March 23, 2007
New(est) Red Alert re: MA Billing for Special Ed Pre-School
The Office of the Medicaid Inspector General (OMIG) has issued a follow-up to the alert issued a couple of week ago about claiming for certain Medicaid services. The latest alert deals with rate codes, and states: “the NYS OMIG encourages school districts, counties and 4201 schools to hold all claims for those rate codes until further notice. A waiver will be granted for any held claims for those rate codes that are properly documented and placed in jeopardy because of the two-year claiming restriction. Within several months the State will notify providers how the claims pended in cycle 1540 and subsequent cycles will be handled.” In light of these alerts being issued and the confusion surrounding the new regulations, NYSAC has arranged for the OMIG and State Education Department offices to present at a meeting in Albany on April 5, 2007 designed specifically to address this issue. For a copy of this alert or for more information, please contact NYSAC. (Jessica Morelli)
County Finance School to Include Discussion of Sales Tax Swap for Medicaid Option
The New York State Association of Counties, the Office of the State Comptroller, and the New York State County Treasurers and Finance Officers Association are finalizing plans for the 41st Annual County Finance School to be held at the Syracuse University Sheraton Hotel and Conference Center in Syracuse, New York on May 2-4, 2007.
By September 30, 2007, each county must decide whether it wishes to convert their monthly payment under the Medicaid Cap from a fixed amount to a state intercept of a percentage of their monthly gross sales tax collections. The County Finance School will feature a workshop to review the statutory formulas that will determine a county’s sales tax intercept, discuss how a county’s sales tax distributions would be affected and review the various pros and cons associated with this decision. Other timely topics include: Setting Higher Standards for Internal Controls, GASB 45, Tax Enforcement, and Shared Services. The tentative program for the County Finance School is available at www.nysac.org.
This three-day session is expected to draw municipal finance officials from across the state and will provide a forum to learn about and discuss current events and issues related to county finance. Attendees for this event include County Treasurers, Comptrollers, Finance Commissioners, Budget Officials, as well as Town Finance Officials, County Supervisors and Legislators, and a host of representatives from the New York State Office of the State Comptroller.
Questions regarding the 2003 County Finance School should be directed to Juanita Munguia by email at jmunguia@nysac.org or by calling the NYSAC office at 518.465.1473. (Ken Crannell)
Help is in the Air for Potential Federal Cut to NYS Child Support
Congressman Jim McDermott (D-WA) has introduced the Child Support Protection Act of 2007 (HR 1386), which would amend the Deficit Reduction Act of 2005. McDermott’s bill would repeal a provision of the Deficit Reduction Act aimed at eliminating the federal match of earned incentives, costing New York State and our counties at least $17 million annually. Sixty percent (approximately $10 million) of this lost federal support will be borne by county-run child support offices. The vast majority of county child support program costs in New York (a full 70% percent) are used for staffing. NYSAC is fully supportive of McDermott’s legislation and we are pleased to note that two members of Congress from New York, Mike McNulty and John Hall, are co-sponsors of the legislation. (Jessica Morelli)
MOE Money: Inflexible State Law Hurts Counties
A State Law that requires counties and the City of New York to demonstrate compliance with maintenance of effort (MOE) requirements as a precondition for receiving state aid from the Indigent Legal Services Fund (ILSF) has cost three counties over $450,000 in state aid in 2007. Schoharie, Seneca, and Wayne Counties were notified by the Office of the State Comptroller that they have not met the MOE requirement and that they would not receive their share of the ILSF allocation, even though the counties did not diminish the quality, or make any detrimental changes, to their Indigent Legal Services Programs.
The ILSF provides revenues from various sources, including court and DMV-related fees, to partially offset the increased rates for assigned counsel mandated by the state in 2003. The ILSF requires that a county demonstrate, “with specificity,” either that: (1) there was no decrease in the total amount of local funds expended on indigent legal services during the calendar year when compared to the previous calendar year; or (2) if there was a decrease, all ILSF monies received by the county were used to assure an improvement in the quality of indigent legal services and not supplant local funds. In the event this MOE is not met, the county loses 100 percent of their share of the ILSF, with those amounts reallocated to counties across the state.
Since this law’s inception, NYSAC has been concerned that the current law is inflexible and does not take into consideration unique or unforeseen circumstances, nor does it provide discretion for the Office of the State Comptroller to waive or grant exceptions to the MOE requirements. In response to these developments, NYSAC is requesting the 2007-08 State Budget provide additional funds to restore the aid to these counties. In addition, NYSAC is calling for changes to the current MOE requirement to provide needed flexibility and ensure that counties do not lose their ILSF distributions due to circumstances beyond their control. (Ken Crannell)
Comptroller Issues Advisory on Reporting of GML 207(a) & 207(c) payments
The Office of the State Comptroller this week issued a guidance memo reminding all municipal employers that they are still obligated to report payments of municipal disability payments made to injured firefighters and law enforcement personnel under General Municipal Law (GML) sections 207a and 207c to the New York State and Local Retirement System as wages paid.
