NYC-WTC_000195490

NYC 9/11 Public Portal Document

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STATE OVERVIEW

The State agenda for 2002 is centered around a number of initiatives requesting equitable relief for the City. For example, in last year’s State budget, all local governments were provided an increase in revenue sharing, with the exception of New York City. The City deserves the same benefits that other local governments receive.

Currently, the New York State Legislature and Executive are engaged in a contentious budget debate. The Supreme Court decision in the case of Campaign for Fiscal Equity v. The State of New York, mandating that the State overhaul its education financing system, affects a major component of Albany’s support to localities. Although the Governor has announced his intention to appeal this decision, an education debate will be in the f forefront during budget negotiations and this is likely to further delay a State budget.

Increase in Revenue Sharing /

The State Revenue Sharihg program began in 1970 and was enacted to pfovide a predictable funding stream to municipalities that was adequate and equitable. The original program based the allocation to local governments on State personal income tax revenue. The law has been amended several times since 1970 and the amount available declined significantly from 1987 to 1992. In State Fiscal Year (SFY) 1994-95, the State implemented its first revenue sharing increase in nearly 10 years. However, in SFY 2000-01, for the first time dyer, New York City was excluded from an increase in the revenue sharing allocation. The budget included a 5 percent across- is the-board increase in General Purpose State Aid for the State’s cities, town^ and villages, but specifically excluded New York City. In this year’s State Budget, the City requests inclusion in any revenue sharing program increase, for a total savings of $30 million to New York City.

E-911 Wireless Surchargefor Local Emergency Expenditures

E-911 monthly surcharges on cellular telephone bills throughout the State are given directly to the New York State Police, which does not perform functions in New York City. The City generates approximately 50 percent of the total wireless E-911 revenues. In their budget resolution for this year, the State Senate proposed the creation of a Wireless Telephone E-911 Surcharge Program. This proposal would create a fund using the revenues from the wireless communications surcharge to provide localities with resources to fund emergency response and public safety equipment improvements. This program would allow New York City to directly benefit from the fees generated from the E-911 charges. The City is requesting the creation Of an E-911 surcharge assistance fund of 1 which $5 million would be the City’s equitable share in 2002, growing to $10 million in 2003-05. I f . ' i ‘'

Medicaid Fraud Prevention Initiatives

, The State’s Medicaid costs related to pharmacy services have grown roughly 20 percent a year since 1995. While a portion of the spiraling costs is attributable to the introduction of more efficacious drugs to combat AIDS, a portion of the growth is due to pharmaceutical fraud. The City proposes working with the State to implement 1 several measures’ to reduce pharmaceutical fraud. The City could save at least $16'million through the implementation of these reforms in 2002 and full annual savings would grow to $36 million.

These initiatives include redesigned prescription forms printed on non-reproducible paper, as well as the ■iii imposition of more stringent criminal penalties for Medicaid recipients who allow others to use their cajrds. In addition, the City supports tougher criminal penalties for pharmacists who commit prescription fraud. ’

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