Bill > S05519

This bill phases out reimbursements for medical assistance expenditures made by social services districts over a ten-year period, starting in 2025 and culminating in a complete elimination of these reimbursements by 2034. Each year, the reimbursement will be reduced by an increasing percentage, beginning with a 10% reduction in 2025 and increasing by 10% annually until reaching a 100% reduction in 2034. Critically, the bill mandates that all savings from these reductions must be used exclusively for property tax levy reductions or property tax rebates in the subsequent fiscal year. The bill applies only to local governments as defined by specific sections of the general municipal law and education law. Additionally, counties that have previously opted into a local sales tax intercept methodology will receive a proportionate reduction in their tax intercept, with these recaptured funds also being used for property tax reductions. The state comptroller is required to determine and communicate the minimum annual property tax levy reduction to each local government at least 180 days before the start of the relevant fiscal year, ensuring transparency and advance planning for the mandated tax reductions.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S5519