FOR IMMEDIATE RELEASE:
April 10, 2008
ENACTED STATE BUDGET BENEFITS WESTERN NEW YORK
Governor David Paterson today announced that the Enacted State Budget contains numerous investments and actions that will benefit Western New York, including Erie, Cattaraugus, Chautauqua, Genesee, Niagara, and Wyoming counties.
“Facing a rapidly deteriorating economy, it was important to ensure that our budget would not be balanced on the backs of local governments,” said Governor Paterson. “The state tightened its own belt so it could continue to provide critical support to Western New York.”
Recognizing that support for local government programs is important to alleviate pressure on local property taxes, Governor Paterson made significant reductions to state agency spending, which will grow by only one percent in the budget. In contrast, New York’s local governments, including cities, towns, villages, and school districts, receive a net benefit of $3.0 billion.
The Enacted Budget provides $2.0 billion in school aid for Western New York schools, a substantial increase of $133.4 million (7.2 percent). The City of Buffalo School District will receive $561.9 million in school aid, an increase of $27.7 million (4.9 percent).
Additionally, the budget provides critical funding of $15 million for inner and outer harbor revitalization efforts in the City of Buffalo, as part of the city-by-city initiative to break gridlock on projects that are vital to the Western New York’s economy.
Aid and Incentives to Municipalities (AIM) revenue sharing funding will total $228.4 million for Western New York, an increase of $21.6 million (10.4 percent). In Buffalo, AIM funding will total $171.7 million, an increase of $16.6 million (10.8 percent).
Consolidated Highway Improvement Program (CHIPS) funding of $7.5 million is provided in Erie County, an increase of $868,000 (13.1 percent), which will help fund important infrastructure initiatives. Additionally, the continued capping of local Medicaid costs and the state takeover of the Family Health Plus program will save Erie County taxpayers in $25.3 million in their 2009 fiscal year.
A summary of budget actions affecting Western New York is included below.
SELECTED HIGHLIGHTS FOR WESTERN NEW YORK
2008-09 ENACTED BUDGET
Western New York Region
- School Aid: Total NYS School Aid to Western New York school districts will increase from $1.86 billon in 2007-08 to $1.99 billion in 2008-09, an increase of $133.4 million or 7.2%.
- STAR Property Tax Relief: Total STAR property tax relief to Western New York residents will increase from $350.4 million in 2007-08 to $373.2 million in 2008-09, an increase of $22.8 million or 6.5%.
- Aid and Incentives to Municipalities (AIM): Total AIM funding for Western New York residents will increase from $206.8 million in 2007-08 to $228.4 million in 2008-09, an increase of $21.6 million or 10.4%.
- Transit Aid: Total State Transit Operating Aid to Niagara-Frontier Transportation Authority (NFTA) will increase from $41.0 million in 2007-08 to $45.4 million in 2008-09, an increase of $4.4 million or 10.9%.
Erie County
- School Aid. Total NYS School Aid to Erie County school districts will increase from $1.08 billion in 2007-08 to $1.16 billion in 2008-09, an increase of $75.5 million or 6.9%.
- STAR Property Tax Relief: Total STAR property tax relief to Erie County residents will increase from $201.0 million in 2007-08 to $215.0 million in 2008-09, an increase of $13.9 million or 6.5%.
- Aid and Incentives to Municipalities (AIM): Total AIM funding for Erie County residents will increase from $169.2 million in 2007-08 to $187.0 million in 2008-09, an increase of $17.8 million or 10.5%.
- Medicaid Cap/FHP Takeover: Projected savings for Erie County for the Medicaid Cap and State takeover of Family Health Plus will total $25.3 million in 2009.
- Consolidated Highway Improvement Program (CHIPS): Total CHIPS funding for Erie County will increase from $6.6 million in 2007-08 to $7.5 million in 2008-09, an increase of $867,872 or 13.1%.
- Economic Development: $15 million for inner and outer harbor revitalization efforts in the City of Buffalo, as part of the Executive Budget’s City-by-City Fund.
City of Buffalo
- School Aid. Total NYS School Aid to the City of Buffalo will increase from $561.9 million in 2007-08 to $589.6 million in 2008-09, an increase of $27.7 million or 4.9%.
- Aid and Incentives to Municipalities (AIM): Total Aid and Incentives for Municipalities (AIM) funding for City of Buffalo will increase from $155.0 million in 2007-08 to $171.7 million in 2008-09, an increase of $16.6 million or 10.8%.
- Consolidated Highway Improvement Program (CHIPS): Total CHIPS funding for the City of Buffalo will increase from $2.8 million in 2007-08 to $3.4 million in 2008-09, an increase of $569,592 or 20.1%.
Niagara County
- School Aid. Total NYS School Aid to Niagara County school districts will increase from $275.1 million in 2007-08 to $290.1 million in 2008-09, an increase of $15.0 million or 5.5%.
- STAR Property Tax Relief: Total STAR property tax relief to Niagara County residents will increase from $63.4 million in 2007-08 to $67.4 million in 2008-09, an increase of $3.9 million or 5.9%.
- Aid and Incentives to Municipalities (AIM): Total AIM funding for Niagara County residents will increase from $24.5 million in 2007-08 to $27.2 million in 2008-09, an increase of $2.6 million or 10.8%.
- Medicaid Cap/FHP Takeover: Projected savings for Niagara County for the Medicaid Cap and State takeover of Family Health Plus will total $9.3 million in 2009.
- Consolidated Highway Improvement Program (CHIPS): Total CHIPS Funding for Niagara County will increase from $1.64 million in 2007-08 to approximately $1.85 million in 2008-09, an increase of $209,532 or 12.8%.
City of Lockport
- Aid and Incentives to Municipalities (AIM): Total AIM funding for the City of Lockport will increase from $2.5 million in 2007-08 to $2.8 million in 2008-09, an increase of $296,899 or 11.5%.
Cattaraugus County
- Aid and Incentives to Municipalities (AIM): Total AIM funding for Cattaraugus County residents will increase by $247,721 or 6.7% to $3.9 million in 2008-09.
- Medicaid Cap/FHP Takeover: Projected savings for Cattaraugus County for the Medicaid Cap and State takeover of Family Health Plus will total $3.7 million in 2008-09.
- Consolidated Highway Improvement Program (CHIPS): Total CHIPS funding for Cattaraugus County will increase from $2.0 million in 2007-08 to $2.3 million in 2008-09, an increase of $248,950 or 15.3%.
Chautauqua County
- Medicaid Cap/FHP Takeover: Projected savings for Chautauqua County for the Medicaid Cap and State takeover of Family Health Plus will total $6.5 million in 2009.
- Consolidated Highway Improvement Program (CHIPS): Total CHIPS funding for Chautauqua County will increase from $2.7 million in 2007-08 to $3.1 million in 2008-09, an increase of $420,830 or 15.7%.
City of Dunkirk
- Aid and Incentives to Municipalities (AIM): Total AIM funding for the City of Dunkirk will increase by $203,441 million or 13.3% to $1.7 million in 2008-09.