For More Information:
William R. Steinhaus
Dutchess County Executive
(845) 486-2000
countyexec@co.dutchess.ny.us
October 4, 2002
Legislative Leadership Advised State Imposed Costs Create $2 Million Deficit
In a meeting late Thursday
with Dutchess County Executive William R. Steinhaus and Legislature Chairman
Bradford Kendall and other legislative leaders, County Budget Director Kevin D.
Fish advised the projected deficit of $2 million in state imposed and
mandated Medicaid costs announced last May 24th remains unchanged for the year
end 2002 budget year.
Fish announced that a
resolution will be submitted to the Legislature for consideration in November to
increase county appropriations approximately $6 million to pay the costs of
state mandated programs for the disabled and youth needing institutional and
other placement, as well as the state imposed Medicaid health program. However,
only $4 million in offsetting reimbursement is available to cover the $6 million
additional program costs. Accordingly, the remaining $2 million Medicaid
deficit for 2002 will require an appropriation from the county’s fund
balance which already had been tapped earlier this year to pay for union
contract settlements and to address additional jail costs.
Looking ahead to 2003, Fish
also advised legislative leaders that the fiscal problems forcing double digit
property tax hikes in 2003 county budgets from Long Island to upstate, to the
southern tier, and to the western boundaries are impacting Dutchess County as
well. Social Services Commissioner Robert Allers advised Fish that local
Medicaid cost next year will soar $7 million above this year’s adopted
budgeted amount, resulting in a combined $9 million of additional
Medicaid spending in just two years Fish advised that money currently paying
for ongoing county programs and services would likely have to be diverted next
year to pay the skyrocketing cost of the state-imposed Medicaid burden. He
pledged that senior staff will work diligently to minimize the property tax
increase, but acknowledged that the financial picture is grim for property
taxpayers and for a wide range of existing programs due to state dictated
Medicaid spending.
Subsequent to the meeting with
the legislators, Steinhaus noted that we do recognize the merit of the benefits
provided through the Medicaid Program. However, he noted, “The issue county
officials agree on is traditional core county services are being threatened and
damaged because Medicaid is siphoning away all our dollars. The message is
simple; those who make the public policy decisions in Albany must be responsible
for paying the costs associated with those decisions. If the state government
wishes to enrich Medicaid programs, the state government should pay for these
enrichments.” In addition, “We strongly believe an extensive medical health
services program should be paid for by a broader state tax base—not local
property taxes.
County Executive Steinhaus will submit his budget proposal to the County Legislature by November 1st.
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