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16 <br /> Slide#8 <br /> FY 2026-27 Revenue Assumptions <br /> Impact of Federal Budget Reconciliation <br /> - Federal funding for Supplemental Nutrition Assistance Program(SNAP)will decrease from 50%to 25%of county <br /> administrative costs effective October 1,2026 <br /> - Assuming no additional state support, county will lose$680,000 next fiscal year to support the same number of <br /> staff($900,000 annually) <br /> - December 31, 2026-Medicaid work requirements and more frequent recertifications <br /> • May require additional staff <br /> More changes in future years <br /> - October 1,2027 SNAP benefit cost sharing with States <br /> - October 1,2028 Medicaid benefit cost sharing with States <br /> 6 ORANGE CA COUNTY <br /> Slide #9 <br /> State Impacts due to Medicaid Changes <br /> Impact of Federal Budget Reconciliation on State of North Carolina— Medicaid <br /> • North Carolina Medicaid estimates that additional administrative funding will be needed to implement <br /> and support work requirements and six-month redeterminations <br /> $6.5 million in one-time costs needed this fiscal year <br /> - $7.8 million per quarter($31.2 million annually)to support county eligibility determination functions <br /> $3.31M per quarter($13.21M per year)for ongoing state administrative costs <br /> • State law fixes the amount of funding that can be used to fund Medicaid Expansion administration <br /> - Funding limits would need to be adjusted to account for increased costs of work requirements and more frequent redeterminations <br /> and preserve Medicaid expansion <br /> Source:NC Medicaid Presentation to the Joint Legislative Oversight Committee on Medicaid-January 13,2026 _ <br /> https:l/webservices.ncleg.aov/ViewDocSiteFile/104990 ORANGE COUNTY <br /> 9 NORTH CAROLINA <br />