New York county leaders are calling for local governments to be included in budget discussions to address Medicaid spending cuts effectively. They argue that incorporating social services staff in these discussions is crucial for maximizing program savings. This plea comes in light of more than $1.2 billion in Medicaid cuts proposed in Governor Kathy Hochul’s executive budget, a topic that dominated the state Association of Counties’ annual conference in Albany.
The proposed cuts aim to tackle New York’s spiraling Medicaid expenses, which are contributing to the state’s fiscal challenges and projected multi-billion-dollar budget deficits. County officials fear that if the state’s Medicaid costs are not controlled, localities may be forced to increase property taxes or cut local services. Counties currently contribute a capped $7.6 billion to the state Medicaid program, with New York City providing about $5 billion of this amount.
County leaders are also advocating for legislative changes to allow counties to collect sales tax on vacation rentals and other similar accommodations, estimating a $30 million revenue boost. Additionally, they are focused on initiatives to support Emergency Medical Services across the state amid staffing shortages and long wait times. Despite concerns over Medicaid and other issues, county officials acknowledged that Hochul’s budget proposal is fair and does not impose unfunded mandates on local governments, marking a positive shift from previous years.
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