New York should adopt Butterfield Bill
by Richard Ottalagano County governments throughout New York State complained loudly about the Medicaid unfunded mandates, and the increases it caused on the county tax payer. New York’s government instituted a change called a CAP, which limited the amount the counties pay to 3% a year over the previous year. Though this helped, county taxpayers still had to see more than half of their county property taxes or all their sales tax go towards Medicaid.

The portion of NYS Medicaid paid by the counties is increasing by $200 Million a year. If things don’t change soon, your county taxes will continue to increase to cover this state mandate. Reform is necessary. Governor Spitzer has offered up ideas that will reduce the Medicaid costs, and referred to the future with no county tax paying for Medicaid. The Governor is heading in the right direction, but has to get his plans past the Assembly that created the Medicaid monster in New York.

A congressman from North Carolina has proposed a bill that would prohibit states from passing on any costs to counties for Medicaid. Congressman G.K. Butterfield of the First District of North Carolina is seeking co-sponsors for his legislation, the Medicaid County Protection Act of 2007.

North Carolina, along with New York State relies heavily on county property taxes to fund the state share of Medicaid. Passage of this bill would put property taxpayers in New York and North Carolina on a par with taxpayers in the rest of the United States.