Thanks to New York’s Aid and Incentives for Municipalities (AIM) program, since 2006 New York state has provided AIM funds to cities, towns, and villages for use as they deemed fit – for anything from water and sewer to police and fire services. In part, AIM was designed to provide extra support to fiscally challenged local governments. Over time, it has done a lot more.
Often referred to as revenue sharing, in 2019-20, the Great Recession hit, and AIM funding partially shifted from the state’s general fund to local sales tax collections. The Comptroller’s Office took over responsibility for doling out these shifted funds.
For the 2022 State Fiscal Year (SFY), as the 2023 Executive Budget Impact Report notes, “Currently, 846 towns and 479 villages receive a total of $59.1 million in AIM-Related payments funded through local sales tax collections. The Executive Budget ends this practice and resumes State General Fund support for these towns and villages through the traditional AIM program, allowing county governments to retain a greater amount of local sales tax revenue annually.”
For information about 2022 AIM funds by municipality, click here. The NYS Office of Comptroller website has numerous resources with additional information, including how to account for AIM funds. Of course, if you need any accounting or tax assistance or advice related to AIM or other funding, RBT CPAs is always here to help — just give us a call.