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County leaders worried about state shifting Medicaid funds and how it will impact budgeting

  • / Updated:
  • Staff Report 

The recently passed $229 billion New York state budget, which re-allocates Medicaid funds, is raising alarm among county administrators statewide.

Wayne County Administrator Rick House and his counterparts worry about the impact of Governor Kathy Hochul’s plan to divert Enhanced Federal Medical Assistance Program funds, originally intended to ease local government Medicaid expenses, to expand Medicaid eligibility and increase healthcare provider payments.


This shift is set to increase Wayne County’s annual Medicaid cost share by $1.5 million, a figure expected to rise to $4 million in 2024.

Yates County Administrator Nonie Flynn also expressed her concerns, stating the change could increase her county’s annual Medicaid costs by $543,000, equivalent to a 3.4% tax increase for the 2023 budget.

Flynn further noted the state’s decision not to release withheld federal funds since 2016, amounting to approximately $1.3 million owed to Yates County. State budget watchdogs predict that the measures could lead to a 7-14% property tax increase. House reported that some counties are considering legal action against the state. Despite the financial pressure, House assured that Wayne County remains fiscally strong but emphasized the unnecessary burden additional state expenses could impose on future stability.