Erie County stands to lose out on $26.6 million in 2023
Members of the Erie County Legislature’s Minority Caucus today introduced a resolution calling for New York State to continue with the pass-thru of Federal Affordable Care Act enhanced federal Medicaid assistance percentage funds. New York State proposes to keep the money to pay for Medicaid expansion in the 2024 State Fiscal Year Proposed New York State budget. The purpose of eFMAP is to assist New York State and counties to pay for overspending in the Medicaid program. The measure passed 11-0.
New York State has what is deemed the “Cadillac of Medicaid” offerings. As a result, the state receives more federal dollars to help cover those expanded Medicaid costs. Local governments in New York State
also help to fund the expanded Medicaid program. As such, the state sends some of those federal dollars to the counties in the state to help cover their Medicaid costs. This is what is known as ACA eFMAP funds.
The New York State Association of Counties estimates the impact on Erie County would be a loss of revenue of $26.6 million in 2023 if the state chooses not to share the federal government expanded Medicaid contribution, with some estimates putting that figure as high as $41 million.
“Once again New York State is reaching into the pockets of local governments to enrich their own coffers,” said Erie County Legislator and Minority Leader John Mills. “These federal savings were meant to be shared with county governments, in proportion to the amount we contribute to the Medicaid match.”
The state has shared the federal funds proportionally with counties and New York City since 2003. By eliminating the ACA eFMAP pass-thru, counties across New York State will be forced to spend at least $280 million more in State Fiscal Year 2024. When factoring in New York City, that total amounts to an additional $345 million
“All this does is hurt taxpayers in our districts,” said Erie County Legislator Frank Todaro (8th District). “By taking nearly $27 million out of our budget, one has to wonder if the County Administration will raise the property tax levy to make up for it. These are federal funds that should be coming back into the counties as Congress intended.”
Erie County’s current property tax levy increased 2.7% for this year. A further increase of 8.17% would be needed to make up for this shortfall. With the current 2% property tax cap in place, this move would result in diminished services without any accompanying savings for Erie County taxpayers.
The Medicaid statutory cap enacted in 2011 for all counties in New York State, including New York City, is $7.6 billion. New York State began sharing the federal ACA savings directly with the counties in 2014. Savings were realized when weekly county payments to the state to support the State’s Medicaid program were lowered.
“Cutting funding to counties when the state keeps putting billions of dollars into reserves makes no sense,” said Legislator Chris Greene (6th District). “This is harmful not only Erie County, but all the counties in the state at a time when New York State coffers are full.”
“The state proposes doing this just at a time when they’re projecting a general fund surplus of $35 billion. The Medicaid program is also funded by local governments, so counties should get some of that federal assistance to help cover the costs. Typical Albany politics. They can’t get enough of your money,” said Erie County Legislator Jim Malczewski.
The state is already behind in their payments to the counties. In fact, $1.2 billion in eFMAP reconciliation payments has been due counties since 2017. The resolution calls for New York State to eliminate this revenue shifting plan from consideration.
To see the resolution, click here