N.Y. State Fin. Law § 54

Current through 2024 NY Law Chapter 553

Section 54 - Per capita state aid for the support of local government

1. Definitions. When used in this section, unless otherwise expressly stated:

a.

(1) "Population" of a county, city, town or village means the population as shown by the latest preceding decennial federal census completed and published as a final population count by the United States bureau of the census preceding the commencement of the state fiscal year in which the apportionment and payment are made, or a special population census certified to the state comptroller pursuant to this section, whichever is later. The population of a town shall include the population of any village or villages or parts thereof within such town but shall exclude the population of any city or part thereof within such town.

(2) The population of a town outside village area shall be the population of the town minus the population of the area of the town located in any village or villages for the same year and shall exclude persons residing within the boundaries of a military post or reservation under the jurisdiction of the United States to the extent that they exceed twenty-five percent of the population of a town outside the village area.

(3) Where there is an alteration in the boundaries of a county, city, village, town or town outside village or a municipality is created, population shall be determined in accordance with subdivision four of this section.

(4) Population excludes the reservation and school Indian population and incarcerated individuals of institutions under the direction, supervision or control of the state department of corrections and community supervision and the state department of mental hygiene and the incarcerated individuals of state institutions operated and maintained by the office of children and family services.

(5) Where the director of the United States bureau of the census certifies that the population of a county, city, town or village, as shown by such latest preceding decennial or special population census should be corrected because it, (a) excludes a specified number of persons who were actually residing in such county, city, town or village at the time of such census, or (b) includes a specified number of persons who were not actually residing in such county, city, town or village at the time of such census, a copy of such certificate shall be filed by the locality or state agency receiving such certificate with the state comptroller within ten days of receipt. In the case of a gain in population, the specified number shall be added to the population on the basis of which moneys are apportioned and paid in state fiscal years subsequent to the date such certificate is filed with the state comptroller. In the case of a loss in population, the specified number shall be subtracted from the population of such county, city, town or village on the basis of which moneys are apportioned and paid under the provisions of this section commencing with the first state fiscal year beginning not less than six months after the date such certificate is required to be filed with the state comptroller.

b. "Special population census" or "special census" means the population of a county, city, town or village certified by the United States bureau of the census as of a date not earlier than March fifteenth and not later than May fifteenth in any year subsequent to the latest federal decennial census, which shall have been filed with the state comptroller and not subsequently withdrawn, in accordance with the provisions of subdivision three of this section.

c. "Full value" of a county, city, village or town means the amount which results from dividing the total assessed valuation of real property taxable by it on its assessment roll by the state equalization rate established by the commissioner of taxation and finance for such roll except as otherwise provided in subdivision four of this section. The assessment roll of a county shall be the aggregate of the assessed valuations taxable for county purposes on the assessment rolls of the cities and towns therein and the state equalization rate applied thereto shall be the county-wide rate established by the commissioner for such roll in any case where a regular or special census for all or part of the county taken in nineteen hundred sixty-six or a later year is used in the county aid calculation.

In the case of the city of New York, the city-wide state equalization rate established pursuant to article twelve of the real property tax law shall be used except that, if no such rate has been established for the roll used in the calculation, the equalization rate shall be computed as provided in subdivision one of section four hundred eighty-nine-l of such law.

"Full value" of a town outside village means the full value obtained by applying the state equalization rate of the town to the assessed value of the unincorporated area of the town calculated on the basis of the town assessment roll, except that where subdivision four of this section applies town outside village full value shall be calculated under the provisions of such subdivision. Where the full value of a town includes property located within a city, the town outside village full value shall be calculated as if such city was a village.

The assessment roll used in calculating aid for a city, village, town or town outside village under this section shall be the assessment roll completed in the calendar year preceding the calendar year of the census used in the calculation.

The assessment roll used in calculating aid for a county under this section shall be the county-wide assessment roll completed in the calendar year preceding the calendar year of the latest census used for all or part of the county in such calculation.

Where full value is authorized to be estimated pursuant to subdivision four of this section such estimated full value shall be used.

An assessment roll shall be deemed to have been completed on the last date on which such roll was authorized by law to be finally completed.

d. "Personal income" of a county means the estimate of the income of the residents of the county, certified by the state tax commission in accordance with the provisions of this paragraph, for the taxable year preceding the year of the latest population census for the county or part thereof to be used in calculating per capita aid payments under this section.

The commissioner of taxation and finance shall prepare by October fifteenth of each year, a certified report setting forth an estimate of the total New York adjusted gross income, as defined in section six hundred twelve of the tax law, of all residents of the state and of each county based on an examination of personal income tax returns filed with the state department of taxation and finance for the preceding taxable year under article twenty-two of the tax law.

e. "Full value per capita" of a county, city, town, village or town outside village means the full value of such municipality or area, divided by the population thereof.

f. "Personal income per capita" of a county means the personal income of the county divided by the population of the county.

g. "Average of full value and personal income per capita" of a county means the average of the full value per capita and personal income per capita of the county determined as provided by paragraphs e and f of this subdivision for payments to the county during the state fiscal year except that the amount for personal income per capita used in calculating such average shall be multiplied by the ratio computed to the sixth decimal point of the aggregate full value of taxable real property in the state to the aggregate personal income of residents of the state, for the calendar year preceding the year of the latest census to be used in the calculation of per capita aid payable to the county in such state fiscal year. In computing such ratio full value shall be calculated upon the basis of assessment rolls completed in such calendar year and personal income shall be the estimate filed by the state tax commission pursuant to paragraph d of this subdivision for the same calendar year.

h. "County", for the purposes of computation and payment of per capita aid to counties under this section, means each county located outside the city of New York and the city of New York.

i. "Town outside village" or "town outside village area" means the area of any town which is not included within the boundaries of a village.

j. The comptroller and the commissioner of taxation and finance shall jointly prepare by June fifteenth of each year, a certified report setting forth total state tax collections during the prior state fiscal year.

"Total state tax collections", for the purposes of computation and payment of aid under this section, means all net revenues accrued to any fund of the state pursuant to the following provisions during the prior state fiscal year:

(1) section twenty-five of chapter nine hundred twelve of the laws of nineteen hundred twenty, as amended;

(2) section two hundred nineteen of the racing, pari-mutuel wagering and breeding law, as amended;

(3) article nine of the tax law, except fees and considerations for releases of liens;

(4) article nine-A of the tax law, except fees and considerations for releases of liens;

(5) article ten of the tax law, except fees and considerations for releases of liens;

(6) article twelve of the tax law;

(7) article twelve-A of the tax law, except license fees under section two hundred eighty-three-a of the tax law;

(8) article thirteen of the tax law;

(9) article eighteen of the tax law;

(10) article twenty of the tax law;

(11) article twenty-one of the tax law;

(12) article twenty-two of the tax law;

(13) article twenty-six of the tax law;

(14) article twenty-six-A of the tax law;

(15) article twenty-eight of the tax law;

(16) article thirty-one of the tax law;

(17) article thirty-two of the tax law;

(18) article thirty-three of the tax law;

(19) sections two hundred eight, two hundred twenty-eight, two hundred twenty-nine, three hundred eighteen, four hundred eighteen and five hundred twenty-seven of the racing, pari-mutuel wagering and breeding law;

(20) the alcoholic beverage control law; and

(21) the vehicle and traffic law for the registration of motor vehicles, trailers and motorcycles, for licenses to operate motor vehicles, as operators or chauffeurs, and for learners' permits, and for licenses for drivers schools, automobile dealers, and for lost or cancelled licenses and certificates.

2. Annual apportionment. During each fiscal year of the state, there shall be apportioned and paid to the several counties, cities, towns and villages, from moneys appropriated by the state, for the support of local government including the state portion of local matching funds as required by section three hundred three, subdivisiontwo of the Omnibus Crime Control and Safe Streets Act of 1968, as amended, the following amounts:

a. City, village and town outside village. To each city and village and to each town for the town outside village area, an amount equal to the population of such city, village or town outside village multiplied by the following rates: cities, eight dollars and sixty cents; villages, three dollars and sixty cents; and town outside village areas, two dollars and five cents, plus an increase in such rate of five cents for each one hundred dollars, or part thereof, by which the full value per capita of the city, village or town outside village is less than eight thousand dollars; and

b. Town-wide. To each town for the entire town area, an amount equal to the population of the town multiplied by three dollars and fifty-five cents; and

c. County. To each county, an amount equal to the population of such county multiplied by sixty-five cents plus an increase in such rate of five cents for each one hundred dollars, or part thereof, by which the county average of full value and personal income per capita is less than eight thousand dollars.

d. Additional apportionment. During the fiscal year of the state beginning April first, nineteen hundred seventy-one and in each such year thereafter prior to the fiscal year of the state beginning April first, nineteen hundred seventy-nine, there shall be paid to the cities, counties, towns and villages of the state, in addition to the amounts provided by paragraphs a, b and c of this subdivision, an additional apportionment calculated by determining the amount of nine percent of the total state personal income tax collections during the prior state fiscal year, subtracting the total amount required under paragraphs a, b and c of this subdivision, determining the percentage which the remainder is of the total payments under paragraphs a, b and c of this subdivision, and then increasing the amount payable to each county, town, village and city under paragraphs a, b and c of this subdivision by such percentage. During the fiscal year of the state beginning April first, nineteen hundred seventy-nine and in each such year thereafter, there shall be paid to the counties, towns, villages and cities of the state, in addition to the amounts provided by paragraphs a, b and c of this subdivision, an additional apportionment calculated by determining the amount of four per cent of the total state tax collections during the prior state fiscal year, as certified by the commissioner of taxation and finance pursuant to paragraph j of subdivision one of this section, subtracting the total amount required under paragraphs a, b and c of this subdivision, determining the percentage which the remainder is of the total payments under paragraphs a, b and c of this subdivision, and then increasing the amount payable to each county, town, village and city under paragraphs a, b and c of this subdivision by such percentage.

e. Additional city apportionment. On June twenty-fifth, nineteen hundred seventy-one and in each year thereafter to and including nineteen hundred seventy-eight, there shall be paid to the cities in the state in existence on April one, nineteen hundred sixty-eight an amount equal to nine percent of the total state personal income tax collections during the prior state fiscal year. On June twenty-fifth, nineteen hundred seventy-nine and in each year thereafter, there shall be paid to the cities in the state in existence on April first, nineteen hundred sixty-eight, an amount equal to four percent of total state tax collections during the prior state fiscal year as certified by the commissioner of taxation and finance pursuant to paragraph j of subdivision one of this section. Such amount shall be apportioned to such cities on the basis of the percentage that the total population of each city bears to the total population of all cities in the state.

f. Notwithstanding any provision of law to the contrary, the amounts apportioned to the cities of the state pursuant to paragraph a of this subdivision shall be paid on or before June twenty-fifth in the state fiscal year commencing April first, nineteen hundred seventy-one and on or before June twenty-fifth of each subsequent state fiscal year and when the fiscal year of a city ends on April thirtieth an amount equivalent to one-fourth of the amount payable to such city pursuant to this paragraph and paragraph a of this subdivision shall be paid annually on or before April twenty-fifth and when the fiscal year of a city ends on May thirty-first an amount equivalent to one-half of the amount payable to such city pursuant to this paragraph and paragraph a of this subdivision shall be paid annually on or before May twenty-fifth.

3. Filing and withdrawal of special population census.

a. Filing. A county, city, village or town may file on or before October first in any year a special census of the population within its boundaries certified by the United States bureau of the census or a copy thereof and such special census unless withdrawn as provided herein shall be used in apportioning per capita state aid to such county, city, village or town in subsequent state fiscal years until a later census become effective for such apportionments in accordance with the provisions of this section.

b. Withdrawal. A county, city, village or town upon notice filed with the state comptroller on or before December first of any year may withdraw a special population census so filed. A special census filed by a county, city, village or town in nineteen hundred sixty-eight and thereafter shall be used for the apportionment of per capita state aid to such county, city, village or town in subsequent state fiscal years until a later census becomes effective; provided, however, that if such special census would result in a lesser amount of per capita aid being paid to such county, city, village or town in any subsequent state fiscal year, such special census shall be deemed to have been withdrawn, but only for purposes of the computation and payment of per capita aid in such subsequent year.

c. Cross-filing by city, town or county. Any city or town which receives a certification of a special population census from the United States bureau of the census within ten days of its receipt shall file a copy of such certification with the chief fiscal officer of the county within which it is located. Any county, which has a county-wide special population census, within ten days of receipt of the certification by the United States bureau of the census, shall file a copy with the chief fiscal officer of each city, village and town located within its boundaries.

d. Notice to commissioner of taxation and finance of contract for special census. Each county, city, village and town which enters into a contract with the United States bureau of the census for a special population census shall, within thirty days of the date of such contract, file written notice with the commissioner of taxation and finance.

e. List of filings and withdrawals. On or before October fifth of each year, the state comptroller shall furnish to the commissioner of taxation and finance a list of the names of the counties, cities, villages and towns which filed special population censuses pursuant to this subdivision, in that year, showing for each such locality the date of such filing and in the case of a county which has so filed for county aid purposes a special census of some but not all of the cities or towns located therein, the names of such cities and towns. A copy of each such special population census so filed shall be transmitted with such list. On or before December fifth of each year, the state comptroller shall furnish to the commissioner of taxation and finance a list setting forth the name of each county, city, village and town which has withdrawn the filing of a special population census pursuant to this subdivision including, in the case of a county where the census was withdrawn for some but not all of the cities and towns in the county, the names of such cities and towns.

f. Notwithstanding paragraphs a through e of this subdivision, no special census shall be used for the computation, apportionment and payment of per capita state aid under this section to a county, city, town or village for the state fiscal years commencing April first, nineteen hundred seventy-three, nineteen hundred seventy-four and nineteen hundred seventy-five. Where a special census has been taken, certified by the United States bureau of the census for the year nineteen hundred seventy-one and duly filed by the municipality, such census shall be used for the computation, apportionment and payment of per capita aid under this section.

