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 2025, and ending with a 100% reduction for 2034, and remaining eliminated for each year thereafter.
STATE OF NEW YORK
________________________________________________________________________
5519
2025-2026 Regular Sessions
IN SENATE
February 24, 2025
___________
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:
1 Section 1. Subdivision (c) of section 1 of part C of chapter 58 of the
2 laws of 2005 relating to authorizing reimbursements for expenditures
3 made by or on behalf of social services districts for medical assistance
4 for needy persons and the administration thereof, is amended and twelve
5 new subdivisions (c-2), (c-3), (c-4), (c-5), (c-6), (c-7), (c-8), (c-9),
6 (c-10), (c-11), (c-12) and (c-13) are added to read as follows:
7 (c) Commencing with the calendar year beginning January 1, 2006,
8 calendar year social services district medical assistance expenditure
9 amounts for each social services district shall be calculated by multi-
10 plying the results of the calculations performed pursuant to paragraph
11 (b) of this section by a non-compounded trend factor, as follows:
12 (i) 2006 (January 1, 2006 through December 31, 2006): 3.5%;
13 (ii) 2007 (January 1, 2007 through December 31, 2007): 6.75% (3.25%
14 plus the prior year's 3.5%);
15 (iii) 2008 (January 1, 2008 through December 31, 2008): 9.75% (3%
16 plus the prior year's 6.75%);
17 (iv) 2009 (January 1, 2009 through December 31, 2009), and each
18 succeeding calendar year through December 31, 2025: prior year's trend
19 factor percentage plus 3%.
20 (c-2) Notwithstanding the provisions of section 368-a of the social
21 services law, or any other provision of law, commencing with the period
22 January 1, 2025 through December 31, 2025, calendar year social services
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06178-01-5
S. 5519 2
1 district medical assistance expenditure amounts for each social services
2 district shall be reduced by 10% from the 2024 expenditures. No less
3 than 100% of the annual savings from this medical assistance expenditure
4 reduction, compared to the prior year medical assistance expenditure,
5 shall be used for property tax levy reductions, or property tax rebates,
6 effective in the local government's 2026 fiscal year. This section shall
7 apply only to the local governments as defined by, and subject to, the
8 provisions of section 3-c of the general municipal law and section
9 2023-a of the education law.
10 (c-3) Notwithstanding the provisions of section 368-a of the social
11 services law, or any other provision of law, commencing with the period
12 January 1, 2026 through December 31, 2026, calendar year social services
13 district medical assistance expenditure amounts for each social services
14 district shall be reduced by 20% from the 2024 expenditures. No less
15 than 100% of the annual savings from this medical assistance expenditure
16 reduction, compared to the prior year medical assistance expenditure,
17 shall be used for property tax levy reductions, or property tax rebates,
18 effective in the local government's 2027 fiscal year. This section shall
19 apply only to the local governments as defined by, and subject to, the
20 provisions of section 3-c of the general municipal law and section
21 2023-a of the education law.
22 (c-4) Notwithstanding the provisions of section 368-a of the social
23 services law, or any other provision of law, commencing with the period
24 January 1, 2027 through December 31, 2027, calendar year social services
25 district medical assistance expenditure amounts for each social services
26 district shall be reduced by 30% from the 2024 expenditures. No less
27 than 100% of the annual savings from this medical assistance expenditure
28 reduction, compared to the prior year medical assistance expenditure,
29 shall be used for property tax levy reductions, or property tax rebates,
30 effective in the local government's 2028 fiscal year. This section shall
31 apply only to the local governments as defined by, and subject to, the
32 provisions of section 3-c of the general municipal law and section
33 2023-a of the education law.
34 (c-5) Notwithstanding the provisions of section 368-a of the social
35 services law, or any other provision of law, commencing with the period
36 January 1, 2028 through December 31, 2028, calendar year social services
37 district medical assistance expenditure amounts for each social services
38 district shall be reduced by 40% from the 2024 expenditures. No less
39 than 100% of the annual savings from this medical assistance expenditure
40 reduction, compared to the prior year medical assistance expenditure,
41 shall be used for property tax levy reductions, or property tax rebates,
42 effective in the local government's 2029 fiscal year. This section shall
43 apply only to the local governments as defined by, and subject to, the
44 provisions of section 3-c of the general municipal law and section
45 2023-a of the education law.
46 (c-6) Notwithstanding the provisions of section 368-a of the social
47 services law, or any other provision of law, commencing with the period
48 January 1, 2029 through December 31, 2029, calendar year social services
49 district medical assistance expenditure amounts for each social services
50 district shall be reduced by 50% from the 2024 expenditures. No less
51 than 100% of the annual savings from this medical assistance expenditure
52 reduction, compared to the prior year medical assistance expenditure,
53 shall be used for property tax levy reductions, or property tax rebates,
54 effective in the local government's 2030 fiscal year. This section shall
55 apply only to the local governments as defined by, and subject to, the
S. 5519 3
1 provisions of section 3-c of the general municipal law and section
2 2023-a of the education law.
