NY State Senate Bill 2019-S1059

Senate Bill S1059

2019-2020 Legislative Session

Relates to medical expenditure amounts and establishes limitations upon real property tax levies in cities of over 1,000,000

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Archive: Last Bill Status - In Senate Committee Local Government Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 10, 2019	referred to local government

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2019-S1059 (ACTIVE) - Details

See Assembly Version of this Bill:: A6312
Current Committee:: Senate Local Government
Law Section:: General Municipal Law
Laws Affected:: Amd Part C §1, Chap 58 of 2005; add §§3-e & 3-f, Gen Muni L; amd §23, Munic Home R L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S8412
2021-2022: A4166

2019-S1059 (ACTIVE) - Summary

Relates to medical expenditure amounts and to county property tax levy reductions resulting from medical assistance program expenditure reductions; and limits, in cities having a population of one million or more, the annual increase in real property taxes.

2019-S1059 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S1059

SPONSOR: YOUNG
 
TITLE OF BILL:

An act to amend chapter 58 of the laws of 2005 authorizing reimburse-
ments for expenditures made by or on behalf of social services districts
for medical assistance for needy persons and the administration thereof,
in relation to medical assistance expenditure amounts; to amend the
general municipal law, in relation to county property tax levy
reductions resulting from medical assistance program expenditure
reductions; and to amend the general municipal law and the municipal
home rule law, in relation to establishing limitations upon real proper-
ty tax levies in cities with a population of one million or more

 
PURPOSE:

This bill provides for a takeover of the local share of Medicaid state-
wide over a 10-year period beginning in calendar year 2020. This bill
also ensures that any Medicaid cost savings to a county that takes
effect due to federal or state action are passed on as income tax
reductions in New York City, and as real property tax reductions for the

rest of the State.

 
SUMMARY OF PROVISIONS:

Section 1: Section 1 of chapter 58 of the laws of 2005 is amended by
adding a new subdivision (c-2) to provide for the takeover of the local
share of Medicaid costs over a 10-year period and limits the reduction
in cost for New York City to equal the reduction in cost to the rest of
the state.

Section 2: Adds a new section 3-e to the general municipal law which
provides that in the event federal or state statute is modified to elim-
inate or reduce a county's local contributions to New York's share of
payments under the Medicaid program, the amount of the reduction shall
be applied as a correlating reduction in the property tax levy of such
county.

Section 3: Provides that in the event federal or state statute is modi-
fied to eliminate or reduce local contributions to New York City's share
of payments under the Medicaid program, the amount of the reduction
shall be applied as a correlating reduction in New York City personal
income taxes.

Section 4 and 5: Adds a new § 3-f to the General Municipal Law to estab-
lish a real property tax levy cap for New York City.

 
JUSTIFICATION:

Since the enactment of the Medicaid program in 1965, local social
service districts (counties and the City of New York) have been required
to share in both the cost and administrative operation of the program.
The State is responsible for program design and, over the course of
several years, the overall administration of the program has been gradu-
ally shifting to the state. The counties' Medicaid share is currently
capped at 2015 levels. However, the localities continued to contribute
$7.6 billion to the program in FY 2018.

This bill would enact a phased-in state takeover of the local share of
Medicaid over a 10-year period, lifting substantial property tax pres-
sure on those counties. Furthermore, the bill ensures that New York's
tax burden on local property taxpayers outside of New York City is alle-
viated by requiring that any reduction in county Medicaid costs result-
ing from state or federal legislative action be passed on to resident
property taxpayers on a dollar for dollar basis. For New York City resi-
dents, the bill reduces the City income tax burden by requiring that any
reduction in City Medicaid costs resulting from state or federal legis-
lative action be passed on in the form of income tax relief.

New York State property taxes are among the highest taxes in the nation.
High property taxes jeopardize quality of life and the ability to home-
owners to remain in their homes. This bill would enact a 2 percent limit
on New York City's ability to raise property taxes and will relieve
taxpayers from unexpected high property tax increases.

 
LEGISLATIVE HISTORY:

2018: S.8412 Passed Senate

 
FISCAL IMPLICATIONS:

None in FY 2020.

 
EFFECTIVE DATE:
This act shall take effect immediately and sections four and five of
this act shall first apply to the levy of taxes by local governments for
the fiscal year that begins in 2020.

