DEANG SKELOS ‘THE SENATE ‘Gina SENATE MINORITY LEADER ete GaSe roxio cness0 ALBANY 12247 ssrron sme October 26, 2009 Honorable Charles E. Schumer United Stat 313 Hart Office Building Washington, D.C. 20510 Dear Senator Schumer: As Congress moves closer to acting on a final version of President Obama’s health care reform plan, it is critically important that you consider the impact any plan will have on New York taxpayers, and I urge you not to vote in favor of any health care reform legislation that would mandate more costs on state and local governments and force tax increases. Elements of the Senate and House versions of health care reform legislation could add more than 900,000 people to New York's Medicaid program at a cost of $1 billion to $3 billion. State taxpayers have to pay at least fifty percent of these new costs. This would be an enormous burden at a time when we cannot even afford the current level of spending on the program. This situation is, exacerbated by the fact that, next year, New York will again have the lowest federal Medicaid matching rate in the country. Republicans in the State Senate have proposed a plan to reduce state spending to help close the budget deficit, which necessarily includes cutting back Medicaid costs, as they are the single largest expenditure in the state budget. which is already projected to be as much as $4 billion out of balance. We have recommended reinstating anti-fraud and accountability measures that were climinated in the state budget to save $34 million; cutting the nearly two dozen optional services covered under New York’s Medicaid program that are not required under the Federal Medicaid program to save $150 million; and freezing a planned expansion of New York’s Family Health Plus and Child Health Plus programs to save $200 million. Several years ago, the state placed a cap on the local county share of Medicaid expenses because the skyrocketing cost of Medicaid was driving up local property taxes at an alarming rate. Under the cap, the state picks up the cost of any increase in Medicaid over three percent. Despite the cap, a federal expansion of Medicaid would cause property taxes and state taxes — to increase. ‘Taxpayers in New York are fed up with higher taxes, Homeowners are struggling to pay ‘some of the highest property tax bills in the country. Businesses are leaving the state to escape the increasing tax burden. °Effective health care reform is an important goal, but it should not come at any price. I urge ‘you to vote against any reform legislation that would expand the Medicaid mandate on New York State, cause our budget deficit to grow larger and result in higher state and local taxes. DEAN G, SKELOS Senate Republican Leader