Governor Cuomo pledges to cover Medicaid spending for any County willing to contribute savings to property tax relief

Governor Andrew M. Cuomo recently endorsed the “Empire State Equity Act,” federal legislation that would deliver property tax relief to New Yorkers by increasing federal funding for New York’s Medicaid program. New York is a “donor state” that contributes as much as $30 billion more to the federal budget in taxes than it receives back in services. 

This bill will help level the playing field and provide New York with an additional $2.3 billion in Medicaid funds, which the state will use to eliminate the local share of Medicaid for any county that agrees to lower local property taxes by an equal amount, thereby passing 100 percent of their savings to their taxpayers.

“While some members of Congress are content to play political games at the expense of their constituents, I’m proud to join members of the New York Congressional Delegation in support of this legislation, which provides much-needed property tax relief while protecting New York’s healthcare system,” Governor Cuomo said. 

He added, “This measure doesn’t rob Peter to pay Paul, it provides real savings for New Yorkers. This state pays much more to the federal government than it gets in return, and I urge Congress to do the right thing by passing this bill and helping to level the playing field between New York and the rest of the nation once and for all.”

Currently, New York is the top “donor state” in the country with residents contributing as much as $30 billion more in federal taxes than they get back from the federal government. That means New Yorkers essentially donate a portion of their federal taxes to other states. In addition, because of the way federal Medicaid funds are calculated, New York receives the lowest matching percentage through the Federal Medical Assistance Percentage that is allowed by law. New York’s FMAP is set at 50 percent, whereas states like Mississippi receive over 75 percent in federal contributions to Medicaid.

The bill proposes to increase New York’s FMAP by 4 percent, or $2.3 billion. This increase in federal funds will allow New York to reduce the amount counties may be required to contribute toward the Medicaid program.

The “Empire State Equity Act” would build on the significant progress Governor Cuomo has made to ease the burden of property taxes for New Yorkers. In 2011, he convened the Medicaid Redesign Team to find reforms and efficiencies within the system to save billions in taxpayer dollars. Since its inception, the team has saved the state and federal government more than $34 billion. At the same time, the county share of Medicaid has fallen from about 25 percent to approximately 13 percent today because of Governor Cuomo’s successful mandate relief initiatives.

In Tioga County, there is an $8.4 million capped share of Medicaid; local Medicaid is 9 percent of the total property taxes; the average amount of the residential property tax bill is $2,962 and the estimated savings to a property owner’s tax bill will be $280 under this tax relief program.