A P L A N T O D R A M AT I C A L LY

LOW E RCO U N T Y

P R O P E RT Y TA X E S

ISSUE : MEDICAID LOCAL SHARE

“ N E W YO R K S TAT E H A S H I G H E S TP R O P E RT Y TA X E S I N U . S .”79%

1 W E STC H E ST E R

4 RO C K L A N D

2 N A S S AU

F R O M C U O M O’ S B I PA RT I S A N N Y S TAT E TA X R E L I E F CO M M I S S I O N

79%

cuomo’s voice

BY P E R C E N TAG E O F H O M E VA LU E ,1 3 O F T H E 1 5 CO U N T I E S W I T H

T H E H I G H E S T P R O P E RT Y TA X E S I N T H E N AT I O N A R E

I N N E W YO R K— M A N Y I N U P S TAT E N E W YO R K .

1 WAY N E 2 M O N RO E 3 C AT TA R AU G U S 4 L I V I N G STO N 5 O S W E G O 6 N I AG A R A 8 C H AU TAU Q UA1 0 ST E U B E N 1 1 E R I E 1 2 S C H E N E C TA DY 1 3 C AY U G A 1 4 O N O N DAG A 1 5 C H E M U N G

S O U R C E : C U O M O’ S B I PA RT I S A N N Y S TAT E TA X R E L I E F CO M M I S S I O N

12

6

11

8 3

2

4

1015

15

1413

G OV. C U O M O B L A M E S LO C A L CO M M U N I T I E SF O R H I G H P R O P E RT Y TA X E S , B U T H E O F F E R S

N O LO N G T E R M P L A N T O R E D U C E T H E I R B U R D E N .

“ D O W E H AV E T H E M O N E Y T O S U B S I D I Z E T H E CO U N T I E S ? N O .”

— G OV. A N D R E W C U O M OW R O N G !

Y E S W E C A N & W E M U S T

N OV E M B E R 2 0 1 4

YO U WA N T T O TA L K A B O U T T H I N G S T H AT A R E C RU S H I N G T H E M I D D L E C L A S S , I T ’ S T H E S E D A M N

P R O P E RT Y TA X E S W H I C H A R E A L L LO C A L G OV E R N M E N T.

I N T H E N E X T 4 Y E A R S , I ’ M G O I N G T O AT TAC K T H E M B E C AU S E W E H AV E T O F I N D S AV I N G S

F R O M O U R LO C A L G OV E R N M E N T.

W H O S E T O B L A M E ? I T ’ S LO C A L G OV E R N M E N T S W H O A R E R E LU C TA N T

T O S H A R E S E RV I C E S .

“

”

“ T H E S TAT E I S B E N E F I T T I N G F R O M A R E S I L I E N TI N CO M E TA X B A S E , W H I L E C I T I E S A R E S T U C K

W I T H A N E R O D E D P R O P E RT Y TA X B A S E .”SY R AC U S E M AYO R ST E P H A N I E M I N E R / F E B RUA RY 1 3 , 2 0 1 3

R E S P O N S E T O C U O M O :“ Yo u ca n’ t s ay , ‘ We’ v e d o n e a l l w e c a n , w e c a n’ t d o a ny t h i n g m o r e’. . .

I f y o u a r e p u s h i n g e co n o m i c d ev e l o p m e n t a n d j o b c r e a t i o n i n u p s t a t e N ew Yo r k , y o u ’ v e g o t t o l o o k a t t h e n a n o t e c h p r ov i d e r s o r t h e g e n o m e p e o p l e , a n d s ay,

y o u ’ r e g o i n g t o g e t c l e a r w a t e r, t h e s n ow ’s g o i n g t o b e p l ow e d , y o u ’ r e g o i n g t o d r i v e o n g o o d s t r e e t s , y o u ’ r e g o i n g t o h av e g o o d s c h o o l s ,

a l l o f t h o s e t h i n g s a r e i m p o r t a n t s e r v i ce s t h a t f o r m t h e b e d r o c k o f a q u a l i t y o f l i f e t h a t a l l ow s u s t o b u i l d a n e co n o m i c d ev e l o p m e n t m o d e l t h a t w o r k s .”

