Local Government Assistance

Mission

Local Government Assistance programs provide general purpose aid to municipalities, as well as targeted grant programs and incentives for local government efficiency and consolidation actions. State General Fund-supported programs include the Aid and Incentives for Municipalities (AIM) program, Citizen Empowerment Tax Credits, the Citizens Re-Organization Empowerment Grant program, the Local Government Efficiency Grant program, the Local Government Performance and Efficiency Program, and the County-Wide Shared Services Initiative.

Budget Highlights

The Executive Budget recommends $759 million in All Funds appropriations to fund miscellaneous State aid and assistance programs, including $726 million in General Fund support to local governments under several aid programs. Included with the All Funds appropriations, the Budget recommends $2.5 million in General Fund state operating support for the Financial Restructuring Board for Local Governments and $30 million in Fiduciary Funds to cover contingency appropriation requirements. Overall, this represents a decrease of $294 million from FY 2019 All Funds appropriation levels, primarily due to the discontinuation of the $225 million appropriation for the County-Wide Shared Services Initiative, which will now be funded by reappropriations, and a $59 million reduction in AIM funding to towns and villages with a low reliance on this funding stream.

Program Highlights

County-Wide Shared Services Initiative Program

Funding for the State's match of the first year of savings from shared services actions included in a finalized county-wide shared services plan submitted to the Director of the Budget.

Aid and Incentives for Municipalities

Unrestricted State aid to cities, towns, and villages.

Citizens Reorganization Empowerment Grants

Funding for local governments to cover costs associated with planning and implementing local government reorganization activities, such as consolidations and dissolutions.

Citizen Empowerment Tax Credits

Annual tax credits for cities, towns, or villages that consolidate or dissolve are equal to 15 percent of the newly combined local government’s tax levy. At least 70 percent of such amount must be used for direct relief to property taxpayers.

Local Government Efficiency Grants

Competitive funding to help cover costs associated with local government efficiency projects, such as planning for and/or implementing a functional consolidation, shared or cooperative services, and regionalized delivery of services.

Local Government Performance and Efficiency Program

Grants and/or loans awarded by the Financial Restructuring Board for Local Governments to assist with implementing Board recommendations.

ALL FUNDS
APPROPRIATIONS
(dollars)
Category	Available FY 2019	Appropriations Recommended FY 2020	Change From FY 2019	Reappropriations Recommended FY 2020
State Operations	2,500,000	2,500,000	0	0
Aid To Localities	1,050,103,113	756,352,613	(293,750,500)	335,914,000
Total	1,052,603,113	758,852,613	(293,750,500)	335,914,000

STATE OPERATIONS
ALL FUNDS FINANCIAL REQUIREMENTS BY FUND TYPE
APPROPRIATIONS
(dollars)
Fund Type	Available FY 2019	Recommended FY 2020	Change
General Fund	2,500,000	2,500,000	0
Total	2,500,000	2,500,000	0

STATE OPERATIONS
ALL FUNDS FINANCIAL REQUIREMENTS BY PROGRAM
APPROPRIATIONS
(dollars)
Program	Available FY 2019	Recommended FY 2020	Change
Financial Restructuring Board
General Fund	2,500,000	2,500,000	0
Total	2,500,000	2,500,000	0

STATE OPERATIONS - GENERAL FUND
SUMMARY OF NONPERSONAL SERVICE AND MAINTENANCE UNDISTRIBUTED
APPROPRIATIONS AND CHANGES
FY 2020 RECOMMENDED
(dollars)
Program	Total
Program	Amount	Change
Financial Restructuring Board	2,500,000	0
Total	2,500,000	0

STATE OPERATIONS - GENERAL FUND
SUMMARY OF NONPERSONAL SERVICE AND MAINTENANCE UNDISTRIBUTED
APPROPRIATIONS AND CHANGES
FY 2020 RECOMMENDED CONTINUED
(dollars)
Program	Contractual Services
Program	Amount	Change
Financial Restructuring Board	2,500,000	0
Total	2,500,000	0

AID TO LOCALITIES
ALL FUNDS FINANCIAL REQUIREMENTS BY FUND TYPE
APPROPRIATIONS
(dollars)
Fund Type	Available FY 2019	Recommended FY 2020	Change
Fiduciary	30,000,000	30,000,000	0
General Fund	1,020,103,113	726,352,613	(293,750,500)
Total	1,050,103,113	756,352,613	(293,750,500)

AID TO LOCALITIES
ALL FUNDS FINANCIAL REQUIREMENTS BY PROGRAM
APPROPRIATIONS
(dollars)
Program	Available FY 2019	Recommended FY 2020	Change
Aid and Incentives for Municipalities
General Fund	754,000,000	695,000,000	(59,000,000)
Aid to Municipalities with VLT Facilities
General Fund	28,885,313	28,885,313	0
County-wide Shared Services
General Fund	225,000,000	0	(225,000,000)
Miscellaneous Financial Assistance
General Fund	12,000,500	2,250,000	(9,750,500)
Municipal Assistance State Aid Fund
Fiduciary	15,000,000	15,000,000	0
Municipal Assistance Tax Fund
Fiduciary	15,000,000	15,000,000	0
Small Government Assistance
General Fund	217,300	217,300	0
Total	1,050,103,113	756,352,613	(293,750,500)

Note: Most recent estimates as of 1/15/2019

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