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New York State And Counties Will Receive $2B In FMAP Assistance; $1.4B Will Go To State, $530 Million To County and City Governments

Bipartisan Bill is Fully Paid for- Will REDUCE Deficit

Schumer Authored Provision Will Send Funding Directly To County Governments

Today, U.S. Senator Charles E. Schumer released county-by-county funding numbers for the Senate FMAP legislation which passed the full Senate this morning.  The FMAP legislation includes a Schumer-authored provision which directs the funds straight to county governments, instead of routing it through Albany. Schumer said that funding will help prevent crushing property tax increases, prevent first responders from losing their jobs and fill gaping holes in state and local budgets.  The measure will provide a total of $2 billion to New York State - $530 million of which will go directly to the county governments and New York City- and will REDUCE the federal deficit by more than $1.3 billion.


“In these tough economic times it’s essential we do everything we can to avoid crushing property tax hikes and keep cops and firefighters on the beat, and that’s what this bill will do, all while reducing the deficit by over 1 billion dollars.” Schumer said. “With some of the highest property taxes in the country, this funding will deliver real relief to New Yorkers, and I’m glad we finally passed a fiscally responsible, bipartisan bill.”


Yesterday, the Senate cleared an important procedural hurdle, breaking the filibuster,  paving the way for the passage by the full Senate today. The package is comprised of $16 billion in enhanced Medicaid reimbursements for states and $10 billion in state education aid. The increased Medicaid payments—known as FMAP—represents a six-month extension of the boost originally enacted in the federal stimulus bill. That increase was currently scheduled to expire at the end of 2010, and the Schumer backed provision that passed today will extend it through the first 6 months of 2011.  The funds will go to work immediately staving off painful property tax hikes, allowing teachers and first responders to keep their jobs and closing gaping holes in state and county budgets.


The House of Representatives will be coming back into session to pass the provision next week.


For New York state, the package would provide up to $2 billion in greatly needed FMAP funds, and of that, the counties and New York City government would receive approximately $530 million. The measure also includes a $10 billion dedicated fund to prevent teacher layoffs; New York State’s $607 million slice of this funding could save up to 7,100 teacher jobs in New York State, according to estimates by the Department of Education.


Below is a breakdown of how much each region will likely receive from the FMAP provision in the bill the Senate just passed. Attached is county-by-county report.  These preliminary estimates were done by the New York State Association of Counties, and could change as the money is distributed:


·         In the Capital Region, local governments will receive as much as $16.3 million in FMAP aid.


·         In Western New York, local governments will receive as much as $21.2 million in FMAP aid.


·         In the Rochester-Finger Lakes Region, local governments will receive as much as $17.8 million in FMAP aid.


·         In Central New York, local governments will receive as much as $15 million in FMAP aid.


·         In the Southern Tier, local governments will receive as much as $9.7 million in FMAP aid.


·         In the North Country, local governments will receive as much as $6.1 million in FMAP aid.


·         In the Hudson Valley, local governments will receive as much as $31.5 million in FMAP aid.


 In the 2009 debate over the stimulus, Schumer successfully fought to include legislative language (the “county-local share” proposal) that ensures that counties and local governments across New York State receive their fair share of the FMAP relief for their Medicaid programs. Since the enactment of the Medicaid program in 1965, counties in New York have been required to share in the costs of services. New York is one of seventeen states where local governments share with the state in Medicaid participation. Counties are mandated by the state to contribute approximately $7 billion annually or about 32 percent of the non-federal share of the State’s Medicaid Program.

Recognizing that New York State counties and the New York City locality are in dire need of direct fiscal aid and are forced to share the cost of Medicaid, Schumer fought to ensure that a “local share” proposal was included in the stimulus to ensure that New York State counties and localities received the funds directly instead of routing it through Albany.  

The Federal Medical Assistance Percentage (FMAP) is a Medicaid matching rate enacted in 1965 that determines the federal funding share for state Medicaid programs. The federal government matches state funds spent on Medicaid, based on the state’s FMAP. The FMAP varies from state to state; and New York’s FMAP is 50%. Thirteen states have FMAPs equal to the 50 percent floor in 2008 (CA, CO, CT, DE, MD, MA, MN, NV, NH, NJ, NY, VA, WY). By law, the FMAP cannot be lower than 50 percent, or higher than 83 percent.  The FMAP formula is designed to account for income variation across the states and is based on rolling three-year average per capita income data for each state. The Department of Commerce’s Bureau of Economic Analysis calculates FMAP annually.


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