GLOVERSVILLE - The city will lose $180,000 in annual revenue from Fulton County when a new regional dispatch center begins coordinating transportation for Medicaid patients - a job that had been handled by the Gloversville Transit System.
The change was ordered by the state Department of Health and goes into effect Aug. 1.
A full-time city employee who handles dispatch will be laid off. A driver who also worked in the office housed within the GTS building on West Fulton Street also will be laid off, but that driver was planning to take another job out of state, Mobility Manager Bill Walrath said.
Legislation passed by state lawmakers as part of the 2010-2011 budget tasked the state Department of Health with restructuring Medicaid transportation by centralizing administration and taking it out of county Department of Social Service's hands and creating centralized regional dispatch centers. This area's dispatch center is located near Buffalo, officials said.
Currently, Medicaid beneficiaries in Fulton County call GTS to arrange transportation. They're often transported by bus but sometimes by taxi. The call center near Buffalo now will arrange local transportation.
Walrath said he is meeting with county Department of Social Services officials this week to learn more details, but as it stands now, many are unsure how the new system will work, he said.
"We still don't know a lot about what's going on," Walrath said. "I suspect we won't lose ridership, but we will be losing he monthly management fee from Fulton County."
Medicaid transportation accounted for 13 percent of rides provided by GTS in June.
The new regional transportation managers in the state were chosen through a bidding process earlier in the year. They will serve as dispatch centers and negotiate the price of fares.
Medicaid patients likely will continue to ride GTS buses, since such transportation would likely be the least expensive option. But the city will miss the $180,000 in annual revenue. Walrath said having two fewer employees will help make up for the loss.
Finance Commissioner Bruce VanGenderen informed the Common Council about the upcoming change last week, and said an increase in bus fares may be necessary.
Walrath said it was too early to say whether he would urge the council to increase fares.
"There's nothing settled, yet," Walrath said.
Walrath said with five full-time drivers and two part-time drivers, he'd like the council authorize him to start a pool of substitute bus drivers that can be paid an hourly wage - an alternative to hiring another full-time driver who would require benefits.
In the meantime, the Transit Commission is launching a marketing campaign to coincide with Railfest on Aug. 6.
Included in the state grant for Mobility Manager is money for advertising.
Commission Co-Chair Christine Benson said the commission is looking to target every demographic.
"The audience we're targeting is people who have never been on the bus before," Benson said.
Amanda Whistle covers Gloversville news. She can be reached at gloversville@leaderherald.com