The NC Association of Commissioners is floating a new idea to deal with the escalating cost of Medicaid and the fact that it is partially funded by counties in NC (the last state to look at this ludicrous way to fund it).

In this scenario, please pay close attention, the state will take Title-39 money (a 1-cent sales tax) that counties receive. In turn the state will take over all of the county portion of Medicaid.

To replace the money, the state will ALLOW the counties to enact a new 1-cent sales tax on themselves. And through this counties will have to hold cities harmless as well.

If done, the 1-cent that the state will take over gives them roughly $1 billion. The cost for taking over Medicaid is roughly $450 million which means the state would receive a $550 million windfall.

Counties would be wise to reject this absurd idea that will ultimiately result in them passing a $1 billion tax increase because of a lack of leadership in Raleigh. One would hope that the Association would have rejected this out of hand rather than pass it along as remotely serious.

Oh, I’ve been told that Sen. Tony Rand’s (D-Cumberland) proposed this absurd idea. The counties already took a hit on the new voting machine law and Mental Health reform, at some point in time you’d think they would stand for something!