Localities criticize aid-cut idea

Town, other elected officials say Cuomo proposal could mean higher local taxes

A bipartisan coalition of elected officials joined the growing chorus of leaders urging Gov. Andrew Cuomo to reconsider proposed cuts to the AIM (Aid and Incentives to Municipalities) program, asserting it will lead to higher property taxes.

The group, which included representatives from Rensselaer, Albany, and Columbia counties, said Thursday the plan would force counties to make up the difference for the depleted funding and will pit them against towns and villages.

The $176 billion state budget would cut around $60 million from the AIM funding, allowing towns and villages to keep it only if it accounts for more than 2 percent of their budget. Cities would not be affected.

The 2019 AIM aid, which goes into municipal general funds as a revenue, was included in the town and village budgets for 2019.

Last week, Cuomo proposed restoring the AIM monies in the state budget by using a share of internet tax.

That sales tax collection is expected to raise more than $390 million annually for county governments, which would control distribution of the revenue to municipalities. Counties would have to use some of the money to fund the lost state aid.

“It’s a hole in our budget if we don’t get it,” East Greenbush Supervisor Jack Conway, a Democrat, said during the news conference. “We don’t like to raise taxes, but moments like these leave us no choice.”

He said the town stands to lose nearly $74,000 in AIM monies.

Rensselaer County Executive Steve Mclaughlin said Cuomo’s proposed solution to maintaining AIM is “wrong on so many levels and it’s heavy handed.”

“It just becomes an avalanche of unfunded mandates,” added Mclaughlin, a Republican. “At some point, you have to push back and this is the push back we’re giving.”

Morris Peters, a state Division of the Budget spokesman, said some of the income from the internet sales tax “will generate enough revenue to ensure towns and villages are kept whole following changes to the AIM program while still leaving most of the new revenues to counties to bolster their budgets or provide tax cuts.”

Assemblyman John T. Mcdonald III, a Democrat, said eliminating AIM has raised concerns across the Empire State.

“There are grave concerns from Long Island to Buffalo and here we are talking about it in East Greenbush,” said Mcdonald, adding that Green Island would lose out on $40,000. “I understand the math ... but the reality is that it puts friction on what is a tremendous relationship between municipalities and county government.”

Albany County Executive Dan Mccoy said the governor’s plans are divisive. The Democrat said if the proposed cuts to AIM take place, Colonie would take a $500,000 hit.

Mccoy also brought up the proposed cuts in the state budget to Medicaid, saying both Albany and Rensselaer would feel it because of their county-run nursing homes.

Peters said the budget keeps support for the takeover of county Medicaid costs and that the state is continuing its effort to assume Medicaid administrative responsibilities from counties.