ALBANY — The state budget deal will include the first increase in a special fund for local governments since 2009 that municipalities use to pay for projects and programs and to avoid or lessen property tax increases, state officials said.
“It’s a huge win for our local governments,” state Sen. Monica Martinez (D-Brentwood), chair of the Local Government Committee, told Newsday. “We have not kept up with the rising costs so local programs are being cut.”
The Senate, Assembly and Gov. Kathy Hochul have agreed to the $50 million increase, which is expected to be released in a budget bill on Friday. The fund totaled $715 million in the state budget that expired April 1.
The increase in funding for villages, towns and cities outside New York City and was a top goal of Long Island municipal leaders. Local government officials have pushed to increase the aid because it is “unrestricted,” so municipalities can use it at their discretion for the greatest need without mandates by the state on how it can be spent.
“Typically, what I would hear from municipalities is that this increase would be for tax stabilization,” said Assemb. Fred Thiele (D-Sag Harbor), chairman of the Committee on Local Government.
“I think it will be a pleasant surprise,” Thiele told Newsday. “It’s a modest increase, but hopefully it will start a trend.”
Proposals to increase funding for the Aid and Incentives to Municipalities program have failed to make it into the final budget deal for 15 years. Local governments argued the aid was being diluted by inflation.
The Senate had sought a $210 million increase and the Assembly sought $100 million in the new budget. The Senate also proposed $250,000 in funding to create a task force to redesign the municipal funding program to determine how much each municipality gets from the state funding.
The Association of Towns in its pitch to the State Legislature said a town that received as little as $20,000 under the program could pay for the cost of an engineer to help a water project to proceed, or for services for the elderly.
The New York Conference of Mayors said the impact on local government and taxpayers would be significant.
The funding hike “sends a strong message to local governments that the state wants to work with towns, cities and villages to provide the best services for our residents and visitors,” according to the mayors’ association.