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ENACTED STATE BUDGET INCLUDES EXPANDED AID TO DISTRESSED CITIES
Governor Eliot Spitzer today confirmed that the enacted state budget includes a major expansion of aid to distressed cities, towns and villages.
The new aid was a top budget priority for the Governor.
“The state should drive resources to the communities that need it most,” Spitzer said. “I’m pleased that lawmakers have agreed with this principle and expanded the AIM program accordingly.”
The budget enacts a $200 million four-year commitment to expand the Aid and Incentives to Municipalities (AIM) program. In 2007-08, $50 million in additional annual performance-based aid will be provided to distressed cities, towns and villages, $20 million will be given to New York City and just under $2 million was restored for municipalities that had been removed from the program in the Executive Budget because they did not meet the distress criteria. With this investment, the program will total nearly $720 million.
Under the proposal, increases in aid will be tied to greater accountability. Municipalities receiving the largest AIM increases would be required to develop multi-year fiscal performance plans and to use the additional funding to provide property tax relief, support essential economic development investments or fund cost-saving technology investments.
The budget commits to $50 million increases in each of the four years of the financial plan. This will allow for AIM increases ranging from 3 percent to 9 percent, based on level of fiscal distress. In addition, 20 municipalities will receive a further 4.5 percent AIM increase to reduce differences in per capita funding.
Cities that will get the highest increases over the next four years include Buffalo receiving an additional $12.8 million in 2007-08 and an increase of $57 million over four years; Rochester receiving an additional $9.7 million in 2007-08 and a total increase of $31 million; Syracuse receiving $5.7 million more in 2007-08 and a total increase of $25 million; and Yonkers receiving $5.1 million more in 2007-08 and a total increase of $22 million.
The enacted AIM program also recognizes the needs of fiscally distressed towns and villages, making these municipalities eligible for the higher AIM increases using the same distress criteria as cities.
The final budget ensures at least a 3 percent increase for all municipalities outside New York City. New York City will receive $20 million in AIM funding for 2007-08 and will be fully restored to the 2006-07 level of $327.9 million beginning 2008-09.
A list of aid to all municipalities is attached.
In addition to the AIM expansion and restructuring, the budget includes $2.5 million for the Shared Municipal Services Incentive program to support grants to local governments that act to reduce property taxes by sharing services or by consolidating.