Medicaid Spending Might Increase Property Taxes in Broome County, New York

An inaccurate estimate of Medicaid expenses in Broome County, New York, has prompted the county to consider borrowing $2.8 million and boosting property taxes by 7.5%, the Binghamton Press & Sun-Bulletin reports. New York state splits its share of Medicaid costs evenly with counties. Broome County each year hires a consultant to help estimate the county's share of Medicaid costs and other medical spending. The county has underestimated its Medicaid expenses in four of the previous five years, but this year is the first that county supervisors have been unable to offset the shortfall with funds from other parts of the county budget. Even if officials address the current shortfall, the problem "doesn't end in 2003," Budget Director Kenneth Badger said. Because of increasing prescription drug and long-term care costs and increased enrollment, the state's Medicaid expenses are projected to rise between 10% and 11% a year for the next five years, and as much as 9% per year through 2012 for Broome County (McAdam, Binghamton Press & Sun-Bulletin, 11/7).