The Aid and Incentives for Municipalities (AIM) program provides state aid to all of New York’s cities (other than New York City), and 141 towns and villages. AIM is funded at $656.1 million in the 2021-22 Enacted State Budget.
The 2019-20 Enacted State Budget reduced AIM funding by $59 million, eliminating aid for 1,325 towns and villages determined to be less reliant on AIM. At that time, the State established AIM-Related payments which continued funding for the impacted towns and villages in the amounts that they had previously received through AIM in State Fiscal Year 2018-2019. The Office of the State Comptroller (OSC) is required to withhold certain county sales tax revenues and to make AIM-Related payments, paid in December and May each year, pursuant to Chapter 59 of the Laws of 2019.
The 2020-21 Enacted State Budget establishes in law a process for making AIM-Related payments to towns and villages in Erie County and Nassau County. Officials from the Erie County Fiscal Stability Authority, the Buffalo Fiscal Stability Authority and the Nassau County Interim Finance Authority are required by Chapter 55 of the Laws of 2020 to return to OSC the amount of sales tax distribution needed to make AIM-Related payments to towns and villages in Erie County and Nassau County each May and December.
For more information related to AIM and AIM-Related payments:
- Accounting Bulletin for AIM-Related Payments [pdf]
- Chapter 59 of the Laws of 2019 [pdf]
- Chapter 55 of the Laws of 2020 [pdf]
- AIM and AIM-Related Payments and Payment Months by Municipality [xlsx] (last updated June 2021)
- AIM-Related Responsibility by County [xlsx] (last updated June 2021)
For more information related to County Sales Tax Distributions and Withholdings, you can access the following webinar on demand at:
- Local Government Impact From Sales Tax Withholding Programs Webinar - Held on December 16, 2020