2019-S1059 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1059
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 10, 2019
                                ___________
 
 Introduced by Sens. YOUNG, AKSHAR, FELDER, FUNKE, LANZA, RITCHIE -- read
   twice  and  ordered  printed,  and when printed to be committed to the
   Committee on Local Government
 
 AN ACT to amend chapter 58 of the laws of  2005  authorizing  reimburse-
   ments  for  expenditures  made  by  or  on  behalf  of social services
   districts for medical assistance for needy persons  and  the  adminis-
   tration   thereof,  in  relation  to  medical  assistance  expenditure
   amounts; to amend the general municipal law,  in  relation  to  county
   property tax levy reductions resulting from medical assistance program
   expenditure reductions; and to amend the general municipal law and the
   municipal  home rule law, in relation to establishing limitations upon
   real property tax levies in cities with a population of one million or
   more
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  1  of  part C of chapter 58 of the laws of 2005,
 authorizing reimbursements for expenditures made  by  or  on  behalf  of
 social  services  districts for medical assistance for needy persons and
 the administration thereof is amended by adding a new subdivision  (c-2)
 to read as follows:
   (C-2)  NOTWITHSTANDING  ANY  PROVISIONS OF SUBDIVISION (C) OR (C-1) OF
 THIS SECTION TO THE CONTRARY, EFFECTIVE APRIL 1, 2020,  FOR  THE  PERIOD
 JANUARY  1,  2020  THROUGH DECEMBER 31, 2020, AND FOR EACH CALENDAR YEAR
 THEREAFTER, THE MEDICAL ASSISTANCE EXPENDITURE  AMOUNT  FOR  THE  SOCIAL
 SERVICES  DISTRICT  FOR SUCH PERIOD SHALL BE THE GREATER OF (1) ZERO; OR
 (2) THE PREVIOUS CALENDAR YEAR'S MEDICAL ASSISTANCE  EXPENDITURE  AMOUNT
 MINUS  TEN  PERCENT OF THE MEDICAL ASSISTANCE EXPENDITURE AMOUNT FOR THE
 PERIOD JANUARY 1, 2019 THROUGH DECEMBER 31, 2019.    PROVIDED,  HOWEVER,
 THE  LOCAL  CONTRIBUTION  FOR A CITY WITH A POPULATION OF ONE MILLION OR
 MORE SHALL NOT BE REDUCED BY MORE THAN TWO BILLION THREE HUNDRED MILLION
 DOLLARS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD04019-01-9

 S. 1059                             2
 
   § 2. The general municipal law is amended by adding a new section  3-e
 to read as follows:
   §  3-E.  COUNTY  PROPERTY  TAX  LEVY  REDUCTION RESULTING FROM MEDICAL
 ASSISTANCE PROGRAM EXPENDITURE  REDUCTIONS.  NOTWITHSTANDING  ANY  OTHER
 PROVISION OF LAW TO THE CONTRARY, IN THE EVENT A COUNTY'S LOCAL CONTRIB-
 UTION TO NEW YORK STATE'S SHARE OF PAYMENTS UNDER THE MEDICAL ASSISTANCE
 PROGRAM  ARE  REDUCED OR ELIMINATED AS A RESULT OF CHANGES IN FEDERAL OR
 STATE STATUTE, THE AMOUNT OF SUCH  REDUCTION  OR  ELIMINATION  SHALL  BE
 APPLIED  AS AN EQUAL DOLLAR AMOUNT REDUCTION IN THE PROPERTY TAX LEVY OF
 SUCH COUNTY.
   § 3. Notwithstanding any other provision of law to the contrary, for a
 city with a population of one million or more, in the  event  the  local
 contribution  to  New  York  state's share of payments under the medical
 assistance program are reduced or eliminated as a result of  changes  in
 federal  or  state  statute, the amount of such reduction or elimination
 shall reduce city personal income  taxes  in  an  amount  equal  to  the
 reduction  in  such city's share of payments. Such reduction shall be an
 equal rate reduction applied to all tax brackets.
   § 4. The general municipal law is amended by adding a new section  3-f
 to read as follows:
   §  3-F.  LIMITATION  UPON  REAL PROPERTY TAX LEVIES BY CITIES HAVING A
 POPULATION OF ONE MILLION OR MORE.  1. UNLESS OTHERWISE PROVIDED BY LAW,
 THE AMOUNT OF REAL PROPERTY TAXES THAT MAY BE LEVIED BY OR ON BEHALF  OF
 ANY CITY HAVING A POPULATION OF ONE MILLION OR MORE SHALL NOT EXCEED THE
 TAX LEVY LIMITATION ESTABLISHED PURSUANT TO THIS SECTION.
   2. WHEN USED IN THIS SECTION:
   (A) "ALLOWABLE LEVY GROWTH FACTOR" SHALL BE THE LESSER OF: (I) ONE AND
 TWO  ONE-HUNDREDTHS;  OR  (II) THE SUM OF ONE PLUS THE INFLATION FACTOR;
 PROVIDED, HOWEVER, THAT IN NO CASE SHALL THE LEVY GROWTH FACTOR BE  LESS
 THAN ONE.
   (B)  "APPROVED CAPITAL EXPENDITURES" MEANS THE EXPENDITURES ASSOCIATED
 WITH CAPITAL PROJECTS THAT HAVE BEEN APPROVED BY THE QUALIFIED VOTERS OF
 THE LOCAL GOVERNMENT.
   (C) "AVAILABLE CARRYOVER" MEANS THE SUM OF THE AMOUNT BY WHICH THE TAX
 LEVY FOR THE PRIOR FISCAL YEAR WAS BELOW THE TAX  LEVY  LIMIT  FOR  SUCH
 FISCAL  YEAR,  IF  ANY, BUT NO MORE THAN ONE AND ONE-HALF PERCENT OF THE
 TAX LEVY LIMIT FOR SUCH FISCAL YEAR.
   (D) "CAPITAL TAX LEVY" MEANS THE TAX LEVY NECESSARY TO SUPPORT CAPITAL
 EXPENDITURES, IF ANY.
   (E) "COMING FISCAL YEAR" MEANS THE FISCAL YEAR OF THE LOCAL GOVERNMENT
 FOR WHICH A TAX LEVY LIMITATION SHALL BE  DETERMINED  PURSUANT  TO  THIS
 SECTION.
   (F)  "INFLATION  FACTOR" MEANS THE QUOTIENT OF: (I) THE AVERAGE OF THE
 NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES  DEPART-
 MENT OF LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE
 START  OF  THE  COMING  FISCAL  YEAR  MINUS  THE AVERAGE OF THE NATIONAL
 CONSUMER PRICE INDEXES DETERMINED BY THE  UNITED  STATES  DEPARTMENT  OF
 LABOR  FOR  THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE START
 OF THE PRIOR FISCAL YEAR, DIVIDED BY: (II) THE AVERAGE OF  THE  NATIONAL
 CONSUMER  PRICE  INDEXES  DETERMINED  BY THE UNITED STATES DEPARTMENT OF
 LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO  THE  START
 OF THE PRIOR FISCAL YEAR, WITH THE RESULT EXPRESSED AS A DECIMAL TO FOUR
 PLACES.
   (G) "LOCAL GOVERNMENT" MEANS A CITY HAVING A POPULATION OF ONE MILLION
 OR MORE.

