The Aid and Incentives for Municipalities (AIM) program provides state aid to all of New York’s cities (other than New York City), towns and villages. AIM is funded at $715.2 million in the 2022-23 Enacted State Budget.
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. 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) was 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 established 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 (EFSA), the Buffalo Fiscal Stability Authority (BFSA) and the Nassau County Interim Finance Authority (NIFA) were 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.
The 2022-23 Enacted State Budget eliminated AIM-Related payments and the withholdings from county sales tax collections used to fund them.
Beginning in July 2022, all cities (other than New York City) and 1,465 towns and villages will receive AIM payments from the State, pursuant to Chapter 55 of the Laws of 2022. All towns and villages that previously received AIM-Related payments will now receive AIM payments, in the same amounts, beginning in September 2022 and each September thereafter. Cities, towns and villages that previously received AIM payments will continue to receive these payments in the same amount and month.
For more information related to AIM and AIM-Related payments:
- Chapter 55 of the Laws of 2022 [pdf]
- Accounting Bulletin for AIM-Related Payments [pdf]
- Chapter 59 of the Laws of 2019 [pdf]
- Chapter 55 of the Laws of 2020 [pdf]
- AIM Payments and Payment Months by Municipality – Beginning July 2022 and annually thereafter [xlsx] (last updated May 2022)
- AIM and AIM-Related Payments and Payment Months by Municipality – December 2019 through May 2022 [xlsx] (last updated April 2022)
- AIM-Related Responsibility by County – December 2019 through May 2022 [xlsx] (last updated April 2022)