4. Estimates of population, full value and equalization rates.

a. Changes in boundaries; dissolution of municipalities; creation of new municipalities; consolidation of municipalities. Where the boundaries of a county, city, village, town or town outside village are altered or a municipality is created, consolidated, or dissolved, aid under this section shall be calculated to reflect such change beginning with payments in the first state fiscal year commencing not less than three months after the effective date of such change. The county, city, village or town shall file not later than February first in the offices of the state comptroller and the commissioner of taxation and finance, a certificate of any change in boundaries, dissolution of a municipality, consolidation of municipalities or incorporation of a new municipality which took place in the preceding calendar year but subsequent to January first or on January first preceding the date of filing and which affects the population or the full value of the county, city, village or town for payments under this section. Where population or full value to be used in calculating such payments is not in existence, it shall be estimated by the commissioner of taxation and finance, upon the basis of information provided by the localities and such other information as may be available, to reflect the effects of such change. Such population and full value shall be estimated for a newly incorporated city or village or consolidated town as of the calendar year of the effective date of incorporation or consolidation except that full value so estimated shall be at the period price level used in establishing state equalization rates for assessment rolls completed in the preceding calendar year. For other municipalities or areas affected by such an incorporation, consolidation or change in boundaries, estimates of population and full value shall be as of the years otherwise applicable under this section. Where a municipality is dissolved or consolidated, the annual amount which such municipality would be eligible to receive under this section on the date the municipality is dissolved or consolidated, less the increase in state aid under this section which will be paid to the municipality in which the territory of the dissolved or consolidated municipality is located as a result of such dissolution or consolidation, shall continue to be paid for the first year following dissolution or consolidation and payments shall thereafter continue to be paid for an additional four years in reduced amounts as follows: in the second year following dissolution or consolidation, eighty percent of such annual amount; in the third year, sixty percent; in the fourth year, forty percent; in the fifth year, twenty percent; and thereafter such payments shall cease to be paid. Such payments shall be paid to the city, town or village in which the territory of the municipality dissolved or consolidated is located, or in the event such territory would not be located in a city, town or village, payment shall be made to the county. If such territory is located in two or more cities, towns or villages, the payment shall be apportioned on the basis of population which was used in determining the amount of aid under this section heretofore paid to the dissolved or consolidated municipality.

b. Period price level adjustment. Where the state equalization rate for an assessment roll to be used in calculating payments under this section is based on a different period price level than the equalization rates generally for other assessment rolls completed in the same calendar year, with the year of completion defined as prescribed in paragraph c of subdivision one of this section, a special equalization rate shall be established for such roll upon the basis of the period price level used generally in the state equalization rates for such other assessment rolls.

c. Adjustment for differences between town and village roll. Where the town assessment roll used in calculating town outside village full value includes taxable property located in a village, which property does not appear as taxable on the assessment roll of the village used in such calculation and where the assessed valuation of such property in all villages in the town on the town assessment roll is five percent or more of the total taxable assessed valuation of property in the town outside villages on such town assessment roll, the commissioner of taxation and finance shall estimate the full value of the town outside village, provided that the supervisor of the town applies to the commissioner on or before August first preceding the first state fiscal year in which such estimated full value is used in making payments of per capita state aid under this section.

d. Railroad ceiling adjustment. Where the taxable full value of a city, village or town declined by five percent or more between the years nineteen hundred sixty-one and nineteen hundred sixty-two, as determined by application of the state equalization rates to the total taxable assessed valuations on the assessment rolls of such city, village or town completed in such years, the commissioner of taxation and finance shall adjust the full value for nineteen hundred sixty-one by reducing the taxable full value of railroad real property, which was wholly or partly exempt on the assessment roll completed in nineteen hundred sixty-two under the provisions of title two-A or two-B of article four of the real property tax law, to the full value of such railroad real property which was taxable on the first assessment roll for which railroad ceilings were established under such titles without the taper adjustment provided in section four hundred eighty-nine-t of such law. Town outside village full value shall be calculated by the commissioner to give effect to a similar adjustment in any case where full value of the town is required to be adjusted pursuant to this paragraph.

e. Lack of assessment roll or equalization rate. Where on November first preceding the date of the annual certification of aid payments, an assessment roll or an equalization rate required to be used in calculating such payments does not exist, full value shall be estimated by the commissioner of taxation and finance, upon the basis of information provided by the localities and such other information as may be available for that purpose.

5. Information to be supplied. The chief fiscal officer or other official of any county, city, village or town shall, upon request of the commissioner of taxation and finance, furnish to the commissioner of taxation and finance such information as may be required for the purpose of carrying out the provisions of this section.

6. Payments.

a. The commissioner of taxation and finance shall compute and certify to the state comptroller in due time the amounts of per capita aid payable to counties, cities, villages and towns pursuant to this section. For towns, the certification shall set forth separately the amounts payable for town-wide and for town outside village purposes, and for the city of New York the commissioner shall set forth separately the amounts payable under the city and county per capita grants.

b. The rates established and the calculations and estimates made by the commissioner pursuant to this section shall be filed in the office of the commissioner.

c. Upon such certification of the amounts payable to counties, cities, villages and towns for town-wide and town outside village purposes, such per capita aid shall be apportioned and paid to the chief fiscal officer of each such locality pursuant to this section on audit and warrant of the state comptroller out of moneys appropriated by the legislature for such purpose to the credit of the local assistance account in the general fund of the state treasury; provided however that upon such certification of amounts payable to the city of New York, such per capita aid shall be apportioned and paid as follows: (i) any amounts required to be paid to the city university construction fund pursuant to the city university construction fund act, (ii) any amounts required to be paid to the New York city housing development corporation pursuant to the New York city housing development corporation act, (iii) any amounts required to be paid by the city to the New York city transit authority pursuant to the provisions of chapter seven of the laws of nineteen hundred seventy-two, (iv) any amounts required to be paid by the city to the state to repay an advance made in nineteen hundred seventy-four to subsidize the fare of the New York city transit authority, (v) five hundred thousand dollars to the chief fiscal officer of the city of New York for payment to the trustees of the police pension fund of such city pursuant to the provisions of paragraph e of this subdivision, (vi) eighty million dollars to the special account for the municipal assistance corporation for the city of New York in the municipal assistance tax fund created pursuant to section ninety-two-d of this chapter to the extent that such amount has been included by the municipal assistance corporation for the city of New York in any computation for the issuance of bonds on a parity with outstanding bonds pursuant to a contract with the holders of such bonds prior to the issuance of any other bonds secured by payments from the municipal assistance state aid fund created pursuant to section ninety-two-e of this chapter, (vii) the balance to the special account for the municipal assistance corporation for the city of New York in the municipal assistance state aid fund created pursuant to section ninety-two-e of this chapter, and (viii) any amounts to be refunded to the general fund of the state of New York pursuant to the annual appropriation enacted for the municipal assistance state aid fund. Notwithstanding any existing law, no payments of per capita aid payable to the city of New York shall be paid to the state of New York municipal bond bank agency, the New York state sports authority or the transit construction fund so long as amounts of such aid are required to be paid into the municipal assistance state aid fund, and thereafter, after payment of the amounts described in subparagraphs (i) through (viii) of this paragraph the balance shall be paid (A) to the state in repayment of the appropriation of two hundred fifty million dollars made to the city pursuant to chapter two hundred fifty-seven of the laws of nineteen hundred seventy-five providing emergency financial assistance to the city of New York at the extraordinary session held in such year, as amended, (B) to the state of New York municipal bond bank agency to the extent provided by section twenty-four hundred thirty-six of the public authorities law, (C) to the New York state sports authority to the extent provided by section twenty-four hundred sixty-three of the public authorities law, (D) to the transit construction fund to the extent provided by section twelve hundred twenty-five-i of the public authorities law, and thereafter (E) to the city.

d. The amounts so annually apportioned shall be paid in four equal installments as follows:

(1) to the city of New York, on the twenty-fifth days of April, June, October and February;

(2) to every county, city, village or town, other than the city of New York, whose fiscal year commences on the first day of June or July, on the twenty-fifth days of April, May, September and December;

(3) to every county, city, village or town whose fiscal year commences on the first day of December, on the twenty-fifth days of April, July, September and November;

(4) to any town in Westchester county whose boundaries are coterminous with those of one village, on the same days on which installments are payable to such village pursuant to this paragraph; and

(5) to every other county, city, village or town, on the twenty-fifth days of April, July, September and December.

e. The chief fiscal officer of the city of New York shall, from the amounts so received by him, pay to the board of trustees of the police pension fund of such city, the aggregate annual sum of five hundred thousand dollars for the purposes of such fund and the balance into the general fund of such city.

f. Where a town applies an amount received under this section to the reduction of the county tax in the town-wide area or in the town outside village area, or as a credit against special ad valorem levies in the town outside village area as provided in subdivision eight of this section, the town shall file notices thereof with the chief fiscal officer of the county and the state comptroller, within five days after the last day for adoption of the town budget. Such amounts shall be credited against the amount of taxes or special ad valorem levies to be levied for such purposes in the designated area and the state comptroller shall pay to the chief fiscal officer of the county, from the moneys apportioned to the town for town-wide purposes or for outside of village purposes, as the case may be, the amounts so credited against the county tax or special ad valorem levies, in the same manner as other payments to counties under this section.

g. Notwithstanding any provision of the law to the contrary, any aid derived by any city pursuant to paragraph d of subdivision two of this section for the state fiscal year commencing April first, nineteen hundred seventy-one and each subsequent state fiscal year which exceeds the total aid paid to such city pursuant to paragraph a of subdivision two of this section during the state fiscal year commencing April first, nineteen hundred seventy shall be paid on June twenty-fifth, nineteen hundred seventy-one and on June twenty-fifth of each subsequent state fiscal year.

h. Notwithstanding any provision of law to the contrary, payments made pursuant to subdivision two of this section during April and May of each state fiscal year shall be based on estimates of total state tax collections to be provided jointly by the comptroller and the commissioner of taxation and finance on or before April fifteenth of each year. Notwithstanding any provision of law to the contrary, amounts so paid during the balance of each state fiscal year shall compensate for any overpayment or underpayment which may have occurred during April and May of such fiscal year.

i. Notwithstanding any other provision of law, the amount payable on June twenty-fifth, to a city having a population of one million or more pursuant to this subdivision shall be reduced by fifty-three million five hundred eighty-five thousand five hundred eighteen dollars ($53,585,518). Such fifty-three million five hundred eighty-five thousand five hundred eighteen dollars ($53,585,518) shall be paid to such city on the December fifteenth next following June twenty-fifth, which payment shall be for an entitlement period ending June thirtieth of the month in which the June twenty-fifth payment is made.

7. Apportionment of special city, town and village aid. During the state fiscal year beginning April first, nineteen hundred eighty-eight and in each year thereafter aid to cities, towns and villages in addition to the amounts apportioned pursuant to subdivision two of this section shall be apportioned, according to this subdivision.

a. Definitions. As used in this subdivision:

(1) "City" means each city having a population less than one million persons.

(2) "Town" means a town for which complete population, full value, land area, and local tax effort per capita information, as defined in this subdivision, are available as determined by the comptroller.

(3) "Village" means a village for which complete population, full value, land area, and local tax effort per capita information, as defined in this subdivision, are available as determined by the comptroller.

(4) "Population" means for towns and villages the final population as shown by the nineteen hundred eighty decennial federal census; "population" for cities means the final population as shown by the nineteen hundred seventy decennial federal census.

(5) "Population density" means for each town and village an amount equal to its population divided by its total land area expressed in square miles as of the last day of the local fiscal year ending in nineteen hundred seventy-nine.

(6) "Full value" means for each town and village an amount equal to the total taxable assessed value of property on the assessment roll completed and filed in nineteen hundred seventy-nine divided by the final state equalization rate established for such roll by the commissioner of taxation and finance.

(7) "Taxing capacity" means for each town and village an amount equal to its full value divided by the population of such town or village.

(8) "Average population density" means for towns the sum of population densities for all towns divided by the number of towns; "average population density" for villages means the sum of the population densities for all villages divided by the number of villages.

(9) "Average taxing capacity" means for towns an amount equal to the sum of the taxing capacities for all towns divided by the number of towns; "average taxing capacity" means for villages an amount equal to the sum of the taxing capacities for all villages divided by the number of villages.

(10) "Assessed value tax rate" of a city means the tax rate for general city purposes for the latest twelve month city fiscal year ending on or before December thirty-first, nineteen hundred eighty; provided, however, that for any city with a population greater than twenty-one thousand and less than twenty-two thousand persons, assessed value tax rate means the tax rate for general city purposes for the latest twelve month city fiscal year ending on or before December thirty-first, nineteen hundred seventy-eight.

(11) "Full value tax rate" of a city means the assessed value tax rate of such city multiplied by the final state equalization rate established by the commissioner of taxation and finance for the assessment roll to which such assessed value tax rate applied.

(12) "Local tax effort per capita" means for each town and village an amount equal to the sum of all taxes, fees, charges, assessments and other revenues received less any revenues received from the federal or state government for the latest local fiscal year ending on or before December thirty-first, nineteen hundred seventy-nine, divided by its population.

(13) "Local tax effort factor" means for each town and village, its local tax effort per capita divided by the average local tax effort per capita for towns or villages as appropriate.

(14) "Average local tax effort per capita" means for towns the sum of the local tax efforts per capita for all towns divided by the number of towns; "average local tax effort per capita" means for villages the sum of the local tax efforts per capita for all villages divided by the number of villages.

