NY State Senate Bill 2023-S8648

Senate Bill S8648

2023-2024 Legislative Session

Phases out certain reimbursements for expenditures made by or on behalf of social services districts for medical assistance for needy persons

download bill text pdf

Current Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Feb 26, 2024	referred to finance

2023-S8648 (ACTIVE) - Details

See Assembly Version of this Bill:: A9431
Current Committee:: Senate Finance
Law Section:: Medical Assistance
Laws Affected:: Amd Part C §1, Chap 58 of 2005

2023-S8648 (ACTIVE) - Summary

Phases out certain reimbursements for expenditures made by or on behalf of social services districts for medical assistance for needy persons, beginning with a 10% reduction for 2024, and ending with a 100% reduction for 2033, and remaining eliminated for each year thereafter.

2023-S8648 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8648

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 SPECIFIC 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:

New Bill

 
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.

2023-S8648 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8648
 
                             I N  S E N A T E
 
                             February 26, 2024
                                ___________
 
 Introduced  by  Sen.  ASHBY  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance
 
 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
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision (c) of 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, is amended and  twelve
 new subdivisions (c-2), (c-3), (c-4), (c-5), (c-6), (c-7), (c-8), (c-9),
 (c-10), (c-11), (c-12) and (c-13) are added to read as follows:
   (c)  Commencing  with  the  calendar  year  beginning January 1, 2006,
 calendar year social services district  medical  assistance  expenditure
 amounts  for each social services district shall be calculated by multi-
 plying the results of the calculations performed pursuant  to  paragraph
 (b) of this section by a non-compounded trend factor, as follows:
   (i) 2006 (January 1, 2006 through December 31, 2006):  3.5%;
   (ii)  2007  (January 1, 2007 through December 31, 2007):  6.75% (3.25%
 plus the prior year's 3.5%);
   (iii) 2008 (January 1, 2008 through December 31,  2008):    9.75%  (3%
 plus the prior year's 6.75%);
   (iv)  2009  (January  1,  2009  through  December  31, 2009), and each
 succeeding calendar year THROUGH DECEMBER 31, 2024:  prior year's  trend
 factor percentage plus 3%.
   (C-2)  NOTWITHSTANDING  THE  PROVISIONS OF SECTION 368-A OF THE SOCIAL
 SERVICES LAW, OR ANY OTHER PROVISION OF LAW, COMMENCING WITH THE  PERIOD
 JANUARY 1, 2024 THROUGH DECEMBER 31, 2024, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT  SHALL  BE  REDUCED  BY 10% FROM THE 2023 EXPENDITURES. NO LESS
 THAN 100% OF THE ANNUAL SAVINGS FROM THIS MEDICAL ASSISTANCE EXPENDITURE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD14391-01-4
 S. 8648                             2
 
