COST SHIFT COUNTDOWN OVERTIME
April 1st has come and gone, and now the New York state budget is late. Until this budget is finalized, Governor Kathy Hochul’s plan to shift more than $625 million in runaway Medicaid costs onto local taxpayers is still alive. The State Legislature has held firm up to now in blocking this plan. Tell them to keep up the fight!
Governor Hochul’s plan calls for the state to pocket $625 million in federal matching funds for Medicaid that Congress intended the state to share with counties. The Governor is irresponsibly choosing to raid local funds instead of getting state spending under control.
This action will cause a significant increase in local property taxes. That means increased housing costs for New York homeowners and renters, at a time when New York is already unaffordable.
COST SHIFT FACTS
It Will Make New York Less Affordable: At a time when New Yorkers are paying more for housing, food and fuel, the Governor’s plan will make New York State even less affordable by forcing local governments to increase property taxes by an estimated 5-10%, driving up the cost of home ownership and rent for all New Yorkers. These costs will grow over time and result in more people leaving our state.
It’s Unnecessary: The Governor’s budget proposes to fully fund state reserves two years ahead of schedule by depositing $5.4 billion into these accounts before the end of SFY 2023, while also projecting a general fund surplus of $35 billion by the end of SFY 2024.
It Undermines Congressional Intent: New York’s Congressional Delegation, led by Senate Majority Leader Charles Schumer, fought hard to ensure that local taxpayers wouldn’t bear the burden of expanding Medicaid. These are local funds, and they belong to the counties. By pocketing these funds, the Governor’s plan undermines the intent of Congress. And as a former member of Congress, she should know better.
Tell New York State lawmakers to stand strong against this proposal and protect homeowners, renters, and all local taxpayers from Governor Hochul’s cost shift.
Members of the NYSAC team analyzed the proposal in a special episode of our County Conversations podcast. Listen here: