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Cash Flow Problems For Counties

As the State continues negotiating the final pieces of the 2010-11 State Budget, numerous counties across New York are facing serious cash-flow problems because they have not received State reimbursement since April, according to the New York State Association of Counties (NYSAC).“The State should promptly pay its bills for services delivered, or have a reasonable period of time to make payments. The counties are not a bank for the State. In many instances, the State delays payments for months, even years. The budget crisis has made a bad situation even worse,” said NYSAC Executive Director Stephen J. Acquario. “The problem is that the State is causing cash flow problems at the county level. If they are going to borrow money from us, then the State should pay interest on these property tax dollars.Counties are reporting a dramatic slow down in reimbursement from the State—to the tune of millions of dollars—for state mandated Department of Social Service (DSS) programs such as Medicaid, child welfare, Temporary Assistance for Needy Families (TANF), and public health.“Where do they think the funding for these critical programs will come from? It comes from local taxpayers, that’s who,” said Chemung County Executive Tom Santulli, president of NYSAC. “There’s no wonder why New Yorkers feel the State is going in the wrong direction. The State keeps compounding the problems, and then they pass them down to us at the county level.”he New York State Association of Counties is a bipartisan municipal association serving all 62 counties of New York State including the City of New York. Organized in 1925, NYSAC’s mission is to represent, educate and advocate for member counties and the thousands of elected and appointed county officials who serve the public.

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