 REDUCTION, COMPARED TO THE PRIOR YEAR  MEDICAL  ASSISTANCE  EXPENDITURE,
 SHALL BE USED FOR PROPERTY TAX LEVY REDUCTIONS, OR PROPERTY TAX REBATES,
 EFFECTIVE IN THE LOCAL GOVERNMENT'S 2025 FISCAL YEAR. THIS SECTION SHALL
 APPLY  ONLY  TO THE LOCAL GOVERNMENTS AS DEFINED BY, AND SUBJECT TO, THE
 PROVISIONS OF SECTION 3-C OF  THE  GENERAL  MUNICIPAL  LAW  AND  SECTION
 2023-A OF THE EDUCATION LAW.
   (C-3)  NOTWITHSTANDING  THE  PROVISIONS OF SECTION 368-A OF THE SOCIAL
 SERVICES LAW, OR ANY OTHER PROVISION OF LAW, COMMENCING WITH THE  PERIOD
 JANUARY 1, 2025 THROUGH DECEMBER 31, 2025, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT  SHALL  BE  REDUCED  BY 20% FROM THE 2023 EXPENDITURES. NO LESS
 THAN 100% OF THE ANNUAL SAVINGS FROM THIS MEDICAL ASSISTANCE EXPENDITURE
 REDUCTION, COMPARED TO THE PRIOR YEAR  MEDICAL  ASSISTANCE  EXPENDITURE,
 SHALL BE USED FOR PROPERTY TAX LEVY REDUCTIONS, OR PROPERTY TAX REBATES,
 EFFECTIVE IN THE LOCAL GOVERNMENT'S 2026 FISCAL YEAR. THIS SECTION SHALL
 APPLY  ONLY  TO THE LOCAL GOVERNMENTS AS DEFINED BY, AND SUBJECT TO, THE
 PROVISIONS OF SECTION 3-C OF  THE  GENERAL  MUNICIPAL  LAW  AND  SECTION
 2023-A OF THE EDUCATION LAW.
   (C-4)  NOTWITHSTANDING  THE  PROVISIONS OF SECTION 368-A OF THE SOCIAL
 SERVICES LAW, OR ANY OTHER PROVISION OF LAW, COMMENCING WITH THE  PERIOD
 JANUARY 1, 2026 THROUGH DECEMBER 31, 2026, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT  SHALL  BE  REDUCED  BY 30% FROM THE 2023 EXPENDITURES. NO LESS
 THAN 100% OF THE ANNUAL SAVINGS FROM THIS MEDICAL ASSISTANCE EXPENDITURE
 REDUCTION, COMPARED TO THE PRIOR YEAR  MEDICAL  ASSISTANCE  EXPENDITURE,
 SHALL BE USED FOR PROPERTY TAX LEVY REDUCTIONS, OR PROPERTY TAX REBATES,
 EFFECTIVE IN THE LOCAL GOVERNMENT'S 2027 FISCAL YEAR. THIS SECTION SHALL
 APPLY  ONLY  TO THE LOCAL GOVERNMENTS AS DEFINED BY, AND SUBJECT TO, THE
 PROVISIONS OF SECTION 3-C OF  THE  GENERAL  MUNICIPAL  LAW  AND  SECTION
 2023-A OF THE EDUCATION LAW.
   (C-5)  NOTWITHSTANDING  THE  PROVISIONS OF SECTION 368-A OF THE SOCIAL
 SERVICES LAW, OR ANY OTHER PROVISION OF LAW, COMMENCING WITH THE  PERIOD
 JANUARY 1, 2027 THROUGH DECEMBER 31, 2027, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT  SHALL  BE  REDUCED  BY 40% FROM THE 2023 EXPENDITURES. NO LESS
 THAN 100% OF THE ANNUAL SAVINGS FROM THIS MEDICAL ASSISTANCE EXPENDITURE
 REDUCTION, COMPARED TO THE PRIOR YEAR  MEDICAL  ASSISTANCE  EXPENDITURE,
 SHALL BE USED FOR PROPERTY TAX LEVY REDUCTIONS, OR PROPERTY TAX REBATES,
 EFFECTIVE IN THE LOCAL GOVERNMENT'S 2028 FISCAL YEAR. THIS SECTION SHALL
 APPLY  ONLY  TO THE LOCAL GOVERNMENTS AS DEFINED BY, AND SUBJECT TO, THE
 PROVISIONS OF SECTION 3-C OF  THE  GENERAL  MUNICIPAL  LAW  AND  SECTION
 2023-A OF THE EDUCATION LAW.
   (C-6)  NOTWITHSTANDING  THE  PROVISIONS OF SECTION 368-A OF THE SOCIAL
 SERVICES LAW, OR ANY OTHER PROVISION OF LAW, COMMENCING WITH THE  PERIOD
 JANUARY 1, 2028 THROUGH DECEMBER 31, 2028, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT  SHALL  BE  REDUCED  BY 50% FROM THE 2023 EXPENDITURES. NO LESS
 THAN 100% OF THE ANNUAL SAVINGS FROM THIS MEDICAL ASSISTANCE EXPENDITURE
 REDUCTION, COMPARED TO THE PRIOR YEAR  MEDICAL  ASSISTANCE  EXPENDITURE,
 SHALL BE USED FOR PROPERTY TAX LEVY REDUCTIONS, OR PROPERTY TAX REBATES,
 EFFECTIVE IN THE LOCAL GOVERNMENT'S 2029 FISCAL YEAR. THIS SECTION SHALL
 APPLY  ONLY  TO THE LOCAL GOVERNMENTS AS DEFINED BY, AND SUBJECT TO, THE
 PROVISIONS OF SECTION 3-C OF  THE  GENERAL  MUNICIPAL  LAW  AND  SECTION
 2023-A OF THE EDUCATION LAW.
   (C-7)  NOTWITHSTANDING  THE  PROVISIONS OF SECTION 368-A OF THE SOCIAL
 SERVICES LAW, OR ANY OTHER PROVISION OF LAW, COMMENCING WITH THE  PERIOD
 S. 8648                             3
 
