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NYS Comptroller

THOMAS P. DiNAPOLI

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. The 2019-20 Enacted State Budget reduced AIM funding by $59 million, eliminating aid for 1,326 towns and villages determined to be less reliant on AIM.

The Office of the State Comptroller (OSC) is now 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. The State Division of the Budget refers to these as "AIM-Related" payments.

Chapter 59 does not provide a mechanism for OSC to make AIM-Related payments to towns and villages in Erie County and Nassau County. As a temporary measure to address this situation, officials from Erie County, the Erie County Fiscal Stability Authority, the Buffalo Fiscal Stability Authority and the Nassau County Interim Finance Authority returned to OSC the amount of sales tax distribution needed to make AIM-Related payments to towns and villages in Erie County and Nassau County in December 2019.

More information related to AIM and AIM-Related payments: