Says State Plan Shorts City Up to $900 Million in Stimulus - Letter to Governor Says It Is ‘Simply Unsatisfactory’
March 5, 2009
The Honorable David A. Paterson
Governor of the State of New York
State Capitol
Albany, NY 12224
Dear Governor Paterson:
As a member of Congress who helped write the American Recovery and Reinvestment Act, and, most importantly, as a member of the New York City delegation, I write to express my concern that the state’s plan to allocate Medicaid savings shorts New York City.
In New York State, the federal government covers 50 percent of the Federal Medicaid Assistance Percentage (FMAP) program costs, while the state and counties cover the other 50 percent. The State then pays roughly 66 percent of the non-federal portion of FMAP, with the localities paying the other 34 percent. Yesterday, when you announced the local shares under the FMAP program for New York City and all the counties, there is a clear discrepancy in funding allocations. The State is not keeping 66 percent, the percentage it pays into the program, of the FMAP funds, but instead is keeping between 76 and 80 percent.
The FMAP program provisions of Public Law 111-5, the American Recovery and Reinvestment Act are clear in providing that localities that bear the burden of Medicaid costs see their share of fiscal relief. If properly allocated, the City of New York should receive up to $2.8 billion. Under the announcement by your staff, the City would be shorted up to $900 million. This is simply unsatisfactory.
I look forward to your prompt compliance with the intent of Public Law 111-5.
Sincerely,
ANTHONY D. WEINER
Member of Congress
