Federal Stimulus Plan May Help Counties Pay Medicaid Bill ROCHESTER, NY (WXXI) - Senator Charles Schumer says the federal economic stimulus plan will likely contain funding to temporarily help out property taxpayers in Monroe and other New York counties who have to help pay for Medicaid.

Senator Schumer says the Senate is close to a bipartisan agreement to add $100 billion to the stimulus plan for what's called "FMAP," the federal Medicaid funding that goes to states. That means for the next two years, the federal government would pay 60 percent of the cost instead of half.

The federal government pays 50 percent of the costs of Medicaid. Most states pay the other half. But New York is one of just 11 states that require county governments to share the cost of their Medicaid programs. The split in New York ends up being 50 percent federal, 25 percent state and 25 percent local.

For Monroe County, Medicaid takes up more than one-third of the county's annual budget. In many upstate counties it takes up nearly all of the property tax revenue, forcing counties either to cut other services or to raise local tax rates to fund a program they can't control.

Schumer says New York would get about $five billion a year more over the next two years if the FMAP increase makes it into the stimulus plan. Half that money would go directly to county governments based on the amount they pay into the program.

Schumer says picking up a bigger share of Medicaid would save the counties around Rochester about $55 million a year. He says that would keep them from having to raise property taxes for at least two years while the economy recovers.

The two-year revenue shot wouldn't do anything to fix the basic problem of high Medicaid costs, or help counties to cover then in the long term. Schumer says it's intended as emergency aid only. He says it's up to counties and the state to work out a permanent solution to the Medicaid issue.

The New York State Association of Counties quickly endorsed Schumer's effort this afternoon. NYSAC President Sarah Purdy -- the Administrator of Yates County -- says it would help counties keep providing services without going to taxpayers who are struggling themselves.

Monroe County Executive Maggie Brooks also commended Schumer's plan. She issued a statement saying Medicaid costs have grown out of control and are the single biggest contributor to high property taxes in New York State. © Copyright 2009, WXXI