Eliminate New York State Medicaid Mandate
Mr. Speaker, I thank Congressman Faso for his leadership, and also for the great comments from Congressman Collins in the western New York district and for coming up with this really great piece of legislation. It is no secret that New…
Mr. Speaker, I thank Congressman Faso for his leadership, and also for the great comments from Congressman Collins in the western New York district and for coming up with this really great piece of legislation.
It is no secret that New York residents pay among the highest taxes in the Nation. Combined State and local taxes consume over 13 percent of the average household income.
Decades of tax-and-spend policies have depleted the wallets of hardworking middle class families and forced many small businesses-- including family farms; once a tradition in New York--into closure, and driven lifelong residents out of our State in record numbers forever. These burdensome taxes, coupled with crushing regulations, have led to the worst business climate in the country. Small businesses, which create over 70 percent of the new jobs, face the threat of extinction in New York.
Year after year, New York continues to be ranked the highest in out- migration in the entire Nation. Nearly 200,000 people have left the Empire State, and two of the worst hit regions--the Mohawk Valley and the southern tier--are located in the 22nd District. Additionally, the two largest cities in our district--Utica and Binghamton--are ranked last and second to last in economic growth.
Hardworking families and our job creators desperately need tax relief. That is why I am working with the New York delegation and the Republican congressional delegation to lead the charge by cosponsoring the Property Tax Reduction Act sponsored by Mr. Faso and Mr. Collins and cosponsored by the rest of us.
As a note, I would just like to mention that, as a former member of the State assembly, I did sponsor legislation very similar to the type of relief being proposed in this wonderful piece of legislation known as the Property Tax Reduction Act. That legislation was cosponsored in a bipartisan way with Democrats who also recognized the need to change the paradigm in New York State.
The Property Tax Reduction Act will bring the largest local mandate relief initiative to my area in my lifetime, potentially saving the taxpayers in the 22nd District more than $167 million annually in unfunded State Medicaid mandates. This bill relieves county governments from the burden forced upon them by Albany bureaucrats led by our Governor.
Currently, in New York State, the law requires approximately $2.3 billion, as was mentioned earlier, that is taken from our local county governments and given to the State for the Medicaid program. This amounts to about $140 million per week.
In 2015, Oneida County was forced to divert more than 80 percent of the property tax levies to subsidize Albany's bloated budgets. This amounts to $54.4 million annually in Oneida County losses every year to cover the cost of their share of Medicaid.
In Broome County, more than half of the county's $70 million in property tax revenue, about $37 million, was taken from the county last year and diverted to Albany--a loss of more than, as I said, $37 million. This is money that would otherwise go to reduce property taxes, fund our schools, make much-needed improvements to infrastructure, and support our first responders, among many other programs, that we need on a county level.
Combined property and sales tax rates as a percentage of value rank many of New York's counties among
the highest taxed counties in the Nation, with Oneida County being ranked 19 in the latest Tax Foundation survey. No other State in the country abuses its local governments and taxpayers quite like Albany does in order to fund its most expansive and really overly generous Medicaid programs in the Nation.
New York's Medicaid program has the highest incidents of fraud, abuse, and waste in the country. If other States can provide high- quality healthcare to vulnerable citizens without taking advantage of local taxpayers, so can New York. The imposition of over $2.5 billion in Medicaid costs on to the counties is nearly seven times costlier than what counties in California pay, despite having higher enrollments and expenditures.
The Property Tax Reduction Act requires Governor Cuomo and the State to pay its full share of the Medicaid program that it should be paying in full and that it also forces on to the county and local governments.
This bill does not propose cuts to the programs in the 22nd District. Rather, it requires Albany to put its fiscal house in order. It requires Albany to take stock of the money that it has been using, sending these unfunded mandates to our strapped local governments.
This legislation, as the sponsor has indicated, gives the State ample time to realign the budget, to rein in out-of-control spending, and to give the taxpayers relief once and for all at the county level.
If Governor Cuomo chooses to hurt the citizens by slashing programs that upstate New Yorkers want and need with a mammoth State budget that was over $152 billion this year for fiscal year 2017, that is his choice, not something that has been brought on by that act. His failed leadership continues to produce budgets laden with unconstitutional executive pork and wasteful spending.
In fact, let's just take a look at a couple of the items. Over $370 million in Albany's budget these past few years was spent on the corrupt and mismanaged StartUP New York program, which produced only one-third of the promised jobs. Over $1.3 billion in tax breaks have been handed over to Hollywood filmmakers in the last 2 years. In all, Albany spends over $8 billion in taxpayer money on a job-creation program with little results to show for it.
The bill will simply force the State to work over a period of several years to responsibly reduce the unfair and unreasonable Medicaid liability that has been forced on to our counties. Upstate New York is in desperate need of property tax relief.
This bill is the first step in making the relief a reality. County executives and local governments across the State have voiced their support of this legislation.
While hardworking families struggle, Albany sits idly by. That is why we are taking the lead on the Federal level to help revive our region and bring business and people back to beautiful upstate New York. By giving county governments a once-in-a-lifetime opportunity to reduce property taxes, this bill will save millions of dollars and hard-earned tax dollars for working families.
On behalf of the 22nd District, I just want to thank my colleagues for really taking the effort to bring this to the floor and showing true leadership in the face of difficult circumstances in finding a real solution, a once-in-a-lifetime opportunity for all of us as taxpayers in New York to finally have some relief, to grow our business community, and to find some kind of dynamism in our economy. I thank again the sponsors, Mr. Faso and Mr. Collins.
I want to mention one thing that I think is really important. Both Congressman Faso and I served as members of the State Assembly prior to serving in Congress. One thing that we both know is that we are truly interested in helping people who are needy.
It isn't about the people who are truly needy; it is about the people who are abusing the system and taking resources that are desperately needed by our seniors and by people who really are, as I said, truly needy. This is a way of providing more resources to them without having the fraud, the abuse and waste, the mismanagement in Albany, and forcing Albany into being more fiscally conservative, protecting our counties so that we can provide those services for our communities.
I just want to make sure that we characterize that, because that is something that we all care about as people who take an oath of office, not just to uphold our Federal Constitution but also our State constitution. We take that seriously.
I know we are all committed to helping those people, but also remembering that we need to respect the taxpayers. The taxpayers need to have proper management of their funds.
I want to commend the gentleman for his work and efforts in making sure this comes to the floor and making sure we get this passed on the Federal
level, because it has been a struggle for all of us through many years. Having this come to reality is going to be, honestly, one of the greatest mandate relief packages that I have experienced in my lifetime, and I am grateful.