(15) Provided, however, that for a town or village created on or after January first, nineteen hundred eighty-one, the population density pursuant to subparagraph five of this paragraph, the full value pursuant to subparagraph six of this paragraph, and the local tax effort per capita pursuant to subparagraph twelve of this paragraph shall pertain to the first completed local fiscal year following such creation for which applicable information is available as determined by the comptroller.

b. City aid. The sum of one hundred two million three hundred eighteen thousand three hundred seventeen dollars ($102,318,317) shall be apportioned to cities as follows:

(1) The sum of sixty-two million two hundred twenty-two thousand three hundred thirteen dollars ($62,222,313) shall be apportioned in the following manner:

City of Buffalo .................................. $22,476,436

City of Rochester ................................ $11,140,494

City of Yonkers .................................. $12,508,626

City of Syracuse ................................. $ 7,817,890

City of Albany ................................... $ 3,812,897

City of Binghamton ............................... $ 2,345,367

City of Plattsburgh .............................. $ 508,162

City of White Plains ............................. $ 1,612,441

(2) The sum of forty million ninety-six thousand four dollars ($40,096,004) shall be apportioned to cities according to the following formula:

For all cities having a population of less than one hundred thousand a numerical ranking between one and fifty-six shall be assigned. Such ranking shall correspond to each city's position in a schedule of full value tax rates of all such cities arranged in descending order.

An aid rate for each city with a population of less than one hundred thousand shall be determined from the following schedule:

Cities with Rankings Aid Rate

One through twelve.....................................$ 17.00

Thirteen through twenty-three..........................$ 15.00

Twenty-four through thirty-four........................$ 13.00

Thirty-five through forty-five.........................$ 11.00

Forty-six through fifty-six............................$ 10.00

For each city not eligible for apportionments pursuant to subparagraph one of this paragraph, a base aid amount shall be calculated equal to the population of such city multiplied by its aid rate. For each such city an aid percentage shall be calculated equal to its base aid amount divided by the sum of the base aid amounts for all such cities. The amount of special aid to be apportioned to each such city shall be calculated by multiplying such city's aid percentage by forty million ninety-six thousand four dollars ($40,096,004).

c. Town aid. The sum of nineteen million five hundred forty-four thousand seven hundred twenty-six dollars ($19,544,726) shall be apportioned to towns according to the following formula:

For each town, a population density factor shall equal the lesser of the amount calculated by dividing such town's population density by the average population density for towns, or the number five;

For each town, a taxing capacity factor shall be calculated by dividing the average taxing capacity for towns by such town's taxing capacity;

For each town, a weighted population shall be calculated by multiplying such town's population by the product of such town's population density factor multiplied by the sum of such town's local tax effort factor plus such town's taxing capacity factor;

For each town, an aid percentage shall be calculated equal to the weighted population of such town divided by the sum of the weighted populations for all towns;

The amount to be apportioned to each town shall be calculated by multiplying such town's aid percentage by nineteen million five hundred forty-four thousand seven hundred twenty-six dollars ($19,544,726).

Notwithstanding the definition of town in paragraph a of this subdivision, any town as defined in section two of the town law, which is not included in the definition of town in paragraph a of this subdivision shall be apportioned three hundred ninety-two dollars. The total of any such amounts shall be deducted on a pro rata basis from those towns apportioned more than three hundred ninety-two dollars pursuant to the above formula.

In such case where the apportionment to a town in accordance with the above formula is less than three hundred ninety-two dollars, such town shall be apportioned three hundred ninety-two dollars. The difference between three hundred ninety-two dollars and the amount determined pursuant to such formula shall be deducted on a pro rata basis from those towns apportioned more than three hundred ninety-two dollars pursuant to such formula.

d. Village aid. The sum of twenty-six million three hundred eighty-five thousand three hundred eighty-one dollars ($26,385,381) shall be apportioned to villages according to the following formula:

For each village, a population density factor shall equal the lesser of the amount calculated by dividing such village's population density by the average population density for villages, or the number five;

For each village, a taxing capacity factor shall be calculated by dividing the average taxing capacity for villages by such village's taxing capacity;

For each village, a weighted population shall be calculated by multiplying such village's population by the product of such village's population density factor multiplied by the sum of such village's local tax effort factor plus such village's taxing capacity factor;

For each village, an aid percentage shall be calculated equal to the weighted population of such village divided by the sum of the weighted populations for all villages;

The amount to be apportioned to each village shall be calculated by multiplying such village's aid percentage by twenty-six million three hundred eighty-five thousand three hundred eighty-one dollars ($26,385,381).

Notwithstanding the definition of village in paragraph a of this subdivision, any village as defined in section fifty-four of the general construction law, which is not included in the definition of village in paragraph a of this subdivision shall be apportioned three hundred ninety-two dollars. The total of any such amounts shall be deducted on a pro rata basis from those villages apportioned more than three hundred ninety-two dollars pursuant to the above formula.

In such case where the apportionment to a village in accordance with the above formula is less than three hundred ninety-two dollars, such village shall be apportioned three hundred ninety-two dollars. The difference between three hundred ninety-two dollars and the amount determined pursuant to such formula shall be deducted on a pro rata basis from those villages apportioned more than three hundred ninety-two dollars pursuant to such formula.

e. Special city, town, village aid.

(1) Not later than May twenty-fifth of each state fiscal year the comptroller shall certify to the director of the budget, the chairman of the senate finance committee, and the chairman of the assembly ways and means committee, the amount of special city, town, village aid which is payable to each city, town and village for such fiscal year pursuant to this subdivision.

(2) For each state fiscal year the amount apportioned pursuant to this subdivision and certified as payable pursuant to this subdivision shall be paid to each city, town and village (i) on the last day of its local fiscal year which is current as of October thirty-first of such state fiscal year or (ii) on February first of such state fiscal year, whichever is earlier; provided, however, that the payment date for any city, town or village shall be March fifteenth, of such state fiscal year if the comptroller receives a written request for such later payment date from the chief fiscal officer of such city, town or village at least ten days prior to the date on which the payment would otherwise have been made. The comptroller shall notify the director of the budget, the chairman of the senate finance committee and the chairman of the assembly ways and means committee of any such written request.

f. Notwithstanding any provision of this subdivision to the contrary, for fiscal years beginning April first, nineteen hundred eighty-eight, the amount apportioned to each city, town and village pursuant to this subdivision shall be multiplied by sixty-six percent.

8. Use of per capita state aid.

a. The chief fiscal officer of every county, city, village and town shall pay the amounts received by him under the provisions of this section into the general fund of the county, city, village or town for general county, city, village or town purposes respectively, except that such amounts received by a town for the town outside village area shall be used for the following purposes in the order stated: (1) for town purposes for which taxes may be levied on the area of the town outside of villages, (2) as a credit against amounts of taxes levied or to be levied ad valorem for other town purposes on all taxable property in the town outside village area, (3) as a credit against amounts of taxes levied or to be levied ad valorem for county purposes on all taxable property in the town outside village area, (4) as a credit against special ad valorem levies on property in the town outside village area in a town where the entire town outside village area is subject to special ad valorem levies provided that such credit shall be a uniform rate on assessed valuation in all parts of the town outside village area and such uniform rate shall not exceed the total of the rates for special ad valorem levies in any part of the town outside village area. The rate on assessed valuation for each special ad valorem levy, as shown on the tax bill for each parcel, shall be the rate before application of such credit. Such credit shall be shown as a rate on assessed valuation and as a percentage of the total of such rates for such special ad valorem levies on such parcel. Each such special ad valorem rate shall be deemed to have been reduced by such percentage.

b. In no event shall such amounts received by a town for the town outside village area be used as part or all of the local share necessary to qualify for state assistance pursuant to the highway law.

9.

a. Notwithstanding any inconsistent provision of this section or of any other provision of law to the contrary, the payment of general purpose local government aid for the support of local government for the state fiscal year commencing April first, two thousand four, shall be paid from an appropriation made for such purposes pursuant to the public protection and general government budget for such state fiscal year in a manner consistent with this subdivision. Subdivisions one through eight of this section shall not be applicable to the payment of per capita state aid for the support of local government.

b. Notwithstanding any inconsistent provision of article five of the general construction law, in the fiscal year of the state commencing April first, two thousand four, any city having a population of one million or more shall be entitled to receive the same amount of general purpose, local government aid that it received for such purpose pursuant to chapter fifty of the laws of two thousand three, constituting the public protection and general government budget, and section fifty-four of the state finance law, as added by section twelve of chapter four hundred thirty of the laws of nineteen hundred ninety-seven, as if the provisions of such section fifty-four were in full force and effect for the entire state fiscal year commencing April first, two thousand four. Except as provided in paragraph c of this subdivision, each city, other than any city having a population of one million or more, town and village that was appropriated general purpose local government aid pursuant to chapter fifty of the laws of two thousand three shall be entitled to receive a total of one hundred five percent of the amount of aid that it would be entitled to receive under sectionfifty-four of the state finance law, as added by section twelve of chapter four hundred thirty of the laws of nineteen hundred ninety-seven, as if the provisions of such section fifty-four were in full force and effect for the entire state fiscal year commencing April first, two thousand four. Notwithstanding the provisions of this subdivision in the state fiscal year commencing April first, two thousand four the village of East Nassau, Rensselaer county, newly incorporated on January fourteenth, nineteen hundred ninety-eight, shall be entitled to receive the same amount of general purpose local government aid that it received for such purpose pursuant to chapter fifty of the laws of two thousand three. All aid pursuant to this section shall be paid in the same "on or before month and day" manner as specified in chapter fifty of the laws of nineteen hundred ninety-six, constituting the general government budget.

c. Consolidations, mergers, or dissolutions-entitlement to general purpose local government aid. In the case where any city, town, or village consolidates, merges or dissolves, and the resulting successor government has filed with the office of the state comptroller a certificate of any such consolidation, merger, or dissolution, such successor government shall be entitled to receive any payments of general purpose local government aid which, pursuant to paragraph b of this subdivision, would have been otherwise payable to the individual cities, towns, or villages who were party to such consolidation, merger, or dissolution in addition to the general purpose local government aid such successor government is entitled to receive had no such consolidation, merger, or dissolution occurred. The annual amount of general purpose local government aid that any city, town, or village in which a municipality has consolidated, merged, or dissolved shall be eligible to receive on the date such city, town, or village is consolidated, merged, or dissolved shall continue to be paid pursuant to paragraph b of this subdivision for every state fiscal year following the date of such consolidation, merger, or dissolution. In instances where only a portion of a city, town, or village is party to a consolidation, merger, or dissolution, general purpose local government aid payable to the resulting successor government shall include only a pro rata share of the aid otherwise due and payable to such city, town, or village. Such pro rata share shall be based on a ratio of the two thousand federal decennial census population of the portion consolidated, merged, or dissolved as compared to the total two thousand federal decennial census population of the city, town, or village party to such consolidation, merger, or dissolution.

d. Notwithstanding any other law to the contrary, in the state fiscal year beginning April first, two thousand four, and each state fiscal year thereafter, the city of Amsterdam shall receive on or before June twenty-fifth, the same amount of aid it received by June twenty-fifth, two thousand three, plus, pursuant to a memorandum of understanding with the director of the budget, three hundred fifty thousand dollars ($350,000) that would have been payable on or before March thirty-first, two thousand five.

e. Notwithstanding any other law to the contrary, in the state fiscal year beginning April 1, 2004, and each state fiscal year thereafter, twelve million five hundred thousand dollars ($12,500,000) of supplemental municipal aid otherwise due and payable on or before March 31 shall be paid to the city of Yonkers, pursuant to a memorandum of understanding with the director of the budget, on or before June 30.

10. Aid and incentives for municipalities. Notwithstanding any inconsistent provision of this section or of any other provision of law to the contrary, the payment of general purpose local government aid for the support of local government for state fiscal years commencing April first, two thousand seven, shall be paid from an appropriation made for the aid and incentives for municipalities program pursuant to the public protection and general government budget for such state fiscal years in a manner consistent with this subdivision. Subdivisions one through nine of this section shall not be applicable to the payment of per capita state aid for the support of local government.

a. Definitions. When used in this subdivision, unless otherwise expressly stated:

(i) "Municipality" means a city with a population less than one million, town or village.

(ii) "Aid and incentives for municipalities" means the total of all aid payable to municipalities pursuant to this subdivision except for grants payable pursuant to paragraphs j, m and n of this subdivision.

(iii) "Full valuation" means "full valuation for taxable purposes" as reported in the state comptroller's special report on local government finances for New York state for local fiscal years ended three years prior to the beginning of the state fiscal year in which an additional annual apportionment or per capita adjustment is payable pursuant to paragraphs d and e of this subdivision.

(iv) "Population" means population data based upon the most recent federal decennial census.

(v) "Full valuation per capita" means the full valuation of a municipality divided by the population of such municipality.

(vi) "Average full valuation per capita for municipalities" means the sum of the full valuation for municipalities divided by the sum of the population of the municipalities as reported in the state comptroller's special report on local government finances for New York state for local fiscal years ended three years prior to the beginning of the state fiscal year in which an additional annual apportionment or per capita adjustment is payable pursuant to paragraphs d and e of this subdivision.

(vii) "State aid" means the total amount of aid a municipality received in the state fiscal year commencing April first, two thousand six, under the aid and incentives for municipalities program, as appropriated in chapter fifty of the laws of two thousand six, and under the additional municipal aid program pursuant to section two of part A of chapter fifty-six of the laws of two thousand six, as appropriated in chapter fifty of the laws of two thousand six.

(viii) "Prior year aid" means

for the state fiscal year commencing April first, two thousand nineteen and in each state fiscal year thereafter, the base level grant received in the immediately preceding state fiscal year pursuant to paragraph b of this subdivision.

(ix) "Per capita state aid" means the prior year aid for a municipality divided by the population of the municipality as reported in the most recent federal decennial census.

b. Base level grants.

(i) Within amounts appropriated in the state fiscal year commencing April first, two thousand seven and in each state fiscal year thereafter, there shall be apportioned and paid to a county with a population of less than one million but more than nine hundred twenty-five thousand according to the federal decennial census of two thousand, cities with a population of less than one million, towns and villages a base level grant in an amount equal to the prior year aid received by such county, city, town or village.

(ii) Notwithstanding subparagraph (i) of this paragraph, within amounts appropriated in the state fiscal year commencing April first, two thousand ten, there shall be apportioned and paid to each municipality a base level grant in an amount equal to the prior year aid received by such municipality minus a base level grant adjustment calculated in accordance with clause two of this subparagraph.

(1) When used in this subparagraph, unless otherwise expressly stated:

(A) "2008-09 AIM funding" shall mean the sum of the base level grant pursuant to this paragraph, additional annual apportionment pursuant to paragraph d of this subdivision, per capita adjustment pursuant to paragraph e of this subdivision and special aid and incentives to certain eligible cities as appropriated in chapter fifty of the laws of two thousand eight, as amended by chapter one of the laws of two thousand nine, apportioned and paid to such municipality in the state fiscal year commencing April first, two thousand eight.

(B) "2008 total revenues" shall mean "total revenues" for such municipality as reported in the state comptroller's special report on local government finances for New York state for local fiscal years ended in two thousand eight.

(C) "AIM reliance" shall mean 2008-09 AIM funding expressed as a percentage of 2008 total revenues.

(2) The base level grant adjustment shall equal:

(A) two percent of prior year aid if AIM reliance was at least ten percent, or

(B) five percent of prior year aid if AIM reliance was less than ten percent.

(iii) Notwithstanding subparagraph (i) of this paragraph, a county with a population of less than one million but more than nine hundred twenty-five thousand according to the federal decennial census of two thousand shall not receive a base level grant in the state fiscal year commencing April first, two thousand ten or in any state fiscal year thereafter.

(iv) Notwithstanding subparagraph (i) of this paragraph, within amounts appropriated in the state fiscal year commencing April first, two thousand eleven, there shall be apportioned and paid to each municipality a base level grant in an amount equal to the prior year aid received by such municipality minus a base level grant adjustment equal to two percent of such prior year aid.

(v) Notwithstanding subparagraph (i) of this paragraph, within amounts appropriated in the state fiscal year commencing April first, two thousand nineteen, and annually thereafter, there shall be apportioned and paid to each municipality which is a city a base level grant in an amount equal to the prior year aid received by such city, and there shall be apportioned and paid to each municipality which is a town or village a base level grant in accordance with clause two of this subparagraph.

(1) When used in this subparagraph, unless otherwise expressly stated:

(A) "two thousand eighteen--two thousand nineteen AIM funding" shall mean the sum of the base level grant paid in the state fiscal year that began April first, two thousand eighteen pursuant to this paragraph.

(B) "two thousand seventeen total expenditures" shall mean all funds and total expenditures for a town or a village as reported to the state comptroller for local fiscal years ended in two thousand seventeen.

(C) "AIM Reliance" shall mean two thousand eighteen--two thousand nineteen AIM funding calculated as a percentage of two thousand seventeen total expenditures, provided that, for a village which dissolved during the state fiscal year that began April first, two thousand eighteen, the village's two thousand eighteen--two thousand nineteen AIM funding shall be added to the existing two thousand eighteen--two thousand nineteen AIM funding of the town into which the village dissolved for purposes of this calculation.

(2) A base level grant equal to a town or village's prior year aid only if such town or village's AIM reliance equals two percent or greater as reported to and published by the state comptroller as of January tenth, two thousand nineteen.

(vi) Notwithstanding subparagraph (i) of this paragraph, within amounts appropriated in the state fiscal year commencing April first, two thousand twenty-one, and annually thereafter, there shall be apportioned and paid to each municipality a base level grant in an amount equal to the aid received by such municipality in the state fiscal year commencing April first, two thousand nineteen; provided, however, and notwithstanding any law to the contrary, in the state fiscal year commencing April first, two thousand twenty-one, and annually thereafter, the town of Palm Tree shall receive a base level grant of twentyfour thousand two hundred thirteen dollars, and the village of Sagaponack shall receive a base level grant of two thousand dollars, and the village of Woodbury shall receive a base level grant of twenty-seven thousand dollars, and the village of South Blooming Grove shall receive a base level grant of nineteen thousand dollars.

(vii) Notwithstanding subparagraph (i) of this paragraph, within amounts appropriated in the state fiscal year commencing April first, two thousand twenty-two, and annually thereafter, there shall be apportioned and paid to each municipality as of April first, two thousand twenty-two a base level grant in an amount equal to the aid received by such municipality in the state fiscal year commencing April first, two thousand twenty-one; provided, however, and notwithstanding any law to the contrary, for each municipality that did not receive a base level grant in the state fiscal year commencing April first, two thousand twenty-one, there shall be apportioned and paid to each municipality a base level grant in an amount equal to the aid received by such municipality in the fiscal year commencing April first, two thousand eighteen.

c. "Fiscal distress indicators" shall include:

(i) Full valuation per capita less than fifty percent of the average full valuation per capita for municipalities.

(ii) A population at least ten percent less than the population as reported in the nineteen hundred seventy federal decennial census.

(iii) Greater than sixty percent real property tax limit exhausted in the most recent local fiscal year as reported to the division of the budget by the state comptroller.

(iv) A percentage of individuals living below the poverty level, as reported for a municipality in the most recent federal decennial census, in excess of one hundred fifty percent of the average percentage of individuals living below the poverty level as reported for municipalities in the most recent federal decennial census.

d. Additional annual apportionments. Within amounts appropriated in the state fiscal year commencing April first, two thousand seven and in the state fiscal year commencing April first, two thousand eight, municipalities shall receive additional aid apportioned as follows:

(i) Any municipality with an average full valuation per capita equal to or less than the average full valuation per capita for municipalities that is a city, a town with a population greater than fifteen thousand, or a village with a population greater than ten thousand, shall be eligible to receive an additional annual apportionment equal to:

(1) nine percent of such municipality's base level grant if the municipality meets all of the fiscal distress indicators in paragraph c of this subdivision,

(2) seven percent of such municipality's base level grant if the municipality meets any three of the fiscal distress indicators in paragraph c of this subdivision, or

(3) five percent of such municipality's base level grant if the municipality meets at least one but no more than two of the fiscal distress indicators in paragraph c of this subdivision.

(ii) Any municipality with an average full valuation per capita equal to or less than the average full valuation per capita for municipalities that is a town with a population of fifteen thousand or less or a village with a population of ten thousand or less which meets one or more of the fiscal distress indicators in subparagraphs (i), (ii) and (iii) of paragraph c of this subdivision shall be eligible to receive an additional annual apportionment equal to five percent of such municipality's base level grant.

(iii) Any municipality that does not qualify for an additional annual apportionment pursuant to subparagraphs (i) and (ii) of this paragraph shall be eligible to receive an additional annual apportionment equal to three percent of such municipality's base level grant.

e. Per capita adjustment. Within amounts appropriated in the state fiscal year commencing April first, two thousand seven and in the state fiscal year commencing April first, two thousand eight, additional aid shall be apportioned as follows:

(i) For the purposes of subparagraphs (ii), (iii), (iv) and (v) of this paragraph, the threshold percentage shall be seventy-five percent in the state fiscal year commencing April first, two thousand seven and eighty percent in the state fiscal year commencing April first, two thousand eight.

(ii) A municipality with an average full valuation per capita equal to or less than the average full valuation per capita for municipalities that is a city with a population greater than or equal to one hundred twenty-five thousand and receives per capita state aid less than or equal to the threshold percentage of the average for cities with a population greater than or equal to one hundred twenty-five thousand shall be eligible to receive additional aid of four and one-half percent of such city's base level grant, subject to the availability of funds.

(iii) A municipality with an average full valuation per capita equal to or less than the average full valuation per capita for municipalities that is a city with a population less than one hundred twenty-five thousand, meets one or more of the fiscal distress indicators, and receives per capita state aid less than or equal to the threshold percentage of the average for cities with a population less than one hundred twenty-five thousand that meet one or more of the fiscal distress indicators, shall be eligible to receive additional aid of four and one-half percent of such city's base level grant, subject to the availability of funds.

(iv) A municipality with an average full valuation per capita equal to or less than the average full valuation per capita for municipalities that is a town with a population greater than fifteen thousand, meets one or more of the fiscal distress indicators, and receives per capita state aid less than or equal to the threshold percentage of the average for towns with a population greater than fifteen thousand that meet one or more of the fiscal distress indicators, shall be eligible to receive additional aid of four and one-half percent of such town's base level grant, subject to the availability of funds.

(v) A municipality with an average full valuation per capita equal to or less than the average full valuation per capita for municipalities that is a village with a population greater than ten thousand, meets one or more of the fiscal distress indicators, and receives per capita state aid less than or equal to the threshold percentage of the average for villages with a population greater than ten thousand that meet one or more of the fiscal distress indicators, shall be eligible to receive additional aid of four and one-half percent of such village's base level grant, subject to the availability of funds.

(vi) If sufficient funds are not available for additional aid in the amount authorized pursuant to subparagraphs (ii), (iii), (iv) and (v) of this paragraph, additional aid shall be apportioned to each municipality eligible for such aid based on the municipality's pro rata share of available funds.

e-1. Deficit reduction adjustment. Notwithstanding paragraph b of this subdivision, in the state fiscal year commencing April first, two thousand nine the base level grant to each city with a population of less than one million whose fiscal year does not begin on January first shall equal such city's prior year aid minus a deficit reduction adjustment calculated in accordance with the following:

(i) When used in this paragraph, unless otherwise expressly stated:

(1) "2008-09 AIM funding" shall mean the sum of the base level grant pursuant to this paragraph, additional annual apportionments pursuant to paragraph d of this subdivision, per capita adjustment pursuant to paragraph e of this subdivision and special aid and incentives to certain eligible cities as appropriated in chapter fifty of the laws of two thousand eight, as amended by chapter one of the laws of two thousand nine, apportioned and paid to such city in the state fiscal year commencing April first, two thousand eight.

(2) "2008 total revenues" shall mean "Total Revenues" for such city as reported in the state comptroller's special report on local government finances for New York state for local fiscal years ended in two thousand eight.

(3) "AIM reliance" shall mean 2008-09 AIM funding expressed as a percentage of 2008 total revenues.

(ii) The deficit reduction adjustment for each such city shall equal:

(1) one percent of prior year aid if such city's AIM reliance was at least ten percent,

(2) two percent of prior year aid if such city's AIM reliance was at least five percent but less than ten percent,

(3) three percent of prior year aid if such city's AIM reliance was at least one percent but less than five percent, or

(4) eight percent of prior year aid if such city's AIM reliance was less than one percent.

f. Use of additional aid by distressed municipalities. As a condition of receiving more than one hundred thousand dollars in combined additional aid pursuant to subparagraph (i) of paragraph d of this subdivision and paragraph e of this subdivision, if applicable, each municipality that is eligible for such aid, other than a city subject to a control period under a state imposed fiscal stability authority, shall be required to use the additional aid for the following purposes:

(i) To minimize or reduce the real property tax burden.

(ii) To support investments in technology or other efficiency and productivity initiatives that permanently minimize or reduce the municipality's operating expenses.

(iii) To support economic development or infrastructure investments that are necessary to achieve economic revitalization and generate growth in the municipality's real property tax base.

Provided, however, that if the additional aid for the state fiscal year commencing April first, two thousand seven is enacted after the adoption of a municipality's budget for the fiscal year beginning in two thousand seven and cannot be used for such purposes in the municipality's current fiscal year, such additional aid shall be held in fund balance or reserve and used for such purposes in the municipality's subsequent fiscal year.

g. Accountability requirements.

(i) As a condition of receiving more than one hundred thousand dollars in combined additional aid pursuant to subparagraph (i) of paragraph d of this subdivision and paragraph e of this subdivision, if applicable, each municipality that qualifies for such additional aid, other than a city subject to a control period under a state imposed fiscal stability authority, shall submit a comprehensive fiscal performance plan to the director of the budget and the state comptroller. Such plan shall be submitted to the director of the budget and the state comptroller within sixty days of adoption of a municipality's most recent budget or within sixty days of the effective date of this subdivision, whichever is later, and shall include:

(1) a multi-year financial plan including projected employment levels, projected annual expenditures for personal service, fringe benefits, non-personal services and debt service; appropriate reserve fund amounts; estimated annual revenues including projected property tax rates, the value of the taxable real property and resulting tax levy, annual growth in sales tax and non-property tax revenues, and the proposed use of one-time revenue sources. Such multi-year financial plan shall consist of, at a minimum, four fiscal years including the municipality's most recently completed fiscal year, its current fiscal year adopted budget, and the subsequent two fiscal years.

(2) a fiscal improvement plan covering the same time period as the multi-year financial plan that contains key fiscal performance goals necessary to achieve and maintain long term fiscal stability, proposed local actions necessary to achieve such goals, and proposed performance measures necessary to assess actual progress in implementing such local actions. In the development of such plans, proposed local actions shall include, but not be limited to, improved management practices, initiatives to minimize or reduce operating expenses, and shared services agreements with other municipalities; and

(3) a fiscal accountability report that, for the state fiscal year commencing April first, two thousand seven, describes accomplishments and progress during the preceding two local fiscal years toward achieving management improvements, operational efficiencies and other actions necessary to achieve fiscal stability. Beginning in the state fiscal year commencing April first, two thousand eight, and in each fiscal year thereafter through and including the state fiscal year commencing April first, two thousand ten, the fiscal accountability report shall include: (A) a description of the progress toward achieving fiscal performance goals identified in the previous year's fiscal performance plan; and (B) an accounting of the use of additional annual apportionments and per capita adjustments provided for in this subdivision.

(ii) As a condition of receiving a base level grant pursuant to paragraph b of this subdivision, each municipality that is a city, other than a city subject to a control period under a state imposed fiscal stability authority or a city subject to the requirements of subparagraph (i) of this paragraph and each municipality that is a village that, meets all four fiscal distress indicators in paragraph c of this subdivision shall develop a multi-year financial plan that includes: projected employment levels, projected annual expenditures for personal service, fringe benefits, non-personal services and debt service; appropriate reserve fund amounts; estimated annual revenues including projected property tax rates, the value of the taxable real property and resulting tax levy, annual growth in sales tax and non-property tax revenues, and the proposed use of one-time revenue sources. Such multi-year financial plan shall consist of, at a minimum, four fiscal years including the municipality's most recently completed fiscal year, its current fiscal year adopted budget and the subsequent two fiscal years. On or before March thirty-first, two thousand eight and on or before March thirty-first in each year thereafter through and including two thousand eleven, the chief elected official of such municipality shall submit written certification to the director of the budget that such municipality has complied with the requirements of this subparagraph.

h. Compliance review.

