A program that got its start in the aftermath of a bloody state budget battle in 1994 is going national, thanks to a partnership between the New York State Association of Counties (NYSAC) and NACo’s Financial Services Center (FSC).
The new program helps counties maximize federal payments and began as an effort by NYSAC to help its member counties cope with severe slashes in state funds. FSC and NYSAC officials expect to make the program available after test runs in five counties: Fairfax, Va.; Forsyth, N.C.; Hamilton, Ohio; Ingham, Mich. and Delta, Mich. during April and May.
Initially, the NYSAC project grew out of research showing that while many opportunities existed to increase county social services’ federal share of revenues, those opportunities were not taken due to reduced county resources and insufficient communication between county departments.
Eventually, NYSAC created a team of 14 subcontractors, including two international accounting firms that bid on the state contract to supply revenue services for the state and counties.
The New York State Division of Budget has estimated that NYSAC’s efforts will generate a minimum of $200 million in new federal revenue in the fiscal year 1996-97. In the first six months of the project, NYSAC has generated more than $40 million in new federal revenue.
“NYSAC believes that it has a responsibility to share these best practices with other states that may benefit from a similar program,” says NYSAC Executive Director John Zagame. “We believe that a partnership with the NACo FSC makes the most sense for transferring this valuable program to other state associations of counties for use with their members.”
Under the terms and conditions of the NYSAC program, specialists in specific program areas are included in the vendor list. These specialists will be added in each state through consultation with state association and the principal firms involved in the program.
“This program has tremendous short-term opportunities for our counties across the nations,” commented NACo President Doug Bovin. “We may also learn enough through this process to provide ongoing services after states receive the federal block grants in the future. With devolution on the horizon, we need to plan ahead for the service demands counties will request as new systems are put in place by state governments that replace old federal programs.”
The focus of the NYSAC program includes Medicare, emergency assistance to families, child welfare services, general assistance conversions, Medicaid for early intervention and pre-school disabled children’s programs, county hospital “bad debt,” and juvenile justice medical costs.
The FSC and NYSAC believe this program will be effective in many states; however, it may not benefit all states. Therefore, an early analysis of state plans and state association interest are vital to the success of the project.
(For more information, contact Steve Swendiman at the NACo FSC, 202/942-4282 or Ken Crannell at NYSAC, 518/465-1473.)
(NACo Services News was written by Steve Swendiman, financial services manager.)