October 15, 2004
LEGISLATORS PROPOSE STATE TAKEOVER OF MEDICAID COSTS
Legislature Republicans revive call to exchange penny of sales tax for relief
from Medicaid burden
In response to drastic proposed cuts to county services such as sheriff's patrols, snowplowing and cultural funding, members of the Erie County Legislature's Republican Caucus announced today that they are sponsoring a resolution proposing that Erie County turn over its "extra 8th percent" sales tax to New York State in exchange for the State taking over the county's cost of the Medicaid Program. The legislators held a press conference this afternoon at Williamsville's Clearfield Library.
"Before dramatic cuts to services that our taxpayers depend upon become a reality, something must be done to ease the burden of Medicaid," said Legislator Barry A. Weinstein (R-Amherst). "In order to keep services such as libraries available, the State needs to act. It is easy to see the merits of this proposal, which, if adopted by the State Legislature, would be a step in the right direction."
"The news coming out over the past few weeks has been discouraging, with the potential for essential services for our residents to be drastically cut," added Legislator Charles M. Swanick (R-Tonawanda/Grand Island). "We need New York State's help to wade through this financial burden caused by Medicaid, either through reform or finding another way to pay for the program. We have a proposal here that answers the call, and would be a tremendous benefit for our taxpayers."
In April of this year, the Erie County Legislature adopted an initial resolution endorsing this same proposal. The proposal was championed by New York State Assemblyman Paul A. Tokasz. Representatives are resurrecting the issue in the wake of potential countywide service cuts, many announced just this week in such services as sheriff's patrols, cultural funding, snowplowing and, possibly, libraries.
"Erie County is in the process of changing the way that we do business, including cooperative efforts between municipalities and smarter ways to run our government," said Legislator Steven P. McCarville (R-Orchard Park). "Unfortunately, the cost of Medicaid has risen so dramatically that essential services are being not only reduced, but threatened. Our efforts are being hindered by the pain of this Medicaid burden."
"As Erie County's Medicaid bill approaches $180 million for the year 2004, it is clear that a creative idea for relief is needed, or the county will be forced to cut services to make ends meet," continued Republican Leader Michael H. Ranzenhofer (R-Clarence). "This is a creative approach that in the end will save Erie County taxpayers close to $80 million - funds that can be, and should be, spent on everything from roads to library books."
Early estimates for 2005 have the "extra" 1% of the sales tax resulting in approximately $125 million in revenue for Erie County. The projected Medicaid cost for Erie County for next year is over $200 million. In exchange for the penny of sales tax, Erie County would have the opportunity to realize savings in excess of $75 million.
"With everything from our cultural jewels to roads to snowplowing threatened by the cost of Medicaid, it is imperative that something be done," added Legislator Elise M. Cusack (R-Amherst/Tonawanda). "While we focus on the drastic increase in Medicaid costs for 2005, we can not forget where it goes from there. Now is the time to act, when there are still solutions such as this available to us."
"Should New York State accept this proposal, it would dramatically decrease the budget gap that the county is facing," added Legislator Jeanne Z. Chase (R-Hamburg/Evans). "Instead of being allocated for the cost of Medicaid, these funds could be put where they belong - into services and programs that our residents rely upon every day."
The legislators' resolution will come before the County Legislature in its session on Thursday, October 21.
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