(i) Compliance with the requirements of paragraphs f and g of this subdivision shall be subject to review by the state comptroller, including any compliance review requested by the director of the budget.

(ii) The state comptroller may direct a municipality to modify and resubmit its fiscal performance plan pursuant to subparagraph (i) of paragraph g of this subdivision if necessary to comply with the requirements of paragraph g of this subdivision.

(iii) If upon review the state comptroller finds that a municipality has not satisfied the requirements of paragraphs f and g of this subdivision he or she shall notify the municipality and the director of the budget of such finding. Such notice may include a recommendation to withhold aid pursuant to subparagraph (iv) of this paragraph.

(iv) Upon notice pursuant to subparagraph (iii) of this paragraph, the director of the budget shall be authorized to direct the state comptroller to withhold aid and incentives for municipalities payable to such municipality up to the amount of additional annual apportionment and per capita adjustment paid in the year in which the municipality failed to comply with such requirements until compliance is satisfied.

(v) In the event a city fails to provide the certification required under the aid and incentives for municipalities program appropriated pursuant to chapter fifty of the laws of two thousand six or pursuant to subparagraph (ii) of paragraph g of this subdivision, the director of the budget shall be authorized to direct the state comptroller to withhold aid and incentives for municipalities payable to such city up to the amount of additional annual apportionment and per capita adjustment paid pursuant to such chapter until certification is provided.

i. Payments.

(i) In the state fiscal year commencing April first, two thousand seven and in each state fiscal year thereafter through and including the state fiscal year commencing April first, two thousand ten, base level grants shall be paid in the same "on or before month and day" manner as:

(1) paid in the state fiscal year commencing April first, two thousand six under the aid and incentives for municipalities program in effect at that time and appropriated in chapter fifty of the laws of two thousand six; or

(2) set forth in part R of chapter fifty-six of the laws of two thousand four relating to unrestricted aid to certain cities.

(ii) In the state fiscal year commencing April first, two thousand seven and in each state fiscal year thereafter through and including the state fiscal year commencing April first, two thousand ten, additional annual apportionments and per capita adjustments authorized in paragraphs d and e of this subdivision shall be paid on or before December fifteenth for cities with fiscal years beginning January first, on or before March fifteenth for all other cities, and for towns and villages, in the same "on or before month and day" manner as their base level grants are paid pursuant to subparagraph (i) of this paragraph.

(iii) Aid and incentives for municipalities shall be apportioned and paid to the chief fiscal officer of each municipality on audit and warrant of the state comptroller out of moneys appropriated by the legislature for such purpose to the credit of the local assistance account in the general fund of the state treasury. Any municipality receiving aid and incentives for municipalities pursuant to this subdivision shall use such aid only for general municipal purposes except as provided in subparagraph (iv) of this paragraph.

(iv) Amounts payable to any city having a population of less than fifty-five thousand but more than fifty-four thousand according to the federal decennial census of nineteen hundred ninety shall be apportioned and paid to the special account for the municipal assistance corporation for the city of Troy in the municipal assistance state aid fund pursuant to section ninety-two-e of this chapter and chapters one hundred eighty-seven and one hundred eighty-eight of the laws of nineteen hundred ninety-five.

(v) Notwithstanding any inconsistent provision of law, additional annual apportionments pursuant to paragraph d of this subdivision and pursuant to the aid and incentives for municipalities program appropriated in chapter fifty of the laws of two thousand six shall not be considered state aid pursuant to title two of article ten-D of the public authorities law for any eligible city subject to a control period under a state imposed fiscal stability authority. Such additional annual apportionments shall be paid to such authority for distribution to such city within the context of an authority-approved four year financial plan, for the following purposes:

(i) To maintain, minimize, or reduce the real property tax burden;

(ii) To support investments in technology or other efficiency and productivity initiatives that permanently minimize or reduce the municipality's operating expenses;

(iii) To support economic development or infrastructure investments that are necessary to achieve economic revitalization and generate growth in the municipality's real property tax base; and

(iv) To minimize or prevent reductions in city services.

(vi) Notwithstanding subparagraph (i) of this paragraph, in the state fiscal year commencing April first, two thousand nine the deficit reduction adjustment to the base level grants of certain cities pursuant to paragraph e-one of this subdivision shall be made on or before March fifteenth, two thousand ten.

(vii) Notwithstanding subparagraph (i) of this paragraph, in the state fiscal year commencing April first, two thousand ten, the base level grant adjustment pursuant to subparagraph (ii) of paragraph b of this subdivision shall be made on or before September twenty-fifth for a town or village, on or before December fifteenth for a city whose fiscal year begins January first, and on or before March fifteenth for a city whose fiscal year does not begin on January first.

(viii) Notwithstanding subparagraph (i) of this paragraph, in the state fiscal year commencing April first, two thousand eleven, the base level grant adjustment pursuant to subparagraph (iv) of paragraph b of this subdivision shall be made on or before September twenty-fifth for a town or village, on or before December fifteenth for a city whose fiscal year begins January first, and on or before March fifteenth for a city whose fiscal year does not begin January first.

(ix) Notwithstanding subparagraph (i) of this paragraph, in the state fiscal year commencing April first, two thousand nineteen, the base level grant adjustment pursuant to subparagraph (v) of paragraph b of this subdivision shall be made on or before September twenty-fifth for a town or village.

j. Special aid and incentives for municipalities to the city of New York. In the state fiscal year commencing April first, two thousand seven a city with a population of one million or more shall receive twenty million dollars on or before December fifteenth. In the state fiscal year commencing April first, two thousand eight, a city with a population of one million or more shall receive two hundred forty-five million nine hundred forty-four thousand eight hundred thirty-four dollars payable on or before December fifteenth. In the state fiscal year commencing April first, two thousand nine, a city with a population of one million or more shall receive three hundred one million six hundred fifty-eight thousand four hundred ninety-five dollars payable on or before December fifteenth. Special aid and incentives for municipalities to the city of New York shall be apportioned and paid as required as follows:

(i) Any amounts required to be paid to the city university construction fund pursuant to the city university construction fund act;

(ii) Any amounts required to be paid to the New York city housing development corporation pursuant to the New York city housing development corporation act;

(iii) Five hundred thousand dollars to the chief fiscal officer of the city of New York for payment to the trustees of the police pension fund of such city;

(iv) Eighty million dollars to the special account for the municipal assistance corporation for the city of New York in the municipal assistance tax fund created pursuant to section ninety-two-d of this chapter to the extent that such amount has been included by the municipal assistance corporation for the city of New York in any computation for the issuance of bonds on a parity with outstanding bonds pursuant to a contract with the holders of such bonds prior to the issuance of any other bonds secured by payments from the municipal assistance corporation for the city of New York in the municipal assistance state aid fund created pursuant to section ninety-two-e of this chapter;

(v) The balance of the special account for the municipal assistance corporation for the city of New York in the municipal assistance state aid fund created pursuant to section ninety-two-e of this chapter;

(vi) Any amounts to be refunded to the general fund of the state of New York pursuant to the annual appropriation enacted for the municipal assistance state aid fund;

(vii) To the state of New York municipal bond bank agency to the extent provided by section twenty-four hundred thirty-six of the public authorities law; and

(viii) To the transit construction fund to the extent provided by section twelve hundred twenty-five-i of the public authorities law, and thereafter to the city of New York. Notwithstanding any other law to the contrary, the amount paid to any city with a population of one million or more on or before December fifteenth shall be for an entitlement period ending the immediately preceding June thirtieth.

k. Contingency payments for the city of New York. For the state fiscal year commencing April first, two thousand seven and in each state fiscal year thereafter through and including the state fiscal year commencing April first, two thousand ten, a contingency appropriation shall be made available in the event payments are required as follows:

(i) Any amounts required to be paid to the city university construction fund pursuant to the city university construction fund act;

(ii) Any amounts required to be paid to the New York city housing development corporation pursuant to the New York city housing development corporation act;

(iii) Five hundred thousand dollars to the chief fiscal officer of the city of New York for payment to the trustees of the police pension fund of such city;

(iv) Eighty million dollars to the special account for the municipal assistance corporation for the city of New York in the municipal assistance tax fund created pursuant to section ninety-two-d of this chapter to the extent that such amount has been included by the municipal assistance corporation for the city of New York in any computation for the issuance of bonds on a parity with outstanding bonds pursuant to a contract with the holders of such bonds prior to the issuance of any other bonds secured by payments from the municipal assistance corporation for the city of New York in the municipal assistance state aid fund created pursuant to section ninety-two-e of this chapter;

(v) The balance of the special account for the municipal assistance corporation for the city of New York in the municipal assistance state aid fund created pursuant to section ninety-two-e of this chapter;

(vi) Any amounts to be refunded to the general fund of the state of New York pursuant to the annual appropriation enacted for the municipal assistance state aid fund;

(vii) To the state of New York municipal bond bank agency to the extent provided by section twenty-four hundred thirty-six of the public authorities law; and

(viii) To the transit construction fund to the extent provided by section twelve hundred twenty-five-i of the public authorities law, and thereafter to the city of New York.

l. Consolidations, mergers, or dissolutions; entitlement to aid and incentives for municipalities.

(i) In the case where any city, town, or village consolidates, merges or dissolves, and the resulting successor government has filed with the office of the state comptroller a certificate of any such consolidation, merger, or dissolution, such successor government shall be entitled to receive all payments of aid and incentives for municipalities which, pursuant to paragraphs b, d and e of this subdivision, would have been otherwise payable to the individual cities, towns, or villages that were party to such consolidation, merger, or dissolution.

(ii) The annual amount of such payments of aid and incentives for municipalities that any city, town, or village in which a municipality has consolidated, merged, or dissolved shall be eligible to receive on the date such city, town, or village is consolidated, merged, or dissolved shall continue to be paid pursuant to paragraphs b, d and e of this subdivision for every state fiscal year following the date of such consolidation, merger, or dissolution. In instances where only a portion of a city, town, or village is party to a consolidation, merger, or dissolution, aid and incentives for municipalities payable to the resulting successor government shall include only a pro rata share of the aid otherwise due and payable to such city, town, or village. Such pro rata share shall be based on a ratio of the two thousand federal decennial census population of the portion consolidated, merged, or dissolved as compared to the total two thousand federal decennial census population of the city, town, or village party to such consolidation, merger, or dissolution.

m. Shared municipal services incentive awards applicable to the state fiscal year commencing April first, two thousand five.

(i) Within the amounts appropriated in chapter sixty-two of the laws of two thousand five therefor, the secretary of state may award competitive grants to two or more municipalities to cover costs associated with mergers, consolidations, cooperative agreements, dissolutions and shared services of municipalities where authorized by state law.

(ii) For the purposes of this paragraph, "municipalities" shall mean counties, cities, towns, villages and school districts.

(iii) Such grants may be used to cover the costs associated with consolidations, dissolutions, cooperative agreements and shared services of municipalities, including, but not limited to, legal and consultant services, feasibility studies, capital improvements and other necessary expenses.

(iv) The maximum grant awarded shall not exceedone hundred thousand dollars per municipality.

(v) Local matching funds, equal to ten percent of the total approved project cost, shall be required.

(vi) No part of the grant shall be used by the applicant for recurring expenses such as salaries.

(vii) The secretary of state shall, prior to the acceptance of grant applications, adopt rules and regulations to establish eligibility requirements, application forms and procedures, criteria of review and grant approval guidelines.

n. Shared municipal services incentive program applicable to the state fiscal year commencing April first, two thousand seven. (i) Shared municipal services incentive awards. Within the amount appropriated in chapter fifty of the laws of two thousand seven therefor, the secretary of state may award competitive grants to two or more municipalities to cover costs associated with consolidations, mergers, dissolutions, cooperative agreements and shared services of municipalities where authorized by state law as follows:

(1) For the purposes of this paragraph, "municipalities" shall mean counties, cities, towns, villages, special improvement districts, fire districts, and school districts; provided, however, that for purposes of this definition, a school district shall be considered a municipality only in instances where a school district advances an application for a grant to cover costs associated with cooperative agreements or shared services. For purposes of this definition, a board of cooperative educational services shall be considered a municipality only in instances where such board of cooperative educational services advances a joint shared service application on behalf of school districts and other municipalities within the board of cooperative educational services region; provided, however, that any shared service agreements with a board of cooperative educational services:

(A) shall not generate additional state aid;

(B) shall be deemed not to be a part of the program, capital and administrative budgets of the board of cooperative educational services for the purposes of computing charges upon component school districts pursuant to subparagraph seven of paragraph b of subdivision four of section nineteen hundred fifty and subdivisionone of section nineteen hundred fifty-one of the education law; and

(C) shall be deemed to be a cooperative municipal service for purposes of subparagraph two of paragraph d of subdivision four of section nineteen hundred fifty of the education law.

(2) Such grants may be used to cover costs, including, but not limited to, legal and consultant services, feasibility studies, capital improvements, and other necessary expenses. The amounts awarded to a school district pursuant to this paragraph shall not be included in the approved operating expense of the school district as defined in paragraph t of subdivisionone of section thirty-six hundred two of the education law.

(3) The maximum grant awarded shall not exceed two hundred thousand dollars per municipality.

(4) Local matching funds, equal to ten percent of the total approved project or initiative cost shall be required.

(5) No part of the grant shall be used by the applicant for recurring expenses such as salaries.

