PolitiFact - For New York counties, a lot of money at stake in Hochul's Medicaid move

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PolitiFact - For New York counties, a lot of money at stake in Hochul's Medicaid move
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Counties warn about shift in Medicaid funds if Hochul provision passes.

, dating back to 2017, because, they say, Congress intended these funds to help with the local share.the Medicaid burden on counties in various ways since 1983, in part to prevent skyrocketing property taxes. Counties have saved $37.9 billion since a state takeover of local Medicaid growth in 2015, and this year’s budget calls for $6.4 billion in savings by localities, according to Hochul’s administration.

When Hochul was asked about the counties’ concerns, she said that schools are set to receive a lot of school aid, and can lower school taxes, which are 50% to 60% of the local property tax burden. The state has done other things to help counties and local governments, including increased collections of online sales taxes, resulting in $1.37 billion in local revenue since 2020, and $6.2 billion in local aid programs in the proposed budget for counties outside of New York City, said Hochul spokesperson Matt Janiszewski.

But the proposed Medicaid funding change will have a negative impact on county finances, said Lucy Dadayan, principal research associate at the Urban Institute/Tax Policy Center. "Without those funds, counties will have to fill in the increased cost, which means that they will be left with no choice but to increase property taxes or to cut services provided to residents," Dadayan said.

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