ALBANY — State funding for municipalities statewide would be restored under a revised budget plan submitted by Gov. Andrew M. Cuomo Friday, according to a state official.
Cuomo’s 30-day amendments to his budget proposal made Jan. 15 to the Legislature included restoration of a $60 million cut in the Aid and Incentives for Municipalities (AIM), said the official who spoke on the condition of anonymity because the restoration hasn’t yet been announced.
The AIM funding totals $715 million and mayors and other local officials statewide said the unexpected cut was going to force service cuts and/or tax increases. The restored funding would be provided by another Cuomo proposal. That proposal would take advantage of a U.S. Supreme Court decision last year that said internet companies could be required to charge state sales tax even if they don’t have a store or other building located within the state.
That measure is expected to bring $250 million to the state, if the Legislature approves it.
The restoration of AIM funding is planned even as Cuomo seeks to address a $2.3 billion loss in state income tax revenue.