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Counties got some relief from Medicaid reimbursements this year, but it still isn’t enough.
In the new state budget, state legislators capped Medicaid at last year’s rate, meaning Columbus will save $537,225 in its 2006-07 budget.
Sounds like a lot, right? It isn’t.
One-third of all property taxes collected is consumed by Medicaid expenses, a $6.3 million line item in the county budget. Columbus County spends more on Medicaid than it does on its schools.
North Carolina is the only state in the Union which still requires counties to pay a certain fixed rate to match the state’s Medicaid funding.
The Senate cut an additional $35 million that the House had in its budget for counties with sizable Medicaid-eligible populations. Temporary relief to Medicaid-dependent counties isn’t the only solution.
Prosperous areas like Mecklenburg and Wake counties spend $40.46 and $33.40 per Medicaid recipient, respectively. Columbus spends a whopping $116.15, the third-highest total of any county.
In counties like Wake and Mecklenburg, the percentage of Medicaid dependents falls somewhere in the teens. In Columbus, it’s 32 percent — one of 11 counties above 30 percent.
The numbers suggest that state legislators are willing to let a growing economic divide worsen.
Requiring the counties to pay fixed rates for Medicaid relief is antique legislation that needs to be reconsidered. Doing so might help bridge the gap that is driving a wedge between the rich and the poor regions of the state.
The General Assembly or governor should consider appointing a committee to devise a plan by the next session to alleviate the Medicaid burden on poor counties. Unfortunately, the $2 billion surplus legislators utilized to balance the just-passed budget may not be available next time, and another opportunity will be lost.
The new budget gives Columbus residents a few positives, however:
• Gov. Mike Easley’s proposal to provide $4.7 million to hire 100 literacy coaches for middle schools is a welcome addition, especially in Columbus. The county’s writing test scores are disappointing, falling well below the state average.
• Teachers will get an average pay raise of 8 percent. North Carolina currently pays its teachers less than the national average; getting the state out of the bottom tier of academics in America might be a little easier if raises help retain more teachers.
• And finally, legislators moved to cap the state gas tax at 29.9 cents a gallon. Gas tax revenue goes to support state highway funding, but the budget allocates $22.9 million it isn’t taking from our fuel tanks to maintain that funding. The move puts North Carolina a little closer to the tax rates of surrounding states and is a welcome change if you’ve grudgingly filled up your car lately.