(6) In the selection of grant awards, the secretary of state shall give priority to applications that:

(A) include a municipality that meets any of the fiscal distress indicators in paragraph c of this subdivision;

(B) plan or implement the consolidation, merger or dissolution of municipalities;

(C) share services between school districts and other municipalities, including applications submitted by boards of cooperative educational services as defined in clauseone of subparagraph (i) of this paragraph;

(D) share highway services, including joint highway equipment purchases, capital improvements that benefit two or more municipal highway departments, contractual services between two or more municipal highway departments or for the consolidation of two or more municipal highway departments;

(E) consolidate health benefit plans offered by two or more municipalities;

(F) encourage countywide shared services, where a county develops a countywide shared services plan under which municipalities in such county agree to participate in shared services, including, but not limited to, public safety, purchasing, payroll, and real property tax assessment.

(7) The secretary of state shall, prior to the acceptance of grant applications, promulgate rules and regulations including, but not limited to, (A) award eligibility criteria, and (B) application, review and grant approval procedures. The secretary of state shall also require that such awards be granted only for services that would otherwise be individually provided by each grantee and that demonstrable financial savings result from such sharing, unless such awards are for feasibility studies. The secretary of state may consult with the commissioner of transportation, the president of the state civil service commission, or any other appropriate state official as needed to establish such rules and regulations.

o. Local government efficiency grant program beginning in the state fiscal year commencing April first, two thousand eight and continuing until the end of the state fiscal year commencing April first, two thousand ten.

(i) Definitions.

(1) For the purposes of this paragraph, "municipality" shall mean counties, cities, towns, villages, special improvement districts, fire districts, public libraries, association libraries, water authorities, sewer authorities, regional planning and development boards, school districts, and boards of cooperative educational services; provided, however, that for the purposes of this definition, a board of cooperative educational services shall be considered a municipality only in instances where such board of cooperative educational services advances a joint application on behalf of school districts and other municipalities within the board of cooperative educational services region; provided, however, that any agreements with a board of cooperative educational services: shall not generate additional state aid; shall be deemed not to be a part of the program, capital and administrative budgets of the board of cooperative educational services for the purposes of computing charges upon component school districts pursuant to subparagraph seven of paragraph b of subdivision four of section nineteen hundred fifty and subdivisionone of section nineteen hundred fifty and subdivision one of section nineteen hundred fifty-one of the education law; and shall be deemed to be a cooperative municipal service for purposes of subparagraph two of paragraph d of subdivision four of section nineteen hundred fifty of the education law.

(2) For the purposes of this paragraph, "functional consolidation" shall mean when one municipality completely provides a service or function for another municipality, which no longer engages in that service or function.

(ii) High priority planning grants.

(1) Within the annual amounts appropriated therefor, the secretary of state may award grants to a municipality to cover costs associated with plans and studies developed for a city or county charter revision which includes functional consolidation or increased shared services and for the dissolution of a village; and to two or more municipalities for plans and studies developed for mergers, consolidations, and dissolutions; sharing services or transferring functions that would be performed on a countywide basis; and conducting services on a multi-county or regional basis. Additional grant categories may be identified by the secretary of state, in consultation with the commission on local government efficiency and competitiveness, and included in a request for applications.

(2) Such plans and studies shall include an examination of the potential financial savings and management improvements from such charter revision, consolidation, dissolution, merger or shared services.

(3) High priority planning grants may be used to cover costs including, but not limited to, legal and consultant services and other necessary expenses. The amounts awarded to a school district pursuant to this subparagraph shall not be included in the approved operating expense of the school district as defined in paragraph t of subdivision one of section thirty-six hundred two of the education law. No part of the grant shall be used by the applicant for recurring expenses such as salaries.

(4) The maximum high priority planning grant awarded shall not exceed fifty thousand dollars per application. Award amounts may vary by grant category as identified in the request for applications.

(5) Matching funds equal to ten percent of the total cost of activities under the grant work plan approved by the department of state shall be required.

(iii) General efficiency planning grants.

(1) Within the annual amounts appropriated therefor, the secretary of state may award competitive grants to two or more municipalities to cover costs associated with plans and studies for potential functional consolidation or shared services involving two or more municipalities.

(2) Such plans and studies shall include an examination of the potential financial savings and management improvements from such functional consolidation or shared services.

(3) General efficiency planning grants may be used to cover costs including, but not limited to, legal and consultant services and other necessary expenses. The amounts awarded to a school district pursuant to this subparagraph shall not be included in the approved operating expense of the school district as defined in paragraph t of subdivision one of section thirty-six hundred two of the education law. No part of the grant shall be used by the applicant for recurring expenses such as salaries.

(4) The maximum general efficiency planning grant awarded shall not exceed twenty-five thousand dollars per application for two municipalities, with an additional one thousand dollars for each additional municipality participating in the application; provided, however, that in no case shall such an application receive a grant award in excess of thirty-five thousand dollars.

(5) Local matching funds equal to ten percent of the total cost of activities under the grant work plan approved by the secretary of state shall be required.

(6) In the selection of grant awards, the secretary of state shall give the highest priority to applications that would result in the complete functional consolidation of a municipal service and shall also give priority to applications that include a municipality which meets at least three of the fiscal distress indicators in paragraph c of this subdivision, that include the consolidation of health benefit plans offered by two or more municipalities, or that would result in contractual services between two or more municipal highway departments or the consolidation of two or more municipal highway departments; provided, however, that to receive a general efficiency planning grant award, an applicant shall indicate that an objective of the study or plan for functional consolidation or shared services is to realize financial savings upon implementation.

(iv) Efficiency implementation grants.

(1) Within the annual amounts appropriated therefor, the secretary of state may award competitive grants to two or more municipalities to cover costs associated with consolidations, mergers, dissolutions, cooperative agreements and shared services where authorized by state law and where demonstrable financial savings would result from such consolidation, merger, dissolution, cooperative agreement or shared service.

(2) Efficiency implementation grants may be used to cover costs including, but not limited to, legal and consultant services, capital improvements, transitional personnel costs essential for the implementation of the approved efficiency implementation grant work plan, and other necessary expenses. Grants may be used for capital improvements, transitional personnel costs or joint equipment purchases only where such expenses are integral to the coordinated or consolidated service delivery. The amounts awarded to a school district pursuant to this subparagraph shall not be included in the approved operating expense of the school district as defined in paragraph t of subdivision one of section thirty-six hundred two of the education law.

(3) The maximum efficiency implementation grant awarded shall not exceed two hundred thousand dollars per municipality; provided, however, that in no case shall such an application receive a grant award in excess of one million dollars.

(4) Local matching funds equal to ten percent of the total cost of activities under the grant work plan approved by the department of state shall be required. In the event an applicant is implementing a project that the applicant developed through a successfully completed planning grant funded under the local government efficiency grant program or the shared municipal services incentive grant program, the local matching funds required shall be reduced by the local matching funds required by such successfully completed planning grant.

(5) No part of the grant shall be used by the applicant for recurring expenses such as salaries, except that the salaries of certain personnel essential for the effectuation of the joint activity shall be eligible for a period not to exceed three years.

(6) In the selection of grant awards, the secretary of state shall give the highest priority to applications that would implement the merger, dissolution or consolidation of municipalities or that would implement the complete functional consolidation of a municipal service, and shall also give priority to applications that are submitted by applicants that successfully completed a high priority planning grant pursuant to subparagraph (ii) of this paragraph or a planning grant under the shared municipal services incentive grant program for one of the types of high priority activity identified in subparagraph (ii) of this paragraph; that include a municipality which meets at least three of the fiscal distress indicators in paragraph c of this subdivision; that would consolidate health benefit plans offered by two or more municipalities; or that would result in contractual services between two or more municipal highway departments or the consolidation of two or more municipal highway departments.

(v) Twenty-first century demonstration project grants.

(1) Within the amounts appropriated therefor, subject to a plan developed in consultation with the commission on local government efficiency and competitiveness and approved by the director of the budget, the secretary of state may award competitive grants to municipalities to cover costs associated with a functional consolidation or a shared services agreement having great potential to achieve financial savings and serve as a model for other municipalities, including the consolidation of services on a multi-county basis, the consolidation of certain services countywide as identified in such plan, the creation of a regional entity empowered to provide multiple functions on a countywide or regional basis, the creation of a regional or city-county consolidated municipal government, the consolidation of school districts or supporting services for school districts encompassing the area served by a board of cooperative educational services, or the creation of a regional smart growth compact or program.

(2) Twenty-first century demonstration project grants may be used to cover costs including, but not limited to, legal and consultant services, capital improvements, transitional personnel costs essential for the implementation of the approved twenty-first century demonstration project grant work plan, and other necessary expenses. Grants may be used for capital improvements, transitional personnel costs or joint equipment purchases only where such expenses are integral to the coordinated or consolidated service delivery.

(3) The maximum twenty-first century demonstration project grant awarded shall not exceed four hundred thousand dollars per municipality. Award amounts may vary by grant category as identified in the request for applications.

(4) Local matching funds equal to ten percent of the total cost of activities under the grant work plan approved by the department of state shall be required.

(vi) The secretary of state shall, prior to the acceptance of grant applications, promulgate rules and regulations including, but not limited to, (1) award eligibility criteria, and (2) application, review and grant approval procedures. The secretary of state shall also require that such awards be granted only for services that would otherwise be individually provided by each grantee and that demonstrable financial savings result from such sharing, unless such awards are for feasibility studies. The secretary of state may consult with the commissioner of transportation, the president of the state civil service commission, or any other appropriate state official as needed to establish such rules and regulations.

(vii) Evaluation of grant program. The department of state shall prepare an annual report to the governor and the legislature on the effectiveness of the shared municipal services incentive program and the local government efficiency grant program. Such report shall be provided on or before October first of each year and shall include, but not be limited to, the following: a summary of applications and awards for each grant category, an assessment of progress in the implementation of initiatives that received grant awards, estimated financial savings and significant improvements in service realized by municipalities that have received grants and an evaluation of the effectiveness of regional technical assistance and state agency assistance provided pursuant to subparagraphs (vii) and (viii) of this paragraph.

(viii) Regional technical assistance. Within the annual amounts appropriated therefor, a portion of the administrative funding appropriated for the local government efficiency grant program may be used to support technical assistance provided by regionally-based organizations, pursuant to a plan submitted by the secretary of state in consultation with the commission on local government efficiency and competitiveness and subject to approval by the director of the budget, including but not limited to regional planning and development boards, not-for-profit organizations that support local government concerns, and academic institutions. Regional technical assistance shall include, but not be limited to, developing service sharing and consolidation guides and manuals, providing presentations on how to undertake consolidations, and providing assistance in developing consolidation and shared service agreements. Providers of regional technical assistance shall measure and report to the secretary of state on the effectiveness of such assistance in facilitating shared services or consolidation among municipalities.

(ix) State agency assistance. Within the annual amounts appropriated therefor, a portion of administrative funding appropriated for the local government efficiency grant program may be used to support new programs of state agency assistance to achieve financial savings among municipalities through functional consolidation or shared services pursuant to a plan submitted by such agency and approved by the director of the budget. State agencies that provide such assistance shall measure and report to the director of the budget, the commission on local government efficiency and competitiveness, and the secretary of state on the effectiveness of such assistance in achieving cost savings among municipalities.

p. Citizen empowerment tax credit.

(i) For the purposes of this paragraph, "municipalities" shall mean cities with a population less than one million, towns created on or before December thirty-first, two thousand seventeen, and villages incorporated on or before December thirty-first, two thousand seventeen.

(ii) Within the annual amounts appropriated therefor, surviving municipalities following a consolidation or dissolution occurring on or after the state fiscal year commencing April first, two thousand seven, and any new coterminous town-village established after July first, two thousand twelve that operates principally as a town or as a village but not as both a town and a village, shall be awarded additional annual aid, starting in the state fiscal year following the state fiscal year in which such reorganization took effect, equal to fifteen percent of the combined amount of real property taxes levied by all of the municipalities participating in the reorganization in the local fiscal year prior to the local fiscal year in which such reorganization took effect. In instances of the dissolution of a village located in more than one town, such additional aid shall equal the sum of fifteen percent of the real property taxes levied by such village in the village fiscal year prior to the village fiscal year in which such dissolution took effect plus fifteen percent of the average amount of real property taxes levied by the towns in which the village was located in the town fiscal year prior to the town fiscal year in which such dissolution took effect, and shall be divided among such towns based on the percentage of such village's population that resided in each such town as of the most recent federal decennial census. In no case shall the additional annual aid pursuant to this paragraph exceed one million dollars. For villages in which a majority of the electors voting at a referendum on a proposed dissolution pursuant to section seven hundred eighty of the general municipal law vote in favor of dissolution after December thirty-first, two thousand seventeen, in no case shall the additional annual aid pursuant to this paragraph exceed the lesser of one million dollars or the amount of real property taxes levied by such village in the village fiscal year prior to the village fiscal year in which such dissolution took effect. Such additional annual aid shall be apportioned and paid to the chief fiscal officer of each eligible municipality on or before September twenty-fifth of each such state fiscal year on audit and warrant of the state comptroller out of moneys appropriated by the legislature for such purpose to the credit of the local assistance fund.

(iii) Any municipality receiving a citizen empowerment tax credit pursuant to this paragraph shall use at least seventy percent of such aid for property tax relief and the balance of such aid for general municipal purposes. For each local fiscal year following the effective date of the chapter of the laws of two thousand eleven which amended this paragraph in which such aid is payable, a statement shall be placed on each property tax bill for such municipality in substantially the following form: "Your property tax savings this year resulting from the State Citizen Empowerment Tax Credit received as the result of local government re-organization is $______." The property tax savings from the citizen empowerment tax credit for each property tax bill shall be calculated by (1) multiplying the amount of the citizen empowerment tax credit used for property tax relief by the amount of property taxes levied on such property by such municipality and (2) dividing the result by the total amount of property taxes levied by such municipality.

q. Local government citizens re-organization empowerment grant program.

(i)

(1) For the purposes of this paragraph, "local government entity" or "entity" shall mean a town, village, district, special improvement district or other improvement district, including, but not limited to, special districts created pursuant to articles eleven, twelve, twelve-A or thirteen of the town law, library districts, and other districts created by law; provided, however, that a local government entity shall not include school districts, city districts or special purpose districts created by counties under county law.