 JANUARY 1, 2029 THROUGH DECEMBER 31, 2029, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT  SHALL  BE  REDUCED  BY 60% FROM THE 2023 EXPENDITURES. NO LESS
 THAN 100% OF THE ANNUAL SAVINGS FROM THIS MEDICAL ASSISTANCE EXPENDITURE
 REDUCTION,  COMPARED  TO  THE PRIOR YEAR MEDICAL ASSISTANCE EXPENDITURE,
 SHALL BE USED FOR PROPERTY TAX LEVY REDUCTIONS, OR PROPERTY TAX REBATES,
 EFFECTIVE IN THE LOCAL GOVERNMENT'S 2030 FISCAL YEAR. THIS SECTION SHALL
 APPLY ONLY TO THE LOCAL GOVERNMENTS AS DEFINED BY, AND SUBJECT  TO,  THE
 PROVISIONS  OF  SECTION  3-C  OF  THE  GENERAL MUNICIPAL LAW AND SECTION
 2023-A OF THE EDUCATION LAW.
   (C-8) NOTWITHSTANDING THE PROVISIONS OF SECTION 368-A  OF  THE  SOCIAL
 SERVICES  LAW, OR ANY OTHER PROVISION OF LAW, COMMENCING WITH THE PERIOD
 JANUARY 1, 2030 THROUGH DECEMBER 31, 2030, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT SHALL BE REDUCED BY 70% FROM THE  2023  EXPENDITURES.  NO  LESS
 THAN 100% OF THE ANNUAL SAVINGS FROM THIS MEDICAL ASSISTANCE EXPENDITURE
 REDUCTION,  COMPARED  TO  THE PRIOR YEAR MEDICAL ASSISTANCE EXPENDITURE,
 SHALL BE USED FOR PROPERTY TAX LEVY REDUCTIONS, OR PROPERTY TAX REBATES,
 EFFECTIVE IN THE LOCAL GOVERNMENT'S 2031 FISCAL YEAR. THIS SECTION SHALL
 APPLY ONLY TO THE LOCAL GOVERNMENTS AS DEFINED BY, AND SUBJECT  TO,  THE
 PROVISIONS  OF  SECTION  3-C  OF  THE  GENERAL MUNICIPAL LAW AND SECTION
 2023-A OF THE EDUCATION LAW.
   (C-9) NOTWITHSTANDING THE PROVISIONS OF SECTION 368-A  OF  THE  SOCIAL
 SERVICES  LAW, OR ANY OTHER PROVISION OF LAW, COMMENCING WITH THE PERIOD
 JANUARY 1, 2031 THROUGH DECEMBER 31, 2031, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT SHALL BE REDUCED BY 80% FROM THE  2023  EXPENDITURES.  NO  LESS
 THAN 100% OF THE ANNUAL SAVINGS FROM THIS MEDICAL ASSISTANCE EXPENDITURE
 REDUCTION,  COMPARED  TO  THE PRIOR YEAR MEDICAL ASSISTANCE EXPENDITURE,
 SHALL BE USED FOR PROPERTY TAX LEVY REDUCTIONS, OR PROPERTY TAX REBATES,
 EFFECTIVE IN THE LOCAL GOVERNMENT'S 2032 FISCAL YEAR. THIS SECTION SHALL
 APPLY ONLY TO THE LOCAL GOVERNMENTS AS DEFINED BY, AND SUBJECT  TO,  THE
 PROVISIONS  OF  SECTION  3-C  OF  THE  GENERAL MUNICIPAL LAW AND SECTION
 2023-A OF THE EDUCATION LAW.
   (C-10) NOTWITHSTANDING THE PROVISIONS OF SECTION 368-A OF  THE  SOCIAL
 SERVICES  LAW, OR ANY OTHER PROVISION OF LAW, COMMENCING WITH THE PERIOD
 JANUARY 1, 2032 THROUGH DECEMBER 31, 2032, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT SHALL BE REDUCED BY 90% FROM THE  2023  EXPENDITURES.  NO  LESS
 THAN 100% OF THE ANNUAL SAVINGS FROM THIS MEDICAL ASSISTANCE EXPENDITURE
 REDUCTION,  COMPARED  TO  THE PRIOR YEAR MEDICAL ASSISTANCE EXPENDITURE,
 SHALL BE USED FOR PROPERTY TAX LEVY REDUCTIONS, OR PROPERTY TAX REBATES,
 EFFECTIVE IN THE LOCAL GOVERNMENT'S 2033 FISCAL YEAR. THIS SECTION SHALL
 APPLY ONLY TO THE LOCAL GOVERNMENTS AS DEFINED BY, AND SUBJECT  TO,  THE
 PROVISIONS  OF  SECTION  3-C  OF  THE  GENERAL MUNICIPAL LAW AND SECTION
 2023-A OF THE EDUCATION LAW.
   (C-11) NOTWITHSTANDING THE PROVISIONS OF SECTION 368-A OF  THE  SOCIAL
 SERVICES  LAW, OR ANY OTHER PROVISION OF LAW, COMMENCING WITH THE PERIOD
 JANUARY 1, 2033 THROUGH DECEMBER 31, 2033, CALENDAR YEAR SOCIAL SERVICES
 DISTRICT MEDICAL ASSISTANCE EXPENDITURE AMOUNTS FOR EACH SOCIAL SERVICES
 DISTRICT SHALL BE REDUCED BY 100% FROM THE 2023 EXPENDITURES; AND  SHALL
 REMAIN  ELIMINATED EACH YEAR THEREAFTER. NO LESS THAN 100% OF THE ANNUAL
 SAVINGS FROM THIS MEDICAL ASSISTANCE EXPENDITURE REDUCTION, COMPARED  TO
 THE PRIOR YEAR MEDICAL ASSISTANCE EXPENDITURE, SHALL BE USED FOR PROPER-
 TY  TAX LEVY REDUCTIONS, OR PROPERTY TAX REBATES, EFFECTIVE IN THE LOCAL
 GOVERNMENT'S 2034 FISCAL YEAR. THIS SECTION  SHALL  APPLY  ONLY  TO  THE
 S. 8648                             4
 
