Governor Easley goes to bat for county Medicaid relief, revenue options

Governor Mike Easley reaffirmed the importance he places on the historical partnership between counties and the State of North Carolina today during a press conference.

“Governor Easley has really gone to bat on behalf of the counties today,” said David F. Thompson, executive director of the North Carolina Association of County Commissioners. “His comments underscore the importance he places on the partnership between the state and the counties.”

Governor Easley again called for immediate and permanent county Medicaid relief and stated his support for additional county revenue sources that could bring property tax relief.

“Medicaid relief is especially important in those counties where property values are escalating beyond our citizens’ ability to pay property taxes,” said Thompson, “and I am grateful to the Governor for using this opportunity to reaffirm the need for relief.”

Governor Easley acknowledged the difficulty that many North Carolinians have paying higher property taxes – the only source of revenue counties have control to increase in order to pay for county infrastructure needs and services – and pointed out that county officials are in the best position to realize how to best raise funds to meet their constituents’ needs.

“I trust the county commissioners to do the right things on the local level,” Easley said. “After all, the county commissioners are much more closely in touch with the people of their counties than I am or the legislators are. But they need some additional revenues in this new economy with the higher cost of the additional demands, especially in low-wealth counties, in order to get some relief on property taxes.

“I think we all know that the low-wealth counties are drowning in Medicaid costs right now. I said in the State of the State that we need to face and fix this problem with a long-term solution this session.”

The NCACC’s annual survey of county property tax rates found that more than two-thirds of North Carolinians will be paying more in county property taxes in 2007-08, and rapidly escalating Medicaid expenses and growing infrastructure demands caused by the state’s population increases are the primary budget drivers.

“We are not just talking about counties but about people in the counties and their ability to prosper,” Easley said.

Governor Easley added that he supports House and Senate proposals to phase out the county share of Medicaid, and that he would support a compromise solution. An ad hoc county Medicaid relief committee, comprised of House and Senate leaders, appropriations and finance committee chairs, and Gov. Easley’s senior policy advisor, Dan Gerlach, are working diligently on a workable and winnable plan.