(2) For the purposes of this paragraph, "local government re-organization" shall mean the consolidation or dissolution of a local government entity in accordance with article seventeen-A of the general municipal law or the establishment of a new coterminous town-village that operates principally as a town or as a village but not as both a town and a village.

(ii) Within the annual amounts appropriated therefor, the secretary of state may award grants to local government entities to cover costs associated with studies, plans, and implementation efforts related to local government re-organization activities.

(iii) Study projects shall include an examination of the potential financial savings, management improvements, and service delivery changes resulting from a local government re-organization, legal issues and impediments surrounding the re-organization, recommended steps to complete the re-organization, as well as options for cost-savings if the re-organization is not completed.

(iv) Local government citizens re-organization empowerment grants may be used to cover costs including, but not limited to, legal and consultant services, capital improvements, transitional personnel costs and other necessary expenses related to re-organization analysis, planning and implementation. Grants may be used for capital improvements, transitional personnel costs or joint equipment purchases only where such expenses are integral to implementation of the re-organization. No part of the grant shall be used by the applicant for recurring expenses such as salaries, except that the salaries of certain transitional personnel essential for the implementation of the re-organization shall be eligible for a period not to exceed three years.

(v) Where the electors of a local government entity have filed a petition pursuant to article seventeen-A of the general municipal law that will require a referendum on the question of consolidation or dissolution of the local government entity, such local government entity will be eligible for an expedited grant to cover costs associated with the development and dissemination to the electors of information related to the re-organization question before such referendum. The secretary of state shall develop processes that will permit expedited financial and technical assistance to such local government entities, including but not limited to pre-qualified consultants, direct technical assistance from program staff and pre-established work plans.

(vi) The maximum cumulative grant award for a local government re-organization shall not exceed one hundred thousand dollars. A local government citizens re-organization empowerment grant for a re-organization study shall in no event exceed fifty thousand dollars per application, of which up to twenty-five thousand dollars may be awarded on an expedited basis. A local government citizens re-organization empowerment grant for the planning or implementation of a re-organization shall not exceed fifty thousand dollars. In no event shall the cumulative grant awards for a local government re-organization exceed one hundred thousand dollars.

(vii) Matching funds equal to at least fifty percent of the total cost of activities under the grant work plan approved by the department of state shall be required for a local government re-organization grant for a re-organization study, except for such grants that are awarded to a local government entity eligible for an expedited grant pursuant to subparagraph (v) of this paragraph. Upon implementation of the local government re-organization, the local matching funds required by such grant for a re-organization study shall be refunded except for ten percent of the total cost of activities under the grant work plan approved by the department of state. Matching funds equal to at least ten percent of the total cost of activities under the grant work plan approved by the department of state shall be required for a local government re-organization grant for a re-organization study awarded to a local government entity eligible for an expedited grant pursuant to subparagraph (v) of this paragraph and for a local government re-organization grant for the implementation of a re-organization.

(viii) Within one week of the receipt of an application, the department of state shall review the application to ensure the applicant has filed the correct application, and to determine if any required sections of the application contain no information. Within one business day of determining an applicant has filed an incorrect application, or determining an application contains no information in a section required to contain information, the department shall so notify the applicant. Applicants shall be permitted to amend an application found to be missing information, and such application shall be reconsidered for approval if it is amended by the application deadline. If an applicant has submitted an incorrect application, the applicant may submit the correct application to the appropriate program by the deadline for such program for consideration. Under no circumstances shall this subparagraph be deemed to require the extension of any application deadline established by the department, nor shall it obligate the department to conduct a substantive review of the contents of any application outside of the procedures established by the department for the purposes of maintaining the competitive integrity of the grant program.

(ix) Written notice shall be provided to an applicant of a decision regarding the grant or denial of an award under this paragraph, within thirty days after such decision.

r.Local government efficiency grant program beginning in the state fiscal year commencing April first, two thousand eleven and continuing until the end of the state fiscal year commencing April first, two thousand twelve.

(i)

(1) For the purposes of this paragraph, "municipality" shall mean a county, city, town, village, special improvement district, fire district, public library, association library, or public library system as defined by section two hundred seventy-two of the education law, provided however, that for the purposes of this definition, a public library system shall be considered a municipality only in instances where such public library system advances a joint application on behalf of its member libraries, water authority, sewer authority, regional planning and development board, school district, or board of cooperative educational services; provided, however, that for the purposes of this definition, a board of cooperative educational services shall be considered a municipality only in instances where such board of cooperative educational services advances a joint application on behalf of school districts and other municipalities within the board of cooperative educational services region; provided, however, that any agreements with a board of cooperative educational services: shall not generate additional state aid; shall be deemed not to be a part of the program, capital and administrative budgets of the board of cooperative educational services for the purposes of computing charges upon component school districts pursuant to subdivisionone and subparagraph seven of paragraph b of subdivision four of section nineteen hundred fifty and subdivision one of section nineteen hundred fifty-one of the education law; and shall be deemed to be a cooperative municipal service for purposes of subparagraph two of paragraph d of subdivision four of section nineteen hundred fifty of the education law.

(2) For the purposes of this paragraph, "functional consolidation" shall mean one municipality completely providing a service or function for another municipality, which no longer provides such service or function.

(ii) Within the annual amounts appropriated therefor, the secretary of state may award competitive grants to municipalities to cover costs associated with local government efficiency projects, including, but not limited to, planning for or implementation of a municipal consolidation or dissolution, a functional consolidation, a city or county charter revision that includes functional consolidation, shared or cooperative services, and regionalized delivery of services; provided, however, that such local government efficiency projects must demonstrate new opportunities for financial savings and operational efficiencies; provided, further, that eligible local government efficiency projects shall not include studies and plans for a local government re-organization eligible to receive a local government citizens re-organization empowerment grant pursuant to paragraph q of this subdivision. The secretary of state may focus the grant program in specific functional areas, within distressed communities and areas of historically high local government costs and property taxes, or in areas of unique opportunity, in which case such areas of focus shall be detailed in a request for applications.

(iii) Any approved project shall include an examination of financial savings, return on public investment and management improvements resulting from project implementation.

(iv) Local government efficiency grants may be used to cover costs including, but not limited to, legal and consultant services, capital improvements, transitional personnel costs and other necessary expenses related to implementing the approved local government efficiency grant work plan. Grants may be used for capital improvements, transitional personnel costs or joint equipment purchases only where such expenses are integral to implementation of the local government efficiency project. No part of the grant shall be used by the applicant for recurring expenses such as salaries, except that the salaries of certain transitional personnel essential for the implementation of the approved local government efficiency grant work plan shall be eligible for a period not to exceed three years. The amounts awarded to a school district pursuant to this subparagraph shall not be included in the approved operating expense of the school district as defined in paragraph t of subdivision one of section thirty-six hundred two of the education law.

(v) The maximum cumulative grant award for a local government efficiency project shall not exceed two hundred thousand dollars per municipality; provided, however, that in no case shall such a project receive a cumulative grant award in excess of one million dollars. The maximum grant award for a local government efficiency planning project, or the planning component of a project that includes both planning and implementation of a local government efficiency project, shall not exceed twenty-five thousand dollars per municipality; provided, however, that in no event shall such a planning project receive a grant award in excess of two hundred thousand dollars.

(vi) Local matching funds equal to ten percent of the total cost of activities under the grant work plan approved by the department of state shall be required. In the event an applicant is implementing a project that the applicant developed through a successfully completed planning grant funded under the local government efficiency grant program or the shared municipal services incentive grant program, the local matching funds required shall be reduced by the local matching funds required by such successfully completed planning grant.

(vii) In the selection of grant awards, the secretary of state shall give the highest priority to applications: (1) that would result in the dissolution or consolidation of municipalities; (2) that would implement the complete functional consolidation of a municipal service; or (3) by local governments with historically high costs of local government or sustained increases in property taxes. Priority will also be given to municipalities that have previously completed a planning grant pursuant to this program or the shared municipal services incentive grant program, and to local governments currently involved in regional development projects that have received funds through state community and infrastructure development programs.

(viii) The department of state shall prepare an annual report to the governor and the legislature on the effectiveness of the local government efficiency grant program and the local government citizens re-organization empowerment grant program. Such report shall be provided on or before October first of each year and shall include, but not be limited to, the following: a summary of applications and awards for each grant category, an assessment of progress in implementing initiatives that received grant awards, and estimated financial savings and significant improvements in service realized by municipalities that have received grants.

Local government efficiency grant program beginning in the state fiscal year commencing April first, two thousand thirteen.

(i)

(1) For the purposes of this paragraph, "municipality" shall mean a county, city, town, village, special improvement district, fire district, public library, association library, or public library system as defined by section two hundred seventy-two of the education law, provided however, that for the purposes of this definition, a public library system shall be considered a municipality only in instances where such public library system advances a joint application on behalf of its member libraries, water authority, sewer authority, regional planning and development board, school district, or board of cooperative educational services; provided, however, that for the purposes of this definition, a board of cooperative educational services shall be considered a municipality only in instances where such board of cooperative educational services advances a joint application on behalf of school districts and other municipalities within the board of cooperative educational services region; provided, however, that any agreements with a board of cooperative educational services: shall not generate additional state aid; shall be deemed not to be a part of the program, capital and administrative budgets of the board of cooperative educational services for the purposes of computing charges upon component school districts pursuant to subdivisionone and subparagraph seven of paragraph b of subdivision four of section nineteen hundred fifty and subdivision one of section nineteen hundred fifty-one of the education law; and shall be deemed to be a cooperative municipal service for purposes of subparagraph two of paragraph d of subdivision four of section nineteen hundred fifty of the education law.

(2) For the purposes of this paragraph, "functional consolidation" shall mean one municipality completely providing a service or function for another municipality, which no longer provides such service or function.

(ii) Within the annual amounts appropriated therefor, the secretary of state may award competitive grants to municipalities to cover costs associated with local government efficiency projects, including, but not limited to, planning for or implementation of a municipal consolidation or dissolution, a functional consolidation, a city or county charter revision that includes functional consolidation, shared or cooperative services, and regionalized delivery of services; provided, however, that such local government efficiency projects must demonstrate new opportunities for financial savings and operational efficiencies; provided, further, that eligible local government efficiency projects shall not include studies and plans for a local government re-organization eligible to receive a local government citizens re-organization empowerment grant pursuant to paragraph q of this subdivision. The secretary of state may focus the grant program in specific functional areas, within distressed communities and areas of historically high local government costs and property taxes, or in areas of unique opportunity, in which case such areas of focus shall be detailed in a request for applications.

(iii) Any approved project shall include an examination of financial savings, return on public investment and management improvements resulting from project implementation.

(iv) Local government efficiency grants may be used to cover costs including, but not limited to, legal and consultant services, capital improvements, transitional personnel costs and other necessary expenses related to implementing the approved local government efficiency grant work plan. Grants may be used for capital improvements, transitional personnel costs or joint equipment purchases only where such expenses are integral to implementation of the local government efficiency project. No part of the grant shall be used by the applicant for recurring expenses such as salaries, except that the salaries of certain transitional personnel essential for the implementation of the approved local government efficiency grant work plan shall be eligible for a period not to exceed three years. The amounts awarded to a school district pursuant to this subparagraph shall not be included in the approved operating expense of the school district as defined in paragraph t of subdivision one of section thirty-six hundred two of the education law.

(v) The maximum cumulative grant award for a local government efficiency project shall not exceed two hundred thousand dollars per municipality; provided, however, that in no case shall such a project receive a cumulative grant award in excess of one million dollars. The maximum grant award for a local government efficiency planning project, or the planning component of a project that includes both planning and implementation of a local government efficiency project, shall not exceed twelve thousand five hundred dollars per municipality; provided, however, that in no event shall such a planning project receive a grant award in excess of one hundred thousand dollars.

(vi) Local matching funds equal to at least fifty percent of the total cost of activities under the grant work plan approved by the department of state shall be required for planning grants, and local matching funds equal to at least ten percent of the total cost of activities under the grant work plan approved by the department of state shall be required for implementation grants. In the event an applicant is implementing a project that the applicant developed through a successfully completed planning grant funded under the local government efficiency grant program or the shared municipal services incentive grant program, the local matching funds required shall be reduced by the local matching funds required by such successfully completed planning grant up to the amount of local matching funds required for the implementation grant.

(vii) In the selection of grant awards, the secretary of state shall give the highest priority to applications:

(1) that would result in the dissolution or consolidation of municipalities;

(2) that would implement the complete functional consolidation of a municipal service; or

(3) by local governments with historically high costs of local government or sustained increases in property taxes. Priority will also be given to municipalities that have previously completed a planning grant pursuant to this program or the shared municipal services incentive grant program, and to local governments currently involved in regional development projects that have received funds through state community and infrastructure development programs.

(viii) Within one week of the receipt of an application, the department of state shall review the application to ensure the applicant has filed the correct application, and to determine if any required sections of the application contain no information. Within one business day of determining an applicant has filed an incorrect application, or determining an application contains no information in a section required to contain information, the department shall so notify the applicant. Applicants shall be permitted to amend an application found to be missing information, and such application shall be reconsidered for approval if it is amended by the application deadline. If an applicant has submitted an incorrect application, the applicant may submit the correct application to the appropriate program by the deadline for such program for consideration. Under no circumstances shall this subparagraph be deemed to require the extension of any application deadline established by the department, nor shall it obligate the department to conduct a substantive review of the contents of any application outside of the procedures established by the department for the purposes of maintaining the competitive integrity of the grant program.

(ix) Written notice shall be provided to an applicant of a decision regarding the grant or denial of an award under this paragraph, within thirty days after such decision.

(x) The department of state shall prepare an annual report to the governor and the legislature on the effectiveness of the local government efficiency grant program and the local government citizens re-organization empowerment grant program. Such report shall be provided on or before October first of each year and shall include, but not be limited to, the following: a summary of applications and awards for each grant category, an assessment of progress in implementing initiatives that received grant awards, and estimated financial savings and significant improvements in service realized by municipalities that have received grants.

t. Local government efficiency grant program beginning in the state fiscal year commencing April first, two thousand twenty-four.

