State Set to Spend Local Sales Taxes as Budget Negotiations Near Finish Line
Final budget likely to reflect millions in new unfunded mandates on counties.
NYSAC is now projecting that the final NYS budget will reflect the Governor's AIM funding proposal, which shifts the state revenue-sharing program to county governments.
The Governor's original budget proposal cut $60 million of state funding from the Assistance and Incentives for Municipalities (AIM) program from about 1300 towns and villages. In his 30-day amendments, the Governor proposed that counties backfill the state's $60 million AIM cuts with sales tax revenues.View NYSAC's fact sheet on the AIM Funding Mandate.
On a full annual basis, the Governor's proposal will reduce the estimated Internet sales tax benefit by over 60 percent for a typical county. That is revenue that could have been used by counties to lower property taxes, invest in infrastructure, or attract new businesses. Simply put, the state's action deprives communities of new opportunities at the local level.
In addition, this is an unprecedented action by the State to commandeer locally generated sales tax receipts and use them for state obligations.
Our state has now capped local property taxes, imposed over $12 billion in state mandated costs on counties, including NYC, and is now acting to mandate how local governments are to use local sales tax revenues.
This is not a done deal, yet. There is still time to weigh in - but we expect a final budget deal very soon.
NYSAC is urging county leaders to contact the leaders of the Senate and Assembly and tell them to REJECT this proposal in the final budget.
AIM is important to towns and villages, but it is a state responsibility. It should not be funded by county taxpayers.