J A N . 8 , 2 0 1 3 A F T E R C U O M O’ S STAT E O F T H E STAT E

W E H AV E A B E T T E R I D E A

T H E P RO B L E M C U O M O & A L BA N Y O N LY

P RO P O S E O N E T I M E R E D U C T I O N S L I K E

T H E 2 0 1 5 $ 1 .6 6 B I L L I O N R E BAT E P RO P O S A L

F O RC I N G $7.6 B I LLI O N TO B E PA I D E V E RY Y E A R P R I M A R I LY TH RO U G H

CO U NT Y P RO P E RT Y TA X E S BY O U R LO C A L CO U NTI E S & N YC

T H E LO N G T E R M SO LU T I O N

P H AS E I N A P E R M A N E NT 1 0 0% E LI M I N ATI O N O F TH E LO C A L

M E D I C A I D BU R D E N

F O C U S F I RST O N T H E 57 CO U N T I E S O U T S I D E N YC ,

R E D U C I N G T H E $ 2 . 2 B I L L I O N BU R D E N P E R M A N E N T LY P H AS E D

I N OV E R 3 Y E A RS BY $73 3 M I L L I O N A Y E A R

50%

F E D E R A L

C O U N T Y

S T A T E

...ALBANY only picks up 2/3 of its share......putting an unbearable burden onto the COUNTIES of NY.

NO OTHER STATEDOES WHAT CUOMO & NEW YORK STATE DOES

NEW YORKNO MATCH

26MINIMAL MATCH

23

CLOSEST TO NY IS CALIFORNIA @ $1 BILLION $7.6 BILLION

3 YEARS AGO NORTH CAROLINA ELIMINATED ITS 15% BURDEN, LEAVING

NEW YORK ALONE IN ITS ABDICATION.

MEDICAIDWHILE WE NEED TO FULLY PROTECT ITS BENEFITS

ALBANY MUST STOP WHAT ONLY NY STATE DOES:

FORCE OUR COUNTIES & NEW YORK CITY TO PAY$7.6 BILLION OF THE STATE’S SHARE

L I F T T H E B U R D E N N OW

In 1966, Governor Rockefeller & the Legislature decided to

allocate up to 50% of the State’s share to NYC & our counties.

R E D U C I N G T H E CO U N T Y B U R D E N I S N OT A N E W I D E A

1967CONSTITUTIONAL

CONVENTIONPROPOSED:

“All public assistance and Medicaid costs not paid for by the National Government

will be borne by the State Budget. There will be no local share.”

Unfortunately the suggested new Constitution was voted down as a whole.

1991Governor Cuomo Supported Lifting the Burden“In one bold step, we can dramatically improve the affordability of quality public health care and relieve local governments and property taxpayers of the most significant burden imposed upon them by the State of New York.”

- Governor Mario Cuomo 1991 (State Takeover of Local Medicaid Costs: A Mandate Relief Proposal)

“The State should plan for

a full fiscal takeover...”

“Medicaid is not administered

in the most rational or

cost-effective manner...”

“There should be no higher priority

for NY political and civic leaders than to seek a share of the Federal contribution

to Medicaid that bears a rational relationship

to the state’s poverty levels.”

“New York stands

virtually alone...”

Richard Ravitch2010 Lieutenant Governor’s Report

2010

201148 years later nothing has changed.

In 2011, a working group of Cuomo’s Medicaid Redesign Team

proposed:

“The State should...implement a plan...that phases out reliance on local taxes

(property taxes).”BUT IN THE END, CUOMO CUT OUT

THIS RECOMMENDATION.

201548 years later nothing has changed.

NY State is now ALONE as a backward state that still

passes to local communities the strangling burden which

kills economic growth.

W E M U S T L I F T T H E B U R D E N N OW

Our Upstate communities simply cannot afford to bear Albany’s Medicaid burden.

They must be allowed the budget freedom to invest, cut taxes, and grow again!

Source: US Census Bureau

POPULATION LOSS

1960-2010

BUFFALO ROCHESTER SYRACUSEPOPULATION1960 2010 LOSS532,759 261,310 271449

POPULATION1960 2010 LOSS318,611 210,566 108045

POPULATION1960 2010 LOSS216,038 145,170 70868

ERIE ONONDAGA MONROE97%

OF COUNTY PROPERTY TAXES PAY FOR MEDICAID

80% OF COUNTY PROPERTY TAXES

PAY FOR MEDICAID

58% OF COUNTY PROPERTY TAXES

PAY FOR MEDICAID

N Y STAT E TA K I N G R E S P O N S I B I L I T Y F O R M E D I C A I D W O U L D D R A M AT I C A L LY H E L P W E ST E R N N Y

CO M P E T E F O R B U S I N E S S A S TO DAY I T C A R R I E S A B U R D E N N O OT H E R CO U N T Y I N T H E U . S . H A S

79%

97%E R I E

45%M O N RO E

80%O N O N DAG A

86%O N E I DA

89%C H E M U N G

67%B RO O M E

47%U L ST E R

64%O R A N G E

39%W E STC H E ST E R

31%N A S S AU

M A K I N G T H E S TAT E PAY F O R M E D I C A I D , L I K E E V E RY OT H E R S TAT E , W I L L D R A M AT I C A L LY LOW E R P R O P E RT Y TA X E S I N T H E 5 7 CO U N T I E S , BY A N AV E R AG E O F

4 9 . 1 %

79%

O R A N G E CO U NT Y$74 M I L L I O N

O R A N G E CO U NT Y SU R P LU S H A D FA LLE N TO $ 3 M I LLI O N B E F O R E STE V E N E U H AU S E LE C TE D.

