Bill > S02385

This bill modifies the state finance law to establish a new framework for distributing enhanced aid and incentives to municipalities starting in the 2026-2027 fiscal year. The bill creates a per-capita funding model where municipalities will receive aid based on their population, with two distinct tiers of funding. Tier 1 municipalities (smaller towns, villages, and cities with populations of 15,000 or less for towns, 10,000 or less for villages, and 20,000 or less for cities) will receive 80% of the annual appropriation, while Tier 2 municipalities (larger towns, villages, and cities with populations above those Tier 1 thresholds but below one million) will receive the remaining 20%. The aid is defined as additional funding beyond existing municipal aid, and population will be determined using the most recent federal decennial census. The calculation method involves dividing the total annual appropriation by the municipality's population to determine the per-capita amount. The bill will take effect on April 1, 2026, contingent upon an appropriation for the enhanced aid and incentives program in the 2026-2027 state budget.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S2385