County governments can expect some financial help that will ease their Medicaid payments, if the proposed federal budget passes as written.
U.S. Sen. Charles Schumer said Tuesday that President Barack Obama’s proposed 2011 budget is a “mixed bag for New York” overall, but is trumpeting the provisions that he helped author that allows counties to get funds directly from the federal government. Schumer said when money goes through the state first, the counties end up never seeing it.
“Unemployment is already too high and unless we get fiscal aid directly to our beleaguered county governments during this downturn, they will be forced to raise property taxes, layoff vital workers and make things worse, instead of better,” he said in press release.
Schumer said this proposal includes billions of dollars that will “help local governments avoid property tax hikes and stave off layoffs of cops, firefighters and teachers.”
Herkimer County is projected to receive about $1.25 million from this budget plan. The North Country in total is projected to receive about $10 million.
“This support will help alleviate, though it will not eliminate, the tough choices facing the state and counties during these difficult times,” said Schumer.
This includes a six-month extension of the two-year Federal Medical Assistance Percentages.
“Many county executives told me if it had not been for the last FMAP, they would have had to raise property taxes,” said Schumer, adding that Medicaid is the largest expense for most counties.
This assistance was part of the American Recovery and Reinvestment Act stimulus package initiated by the Obama administration.
The original FMAP increase sent states and localities $87 billion for 2009 and 2010. By the end of 2010, New York state and county governments will have received an estimated $11.1 billion from the federal government from the federal government.
New York state has one of the lowest federal reimbursements in the country. The federal government pays for half of the Medicaid costs and the state pays the other half. County taxpayers pay 32 percent of what the state pays.
“This is extremely important to the county,” said Herkimer County Administrator James Wallace. He said the projected Medicaid cost for the county is $10.6 million in 2010 and about $13.1 million in 2011. Nearly $1.2 million in aid is projected in the federal budget for Herkimer County.
“Senator Schumer fought very hard. We appreciate what he’s done to make sure money gets back to the county taxpayers,” he said.