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§ 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 inmates of state institutions under the direction, supervision or
control of the state department of correctional services and the state
department of mental hygiene and the inmates of state institutions
operated and maintained by the state division for youth.
(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 state board of real property services 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 state board 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 and furnish to
the state board of real property services 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 and furnish to the state board of real property
services by June fifteenth of each year, a certified report setting
forth total state tax collections during the prior state fiscal year.

* NB Effective until passage of constitutional amendment (A. 2) at the
November 2005 General Election

* The comptroller and the commissioner of taxation and finance shall
jointly prepare and furnish to the state board of real property services
by July fifteenth of each year, a certified report setting forth total
state tax collections during the prior state fiscal year.

* NB Veto override by the legislature 5/23/2005 -- Effectiveness
contingent upon passage of constitutional amendment (A. 2) at the
November 2005 General Election

"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 state board of real property services 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 state board of real property
services.
e. List of filings and withdrawals. On or before October fifth of each
year, the state comptroller shall furnish to the state board of real
property services 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 state board of real property services 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 state board of real property services,
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 state board of real property
services, 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 state board of real
property services shall estimate the full value of the town outside
village, provided that the supervisor of the town applies to the state
board 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 state board of real property services
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 state board
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 state board of real property services, 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
state board of real property services, furnish to the state board of
real property services such information as may be required for the
purpose of carrying out the provisions of this section.

