Assemblyman Ken Zebrowski (D-New City) announced he has introduced legislation that will provide mandate relief for rising Medicaid costs to Counties (A.8234). The legislation will place a 2% cap on the increases of local government Medicaid costs. Under the bill, starting in 2013, the county’s share of the increase from the prior year’s Medicaid expenditures will be capped at 2%. A 2005 state law capped local share of Medicaid at 3% and provided relief to local property tax payers. The new bill will align the local Medicaid cap with the proposed 2% property tax cap.

“In last year’s budget we made great strides in controlling costs by placing a 4% global Medicaid cap on state expenditures. This local Medicaid cap will help provide flexibility to counties by reducing their Medicaid costs and providing needed relief to taxpayers,” said Assemblyman Zebrowski.

The proposed property tax cap has required the state and local governments to examine ways to create efficiencies and reduce costs. Local governments have stated that mandate relief is essential in developing responsible budgets that comply with the 2% tax cap. This legislation will achieve the goal of mandate relief by limiting Counties’ Medicaid cost growth at 2% per year.

“The proposed property tax cap will force local governments to create sustainable and more efficient budgets that include managing Medicaid expenditures. This legislation will assist county governments in controlling these costs by aligning the property tax cap and local Medicaid cap at 2% per year,” concluded Zebrowski.