WPCNR QUILL & EYESHADE. By John F. Bailey. November 24, 2008: Senator Charles Schumer and Congresswoman Nita Lowey indicated today they would seek Medicaid relief for New York State to cover part or possibly all of the projected $15 Billion shortfall New York faces in 2009. Lowey said she would work hard to include funding for the Tappan Zee Bridge replacement as part of the infrastructure stimulus package anticipated by the new Obama administration. Senator Schumer said it was up to New York counties to target infrastructure projects for government aid.
Asked by WPCNR in a post Westchester County Association news conference this morning, if Senator Schumer was working on a relief package to get a $15 Billion commitment by New York State in 2009 related to the plummet in state revenue from Wall Street, Schumer shared the hope that Washington paying a greater share of New York Medicaid would enable New York to trim that deficit:
“If we do a significant Medicaid (cut) some help with the Medicaid mess, I think that will help New York more than any other state, because our Medicaid burden is the greatest of any state and that is along the lines of what we’re thinking about (on the New York deficit).”
WPCNR asked the Senator if he was working on $16 Billion in aid for Tappan Zee Bridge replacement as part of the infrastructure plan he promised was on the way to Westchester County during his talk to the Westchester County Association this morning, said it was up to the counties to ask for what infrastructure aid they wanted:
“That will be up to…what the infrastructure program will be, will be allowing localities to come in and apply, so we’re not going to tell Westchester you have to have this and you have to have that. Andy Spano mentioned that they have a $300 Million water and sewer upgrade coming up and no federal help thus far. It would be a lot better if that will be a part of the package rather having the taxpayers pay for it.”
Congresswoman Nita Lowey, responding to WPCNR’S question about the Tappan Zee Bridge funding, was more direct. She said she was actively working to include the Tappan Zee replacement cost as part of the Obama stimulus package:
“As I’ve said to many people, the Tappan Zee Bridge is absolutely critical to Westchester and Rockland County, and I intend to work with my colleagues to do whatever we can to make it (the Tappan Zee replacement) part of the stimulus package. At this point, this new administration, lead by extraordinary President-elect Senator Obama – has committed to a major stimulus package of approximately $600 to $700 Billion, roads, bridges, highways, jobs that will put [pepo[;e to work and I intend to advocate for the Tappan Zee Bridge to be a part of that effort.”
Lowey speaking separately from Senator Schumer out of earshot, confirmed separately that Medicaid relief was being looked on as the vehicle to ease New York’s budget shortage by relieving the state Medicaid burden and freeing up money for the projected deficit:
WPCNR asked Ms. Lowey if New York state might be treated as some kind of financial disaster which would indicate a need for a bail out of the $15 Billion deficit the state faces next year, Lowey said seemed to echo Senator Schumer’s thinking that increased Medicaid aid to New York would ease the budget deficit projected for 2009:
Lowey said: “There is an important relationship between New York and the United States of America and between the stimulus package and other programs like FMAP that will give the federal government greater responsibility for the Medicaid expenses. These will all be important items that I hope will be included in the stimulus package.”
I asked if the MEDICAID relief could cover the $15 Billion shortfall. Lowey said, “I can’t predict how much – but we’re going to work all of us to make sure NY gets its share of the stimulus package.”
FMAP is the Federal Medical Assistance Program
FMAP is the percent of state medicaid expenditures that the federal government reimburses to states. “rich states,” get the smallest reimbursement. 50%. For every dollar New York spends on Medicaid, the federal government pays us back 50 cents. Poorer states like West Virginia and Missouri at 75 cents back.
The Associated Press and The New York Times have reported that congress is considering an increase in the FMAP reimbursement now that the election is past.
The House passed a stimulus bill in late September that included an FMAP increase, but the senate did not pass it because the bill was left out of the bail out package.
According to Senator Schumer’s news release on his address this morning at Purchase, New York State “ranks first nationally in Medicaid costs per person spending $45 Billion last year.” Schumer’s release reports that Westchester County expects to spend $2.4 million more in 2009 on Medicaid, a total of $197 Million.