March 30, 2007
Budget Expected by April 1st Deadline
Governor Spitzer and legislative leaders worked behind closed doors this week to complete the negotiations on an expected $121 billion State Budget. Work will continue through the weekend as specifics are finalized and bills completed for passage by the April 1st start of the new fiscal year. If successful, this would be the third consecutive on-time State Budget in over two decades.
Following the leadership agreements, including the allocation of spending targets, Senate and Assembly budget subcommittees met to reach consensus on outstanding issues. While the details of the spending plan are not finalized, tentative highlights of interest to counties include:
Medicaid
- Full implementation of the local Medicaid Cap, which limits local Medicaid payments in 2007 to $6.5 billion, an increase of 3.1 percent over 2006.
- A 75 percent restoration of the trend factor on nursing homes. The Governor’s proposal would have eliminated the 2007 trend factor increase of 2.5 percent.
- Continuation of the Medicaid-only case mix calculation for nursing homes until April 1, 2009.
- Partial restoration of the Nursing Home Quality Improvement Program.
- Continuation of the public nursing home grants negotiated by NYSAC last year to provide fiscal relief to public nursing facilities. Under this plan, public nursing homes receive $5 million in 2006-07, $15 million in 2007-08, $35 million in 2008-09 and $100 million in 2009-10 and years thereafter.
- Inclusion of Medicaid False Claims Act, while a proposed “Martin Act for Health Care” that would give the Attorney General expanded authority to prosecute health care fraud, was rejected.
Public Health
- Preserves the General Public Health Works Program (Article 6 funding) at prior levels.
- Rejects the Governor’s proposal to ensure the collection of 3rd Party Health Insurance for the Early Intervention Program.
Aid to Local Governments & Mandate Relief Measures
- Restores $20 million in Aid and Incentives to Municipalities (AIM) funding to New York City.
- Restores $2.08 million in AIM funding to the 81 towns & villages eliminated from the Governor’s proposal.
- Allows four upstate cities (Buffalo, Syracuse, Rochester & Yonkers) to retain $1.3 million in parking violation surcharges.
- Adds $1 million dollars to fund a proposal to place cell phone towers along the Adirondack Northway stretch of I-87.
- Funds the Shared Municipal Services Incentive Program (SMSI) at $25 million and accepts the Governor’s proposed grant standards. The proposal to have the Civil Service Commission develop a new employee health insurance program was rejected.
- Rejects the Governor’s proposal to cut aid to municipalities that host video lottery gaming facilities.
- Rejects the Governor’s Wicks Law Reform proposal. Issue will be addressed post budget.
- Rejects the Governor’s proposal to expand local government procurement options. Issue will be addressed post budget.
- Rejects the Governor’s proposal to address Collateral Source Payments on Damage Awards. Issue will be addressed post budget.
Transportation
- Restores the proposed $13 million cut in the Consolidated Highway Improvement Program (CHIPS) and provides an additional $3 million in CHIPS funding for a total of $312.5 million.
- Rejects the proposed permanent extension Department of Transportation Single Audit Program and provides for a one year extension.
Higher Education
- Community College Based Aid increased by $150 per FTE for SUNY & CUNY.
Public Protection
- Rejects the Governor’s proposal to amend the parole violator hearing revocation process to expedite the removal of technical parole violators from local correctional facilities.
- Rejects Judicial Pay increases, including the corresponding increase to local District Attorney salaries.
- Rejects the Governor’s Prison Closure Commission.
- Allocates $5 million for flood relief for counties affected by severe storm damage and flooding in 2006.
As of 9pm Friday night, all budget conference committees have completed their work and submitted final reports, with the exception of the Human Services Committee. This committee is discussing particularly contentious issues but is expected to finish negotiations by the deadline. NYSAC has been steadily involved in these particular issue areas. Please see below for more detail.
Unresolved Budget Issue: Flexible Fund for Family Services (FFFS)
While the structure of the FFFS theoretically provides for county flexibility, the reality of counties' existing child welfare commitments, as well as the extraordinarily high demand for services, has rendered most of the funding for counties "inflexible."
NYSAC Recommendation: Additional funds available above the Governor's proposed $1.008 billion should be set aside specifically for day care. However, given the lack of additional funding proposed by the Assembly and Senate, we believe that any further carve outs beyond the $352 million spent by counties last year for child care will only serve to reduce funding for other essential FFFS programs.
Unresolved Budget Issue: Flexible Fund for Family Services (FFFS): Performance Standards and Reporting Requirements
The Assembly budget proposal includes language related to performance standards and reporting requirements for the Flexible Fund for Family Services (FFFS).
NYSAC Recommendation: NYSAC opposes the Assembly language and believes any requirements of this nature should be done after payment has been made to counties.
Unresolved Budget Issue: Performance-Based Preventive Services Contracts
The Executive Budget and Senate/Assembly one-house budget proposals include language that require counties, effective January 1, 2008, to provide preventive services through performance-based contracts. Counties will be required to implement these performance or outcome-based provisions for preventive services. Should the county fail to comply with the new requirements, OCFS will have the authority to limit State reimbursement to counties for certain expenditures.
NYSAC Recommendation: Support Senate language. NYSAC supports the concept of performance-based standards in preventive services but is opposed to arbitrary fiscal penalties. However, when the three proposals are compared, the Senate proposal is preferred.
Unresolved Budget Issue: Public Assistance Grants
Overview: The Assembly one-house budget proposal includes an outlined increase of the public assistance grants over a two year period, fully funded.
NYSAC Recommendation: Any increase in public assistance grants should be done without a local share. The Assembly proposal increases public assistance grants without a local share. NYSAC suggests that any increase in the public assistance grants be accompanied by stricter accountability requirements.
Unresolved Budget Issue: Two-Parent Safety Net "Shift"
The decision to shift two-parent safety net cases was made by the State as a way to ensure that we avoid a federal penalty for the recalculated goal to meet the work participation rate. Many of the affected counties had high participation rates, and would have met the new goal, but the shift was still imposed statewide to ensure penalty avoidance. In order to ease the fiscal hit associated with shifting cases from federally reimbursed to 50%-50% state and local shares, the Executive Budget includes funding to reimburse the local share for the two parent safety net population. The Assembly one house budget proposal negotiates dropping $9 million included in the Executive Budget that would be used to reimburse the local share for the two-parent safety net caseload.
NYSAC Recommendation: Support the Governor's proposal to cover the local share of the two-parent safety net caseload.
Unresolved Budget Issue: Child Welfare Caseload Standards
The Assembly one house budget proposal adds language to clarify that OCFS has the authority to set workload standards for child protective services, foster care, preventive services and adoption services. However, no county would be required to increase its workforce by more than 25 percent in a given fiscal year. The Senate proposal requires OCFS to report on the comparison by each local social services district of the current staff–to-client ratio for child protective services, foster care and preventive services. Additional information would also be required in order to assist local social services districts to determine what is needed to meet the recommendations.
NYSAC Recommendation: Support the Senate proposal. In addition, NYSAC believes mandated caseload standards should be accompanied with adequate county funding.
Legislators are expected to remain in Albany through Sunday in order to pass the budget bills and meet the midnight deadline. In addition to passing budget bills, the Senate is expected to confirm Assemblyman Pete Grannis (D-Manhattan) as Commissioner of the Department of Environmental Conservation on Saturday. (Ken Crannell)
Public Health Week Celebrates Local Public Health Workforce
The New York State Department of Health announced today the beginning of National Public Health Week, which will run from April 2nd through the 8th.
State Health Commissioner Richard F. Daines, M.D. will tour “three county health departments to highlight the efforts of local public health agencies in providing disease prevention and public health protection to communities across the state.
For more from the State Health Department, visit www.health.state.ny.us.
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.
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)
St. Lawrence County named one of the Top 10 Places to Live
The Progressive Farmer magazine has named St. Lawrence County one of the best places to live in rural America. “In this one county—and granted, it is one of the biggest counties in the United States—you'll find a wonderful mix of attractions: traditional arts, great hunting and fishing, an outstanding collection of Frederic Remington artwork.
And how many rural areas can boast of having one of the premier music schools in the nation? The Crane School of Music started here in 1886 and continues to turn out professional musicians.
Located just across the river from Montreal, St. Lawrence County is a recreation paradise. A large part of the Adirondack Mountains is here, as are more than 200 rivers and ponds, making it a fisherman's paradise.” See photos at The Progessive Farmer web site.
Charting the Future: Workforce Training with a Focus on Older New Yorkers
According to the 2000 Census, the number of New Yorkers 60 years old and older ranks third in the nation at 2.8 million and growing. That number will almost double when Baby Boomers reach the 60 to 79 year old range. This future is filled with tremendous opportunities and challenges—for county programs and services, workforce training and economic development programs.
A spring listening tour has been designed to develop creative solutions to the challenges and prepare for the opportunities brought about by the growing numbers of older New Yorkers. The sessions are being provided by The State Society of Aging of New York, in co-sponsorship with the New York State Office of the Aging in partnership with Alfred University, Ithaca College and Fordham University.
April 19th—Alfred University, Alfred, NY
May 15—Isabella Geriatric Center, Manhattan
May 23rd—Ithaca College, Ithaca, NY
May 24th—Fordham University Law School
For more information contact Jennifer Rosenbaum at 518-473-4936.
Next week
- The Senate and Assembly are expected to pass the State Budget over the weekend and are not scheduled to return to Albany for Legislative Session until April 16th.
