January 12, 2007
2007 NYSAC Legislative Conference
Join hundreds of elected and appointed county officials from across the state from January 29-31, 2007 in Albany at NYSAC’s Annual Legislative Conference. Our agenda is designed to inform, educate and support county governance in NYS. We have invited Governor Eliot Spitzer and will hear from many members of his new administration, as well as leaders of the state Assembly and Senate. For details, visit www.nysac.org/documents/2007LegConfFlyer.pdf.
A New Way to Slim Down Medicaid Costs: Say Yes to Butter!
In this trans-fatty world we now live in, it’s great to hear that Butter is a-ok. We are, of course, referring to Congressman G.K. Butterfield (D-North Carolina) and his new proposal: the “Medicaid County Protection Act of 2007.” We aren’t taking this proposal lightly; this bill would expressly prohibit states from passing along the costs of Medicaid to counties. While the play on words is amusing, Butterfield’s effort on the behalf of counties is quite serious and admirable, highlighted by the fact that he is in a newly Democratic House. According to the Congressman, half of North Carolina’s 100 counties now pay more for Medicaid than for their schools. Up until the New York State Medicaid Cap, New York and North Carolina were the only states that required their counties to pay a percentage of all Medicaid expenditures. In New York, the local share of Medicaid will grow to $6.5 billion in 2007; even under the Medicaid Cap our local share will increase $200 million a year. Congressman Butterfield will be seeking co-sponsors for his bill and NYSAC very much encourages contacting your local Congressional Representative to express your support for the “Medicaid County Protection Act of 2007.” The press release on Butterfield’s bill can be found at: http://www.house.gov/list/press/nc01_butterfield/01092007medicaidrelief.html. (Jessica Morelli).
Attorney General Initiates Review of Medicaid Fraud Unit
This week, Attorney General Andrew Cuomo tapped Kings County District Attorney Charles J. Hynes to complete a thorough review of the Attorney General’s Medicaid Fraud Control Unit. As a Special State Prosecutor investigating Medicaid fraud in New York, District Attorney Hynes has been credited with pioneering the first State Medicaid Fraud Control Unit.
Under the plan, the District Attorney will review and offer suggestions regarding the legal, enforcement and investigative functions of the Attorney General’s Medicaid Fraud Control Unit and its relationships with other law enforcement agencies in the state, such as with District Attorneys’ Offices as well as with county and federal officials. The review will also look at technological systems and any specific legislative initiatives that may enhance the Attorney General’s ability to prosecute Medicaid fraud and make recoveries.
District Attorney Hynes plans to present a final written report to the Attorney General by February 15th. (Ken Crannell)
Property Tax forum backs reform, questions value of STAR program
Stakeholders from across the State made the trek to Albany this past week for a one-day symposium on how best to reform State’s real property tax system.
The conference was sponsored by the Center for Governmental Research, the Fiscal Policy Institute and the Empire Center for New York State Policy. It brought together several speakers from government think-tanks and current and former employees from the New York State Office of Real Property Tax Services.
Several of the presenters outlined how the STAR program, which was put in place to reduce school property tax bills, has never been a true tax break for homeowners, has been a tax shift and has failed to reduce school district spending since it’s creation in the mid 1990’s.
The original STAR proposal capped school spending but the cap was removed in the final adopted version of the plan. Since that time, school district spending in many regions has risen to levels that have overtaken the value of the STAR exemption. Governor Spitzer’s plan for a $6-billion dollar expansion of the STAR program over three years does not include a cap on school district spending.
The panel also focused on how the vast number of taxing jurisdictions within the state, over 4200, has lead to higher property taxes statewide. The merging of some of these taxing jurisdictions through government consolidation has been mentioned as a key priority for the new Spitzer administration. (Pete Savage)
Department of State Releases SMSI Grant Funds
The NYS Department of State has released funding grants for two categories of Shared Municipal Services (SMSI) programs: general projects and shared highway service projects. Several county proposals were funded across the state in both categories. The full list of county proposals that were awarded is listed below. (Pete Savage)
State Supreme Court decision stalls implementation of cigarette sales tax law
The State Supreme Court last week issued a preliminary injunction that bars the State of New York from enforcing a law intended to collect cigarette sales taxes on Indian sales to non-tribal members.
The decision states that "while the intent of the statute is to require non-Indians who purchase cigarettes on Indian reservations pay the state stamp tax, the statute can only function if it properly exempts Indians purchasing cigarettes under circumstances where they are not lawfully required to pay such taxes." The decision also notes, "it is essential that the state issue Indian tax exemption coupons."
This latest court decision continues years of attempts to collect sales and excise taxes on goods sold on Indian land to non-Native Americans. This failure taxes is damaging to local taxpayers because it deprives state and local governments of legitimate, legal revenues which are desperately needed for public programs. It also creates an unfair business environment for non-Indian retailers operating near tribal and Indian retailers.
Governor Eliot Spitzer, who said during his campaign that he would work to collect sales tax on goods sold on Sovereign Indian land to non-Native Americans, said he will direct his tax department to implement the law to comply with the judge's ruling.
The NYSAC Standing Committee on Native American Affairs and Gaming has been advocating for the implementation of this law since its adoption. NYSAC is scheduled to meet with the Governor’s Special Counsel on Native American Affairs and Gaming. (Mark LaVigne)
Process in place to pick next State Comptroller
State leaders this week decided on a process to review and narrow the number of candidates for the State Comptroller left vacant with the resignation of Alan Hevesi.
Governor Eliot Spitzer and Assembly Speaker Sheldon Silver agreed to develop an outside panel—made up of former state comptrollers H. Carl McCall (D) and Ned Regan (R) and another member to be named—to review candidates for comptroller. The panel could be up and operational in the next few weeks. The panel would be expected to make recommendations to the Legislature, which by State Constitution, is authorized to fill the vacancy. Democrats have a majority in the Legislature, comprised of both the State Senate and the Assembly.
Under Hevesi, the Office of the State Comptroller issued a series of reports on the fiscal trends and outlook for New York State’s local governments. (Mark LaVigne)
Pelletier Institute offers sessions on ethics, consensus-building and a newly elected orientation
At NYSAC’s upcoming Legislative Conference, the Pelletier Institute will feature programs in Government Ethics, Building Consensus in a Political Environment and its annual Orientation Session for Newly Elected and Appointed Officials.
The Pelletier Institute, a joint undertaking of NYSAC and Cornell University, will offer these courses and also a series of educational seminars and policy forums designed to enhance county leaders’ knowledge and skills so they can better serve the public.
The Government Ethics course will give participants a fuller understanding of the legal requirements and the accepted modes of behavior for county officials to fulfill their obligations to maintain the public trust. The annual Orientation Session for Newly Elected & Appointed County Officials, to be held on Monday January 29, from 10:30 a.m. to 5 p.m., will provide those new to county service with a full introduction to their responsibilities as county officials and leaders of their community.
Further information on these sessions and the programs of the Pelletier Institute can be found at http://www.nysac.org/dp/index.htm, or by accessing the conference program at www.nysac.org/documents/2007LegConfFlyer.pdf. . (Jeff Osinski)