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Municipalities could end up paying more for Medicaid if New York doesn’t fill budget gap

The concern right now is that local governments may be tapped out. And simultaneously, the state could look at them to help fill a budget gap that has reached $6.1 billion across the state.

Gov. Andrew Cuomo in his State of the State address, without details, pointed to the state in recent years capping Medicaid growth for local governments, New York State of Politics reports.

“It would most likely cause a property tax increase,” said Assemblyman Phil Steck, a Democrat from the Albany area. “It would defeat the purpose of the property tax cap, which the governor has strongly supported and touts as one of his great achievements. I really don’t understand the logic of doing this. I think there are better ways of addressing the state budget.”

That would likely be the case around the state, if New York opted for this methodology of balancing the budget.

There’s no plan yet, though. Assembly Speaker Carl Heastie said he understands concerns held by local government officials.

“Any hint they have to spend more money, they get upset,” Cuomo said of the prospective cost-increase. “I don’t know if we are there yet. We haven’t had any conversations in terms of specifics with what’s going to happen with Medicaid.”

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