BILL NUMBER: S3269
SPONSOR: COONEY
 
TITLE OF BILL:
An act in relation to establishing the New York state aid and incentives
for municipalities redesign task force; and providing for the repeal of
such provisions upon expiration thereof
 
SUMMARY OF PROVISIONS:
Section 1 creates the aid and incentives for municipalities redesign
task force. Such task force shall issue a report to the governor and
legislature within one year concerning:
- A review and analysis of the current aid and incentives for munici-
palities formula and allocations;
- An analysis of available alternatives to the current aid and incen-
tives for municipalities formula and allocations, including models from
other states, provided, however, that such alternatives shall not
include the allocation of funds to any municipality which is not
currently receiving aid and incentives for municipalities funding;
- Recommendations concerning such alternatives to the formula used to
determine future aid and incentives to municipalities funding allo-
cations, provided, however, that such alternatives shall not include the
allocation of funds to any municipality which is not currently receiving
aid and incentives for municipalities funding; and
- Any other information the task force deems necessary of relevant.
Section 2 establishes the effective date.
 
JUSTIFICATION:
The Aid and Incentives for Municipalities (AIM) program provides state
aid to nearly all of New York's cities, towns, and villages. Munici-
palities across the state rely on this funding to finance vital services
within their communities. While AIM funding accounts for merely three-
tenths of one percent of the state's overall budget, this funding has
remained flat for eleven years. In addition, this program is often the
target of cuts, which can jeopardize the budgets of cities, towns, and
villages that rely on it the most. The base formulas that determine the
amount of aid allocated to each municipality are very outdated. For
cities, the formula is based off of aid levels that date back to the
late 1990s and early 2000s. For towns and villages, the aid levels are
even older.
In the wake of the unprecedented revenue shortfalls for municipalities
resulting from the pandemic, new sources of aid are desperately needed.
To that end, this bill would create an AIM Task Force that would exam-
ine, review, and recommend changes to the current AIM formula and allo-
cation system, in order to create a more fair and equitable distribution
of these much-needed funds. The task force must submit a report with its
findings and recommendations to the Governor and Legislature within one
year, in order for these recommendations to be taken into account in the
next year's budget process.
 
LEGISLATIVE HISTORY:
2023-24: S.770
2021-22: S.5418C, vetoed memo.56
 
FISCAL IMPLICATIONS:
None to the state.
 
EFFECTIVE DATE:
This act shall take effect immediately and shall expire and be deemed
repealed December 31, 2024.