WASHINGTON - U.S. Senator Charles E. Schumer announced that the upcoming Senate jobs bill, set to be on the Senate floor this week, will include billions of dollars in budget aid for Upstate communities and all of New York State. The proposal will extend the 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 said that the Senate Jobs bill, now being considered on the floor of the Senate, 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.