 LOCAL  GOVERNMENTS  AS  DEFINED  BY,  AND  SUBJECT TO, THE PROVISIONS OF
 SECTION 3-C OF THE GENERAL MUNICIPAL  LAW  AND  SECTION  2023-A  OF  THE
 EDUCATION LAW.
   (C-12)  NOTWITHSTANDING  THE  PROVISIONS OF SECTION SEVEN OF THIS ACT,
 ANY COUNTY THAT OPTED INTO THE LOCAL  SALES  TAX  INTERCEPT  METHODOLOGY
 SHALL  RECEIVE  A  PROPORTIONATE REDUCTION IN THE SALES TAX INTERCEPT AS
 DESCRIBED IN SUBDIVISIONS (C-2),  (C-3),  (C-4),  (C-5),  (C-6),  (C-7),
 (C-8), (C-9), (C-10) AND (C-11) OF THIS SECTION AND USE THESE RECAPTURED
 FUNDS  FOR  PROPERTY  TAX  REDUCTIONS  IN THE SAME MANNER AS OTHER LOCAL
 JURISDICTIONS AS DESCRIBED.
   (C-13) THE MINIMUM AMOUNT  OF  ANNUAL  PROPERTY  TAX  LEVY  REDUCTIONS
 RESULTING FROM SAVINGS ACHIEVED AS DEFINED IN SUBDIVISIONS (C-2), (C-3),
 (C-4),  (C-5),  (C-6),  (C-7),  (C-8),  (C-9), (C-10) AND (C-11) OF THIS
 SECTION, SHALL BE DETERMINED BY THE STATE COMPTROLLER AND TRANSMITTED TO
 EACH LOCAL GOVERNMENT ONE HUNDRED EIGHTY DAYS IN ADVANCE OF THE START OF
 THE FISCAL YEAR FOR WHICH THE PROPERTY TAX REDUCTION IS TO BE EFFECTIVE.
   § 2. This act shall take effect immediately.

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