Press Release, NYS Association of Counties
New York’s counties are approaching a fiscal reckoning driven by looming federal cost shifts. That is the warning that the New York State Association of Counties (NYSAC) is set to deliver in testimony before the Joint Legislative Budget Hearing on Local and General Government later today.
In written testimony submitted in advance of the hearing, NYSAC urged the State to act decisively to protect local governments and property taxpayers from unprecedented federal policy changes set to take effect beginning in October 2026—most notably deep cuts in federal support for administering the Supplemental Nutrition Assistance Program (SNAP) and the imposition of steep error-rate penalties.
“New York’s counties are facing a fiscal reckoning,” said Stephen Acquario, executive director of the New York State Association of Counties. “Recent federal actions threaten to shift billions of dollars in new costs onto local governments and local taxpayers. Counties are not here to complain—we are here to partner—but without strong state action, these cost shifts will fall squarely on local property taxpayers and put essential services at risk.”
The testimony highlighted the central role counties play as the delivery system for nearly every state and federal program that touches New Yorkers’ daily lives, from public safety and public health to human services, infrastructure, and care for the most vulnerable residents.
NYSAC expressed support for several components of the Executive Budget, including the continuation of the cap on local Medicaid costs, which they emphasized remains the foundation of county fiscal stability, saving counties and New York City billions of dollars annually.
At the same time, counties stressed that holding the line on state cost shifts alone will not be enough to offset the unprecedented federal changes bearing down on local budgets—particularly in SNAP administration, where counties could face hundreds of millions of dollars annually in new costs and potential benefit error-rate penalties totaling more than $1 billion statewide.
“Counties are being asked to absorb federal decisions that we did not make and cannot control,” said NYSAC President Phil Church. “If the State does not step in as a partner, these costs will translate directly into higher property taxes or painful cuts to core services that communities depend on. Protecting affordability for New Yorkers means protecting counties from these federal actions.”
In addition to immediate federal challenges, the testimony called for reforms to long-standing systems that continue to strain county budgets, including Raise the Age reimbursement, competency restoration under CPL § 730, Safety Net cost sharing, delayed Early Intervention payments owed to counties, and staffing challenges driven by outdated workforce rules.
NYSAC also urged the Legislature to make strategic investments in emergency medical services planning, public health programs, farmland protection, procurement modernization, and infrastructure initiatives that strengthen local economies and community resilience.
“The state-county partnership has never been more critical,” Acquario added. “Counties stand ready with solutions, experience, and a deep commitment to serving New Yorkers—but we cannot navigate this moment alone. The final Enacted Budget must reflect a shared responsibility to protect taxpayers and preserve the services people rely on in every corner of the state.”