6. Payments. a. The state board of real property services 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 state board 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 state board pursuant to this section shall be filed in the office of
the state board.
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 to the state board of real property
services 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 state
board of real property services.
(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 state board of real property services 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 the state fiscal year commencing
 April first, two thousand five, 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
 year 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 section, unless otherwise expressly
 stated:
 (1) "Population" of a city, town or village means the population data
 for such municipalities based upon the two thousand federal decennial
 census.
 (2) "Base level grant" means the total amount of aid a municipality
 other than a school district received in the state fiscal year
 commencing April first, two thousand four, under programs known at that
 time as general purpose local government aid, emergency financial aid to
 certain cities, emergency financial assistance to eligible
 municipalities, supplemental municipal aid and small government
 assistance, and appropriated in chapter fifty of the laws of two
 thousand four which constitutes the public protection and general
 government budget bill. Provided, however, within amounts appropriated,
 in the case of the cities of Glens Falls, Ithaca, Little Falls, Rye,
 Saratoga Springs, Sherrill and Watervliet, the "base level grant" shall
 be the amount paid in the fiscal year commencing two thousand four plus
 one hundred thousand dollars. Provided, further, within amounts
 appropriated, that the following towns, school districts and counties
 shall receive the amounts listed below in state fiscal year commencing
 April first, two thousand five and such additional amounts that are paid
 to towns shall be included in such towns' "base level grant":
 For payment to the Town of Leon .................................. 1,200
 For payment to the Town of Preston ............................... 1,000
 For payment to the Town of Hancock .............................. 18,500
 For payment to the Town of Tompkins .............................. 1,000
 For payment to the Town of Walton ................................ 6,400
 For payment to the Town of Chesterfield ......................... 17,500
 For payment to the Town of Crown Point .......................... 24,700
 For payment to the Town of Elizabethtown ......................... 9,000
 For payment to the Town of Essex ................................. 1,000
 For payment to the Town of Jay ................................... 5,000
 For payment to the Town of Lewis in the County of Essex ......... 14,400
 For payment to the Town of Moriah ............................... 14,000
 For payment to the Town of Newcomb .............................. 66,900
 For payment to the Town of North Hudson ......................... 13,200
 For payment to the Town of Westport .............................. 7,200
 For payment to the Town of Wilmington ............................ 1,000
 For payment to the Town of Altamont ............................. 32,200
 For payment to the Town of Bellmont ............................. 25,600
 For payment to the Town of Duane ................................. 1,300
 For payment to the Town of Franklin in the County of Franklin .... 8,000
 For payment to the Town of Harrietstown .......................... 8,800
 For payment to the Town of Long Lake ............................ 38,900
 For payment to the Town of Morehouse ............................. 4,300
 For payment to the Town of Greig ................................. 2,200
 For payment to the Town of Osceola .............................. 14,200
 For payment to the Town of Clare ................................. 4,600
 For payment to the Town of Clifton ............................... 4,000
 For payment to the Town of Colton ............................... 42,300
 For payment to the Town of Fine .................................. 7,800
 For payment to the Town of Hopkinton ............................. 1,000
 For payment to the Town of Pitcairn .............................. 1,200
 For payment to the Town of Russell ............................... 2,700
 For payment to the Town of Day .................................. 10,100
 For payment to the Town of Denning .............................. 36,800
 For payment to the Town of Thurman ............................... 7,300
 For payment to the Ausable Valley School District ............... 42,500
 For payment to the Northern Adirondack School District .......... 19,500
 For payment to the Franklin School District ...................... 2,800
 For payment to the Hancock School District ...................... 55,200
 For payment to the Walton School District ........................ 7,000
 For payment to the Crown Point School District .................. 50,900
 For payment to the Elizabethtown-Lewis School District .......... 96,100
 For payment to the Moriah School District ....................... 21,400
 For payment to the Newcomb School District ...................... 91,600
 For payment to the Schroon Lake School District .................. 4,900
 For payment to the Westport School District ..................... 32,600
 For payment to the Tupper Lake School District ................. 102,400
 For payment to the Saranac Lake School District .................. 9,100
 For payment to the Long Lake School District .................... 81,100
 For payment to the Port Jervis School District .................. 18,000
 For payment to the Clifton-Fine School District ................. 23,400
 For payment to the Colton-Pierrepont School District ............ 65,300
 For payment to the Edwards-Knox School District .................. 6,300
 For payment to the Edinburg School District ..................... 28,100
 For payment to the Eldred School District ...................... 100,700
 For payment to the Tri-Valley School District ................... 18,100
 For payment to the Livingston Manor School District ............. 16,400
 For payment to the Delaware Valley-Jeffers School District ...... 34,900
 For payment to the Warrensburg School District .................. 21,300
 For payment to the County of Essex .............................. 64,500
 For payment to the County of Franklin ........................... 37,500
 For payment to the County of Hamilton ........................... 11,100
 (3) "Aid and incentives for municipalities" means the total of all aid
 payable to municipalities pursuant to this section.
 (4) "Municipality" means a city, county, town, village or school
 district.
 (5) "Shared municipal services incentive award" means a state
 assistance payment to two or more municipalities, including counties,
 cities, towns, villages, or school districts, pursuant to paragraph h of
 this subdivision.
 b. Base level grants. Within amounts appropriated in the state fiscal
 year commencing April first, two thousand five there shall be
 apportioned and paid to municipalities a base level grant as defined in
 subparagraph two of paragraph a of this subdivision.
 c. Additional annual apportionments. Within amounts appropriated in
 the state fiscal year commencing April first, two thousand five, in
 addition to base level grants, certain cities, towns and villages shall
 be eligible to receive additional aid and incentives for municipalities
 apportioned as follows:
 (1) Any city with a population less than one million shall be eligible
 to receive an additional annual apportionment equal to twelve and
 seventy-five one hundredths percent of such city's base level grant in
 the state fiscal year commencing April first, two thousand five. As a
 condition of receiving such additional annual apportionments each city
 except for a city subject to a control period under a state imposed
 fiscal stability authority shall:
 (a) Develop a three-year financial plan that includes, at a minimum,
 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
 projection of 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 except such
 three-year financial plan shall not apply to a city subject to a
 different financial plan reporting requirement pursuant to state law.
 (b) Minimize property tax rate growth through the use of additional
 annual apportionments provided pursuant to this paragraph, unless such
 increases result from non-discretionary spending growth including
 employee pensions and health insurance costs.
 (c) Seek cost saving efficiencies within existing city operations as
 well as through shared service arrangements, consolidations or mergers
 with other municipalities and document such efforts as part of the
 city's three-year financial plan, pursuant to clause (a) of this
 subparagraph;
 (2) All towns and villages shall be eligible to receive an additional
 annual apportionment equal to three and three-quarters percent of such
 town's and village's base level grant in the state fiscal year
 commencing April first, two thousand five;
 (3) Notwithstanding subparagraph two of this paragraph, each town and
 village shall receive no less than a five hundred dollar increase in the
 state fiscal year commencing April first, two thousand five.
 d. Payments. (1) In the state fiscal year commencing April first, two
 thousand five, base level grants shall be paid in the same "on or before
 month and day" manner as: (i) paid in the state fiscal year commencing
 April first, two thousand four under programs known as general purpose
 local government aid, emergency financial aid to certain cities,
 emergency financial assistance to eligible municipalities, supplemental
 municipal aid and small government assistance, and appropriated in
 chapter fifty of the laws of two thousand four which constitutes the
 public protection and general government budget bill, with the following
 exceptions:
 (A) The city of Gloversville shall receive one hundred eighty-seven
 thousand fifty-two dollars on or before the twenty-fifth day of
 September; and one million two hundred seventy-one thousand fifty
 dollars on or before the twenty-fifth day of December;
 (B) The city of Schenectady shall receive eight hundred forty thousand
 four hundred ninety-four dollars on or before the twenty-fifth day of
 September; and six million two hundred fifty-five thousand six hundred
 twenty-eight dollars on or before the twenty-fifth day of December; and
 (C) The city of Yonkers shall receive eleven million one hundred
 thirty-eight thousand eight hundred sixty-nine dollars on or before the
 twenty-fifth day of May; twenty-three million nine hundred twenty-two
 thousand two hundred ninety-eight dollars on or before the twenty-fifth
 day of June; four million one hundred three thousand one hundred
 ninety-two dollars on or before the twenty-fifth day of October; ten
 million four hundred sixty-one thousand four hundred sixty-two dollars
 on or before the twenty-fifth day of December; and twenty-two million
 nine hundred thirty-four thousand six hundred seventy-three dollars on
 or before the twenty-fifth day of March; or
 (ii) as set forth in part R of chapter fifty-six of the laws of two
 thousand four relating to unrestricted aid to certain cities;
 (2) Additional annual apportionments shall be paid on or before
 December fifteenth for cities with fiscal years beginning January first
 and on or before March fifteenth for all other cities.
 (3) Additional annual apportionments for towns and villages shall be
 paid on the same payment schedule as their base level grant.
 (4) Aid and incentives for municipalities shall be apportioned and
 paid to the chief fiscal officer of each locality 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. Any city, including cities with a
 population of one million or more, town or village receiving aid and
 incentives for municipalities pursuant to this section shall use such
 aid only for general municipal purposes except as provided in
 subparagraphs five and six of this paragraph.
 (5) 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.
 (6) The base level grant payable 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;
 (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; and
 (ix) Notwithstanding any other law to the contrary, the base level
 grant paid to any city with a population of one million or more on or
 before December twenty-fifth shall be for an entitlement period ending
 the immediately preceding June thirtieth.
 e. Additional annual apportionments pursuant to paragraph c of this
 subdivision 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 to minimize and/or eliminate the
 need for property tax increases and authority borrowings, within the
 context of an authority-approved four year financial plan. Any funds not
 used for such purposes shall be held by the authority for use by the
 city for initiatives to permanently reduce the cost of city government.
 f. On or before March thirty-first, two thousand six, the chief
 elected official of each city receiving additional annual apportionments
 pursuant to paragraph c of this subdivision, shall submit written
 certification to the director of the budget that such city has complied
 with the conditions pursuant to subparagraph one of paragraph c of this
 subdivision. In the event of a failure to provide such certification,
 the director of the budget shall be authorized to direct the comptroller
 to withhold any local assistance state aid payable to such city on or
 after April first, two thousand six up to the amount of such additional
 annual apportionment until such certification is provided.
 g. Consolidations, mergers, or dissolutions; entitlement to aid and
 incentives for municipalities. (1) 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 and c
 of this subdivision, would have been otherwise payable to the individual
 cities, towns, or villages that were party to such consolidation,
 merger, or dissolution.
 (2) The annual amount of such payments of aid and incentives for
 municipalities, as defined in subparagraph three of paragraph a of this
 subdivision, 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 and c 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 the 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.
 h. Shared municipal services incentive awards. (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 mergers, consolidations, cooperative agreements,
 dissolutions and shared services of municipalities where authorized by
 state law.
 (2) For the purposes of this subdivision, "municipalities" shall mean
 counties, cities, towns, villages and school districts;
 (3) 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;
 (4) The maximum grant awarded shall not exceed one hundred thousand
 dollars per municipality;
 (5) Local matching funds, equal to ten percent of the total approved
 project cost, shall be required;
 (6) No part of the grant shall be used by the applicant for recurring
 expenses such as salaries; and
 (7) 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.
 [...]
 r.  Local  government  efficiency grant program beginning in the state
 fiscal year commencing April first, two thousand eleven. (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, 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.

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