BILL NUMBER: S5519
SPONSOR: ASHBY
 
TITLE OF BILL:
An act to amend section 1 of part C of chapter 58 of the laws of 2005
relating to authorizing reimbursements for expenditures made by or on
behalf of social services districts for medical assistance for needy
persons and the administration thereof, in relation to phasing out such
reimbursements
 
PURPOSE:
This bill would reduce the property tax burden on homeowners by provid-
ing for a ten-year state takeover of the local share of Medicaid for
local governments subject to the two percent property tax cap.
 
SUMMARY OF PROVISIONS:
Section 1 Provides for the State to take over the local share of Medi-
caid for local governments subject to the two percent property tax cap
over a ten-year period and requires one hundred percent of the resulting
savings to be used for property tax levy reductions.
Section 2 is the effective date.
 
JUSTIFICATION:
By providing relief to local governments by assuming all of the local
share of Medicaid for local governments subject to the two percent prop-
erty tax cap, this bill will create long-term structural changes to the
financing of New York's Medicaid program. This bill is designed to
remove the largest state mandate on local governments, entice all local-
ities to operate under the two percent property tax cap, and make New
York State a more affordable and attractive place to do business and
raise a family.
 
LEGISLATIVE HISTORY:
2024 - S.8648 - referred to Finance
 
FISCAL IMPLICATIONS:
Savings to property taxpayers living in localities subject to the two
percent property tax cap and approximately $400 million in Fiscal Year
2025, $2 billion in Fiscal Year 2029, and $4 billion in Fiscal Year 2034
in cost to the state.
 
EFFECTIVE DATE:
This act shall take effect immediately.