New York State Public Assistance Cost-Sharing Policies: Implications for Federal Policy

The Federal Government divides public assistance costs with States according to the Medicaid formula, which grants aid in direct proportion to per capita income. New York State follows a policy of sharing public assistance costs with county governments on a 50-50 basis. The cost-sharing policies of New York were used as a case study of the impact that varying concentrations of welfare recipients have on the fiscal effort of a State Government administering a public assistance program.