LITTLE VALLEY - At first, it sounds like a variation of the Nigerian prince e-mail scam.

But Cattaraugus County lawmakers have agreed to get creative in putting up just over $4 million of the county surplus to get $9.6 million in state funds for the county nursing homes - funds that officials feared had been lost.

And the plan couldn’t have come at a better time: It’s county budget time.

In a resolution passed without fanfare Wednesday, the County Legislature unanimously approved the resolution introduced by the legislative leadership.

The Pines Healthcare and Rehabilitation Centers at Olean and Machias are eligible for payments of $5,049,611 and $4,581,317, respectively, through Medicaid for 2006, 2007 and 2008. The county, however, must pay the entire matching funds to get the funding within 36 hours, County Administrator Jack Searles said.

County lawmakers decided to take the money from a surplus that totals about $16 million and transfer it into a Medicaid account in the Department of Social Services. The state will in turn make a wire transfer of the Medicaid-related funding within 36 hours.

County Treasurer Joseph G. Keller received a letter last month outlining the county’s eligibility for the $9.6 million in either a lump sum or spread over four years. County lawmakers chose to take the money all at once, especially when the county would still have had to put up its matching share in cash ahead of time.

Because there is a deadline of Oct. 23 for applying for the public nursing home funds, County Legislature leaders decided to present the plan for immediate consideration. It was explained to legislators in political caucuses and it was unanimously approved without comment.

Mr. Searles credited the New York State Association of Counties for helping to develop the plan to continue tapping the state funding for public nursing homes. Officials feared the money source had been lost when the state capped counties’ Medicaid costs three years ago.

County Legislature Finance Committee Chairman Michael O‘Brien, R-Portville, has cautioned about tapping the county’s surplus, or general fund balance. After using the surplus for various road and other projects this year, it stands at about $16 million. Thursday’s move will draw it down further.

Mr. O’Brien said today that the county used $1.7 million this year and will use about $2 million in county funds in 2009 to subsidize the two county nursing homes. By having the state funding go directly to the nursing homes, the county won’t have to subsidize the nursing homes for several years.

“It’s a good way to maximize our money,” he added.

Mr. Searles, who is also county budget officer, agreed the unexpected state money could not come at a better time.

“It doubles the amount of the local share,” he said.

Jeff Van De Carr, the nursing homes controller who was recently named deputy administrator, said, “It’s a wonderful return on our investment. It’s great news for the county.”

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