 S. 1059                             3
 
   (H)  "PRIOR FISCAL YEAR" MEANS THE FISCAL YEAR OF THE LOCAL GOVERNMENT
 IMMEDIATELY PRECEDING THE COMING FISCAL YEAR.
   (I) "TAX LEVY LIMITATION" MEANS THE AMOUNT OF TAXES A LOCAL GOVERNMENT
 IS  AUTHORIZED TO LEVY PURSUANT TO THIS SECTION, PROVIDED, HOWEVER, THAT
 THE TAX LEVY LIMIT SHALL NOT INCLUDE  THE  LOCAL  GOVERNMENT'S  APPROVED
 CAPITAL TAX LEVY, IF ANY.
   3.  (A)  BEGINNING  WITH  THE  FISCAL YEAR THAT BEGINS IN TWO THOUSAND
 NINETEEN, NO LOCAL GOVERNMENT SHALL ADOPT A BUDGET THAT REQUIRES  A  TAX
 LEVY  THAT IS GREATER THAN THE TAX LEVY LIMITATION FOR THE COMING FISCAL
 YEAR.
   (B) THE STATE COMPTROLLER SHALL CALCULATE THE TAX LEVY LIMITATION  FOR
 EACH  LOCAL  GOVERNMENT  BY  THE ONE HUNDRED TWENTIETH DAY PRECEDING THE
 COMMENCEMENT OF EACH LOCAL GOVERNMENT'S FISCAL YEAR,  AND  SHALL  NOTIFY
 EACH LOCAL GOVERNMENT OF THE TAX LEVY LIMITATION SO DETERMINED.
   (C) THE TAX LEVY LIMITATION APPLICABLE TO THE COMING FISCAL YEAR SHALL
 BE DETERMINED AS FOLLOWS:
   (I)  ASCERTAIN  THE  TOTAL AMOUNT OF TAXES LEVIED FOR THE PRIOR FISCAL
 YEAR.
   (II) ADD ANY PAYMENTS IN LIEU OF TAXES THAT  WERE  RECEIVABLE  IN  THE
 PRIOR FISCAL YEAR.
   (III)  SUBTRACT  THE  APPROVED  CAPITAL  TAX LEVY FOR THE PRIOR FISCAL
 YEAR, IF ANY.
   (IV) SUBTRACT THE LEVY ATTRIBUTABLE TO A LARGE LEGAL SETTLEMENT  OF  A
 TORT  ACTION EXCLUDED FROM THE LEVY LIMITATION IN THE PRIOR FISCAL YEAR,
 IF ANY.
   (V) MULTIPLY THE RESULT BY THE ALLOWABLE LEVY GROWTH FACTOR.
   (VI) SUBTRACT ANY PAYMENTS IN LIEU OF TAXES RECEIVABLE IN  THE  COMING
 FISCAL YEAR.
   (VII) ADD THE AVAILABLE CARRYOVER, IF ANY.
   (D) IN THE EVENT THE CITY COUNCIL OF A LOCAL GOVERNMENT HAS APPROVED A
 LEGAL  SETTLEMENT  OF  A  TORT ACTION AGAINST THE GOVERNMENT, THE ANNUAL
 COSTS OF WHICH EXCEED TEN PERCENT OF THE PROPERTY TAXES  LEVIED  BY  THE
 LOCAL  GOVERNMENT  IN THE PRIOR FISCAL YEAR, THE STATE COMPTROLLER, UPON
 APPLICATION BY THE LOCAL GOVERNMENT, MAY ADJUST THE TAX LEVY  LIMITATION
 FOR  THE  COMING  FISCAL  YEAR  APPLICABLE  TO SUCH LOCAL GOVERNMENT, BY
 ADDING THE ANNUAL COSTS OF SUCH SETTLEMENT TO THE TAX LEVY LIMITATION.
   (E) THE STATE COMPTROLLER SHALL DETERMINE THE PORTION OF THE TAX  LEVY
 OF  EACH  LOCAL  GOVERNMENT  THAT  IS  ATTRIBUTABLE  TO  ANY INCREASE OR
 DECREASE OVER THE PRIOR YEAR IN THE COST OF THE LOCAL  GOVERNMENT  SHARE
 OF  DIRECT CASH ASSISTANCE TO PERSONS ELIGIBLE FOR THE FEDERAL-STATE-LO-
 CAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES PROGRAM  OR  THE  STATE-LOCAL
 SAFETY  NET  ASSISTANCE PROGRAM AND SHALL ADJUST THE TAX LEVY LIMITATION
 FOR SUCH LOCAL GOVERNMENT TO REFLECT SUCH CHANGE.
   4. A LOCAL GOVERNMENT MAY ADOPT A BUDGET THAT REQUIRES A TAX LEVY THAT
 IS GREATER THAN THE TAX LEVY LIMITATION FOR THE COMING FISCAL YEAR  ONLY
 IF  THE  CITY  COUNCIL  OF SUCH LOCAL GOVERNMENT FIRST ENACTS, BY A TWO-
 THIRDS VOTE OF THE TOTAL VOTING POWER OF SUCH CITY COUNCIL, A LOCAL  LAW
 TO OVERRIDE SUCH LIMITATION FOR SUCH COMING FISCAL YEAR ONLY.
   5.  IN  THE  EVENT  A  LOCAL  GOVERNMENT'S ACTUAL TAX LEVY FOR A GIVEN
 FISCAL YEAR EXCEEDS THE MAXIMUM ALLOWABLE LEVY AS  ESTABLISHED  PURSUANT
 TO  THIS  SECTION DUE TO CLERICAL OR TECHNICAL ERRORS, THE LOCAL GOVERN-
 MENT SHALL PLACE THE EXCESS AMOUNT OF THE LEVY IN RESERVE IN  ACCORDANCE
 WITH SUCH REQUIREMENTS AS THE STATE COMPTROLLER MAY PRESCRIBE, AND SHALL
 USE  SUCH  FUNDS  AND ANY INTEREST EARNED THEREON TO OFFSET THE TAX LEVY
 FOR THE ENSUING FISCAL YEAR.

 S. 1059                             4
 
   § 5. Paragraphs j and k of subdivision 2 of section 23 of the  munici-
 pal home rule law are relettered paragraphs k and l, and a new paragraph
 j is added to read as follows:
   J.  OVERRIDES THE TAX LEVY LIMITATION APPLICABLE FOR THE COMING FISCAL
 YEAR IN ACCORDANCE WITH SECTION THREE-F OF THE GENERAL MUNICIPAL LAW.
   § 6. This act shall take effect immediately and sections four and five
 of  this act shall first apply to the levy of taxes by local governments
 for the fiscal year that begins in 2020.

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Senate Bill S1059

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Sponsored By

Catharine Young

Archive: Last Bill Status - In Senate Committee Local Government Committee

co-Sponsors

Fred Akshar

Simcha Felder

Rich Funke

Andrew J. Lanza

2019-S1059 (ACTIVE) - Details

2019-S1059 (ACTIVE) - Summary

2019-S1059 (ACTIVE) - Sponsor Memo

2019-S1059 (ACTIVE) - Bill Text download pdf

Comments