September 12, 2002
County Executives Call for Cap on County Contributions to State Medicaid Costs
Double Digit Increases Forecasted for Next Year
Mineola, New York - Nassau County Executive Thomas R. Suozzi today hosted Robert J. Gaffney (R-Suffolk) and Andrew J. Spano, (D-Westchester) at a Medicaid summit. The County Executives joined together to protest the "ever-increasing costs" of their counties' share to support New York State's Medicaid program.
Counties across the State of New York are being forced to consider significant property tax increases, increased sales taxes, cutbacks in services, and employee workforce reductions to pay for these escalating Medicaid costs.
"Albany should pay the crushing Medicaid cost increases that it is imposing on Nassau, Suffolk, Westchester and counties across the state," said County Executive Suozzi.
Westchester County Executive Andrew J. Spano said, "Westchester County taxpayers will be paying over $207 million next year along in state Medicaid costs. This is an increase of $36.3 million from this year - and translates into a 10% increase on the County property tax. Our residents simply cannot afford to pay Albany's bills. This amounts to a "hidden" state tax that Albany must reduce. Enough is enough."
"This crisis has been building for years," said Suffolk County Executive Gaffney. "All across the state, counties are facing massive property tax increases, layoffs and reductions in necessary services to their residents in order to pay the State for Medicaid."
For the period of 1999-2003, gross Medicaid costs will have increased approximately 50% in all three counties for a total of almost $175 million. Medicaid costs are projected to rise at least 10% a year for following three years. By the year 2006, the projected increase for the three counties could total as much as $330 million.
For 2003, Suffolk County's projected Medicaid increase totals $20 million and its total Medicaid expenditures will be four times higher than the amount it collects in General Fund property taxes. For 2003, Westchester's projected Medicaid increase totals $28 million and its property tax would need to be increased 10% to cover next year's Medicaid expense.
And in Nassau County for 2003, Medicaid increases will be upwards of $37 million. On September 16, 2002 County Executive Suozzi will present his 2003 budget, which will pay for this increase.
The three County Executives are advocating a "cap" on their counties' local share of Medicaid costs at the 2001 levels; a reduction in pharmaceutical costs and no County contribution to the cost for Family Health Plus.
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