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PRESS RELEASE

December 22, 1999 Immediate Release:
(315) 798-5519 Contact: Commissioner Ted Mohr

 ONEIDA COUNTY POSITION ON THE PROPOSED
"FAMILY HEALTH PLUS"

Since many of you are requesting a reaction to the Assembly’s action early this morning regarding the Family Health Plus program, we are attaching a letter sent by Oneida County Executive Ralph J. Eannace Jr. to all State Legislators representing Oneida County.

December 21, 1999

Honorable RoAnn Destito
116th Assembly District
NYS Assembly
Room 401 State Office Building
207 Genesee Street
Utica, NY 13501

RE: Proposed Family Health Plus

Dear Assemblywoman:

It is my understanding that the health-care bill will be voted on tonight. I must alert you to the impact on Oneida County residents if the bill in enacted in its present state.

The Division of Budget has calculated the fiscal impact of the health care legislation on counties. For Oneida County the three-year impact will be:

Year 2000 $55,730
(Federal Health Care Reform Act, Medicaid waivers in approval process)
Year 2001 $477,000+
Year 2002 $979,000+
Year 2003                   $692,000 to June 30th
                 (full 12 months, $1,384,000)

How are Counties to support this additional burden? Some have suggested the Tobacco Settlement will be enough to cover the additional costs to counties. It is ludicrous to suggest that counties can support this new program without adding to the tax burden of local property owners. The property owners of Oneida County will almost assuredly have to pay 3% higher taxes just to cover the cost of this new State program.

In Oneida County’s fiscal year 2000, the Tobacco Settlement revenue is budgeted to offset our County’s growing Medicaid expenses.

2000 Budget,Medicaid $35,150,000
1999 Budget, Medicaid $30,667,500
Growth in Medicaid $  4,482,500
2000 Budget Tobacco Settlement $  4,451,386
Oneida County Shortfall $       31,114

Oneida County has further been instructed to anticipate the Tobacco Settlement revenues at 15% less due to reduction in U.S. cigarette sales. This will be an even greater shortfall at $667,708. This deficit will grow tremendously in 2001. Let me state very clearly, there are no Tobacco Settlement dollars to spend on Family Health Plus: the Tobacco Settlement monies are more than offset by current increases in already mandated programs. This is yet another example of how Albany dreams up a solution to New York State’s health care problem and passes a considerable portion of the cost burden to the counties and the property tax payers.

Oneida County strongly OPPOSES this legislative proposal without clearly offsetting savings to property taxpayers. If the State is determined to pass the cost of the new health-care program on to local taxpayers, then the State must assume the counties’ share of Long Term Care Medicaid costs or find some other clear way to keep the property taxes stable and lift the burden of health care off the shoulders of property owners.

I urge you to support Oneida County taxpayers and to work toward an equitable solution for all New Yorkers.

Sincerely,

Ralph J. Eannace, Jr.
Oneida County Executive

RJE/pzn

Cc: Theodore Petrillo, Budget Director
Theodore Mohr, Commissioner, Department of Social Services