Michele M. Iannello - District 10
June 16, 2008
ERIE COUNTY LEGISLATURE PASSES IANNELLO AID TO MUNICIPALITIES RESOLUTION
The Erie County Legislature, at its June 12th session, passed a resolution authored by Legislator Iannello (D-Kenmore) regarding the State Aid Formulas which determine Aid Incentives for Municipalities (AIM) and Revenue Sharing.
The resolution calls upon Governor Paterson and the State Legislature to re-examine the nearly fifty year old formula as it is based on outdated municipal classifications and outdated demographics.
"State Revenue Sharing Funds have increased to cities since 1995 but not to the 279 villages in New York State. If equal increases had occurred, 279 villages in New York State would have experienced a total increase of $10.7 million up to 2007 allocations," reported Iannello.
"In the 1990's Revenue Sharing was decreased by Albany and the delivery of funds to cities versus villages became increasingly evident. At that time, the already outdated formula was altered to target aid to multipurpose local governments with municipal responsibilities, the 61 cities in New York State. At this time in the 21st century, the terms city, town and village have few distinctions and have more to do with history than governmental function. Many other municipalities now offer the services that were once offered only to cities.
"To compare two municipalities in my legislative district, let's take the City of Tonawanda and the Village of Kenmore. Demographically and geographically, they are very similar. The current formula gave the City of Tonawanda $2.6 million in 2007-2008 and the Village of Kenmore, $651,000. The marked difference is that one is a city and one a village," added Iannello.
Iannello's resolution and the Legislature call upon the Governor and the Legislature to order a comprehensive review of the Revenue Sharing based upon revised criteria and focus less on what a municipality is called, but on the services it provides, the needs of the residents and the economic factors surrounding the municipality.
Iannello added that she is hopeful our Western New York delegation and State Comptroller Thomas P. DiNapoli will partner to promote such a review.
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