O N M A RC H 1 4, 2 01 4, M O O DY ’S LOW E RS ITS BO N D R ATI N G . I M AG I N E W H AT A $74 M I LLI O N

R E D U C TI O N WO U LD D O F O R J O B G ROW TH A N D O R A N G E CO U NT Y BO N D R ATI N G .

U LSTE R CO U NT Y$ 3 7 M I L L I O NM I K E H E I N — W H AT CO U LD H E D O TO I M -P ROV E S E RV I C E S A N D LOW E R TA X E S W ITH $ 3 7 M I LLI O N A Y E A R R E D U C TI O N I N D O LL A RS S E NT TO A LBA N Y.

E R I E CO U NT Y$ 2 1 6 M I L L I O N

C U O M O’ S TA XP O L I C Y S AV I N G S

F O R E R I E$ 4 8 M I L L I O N

S TAT E TA K I N G OV E R M E D I C A I D

E F F E C T I V E N Y S AV I N G S$ 6 4 8 M I L L I O N

OV E R A 3 Y E A R P E R I O D

V S

NEW YORK CITY HAS A$5.4 BILLION MEDICAID BURDEN

A U N I Q U E C A S E :

9% OF THE ENTIRE CITY BUDGET

50%

7%

W H I C H H AV E N O M E D I C A I D B U R D E N

L O S A N G E L E S H O U S T O N. . . A N D AT L A N TA , B A LT I M O R E , H A R T F O R D, P R OV I D E N C E , S E AT T L E , E T C . , E T C .

B O S T O N

U N L I K E I N OT H E R C I T I E S I N A M E R I C A

THINK OF ALL THE THINGS MAYOR DI BLASIO COULD DO WITH AN ADDITIONAL

$5.4 BILLION

JOBS HOUSING

HOSPITALSTAXES

ETC...

N E W YO R K S TAT E TA K I N G O N M E D I C A I D E F F E C T S N YC ’ S A B I L I T Y T O A D D R E S S I N CO M E I N E Q UA L I T Y I S S U E S

T H E E F F E C T I V E N YS O LU T I O N F O R A L B A N Y

A B I PA RT I S A N E F F O RT BY D E M O C R AT S A N D R E P U B L I C A N S T O PAY F O R M E D I C A I D F U L LY AT T H E S TAT E L E V E L

T H E O N LY WAYT O AC H I E V E R E A L M A N D AT E R E L I E F A N D

D R A M AT I C A L LY LOW E R CO U N T Y P R O P E RT Y TA X E S

T H E O N LY WAYT O F R E E U P B I L L I O N S O F D O L L A R S I N O U R LO C A L I T I E S F O R I N V E S T M E N T S I N P U B L I C S E RV I C E S A N D I N F R A S T RU C T U R E

H OW TO PAY F O R I T:

• B e g i n w i t h a d ow n p ay m e n t i n t h i s y e a r ’s s t a t e b u d g e t o f $ 7 3 3 m i l l i o n t o r e l i ev e t h e b u r d e n o n t h e 5 7 c o u n t i e s o u t s i d e o f N ew Yo r k C i t y.

• T h e r e s t c a n b e f i n a n c e d t h r o u g h e f f i c i e n c i e s i n t h e s t a t e’s $ 1 4 0 b i l l i o n b u d g e t w i t h o u t a ny t a x i n c r e a s e , a n d t h e g r ow t h i n n ew t a x r ev e n u e

a s a r e s u l t o f s t r o n g e r j o b g r ow t h i n o u r c o u n t i e s .

• I t c a n a l s o b e d o n e by r e p l a c i n g t h e r e g r e s s i v e p r o p e r t y t a x w i t h a m o r e p r o g r e s s i v e t a x .

CO N C LU S I O N :I T ’ S T I M E F O R A L B A N Y T O S T E P U P A N D A D D R E S S T H E F I S C A L C R I S I S

O F N E W YO R K ’ S CO U N T I E S A N D C I T I E S .