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Congressman Chris Collins

Representing the 27th District of New York

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Members of New York’s GOP Delegation Applaud Proposal which will Reduce Tax Burden on New Yorkers

Mar 21, 2017
Press Release

Members of the New York GOP Congressional delegation, including Representatives Chris Collins (NY-27), Tom Reed (NY-23), Claudia Tenney (NY-22), Elise Stefanik (NY-21), and John Faso (NY-19), joined together to applaud the inclusion of the Medicaid Local Share Limitation proposal in the Manager’s Amendment to the American Health Care Act (AHCA). 

The Medicaid Local Share Limitation, which was proposed by Congressmen Chris Collins and John Faso, would bar federal reimbursements for New York State Medicaid funds raised from local governments. The proposal would only apply to the $2.3 billion being raised from counties outside of New York City. New York State currently raises $7 billion from its local governments to fund its $27 billion Medicaid liability, which is the largest amount in the nation. 

“This is a huge win for our constituents,” said Congressman Chris Collins. “I want to thank President Trump, House leadership, Congressman Faso, and the rest of my fellow New Yorkers for getting this key provision included. Year after year, Albany’s leadership relies on counties to foot the bill for New York State’s out-of-control Medicaid costs. Enough is enough. This amendment will stop Albany from forcing its unfunded mandate down the throats of taxpayers, and help counties lower the property tax burden on hardworking families. We understand the devastating impact New York’s reckless spending is having on everyday New Yorkers, and I’m proud to join with members of our delegation to bring vital tax relief to our constituents.”

On Wednesday, March 8, 2017, after working with members of the New York delegation, Congressman Collins introduced the Medicaid Local Share Limitation proposal in the House Energy and Commerce Committee. Recognizing the tremendous financial relief it would provide taxpayers and county governments; members of New York’s GOP Congressional delegation have expressed their strong support.

“Credit must be given to John Faso for his leadership role.  He brought this to us as a legacy issue from his time in Albany as an elected official. Faso was very proactive and creative in pushing this item for the local property tax payers from the region. We all came together as a delegation to get this done, but credit also goes to Collins as the NY representative of the committee of jurisdiction, Energy and Commerce,” Congressman Tom Reed stated.

“According to an independent estimate, the average 19th District county taxpayer can expect to save $358.72 annually thanks to this reform,” said Congressman John Faso. “I'm proud to have developed and successfully advocated for the plan along with Congressman Collins, Congressman Reed and others in the New York Republican delegation in order to finally bring much-needed tax relief to homeowners and businesses who pay some of the highest property taxes as a percentage of income in the country. It's time for Albany to reform Medicaid spending, and by fulfilling my pledge to end Albany's Medicaid mandate, we are accomplishing just that.”

“As a champion for the taxpayers, I have been fighting for common sense policies like this measure throughout my brief time in politics, including cosponsoring the same bipartisan measure in the New York State Assembly,” said Congresswoman Claudia Tenney.  “I am honored to have worked closely alongside Congressman Collins and the New York Republican Congressional delegation to advance this long overdue initiative to provide historic property tax relief for citizens throughout upstate New York. For too long, local governments have struggled under costly unfunded mandates passed down by out-of-touch politicians in Albany. This measure would hold Albany accountable for its federally required Medicaid share, and finally begin to provide relief for counties and property taxpayers who are burdened with among the highest taxes in the nation. In the 22nd Congressional District, Oneida County has been forced to divert more than 80 percent of its property tax levy to subsidize Albany’s Medicaid mismanagement. These funds could instead be used to first and foremost, reduce property taxes.  County governments will now have some breathing room to assist our local schools and community colleges, improve local roads, support safety and security initiatives desperately needed by first responders, and provide relief to our seniors and hardworking families.”

“Counties across my district and across New York are being unfairly subjected to massive financial liabilities being imposed by the state that can have severe impact on our local property taxes,” said Congresswoman Elise Stefanik. “This amendment would make New York State take responsibility for their own budgeting, freeing up needed funds at the county level for local governments to use in our communities. I thank Congressman Collins for his work on this important issue and will continue to work in Congress to serve the needs of my district.”

By incentivizing New York State to stop passing down exorbitant Medicaid costs to counties, county governments will be provided desperately needed flexibility in how they utilize their property tax revenue.

Currently, New York State ranks second highest in the nation in both Medicaid spending per year ($60 billion) and spending per Medicaid beneficiary (44% more than the national average). In addition, while New York State accounts for only 6% of the national population, New York accounts for 11% of total Medicaid spending. The outsized portion of the Medicaid burden counties are being forced to pay is creating a significant financial hardship. The almost $2.3 billion counties are forced to pay to fund this mandate out of Albany accounts for on average 44.3% of the county property tax levy in New York.

Members of the New York GOP Congressional Delegation were proud to partner with the Trump Administration, House Leadership, the House Energy and Commerce Committee, and the Department of Health and Human Services to ensure this amendment was included in the final text of the American Health Care Act (AHCA).

For further information check out the resources below.

Medicaid Fact Sheet:

NYS Medicaid Costs by County: