State’s county governments at 2001 levels. All of New York’s 62 counties have joined the coalition to contain Medicaid costs, which are spiraling out of control and putting tremendous fiscal pressure on the State’s counties and New York City.  New York State is unique in that counties are responsible for 25% of most Medicaid costs, even though they have virtually no authority to manage, control or reduce these costs.  Most other states in the Union pick up the entire non-federal costs of the Medicaid program and pass none of these costs onto counties or municipalities.  New York City is comprised of five counties and the City picks up their full share of Medicaid costs.

Joining the Mayor at City Hall were representatives from 21 New York Counties, including Dutchess County Executive and President of NYSAC William Steinhaus, Rockland County Executive and President of the County Executive’s Association C. Scott Vanderhoef, Yates County Administrator and President of the New York State County Administrators Association Sarah Purdy and County Executives and Representatives from Westchester, Nassau, Suffolk, Albany, Chemung, Orange, Chautauqua, Allegany, Franklin, Fulton, Tompkins, Clinton, Essex, Sullivan, Herkimer, Steuben, Essex and St. Lawrence counties.

“Medicaid is one of the largest and fastest growing expenditures in the City budget and in every country budget in the State, and we have absolutely no control of it,” said Mayor Bloomberg.  “New York City is faced with the worst fiscal crisis in a generation and we have billions of dollars in Medicaid costs that we have no power to contain.  Today I stand with my colleagues representing local government from across the State – from the North County to Long Island, from the Southern Tier to the Catskills and from the Hudson Valley to Western New York – we are speaking with one voice: Albany must rein in the costs of Medicaid to New York’s counties.”

“We fully recognize it is a very difficult time to govern and financial challenges exist for all levels of government -- which is why county officials across New York believe only by working together can we find solutions to cap the escalating costs of Medicaid,” said Dutchess County Executive Steinhaus.

“I am pleased to join with Mayor Bloomberg and other statewide county leaders to explain the necessity of capping Medicaid and finding innovative ways to control its costs in the future,” said Rockland County Executive Vanderhoef.   “I am hopeful that we can meet with the Governor and the State Legislative leaders to find common ground on remodeling the Medicaid system.”

“In Yates County, the local share of Medicaid costs has risen 68% since 1999, and is expected to rise another 14% this year,” said Yates County Administrator Purdy.  “For this year, 39% of the property tax levy can be attributed to local Medicaid costs. In a small rural county like Yates with no large sales tax base, Medicaid costs already burden the property taxpayer, and unless these costs can be capped, I foresee Medicaid having a crippling impact on the ability of our residents to continue to afford to live here.”

New York City’s Medicaid costs are rising at an alarming rate.  In Fiscal Year  (FY) 1995, New York City spent $2.7 billion on Medicaid; in FY 2001 it increased to $3.3 billion.  The cost ballooned to $3.8 billion in FY 2003 and is expected to surpass $4 billion by next fiscal year.  In 2003, all counties outside New York City budgeted an average 17% increase in local Medicaid costs. The Medicaid local share represents on average 58% of all real property taxes collected by counties outside New York City.  In several counties, including Albany, Erie, Nassau, Rensselaer, and Suffolk, the Medicaid local share is larger than the real property tax levy.


 

www.nyc.gov

Contact: Ed Skyler / Jordan Barowitz 
(212) 788-2958
 
  JoEllen Keenan-Gardner (NYSAC) 
(518) 465-1473