State and federal mandates cost local property owners

  One of the greatest challenges facing local government is the trending to unfunded mandates, when the Federal or State government requires, by law, that a local government (county, city, or township) provide a service or do administrative work without providing the means to fund it.  A long time elected local government official I know refers to this as the Houdini strategy.  The Federal or State government creates the illusion that they are reducing or cutting taxes when in fact they only moving the responsibility to local governments that must raise property taxes to pay for the required mandated services.

  One recent example would be the passage of the Federal Deficit Reduction Act of 2005 that will have a significant impact on Carver County Community Social Services.  The Act sought to clarify Targeted Case Management (TCM) rules funded by the federal Medicaid Program. TCM is a federal reimbursement for county social services staff that develops plans and arrange for services for people.   In December 2007 the Center for Medicare and Medicaid Services issued rules to be effective on March 3, 2008, implementing the act.

  Carver County collects approximately $850,000 in TCM annually and  is now faced with federal rules that could reduce federal revenue in half.  Social services coordinates services to eligible children, mentally ill adults and children, and developmentally disabled adults, to link them to community services, keeping them in the community and out of more expensive institutional placements. 

Although the reimbursement is effectively eliminated by the new rules, the requirements for serving children remain.

  Congress is currently working on legislation that would place a moratorium on the implementation of the TCM rules.  The Minnesota Congressional delegation has been at the forefront of introducing this legislation.  The State of Minnesota appropriated $32 million dollars in one time funding to cover the TCM revenue loses but that falls short of the projected loss of federal revenue.  The State projects a $60.9 million dollar loss in TCM revenue for child welfare for the remainder of the state fiscal year. 

  Most local elected officials would welcome the responsibilities, provided that the Federal or State government would allow the revenue source to follow the services.  Locally elected officials can always deliver services to the people in a better and a more cost effective manner because we are closer to the people and understand the best way to provide services.

  Carver County Commissioner Randy Maluchnik represents the 3^rd District. His column appears on the second Thursday of each month in the Victoria Town Square pages, and can be found online at www.victoriatownsquare.com. Maluchnik can be contacted at  rmaluchnik@co.carver.mn.us