2009-10 Enacted Budget Gap-closing Plan – Local Governments

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Local Governments

The Enacted Budget implements necessary savings in the area of aid to local governments, without placing an undue burden on local property tax payers. The largest of these initiatives is maintaining AIM payments to local governments at 2008-09 levels, eliminating scheduled increases in 2009-10 and 2010-11.

Gap Closing Actions

• Maintain AIM Funding Outside of NYC.  AIM for municipalities outside of New York City is preserved at 2008-09 payment levels for 2009-10 and 2010-11, eliminating previously scheduled increases. Even after this action, the state will still provide these municipalities with $755 million in AIM support, an increase of $290 million or 62 percent compared to 2004-05. (2009-10 Savings: $61 million; 2010-11 Savings: $130 million)
• Reduce VLT Impact Aid.   Makes a number of changes to the VLT Impact Aid program to target funding to municipalities with the greatest fiscal need. Those municipalities within a county that has a poverty rate below 50 percent of the statewide average (Saratoga County) will be eliminated from the program. Municipalities within counties with a poverty rate at or above 50 percent and less than 75 percent of the statewide average will receive 50 percent of the value of their 2008-09 payment in 2009-10 (Genesee, Ontario, and Tioga counties).Those municipalities within a county that has a poverty rate of 75 percent or above of the statewide average (Erie, Oneida, and Sullivan counties) will receive 100 percent of their 2008-09 payment in 2009-10. Further program growth is contained by limiting the aid to municipalities currently hosting VLT facilities, which would make New York City ineligible for 2009-10 funding. Yonkers is held harmless against reductions because, unlike other communities, its payment is used directly to support the city’s school district. Overall, this proposal will provide savings of $29 million in 2009-10. (2009-10 Savings: $29 million; 2010-11 Savings: $30 million)
  
• Scale Back Incentive Grant Programs.  Funding for new Local Government Efficiency Grants is reduced by 50 percent.  All previously awarded grant commitments will still be honored in full. (2008-09 Savings: $1 million; 2009-10 Savings: $9 million; 2010-11 Savings: $11 million)
  
• Reduce Funding for Legislative Additions by 20 Percent.  One-time additional aid to 33 cities, originally totaling $11.6 million, is reduced by 20 percent in 2008-09. (2008-09 Savings: $2 million)
  
• New Legislative Initiatives.  The City of Yonkers is provided with $5 million in one-time Legislative Additions in 2009-10, as well as a $15 million AIM advance in 2010-11, to aid the city in closing a significant budget deficit in CFY 2009-10. (2009-10 Cost: $5 million)