State budget in final negotiations before deadline; county concern over Medicaid issue continues
The Executive Budget proposed in January by Gov.
Removing the 3% cap on the amount of increased Medicaid expenditures counties pay and moves to allow the state to keep federal Medicaid funding rather than sharing it with counties were two of the most egregious, according to
"It would have been a hard-enough budget to have our voices heard on, but with this year being how it has, with limited debate and emergency funding, we've been even more limited in how much we've been heard on it,"
The bipartisan Families First Coronavirus Response Act, signed into law on
In 48 states, that is only done by state governments, but in
The 3% cap, which inspired the statewide "Keep the Cap" campaign used to lobby against removing the provision until the rapid spread of COVID-19 became the more pressing topic, is still on the table.
The quarter of Medicaid costs paid by
As a compromise, counties have been paying the
While the federal eFMAP provision will net
He said the changes proposed by his Medicaid Redesign Team would be a recurring cut of
The budget, which started with a
"Counties face a quadruple threat of declining local revenues, especially sales tax, but also mortgage recording taxes and hotel occupancy taxes; higher spending necessary to respond to the health emergency; the loss of state reimbursement; and the potential of significant losses for small businesses on our main streets that could threaten jobs and the property tax base over the short- to mid-term," the
The association came up with two scenarios, the milder of which predicts sales tax revenue falling about 4% below the normal average for each county with a recovery back to average after about six months.
The more severe scenario would result in a more serious recession that would cause sales tax revenue to slide to about 12% below the average with a longer time before improvement.
For
The association estimated a 3.4% revenue loss for
A
The more mild scenario predicted for
In both scenarios, the sharpest impacts are on industries related to tourism, recreation, and restaurants.
"The more severe of the two scenarios in no way represents a worst case," the document said, as an increasing number of "well-regarded economic forecasting firms" have lowered their forecasts since the calculations were made as the pandemic grows in the state and the country.
"We're going to adjust the budget through the years to reflect the actual revenue," the governor said. "We'll say on day one, 'OK, we intended to give you
"For counties, it's about reacting to the state. Right now, it's about our constituency and of course, right now, we are lobbying, but the counties have become good at responding to the state's financial decisions and flexing county finances accordingly," he said.
The majority of counties around the state, including those in the north country, will get their sales tax share agreement renewals, amounts that account for between 20 and 25 percent on average of county budgets, approved as one piece of legislation added to the budget.
Final budget negotiations with the state
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