Assemblyman Fred W. Thiele, Jr. (I, D, WF, REF-Sag Harbor), Chairman of the Assembly Local Governments Committee, announced that the final state budget is set to include a full restoration of the Aid and Incentive to Municipalities Program (AIM) funding for the 2019-2020 State Fiscal Year, subject to final negotiations and approval of the Legislature and Governor. This funding, totaling $59 million, had previously been eliminated under the Executive Budget Proposal released on January 15.

The Aid and Incentive to Municipalities Program (AIM) has provided state aid to towns, villages and cities outside of New York City since it was established in the 2005-2006 SFY Budget.^[1] The Executive’s Proposal would have greatly reduced funding from last year’s level of $715 million to $656 million, as well as eliminated this essential funding for towns and villages where last year’s AIM award equaled two percent or less of the municipality’s total expenditure. This proposal would have resulted in over ninety percent of New York towns and villages losing their entire AIM funding, including all of the towns in Nassau and Suffolk counties.

Subsequently, included in the 30-day amendments released on February 14th, the Executive proposed that any loss of AIM funding incurred by Towns and Villages as a result of the state cut, be offset by sales tax revenue collected by Counties. This proposal would have shifted the burden of replacing lost AIM funding from the State to the Counties, and was not a true restoration of these critical funds.

In response to this proposal and the overwhelming outcry in opposition from municipalities and local officials statewide, Assemblyman Thiele joined with Senate Local Governments Chair, Jim Gaughran. Assemblyman Thiele and Senator Gaughran held a rally in January for the restoration of AIM funding in the State budget. In addition, Assemblyman Thiele successfully called on Assembly Speaker Carl Heastie to include a full restoration of AIM funding in the Assembly One-House Budget Proposal, adopted on March 13.

“This reduction would have been detrimental to our local governments, likely triggering tax increases for homeowners, cuts to services, and layoffs of town and village employees. I am proud to say that our efforts, and the efforts of my colleagues and all of the New Yorkers that fought against this misguided proposal, have paid off in a victory” said Assemblyman Fred Thiele. “As the level of governance closest to the people, local governments directly impact the daily lives of residents and their interests need to be protected. I look forward to continuing my work on behalf of New York’s local governments and will keep fighting to ensure that their voices are heard in Albany.”

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