Press release:
Congresswoman Claudia Tenney (NY-24) introduced the Property Tax Reduction Act, which would prevent state governments like New York from unfairly shifting state Medicaid expenses onto local county governments.
Congressman Nick Langworthy (R-NY) co-led this bill alongside Congresswoman Tenney. Congressman Brandon Williams (R-NY) and Congresswoman Elise Stefanik (R-NY) are also original cosponsors.
New York is the only state in the country that requires local counties to pay a substantial portion of the state’s share of Medicaid funding, amounting to nearly $8 billion per year or nearly a quarter of the non-federal cost share for the program.
This places enormous fiscal pressure on our local governments and has led to some of the highest property tax bills in the country. This arrangement also enables the state to inflate and expand both the scope and the cost of Medicaid since the state is not directly responsible for absorbing the costs associated with burdensome changes and unfounded mandates to the program. This mandate is among the reasons New York also has the highest per capita Medicaid expenditures nationwide; as of 2019, per capita Medicaid personal spending for New York is close to 7 times higher than that of California and 10 times higher than New Jersey.
In New York’s 24th Congressional District, this irresponsible funding scheme shifts a burden of at least $180 million onto our county governments annually. Counties raise most of these funds through property tax levies. Tenney’s bill would stop Albany from passing this Medicaid share onto counties, saving local taxpayers millions.
“New York State leads the country with the highest rate of outmigration,” said Congresswoman Tenney. “This mass exodus directly corresponds with outrageous property taxes, forcing families and small businesses to relocate. One of the driving causes of this crisis is that New York’s 62 county governments have zero say in how New York’s Medicaid program is operated but are forced to pay a significant amount of its costs. This dysfunctional and unfair system burdens county governments, driving up costs for working families. It also lets Albany Democrats off the hook for reckless spending and gross mismanagement. I am reintroducing the Property Tax Reduction Act to require New York’s Democrat lawmakers to start taking responsibility for reckless spending and to prevent them from unfairly shifting costs to local property taxpayers and counties.”
