Medicaid reform long overdue

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There was a great deal of joy over the weekend when the North Carolina Association of County Commissioners crowed there was a deal to remove the multi-million dollar burden of funding Medicaid from the counties' financial shoulders.

For several years, the idea of bringing North Carolina into the 21st century as far as Medicaid funding had been the association's top priority.

We are the only state in the union that imposes part of the funding obligation on our counties.

Then the deal fell apart. Under pressure from the state's Realtors and others, Senate leaders refused to support one of the two alternative funding mechanisms offered to the counties in the compromise.

The deal-breaker was to allow counties to impose a 0.4 percent land transfer tax to offset the loss of some sales tax revenue.

The entire deal centered on the counties being relieved of the Medicaid responsibility over the next three years.

On the financial side, the state would get to keep a half-cent of the state sales tax currently given to the counties.

The counties, in turn, would be allowed to raise their own sales tax by a quarter of a cent or impose the 0.4 percent land transfer tax. Both new taxes could only come after the approval of the voters.

We understand the state lawmakers' reticence in approving any type of new tax. If it were an automatic approval, we would object.

But in both, the case of the sales tax and the land transfer tax, the approval of a county's board of commissioners, and, most importantly, the sanction of the voters would be required.

This seems to be adequate protection from unnecessary and unfair taxation.

But even with the removal of the land transfer tax from the equation, we believe the state should and must end this draconian practice of taking millions of dollars from North Carolina counties to help pay for Medicaid.

This year, the counties face a Medicaid charge in the area of $516 million. Halifax County expects to pay nearly $5.6 million in the new budget year for Medicaid.

Last year, Northampton County paid nearly $2.4 million.

This is a burden that must end. The loss of the land transfer tax option, right or wrong, must not be allowed to derail this compromise. We urge the Senate and House negotiators to use common sense and find a way to make Medicaid reform a reality this year.

We have debated and discussed this problem for too long. Now is the time for answers, not political posturing or ducking a tough decision.

The counties and the people of North Carolina deserve a sensible decision - not another “wait until next year” message.