Aid and Incentives for Municipalities (AIM) and AIM-Related Payments

The Aid and Incentives for Municipalities (AIM) program provides state aid to all of New York’s cities (other than New York City), and 137 towns and villages. AIM is funded at $656 million in the 2020-21 Enacted State Budget. However, the 2020-21 Enacted State Budget allows the Director of the Division of Budget to reduce State funding for local assistance, including AIM, at certain points in the State’s fiscal year. Previously, 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.

The Office of the State Comptroller (OSC) is required by Chapter 59 of the Laws of 2019 to withhold certain county sales tax revenues and make payments to the impacted towns and villages in the amounts that they had previously received through AIM in State Fiscal Year 2018-2019 in December and May each year. The State Division of the Budget refers to these as "AIM-Related" payments.

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.

More information related to AIM and AIM-Related payments: