Assemblyman Phil Palmesano (R,C,I-Corning) and his Minority colleagues announced a new proposal to save property taxpayers billions of dollars by unburdening local governments of their most cumbersome cost driver - Medicaid payments.

“The state government is in a much better position than our localities to pay for Medicaid and realize efficiencies in the program. We want our county governments to pass these savings on to property taxpayers. Our families, farms, seniors, small businesses and manufacturers would see a profound reduction in their property taxes once the program is fully phased in. We estimate the savings will be approximately $6 billion,” said Palmesano.

Over 10 years, the state would completely take over all Medicaid costs for every county outside of New York City. Over 20 years, New York State would take over half of New York City’s Medicaid costs.

The proposal is supported by the New York State Association of Counties and prominent County Executives, including Dutchess County Executive Marcus Molinaro, Monroe County Executive Cheryl Dinolfo and Orange County Executive Steve Neuhaus.

“The fact of the matter is counties have no say in the Medicaid program. They can’t streamline or modify any component of the program. They are simply given a bill from the state and told to pay it,” said Palmesano.

Palmesano said streamlining the program at the state level will make it easier to root out waste, fraud and abuse and create efficiencies that will ease the transition over the 10-year phase-in period.

“Budgeting is about priorities. Providing significant, meaningful property tax relief to our residents should be a top priority, and within the context of a $169 billion budget, we can get it done.

“We’ve capped property taxes and we’ve capped county Medicaid costs. That was a good start. But this is a decisive and significant step in the right direction that will provide long-overdue and meaningful property tax relief to families, seniors, farms, small businesses and manufacturers all across our state and will jump-start our economy,” Palmesano said.