3 (c-7) Notwithstanding the provisions of section 368-a of the social
4 services law, or any other provision of law, commencing with the period
5 January 1, 2030 through December 31, 2030, calendar year social services
6 district medical assistance expenditure amounts for each social services
7 district shall be reduced by 60% from the 2024 expenditures. No less
8 than 100% of the annual savings from this medical assistance expenditure
9 reduction, compared to the prior year medical assistance expenditure,
10 shall be used for property tax levy reductions, or property tax rebates,
11 effective in the local government's 2031 fiscal year. This section shall
12 apply only to the local governments as defined by, and subject to, the
13 provisions of section 3-c of the general municipal law and section
14 2023-a of the education law.
15 (c-8) Notwithstanding the provisions of section 368-a of the social
16 services law, or any other provision of law, commencing with the period
17 January 1, 2031 through December 31, 2031, calendar year social services
18 district medical assistance expenditure amounts for each social services
19 district shall be reduced by 70% from the 2024 expenditures. No less
20 than 100% of the annual savings from this medical assistance expenditure
21 reduction, compared to the prior year medical assistance expenditure,
22 shall be used for property tax levy reductions, or property tax rebates,
23 effective in the local government's 2032 fiscal year. This section shall
24 apply only to the local governments as defined by, and subject to, the
25 provisions of section 3-c of the general municipal law and section
26 2023-a of the education law.
27 (c-9) Notwithstanding the provisions of section 368-a of the social
28 services law, or any other provision of law, commencing with the period
29 January 1, 2032 through December 31, 2032, calendar year social services
30 district medical assistance expenditure amounts for each social services
31 district shall be reduced by 80% from the 2024 expenditures. No less
32 than 100% of the annual savings from this medical assistance expenditure
33 reduction, compared to the prior year medical assistance expenditure,
34 shall be used for property tax levy reductions, or property tax rebates,
35 effective in the local government's 2033 fiscal year. This section shall
36 apply only to the local governments as defined by, and subject to, the
37 provisions of section 3-c of the general municipal law and section
38 2023-a of the education law.
39 (c-10) Notwithstanding the provisions of section 368-a of the social
40 services law, or any other provision of law, commencing with the period
41 January 1, 2033 through December 31, 2033, calendar year social services
42 district medical assistance expenditure amounts for each social services
43 district shall be reduced by 90% from the 2024 expenditures. No less
44 than 100% of the annual savings from this medical assistance expenditure
45 reduction, compared to the prior year medical assistance expenditure,
46 shall be used for property tax levy reductions, or property tax rebates,
47 effective in the local government's 2034 fiscal year. This section shall
48 apply only to the local governments as defined by, and subject to, the
49 provisions of section 3-c of the general municipal law and section
50 2023-a of the education law.
51 (c-11) Notwithstanding the provisions of section 368-a of the social
52 services law, or any other provision of law, commencing with the period
53 January 1, 2034 through December 31, 2034, calendar year social services
54 district medical assistance expenditure amounts for each social services
55 district shall be reduced by 100% from the 2024 expenditures; and shall
56 remain eliminated each year thereafter. No less than 100% of the annual
S. 5519 4
1 savings from this medical assistance expenditure reduction, compared to
2 the prior year medical assistance expenditure, shall be used for proper-
3 ty tax levy reductions, or property tax rebates, effective in the local
4 government's 2035 fiscal year. This section shall apply only to the
5 local governments as defined by, and subject to, the provisions of
6 section 3-c of the general municipal law and section 2023-a of the
7 education law.
8 (c-12) Notwithstanding the provisions of section seven of this act,
9 any county that opted into the local sales tax intercept methodology
10 shall receive a proportionate reduction in the sales tax intercept as
11 described in subdivisions (c-2), (c-3), (c-4), (c-5), (c-6), (c-7),
12 (c-8), (c-9), (c-10) and (c-11) of this section and use these recaptured
13 funds for property tax reductions in the same manner as other local
14 jurisdictions as described.
15 (c-13) The minimum amount of annual property tax levy reductions
16 resulting from savings achieved as defined in subdivisions (c-2), (c-3),
17 (c-4), (c-5), (c-6), (c-7), (c-8), (c-9), (c-10) and (c-11) of this
18 section, shall be determined by the state comptroller and transmitted to
19 each local government one hundred eighty days in advance of the start of
20 the fiscal year for which the property tax reduction is to be effective.
21 § 2. This act shall take effect immediately.
