U.S. Senator Charles E. Schumer today said that the Senate is expected to pass the Senate jobs bill that includes billions of dollars in budget aid for Upstate communities and all of New York State. The legislation includes a boost in federal Medicaid reimbursements, through a formula called FMAP, which was originally passed as part of the American Recovery and Reinvestment Act. Schumer said the proposal will send the State an estimated $2.3 billion over the first six months of 2011, with Upstate New York and Long Island counties in line to receive an additional $200M.  In ARRA, Schumer successfully fought to include the “county-local share” policy, which ensures that localities receive budget aid directly, in addition to aid given to the states, and that provision will to be in effect in the Senate jobs bill. Schumer said this money will help mitigate possible tax hikes and reduce the severity of budget cuts.  In total, New York State and the counties together will receive an estimated $3 billion in relief for the first six months of 2011.  “Unemployment is already too high and unless we get fiscal aid directly to our beleaguered county governments during this downturn, they will be forced to raise property taxes, layoff vital workers and make thing worse, instead of better,” said Senator Schumer. “This money will be a tremendous shot in the arm for taxpayers across New York because it will help prevent property tax hikes, mitigate the impact of service cuts, and reduce layoffs during the worst financial crisis in generations. This support will help alleviate, though it will not eliminate, the tough choices facing the State and counties during these difficult times.” Schumer today said that the Senate Jobs bill, that is expected to pass this afternoon, includes a provision that extends for an additional six months the two-year increase in FMAP that was passed as part of the stimulus package. The original FMAP increase sent all states $87 billion for 2009 and 2010. “The bottom line is that economists of all stripes recognize that, during a severe downturn, supporting our cash-strapped local and state governments gets significant bang for the buck because it keeps people working and prevents tax hikes that, if enacted, mean consumers will have less to spend to support the economy,” said Senator Schumer. The proposal will extend the FMAP boost passed in the stimulus for an additional six-months covering the first six months of 2011. All data is based on preliminary projections provided by the New York State Association of Counties (NYSAC) and is subject to New York State Social Services law, Medicaid claims experience, and other economic conditions. The total nationwide boost provides states with $24.7 billion. New York State is estimated to receive as much as $3 billion based on estimates of the New York State Association of Counties and New York State. Of that, the NYSAC preliminary estimates that Upstate New York and Long Island counties are in line to receive upwards of $200 billion. All data is based on preliminary projections provided by the New York State Association of Counties (NYSAC) and is subject to New York State Social Services law, Medicaid claims experience, and other economic conditions. The Federal Medical Assistance Percentage (FMAP) is a matching rate enacted in 1965 that determines the federal funding share for state Medicaid programs. The federal government matches state funds spent on Medicaid, based on the state’s FMAP. The FMAP varies from state to state; and New York’s FMAP is 50%. Thirteen states have FMAPs equal to the 50 percent floor in 2009 (CA, CO, CT, DE, MD, MA, MN, NV, NH, NJ, NY, VA, WY). By law, the FMAP cannot be lower than 50 percent, or higher than 83 percent.  The FMAP formula is designed to account for income variation across the states and is based on rolling three-year average per capita income data for each state. The Department of Commerce’s Bureau of Economic Analysis calculates FMAP annually. Schumer released the following projections, produced by the New York Association of Counties, for what the Senate jobs bill will mean for each region in New York: The Senate jobs bill will provide the Capital Region with a projected $21 million in budget relief. The Senate jobs bill will provide Central New York with a projected $20 million in budget relief. The Senate jobs bill will provide the Rochester Finger Lakes Region with a projected $24 million in budget relief. The Senate jobs bill will provide Western New York with a projected $29 million in budget relief. The Senate jobs bill will provide the Southern Tier with a projected $13 million in budget relief. The Senate jobs bill will provide the Hudson Valley with a projected $43 million in budget relief. The Senate jobs bill will provide the North Country with a projected $10 million in budget relief. The Senate jobs bill will provide Long Island with a projected $45 million in budget relief. During an economic downturn, as state revenues become stagnant or decline, the number of Medicaid beneficiaries increases because of job losses and the health care coverage that comes with employment. The temporary FMAP increase provides assistance to states and localities during economic downturns. Schumer successfully fought to include a legislative language (the “county-local share” policy) that ensures that Upstate counties and local governments across New York State receive their fair share of the FMAP relief for their Medicaid programs. Since the enactment of the Medicaid program in 1965, counties in New York have been required to share in the costs of services. In New York, local governments share with the state in Medicaid participation. Counties are mandated by the state to contribute approximately $7 billion annually or about 32 percent of the non-federal share of the State’s Medicaid Program. Recognizing that all of New York is in dire need of direct fiscal aid and are forced to share the cost of Medicaid, Schumer – a member of the Senate Leadership and the Finance Committee which has jurisdiction over Medicaid – fought to ensure that a “county-local share” provision was included in the stimulus to ensure that New York State counties and localities received the billions in direct aid from FMAP as part of the economic stimulus plan.