The guidance memo was issued to clarify the misinterpretation by some municipal employers that a recent IRS decision that the withholding of FICA from municipal disability benefits also applied to wage reporting to the New York State and Local Employee Retirement System.
Under the Retirement and Social Security Law, counties and all participating municipalities are required to report the wages of all participating employees, including those receiving municipal disability benefits under GML 207(a) or 207(c) to the State Retirement System. (Jeff Osinski)
Slow to no growth in more than half of NYS Counties—US Census Bureau Issues 2006 Population projections
The United State Bureau of the Census issued its annual population projections of New York counties this week. The projections were Census Bureau estimates of population as of July 1, 2006.
The projections indicated a growth in New York’s population of 1.7 % since the 2000 federal census to an estimated population of 19,306,183. This compares with an estimated population growth of 6.4% for the nation as a whole since the last census in 2000, to an estimated population of 299,398,484.
Preliminary analysis of the estimates provided by the Census Bureau indicates that 29 counties, all but one from Upstate New York, have lost population since the last census. Five counties grew at less than 1% with the remaining 28 counties having projected overall population growth of 1% or more.
If these population trends continue, New York is in danger of losing at least one congressional seat following the 2010 census. The trend could also significantly impact federal aid for programs that are driven by population based formulas.
New York State experts, including those affiliated with Cornell University, have raised questions concerning the accuracy of the information and the methodology used to arrive at these preliminary population estimates. NYSAC will be monitoring this process closely as New York State begins preparations for the 2010 federal census of population.
The full table of New York State Cumulative Population Estimates by County can be accessed at http://www.census.gov/popest/counties/CO-EST2006-02.html.
(Jeff Osinski)
O'Donnell Confirmed as Division of Criminal Justice Services Commissioner
This week, the New York State Senate unanimously confirmed Denise E. O'Donnell of Buffalo as commissioner of the Division of Criminal Justice Services. O'Donnell is a former federal prosecutor and former partner with a Buffalo law firm.
O'Donnell said her immediate top priorities are reducing violent crime, establishing a new office of sex offender management, combating gun violence, reducing recidivism through effective re-entry initiatives and using technology to fight crime.
(Adriano Bongiorno)
Senate En Con Committee Questions Nomination for DEC Commissioner, then postpones vote
After 90 minutes of questioning on topics such as State acquisition of land in the Adirondacks, agency staffing levels and the future of hunting and fishing in New York State, Assemblyman Alexander “Pete” Grannis (D, New York) is slightly closer to becoming the next Commissioner of the New York State Department of Environmental Conservation.
The Chair of the Senate Committee on Environmental Conservation, Carl Marcellio (R, Nassau & Suffolk), brought the committee hearing to a close without calling for a vote on Grannis’ appointment, commenting that there simply “was not enough time for his members to finish asking questions.” Had his committee voted, Grannis would have likely moved on to the Senate Finance Committee for another round of questioning and finally to the Senate floor for a vote.
(Pete Savage)
New Yorkers Nominated to NACo Native American Affairs Subcommittee
NYSAC nominates seven New York State county officials to the National Association of Counties (NACo) Sub-Committee on Native American Affairs. The national group advocates on behalf of counties from across the country on issues such as gaming compacts, land into trust applications, land claims and the collection of sales taxes on goods and services sold on tribal lands.
The New Yorkers appointed to the committee include:
- Hon. Rocco DiVeronica, Chair, Madison County Board of Supervisors,
- Paul Miller, Madison County Planner,
- Hon. Dale Sweetland, Chair, Onondaga County Legislature,
- Dr. William Pammer, Jr., Sullivan County Planning Commissioner,
- Hon. Ray Lockwood, Cayuga County Legislature,
- Hon. Anthony Picente, Oneida County Executive, and
- Hon. David Dresser, Seneca County Board of Supervisors. (Mark LaVigne)
State of Oneida Nation’s Turning Stone Casino Now in Question
Information revealed this week by the U.S. Department of the Interior (DOI) puts in question the status of the gaming compact between New York State and the Oneida Nation, which operates the Turning Stone Casino in Oneida. The DOI encouraged State and Tribal leaders to reopen talks on the agreement, which is the only gaming compact in NYS that does not call for the Tribe to share slot machine revenues with the State and local governments.
The Interior Department’s action is the result of a state court ruling that Turning Stone was operating illegally because the state Legislature never approved the agreement signed by former Governor Mario Cuomo. That ruling was upheld in the by the state Court of Appeals, and was put to rest in December 2006 when the U.S. Supreme Court declined to review the matter. In a related 2005 decision, the U.S. Supreme Court ruled that the casino is not built and sovereign Tribal Land.
The NYSAC Standing Committee on Native American Affairs and Gaming has been advocating for county officials to be included in gaming compact and land claim negotiations because settlements of either impact county government revenues and services. Currently 31 of the state’s 62 counties are potentially affected by land claims, land into trust applications or gaming compact negotiations across New York. (Mark LaVigne)
Next week
The Senate and Assembly are scheduled to be in session all next week.