(i)

(1) For the purposes of this paragraph, "municipality" shall mean a county, city, town, village, special improvement district, fire district, public library, association library, or public library system as defined by section two hundred seventy-two of the education law; provided, however, that for the purposes of this definition, a public library system shall be considered a municipality only in instances where such public library system advances a joint application on behalf of its member libraries, water authority, sewer authority, regional planning and development board, school district, or board of cooperative educational services; provided, however, that for the purposes of this definition, a board of cooperative educational services shall be considered a municipality only in instances where such board of cooperative educational services advances a joint application on behalf of school districts and other municipalities within the board of cooperative educational services region; provided, however, that any agreements with a board of cooperative educational services: shall not generate additional state aid; shall be deemed not to be a part of the program, capital and administrative budgets of the board of cooperative educational services for the purposes of computing charges upon component school districts pursuant to subdivision one and subparagraph seven of paragraph b of subdivision four of section nineteen hundred fifty, and subdivision one of section nineteen hundred fifty-one of the education law; and shall be deemed to be a cooperative municipal service for purposes of subparagraph two of paragraph d of subdivision four of section nineteen hundred fifty of the education law.

(2) For the purposes of this paragraph, "functional consolidation" shall mean one municipality completely providing a service or function for another municipality, which no longer provides such service or function.

(ii) Within the annual amounts appropriated therefor, the secretary of state may award competitive grants to municipalities to cover costs associated with local government efficiency projects, including, but not limited to, planning for or implementation of a municipal consolidation or dissolution, a functional consolidation, a city or county charter revision that includes functional consolidation, shared or cooperative services, and regionalized delivery of services; provided, however, that such local government efficiency projects must demonstrate new opportunities for financial savings and operational efficiencies; provided, further, that eligible local government efficiency projects shall not include studies and plans for a local government re-organization eligible to receive a local government citizens re-organization empowerment grant pursuant to paragraph q of this subdivision. The secretary of state may focus the grant program in specific functional areas, within distressed communities and areas of historically high local government costs and property taxes, or in areas of unique opportunity, in which case such areas of focus shall be detailed in a request for applications.

(iii) Any approved project shall include an examination of financial savings, return on public investment and management improvements resulting from project implementation.

(iv) Local government efficiency grants may be used to cover costs including, but not limited to, legal and consultant services, capital improvements, transitional personnel costs and other necessary expenses related to implementing the approved local government efficiency grant work plan. Grants may be used for capital improvements, transitional personnel costs or joint equipment purchases only where such expenses are integral to implementation of the local government efficiency project. No part of the grant shall be used by the applicant for recurring expenses such as salaries, except that the salaries of certain transitional personnel essential for the implementation of the approved local government efficiency grant work plan shall be eligible for a period not to exceed three years. The amounts awarded to a school district pursuant to this subparagraph shall not be included in the approved operating expense of the school district as defined in paragraph t of subdivision one of section thirty-six hundred two of the education law.

(v) The maximum cumulative grant award for a local government efficiency project shall not exceed two hundred fifty thousand dollars per municipality; provided, however, that in no case shall such a project receive a cumulative grant award in excess of one million two hundred fifty thousand dollars. The maximum grant award for a local government efficiency planning project, or the planning component of a project that includes both planning and implementation of a local government efficiency project, shall not exceed twenty thousand dollars per municipality; provided, however, that in no event shall such a planning project receive a grant award in excess of one hundred thousand dollars.

(vi) Local matching funds equal to at least fifty percent of the total cost of activities under the grant work plan approved by the department of state shall be required for planning grants, and local matching funds equal to at least ten percent of the total cost of activities under the grant work plan approved by the department of state shall be required for implementation grants. In the event an applicant is implementing a project that the applicant developed through a successfully completed planning grant funded under the local government efficiency grant program or the shared municipal services incentive grant program, the local matching funds required shall be reduced by the local matching funds required by such successfully completed planning grant up to the amount of local matching funds required for the implementation grant.

(vii) In the selection of grant awards, the secretary of state shall give the highest priority to applications:

(1) that would result in the dissolution or consolidation of municipalities;

(2) that would implement the complete functional consolidation of a municipal service; or

(3) by local governments with historically high costs of local government or sustained increases in property taxes. Priority will also be given to municipalities that have previously completed a planning grant pursuant to this program or the shared municipal services incentive grant program, and to local governments currently involved in regional development projects that have received funds through state community and infrastructure development programs.

(viii) Within one week of the receipt of an application, the department of state shall review the application to ensure the applicant has filed the correct application, and to determine if any required sections of the application contain no information. Within one business day of determining an applicant has filed an incorrect application, or determining an application contains no information in a section required to contain information, the department shall so notify the applicant. Applicants shall be permitted to amend an application found to be missing information, and such application shall be reconsidered for approval if it is amended by the application deadline. If an applicant has submitted an incorrect application, the applicant may submit the correct application to the appropriate program by the deadline for such program for consideration. Under no circumstances shall this subparagraph be deemed to require the extension of any application deadline established by the department, nor shall it obligate the department to conduct a substantive review of the contents of any application outside of the procedures established by the department for the purposes of maintaining the competitive integrity of the grant program.

(ix) Written notice shall be provided to an applicant of a decision regarding the grant or denial of an award under this paragraph, within thirty days after such decision.

(x) The department of state shall prepare an annual report to the governor and the legislature on the effectiveness of the local government efficiency grant program and the local government citizens re-organization empowerment grant program. Such report shall be provided on or before October first of each year and shall include, but not be limited to, the following: a summary of applications and awards for each grant category, an assessment of progress in implementing initiatives that received grant awards, and estimated financial savings and significant improvements in service realized by municipalities that have received grants.

u. Local government performance and efficiency program.

(i)

(1) Definitions. For the purposes of this subparagraph, "municipality" shall mean a county, city, town, or village, but shall not include the individual counties contained in the city of New York.

(2) Purpose. The purpose of awards made pursuant to this subparagraph is to recognize municipalities that have undertaken significant and innovative actions to improve the overall efficiency of governmental operations and produce quantifiable recurring financial savings that reduce the municipal tax burden on residents.

(3) Eligibility. All municipalities in New York state are eligible to apply individually or jointly, provided however that if an action was undertaken jointly, municipalities must apply jointly for such an action. The actions for which they apply must already have been implemented.

(4) Use of awards. Awards received shall be used by municipalities for general municipal purposes.

(5) Application. The secretary of state shall develop an application for municipalities seeking to receive awards and a process by which the applications will be evaluated. Such application shall require municipalities to demonstrate how the action for which they have applied has resulted in quantifiable recurring savings, efficiencies, and permanent improvements to municipal services. The secretary of state may focus the awards in specific functional service areas, in which case such areas of focus shall be detailed in a request for applications. No application shall be considered for actions that commenced prior to January first, two thousand ten.

(6) Awards. The secretary of state may make awards to applicants based on factors including, but not limited to, the amount of current and future savings, the impact of such action upon the municipal property tax levy, the size and complexity of the action, and the ability for the action to be replicated by other municipalities. Awards shall only be made to municipalities for actions that have been fully implemented, that clearly resulted in quantifiable savings and efficiencies, and that produced permanent and quantifiable improvements to municipal efficiency or services. The maximum amount awarded per application shall not exceed the lesser of five million dollars or twenty-five dollars per resident of the applying municipalities as of the most recent federal decennial census, provided, however, that if the boundaries of municipalities jointly applying for such funding overlap, the residents in overlapping areas shall only be counted once, and provided, further, that if a county jointly applies with some but not all of the other municipalities therein, only the residents in such other municipalities shall be counted.

(7) Written notice shall be provided to an applicant of a decision regarding the grant or denial of an award under this paragraph, within thirty days after such decision.

(8) Regulation. The secretary of state shall, prior to the establishment of applications, promulgate rules and regulations on the awards, including but not limited to award eligibility criteria and application, review and approval procedures.

(ii)

(1) Definitions. For the purposes of this subparagraph, "fiscally eligible municipality" shall have the same meaning as "fiscally eligible municipality" as defined by section 160.05 of the local finance law. For the purposes of this subparagraph, "financial restructuring board for local governments" or "board" shall mean the financial restructuring board for local governments as authorized by section 160.05 of the local finance law.

(2) In addition to awards made pursuant to subparagraph (i) of this paragraph, the board may award funding to fiscally eligible municipalities for financial restructuring and related purposes, as determined by the board. This funding may be structured as a loan, a grant, or combination thereof. The amount of such funding to be provided to a fiscally eligible municipality, the structure of such funding, any conditions to be placed on a fiscally eligible municipality that accepts such funding, and any other aspects of funding awarded pursuant to this subparagraph shall be determined by an affirmative vote of a majority of the total number of members of the board and may differ for each award of funding. Such loans shall not be bound by the local finance law with respect to terms and repayment limitations but in no event may the sum of all awards pursuant to this subparagraph be greater than five million dollars for any single municipality nor may any loan be for a term longer than ten years. Further, any such loans shall not be considered debt for purposes of calculating constitutional limit provisions. Notwithstanding any other law to the contrary, the director of the budget may direct the state comptroller to withhold any state aid payments due to a fiscally eligible municipality in order to satisfy the repayment conditions of the funding awarded pursuant to this subparagraph.

v. Local government efficiency grant program highway functional consolidation incentive.

(i) When used in this paragraph, unless otherwise expressly stated:

(1) "Municipalities" shall mean counties, cities, towns or villages.

(2) "Functional consolidation" shall have the same meaning as in clause two of subparagraph (i) of paragraph o of this subdivision.

(3) "Highway services" shall include, but not be limited to, road maintenance and snow and ice control services.

(ii) If the functional consolidation of highway services in a county results in one municipality providing highway services for at least ninety percent of the lane miles in such county, excluding lane miles for which the state has jurisdiction and maintenance responsibility, or if all of the towns in a county functionally consolidate highway services, then each one of the municipalities party to such functional consolidation shall in the state fiscal year following such consolidation receive additional aid equal to thirty percent of the aid that such municipality received pursuant to section ten-c of the highway law in the state fiscal year preceding such consolidation, which additional aid shall then be reduced in equal parts over the following four years; provided, however, that in no case shall the total of such additional aid provided in a state fiscal year to all municipalities party to one such consolidation exceed one million dollars. If all municipalities party to one such consolidation would otherwise receive a total of more than one million dollars of such additional aid in any state fiscal year, each such municipality shall instead in such state fiscal year receive a pro rata share of one million dollars based on the ratio of the aid which such municipality received pursuant to section ten-c of the highway law in the state fiscal year preceding such consolidation to the total aid which all such municipalities received pursuant to section ten-c of the highway law in the state fiscal year preceding such consolidation. Such additional aid shall be apportioned and paid to the chief fiscal officer of each municipality party to such functional consolidation of highway services on audit and warrant of the state comptroller out of moneys appropriated by the legislature for such purpose to the credit of the local assistance fund in the general fund of the state treasury and shall not be deemed to be consolidated local highway assistance payments pursuant to section ten-c of the highway law.

11. Additional municipal aid program.

1. Definitions. When used in this section, unless otherwise expressly stated "Base level grant" means:

For state fiscal year commencing April first, two thousand six, the total amount of aid for each municipality, other than a school district and the counties of Essex, Hamilton and Franklin, received in the state fiscal year commencing April first, two thousand five, under the aid and incentives for municipalities program in effect at that time and appropriated in chapter fifty of the laws of two thousand five, as amended, which constitutes the public protection and general government budget bill.

2. Additional municipal aid. Additional municipal aid program shall be distributed as follows:

The City of:

Buffalo shall receive $13,644,637

Rochester shall receive $12,000,000

Syracuse shall receive $9,000,000

Yonkers shall receive $11,750,685

3. Additional municipal aid for cities. All cities having a population of less than one hundred twenty-five thousand, in addition to any other aid paid by the state pursuant to the budget for the state fiscal year commencing April first, two thousand six, shall be eligible to receive an apportionment equal to 13.1113 percent of such city's base level grant payable in the state fiscal year commencing April first, two thousand six.

4. Additional municipal aid for towns and villages. All towns and villages shall be eligible to receive an additional annual apportionment equal to 16.7145 percent of such town's and village's base level grant payable in the state fiscal year commencing April first, two thousand six.

5. Payments. In the state fiscal year commencing April first, two thousand six, all payments of grants set forth in subdivisions two, three and four of this section shall be paid in the same "on or before month and day" manner as set forth in subdivision ten of this section.

N.Y. State Fin. Law § 54

Amended by New York Laws 2024, ch. 55,Sec. W-1, eff. 4/20/2024, op. 4/1/2024.

Amended by New York Laws 2022, ch. 55,Sec. X-1, eff. 7/1/2022.

Amended by New York Laws 2021, ch. 322,Sec. 26, eff. 8/2/2021.

Amended by New York Laws 2021, ch. 59,Sec. GGG-1, eff. 4/19/2021.

Amended by New York Laws 2019, ch. 59,Sec. PPP-2, eff. 4/12/2019.

Amended by New York Laws 2019, ch. 59,Sec. PPP-1, eff. 4/12/2019.

Amended by New York Laws 2018, ch. 55,Sec. CC-1, eff. 4/12/2018.

Amended by New York Laws 2013, ch. 67,Sec. 1, eff. 9/22/2013.

Amended by New York Laws 2013, ch. 30,Sec. 2, eff. 5/22/2013.

Amended by New York Laws 2013, ch. 30,Sec. 1, eff. 5/22/2013.

Amended by New York Laws 2013, ch. 55,Sec. K-3-a, eff. 4/1/2013.

Amended by New York Laws 2013, ch. 55,Sec. K-3, eff. 4/1/2013.

Amended by New York Laws 2013, ch. 55,Sec. K-2, eff. 4/1/2013.

Amended by New York Laws 2013, ch. 55,Sec. K-1-a, eff. 4/1/2013.

Amended by New York Laws 2013, ch. 55,Sec. K-1, eff. 4/1/2013.