New York · Through 2026-09-11

N.Y. State Finance Law § 54: Per capita state aid for the support of local government

§ 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, subdivision two 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 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.
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 twenty-four 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 exceed one 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 subdivision one 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 subdivision one 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 clause one 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 subdivision
one 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 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 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.
  s. 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 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 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.

Where this section sits in the code

State Finance Law
Article 4-A. State Assistance to Local Government

§ 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, subdivision two 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,

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 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.

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.

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.

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 twenty-four 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