Local Government Assistance

Since 1995-96, State budgets and related legislation have provided local financial assistance totaling nearly $11.6 billion — including an additional $1.4 billion in savings and assistance to local governments under the State’s 2005-06 enacted budget. Major 2005-06 State actions include:

• Medicaid Cap and Cost Containment: A cap on the local share of Medicaid costs along with new Medicaid cost containment initiatives will generate $409 million in savings to counties and New York City. Over the next four years, these historic actions will save counties and local taxpayers an estimated $4.3 billion.
• Aid and Incentives for Municipalities: A new Aid and Incentives for Municipalities (AIM) Program consolidates unrestricted aid programs and provides $57 million in additional aid to municipalities while encouraging local efforts to minimize property tax growth.
• School Aid: The State will provide nearly $850 million in additional aid to school districts for the 2005-06 school year ($594 million in SFY 2005-06), including $325 million for the new Sound Basic Education Aid.
• Revenue Actions: Continued suspension of the year-round sales tax exemption on clothing and footwear, replaced by two sales tax free weeks on items costing less than $110, will provide localities with $272 million in additional revenue.
• Local Transit Assistance: Over $25 million in new assistance is provided in support of downstate and New York City local transportation operations.