Submitted by Howard B. Owens on July 17, 2014 - 9:45am
New York will finally pay off some of their IOUs to the county.
County Treasurer Scott German learned Tuesday that $4.1 million in funds meant to cover 2013 Nursing Home expenses will be transferred to the county Aug. 13.
That's the good news. We'll get to the bad news shortly.
The $4.1 million is what is known as an Inter-Governmental Transfer. It's money that originates with the federal government and sent to the states so the states can transfer it to county governments that run nursing homes. The money is meant to help offset the difference in reimbursement fees between Medicaid and Medicare (it's more complicated than that, but that's the easy explanation).
In June, the county received $4.3 million in back IGT payments from 2012.
Of the $8.4 million IGT received, the taxpayers of Genesee County paid an amount equal to 50 percent, or $4.2 million, as a local match.
But that isn't all of the bad news.
County Manager Jay Gsell said the feds are phasing out the IGT program. The Aug. 13 payment is probably one of the last two or three the county will ever receive.
No program has been announced to replace it.
Once there's no IGT -- and if there's no program to replace it -- the local share cost of running the Genesee County Nursing Home will likely be at least $3 million a year, and that figure is growing each year, German said. The operating deficit will need to be funded by local taxpayers.
Of the $4.3 million received in June, $2 million went into the general fund to pay off money the Nursing Home borrowed from the general fund.
Some of that IGT money will be used to pay off a $5.8 million Revenue Anticipation Note (RAN -- a short-term loan based on the promise of anticipated revenue).
The $4.1 million the county receives Aug. 13 should pay off the rest of the RAN, a loan that must be retired by November.
If for some reason, there is a shortfall, the county will either need money from the general fund or another loan, German said, to pay off this RAN.
But it's anticipated there will be a $200,000 surplus from the IGT payment, which will be gobbled up by Nursing Home expenses in short order. The county will then need to borrow more money to cover Nursing Home expenses with no guarantee the feds or the state will help with the expense at a later date.
The County Legislature met with an attorney today who is helping them explore options for dealing with the Nursing Home. The meeting was held in close session and was purely informational for the legislators, Gsell said.