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Upstate and downstate local leaders ask Albany for more AIM, road and water funding as costs rise

2488664 · February 4, 2025
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Summary

Leaders of cities, counties and towns told joint budget committees that a recent one-time increase in unrestricted aid is welcome but insufficient. They asked lawmakers for predictable, inflation‑adjusted aid, bigger CHIPS allocations, a water/sewer “swap” program, and help with rising EMS and migrant-related costs.

Representatives of New York’s cities, counties and towns pressed state budget negotiators to make recent one‑time increases in local aid recurring and to add targeted programs that meet rising operating and capital costs.

Speakers from the New York State Conference of Mayors, the Association of Counties and the Association of Towns said the $50 million in temporary unrestricted municipal aid included in the current year budget helped but did not restore 15 years of real‑term erosion in state support. They asked the Legislature to convert that into an ongoing, inflation‑indexed increase and to reform how aid is distributed so communities with similar needs are treated more equitably.

Local officials focused on a handful of priorities for this budget cycle. They urged a substantial boost to CHIPS (the state local highway program), arguing that material and labor inflation has shrunk what each dollar now buys for road and bridge work; several associations recommended an increase in baseline CHIPS funding to allow counties, towns and cities to maintain and repair local roads. They also asked for a dedicated, formula stream for water and sewer maintenance — a “swap” style program to cover preventative maintenance and smaller capital repairs that currently fall into competitive grant programs that favor larger projects and better‑resourced applicants.

Counties and towns also described workforce and emergency service pressures. They asked for civil‑service flexibility and more recruitment/retention tools for public safety and first‑responder roles; several witnesses recommended expanding the statutory earning cap for retirees who return to public work and easing civil‑service scheduling to improve hiring. On ambulance services, officials said rural and suburban areas face unsustainable cost increases; they told lawmakers any policy that would make EMS an essential, mandatory county responsibility must be paired with reliable new state funding so local taxpayers are not forced to shoulder the cost.

Speakers also raised the continuing budget impact of caring for asylum seekers that New York City and some counties have absorbed. Local leaders said timely state reimbursement remains inconsistent and urged clearer, simpler reimbursement processes so communities are not left advancing large sums while claims are processed.

Why it matters: Local governments manage most day‑to‑day public services — roads, sewers, emergency response, social services. Many officials told the committees they can implement state priorities if the state provides stable, predictable funding and simplifies grant and reimbursement mechanisms.

What’s next: Witnesses asked the Legislature to make AIM increases recurring and inflation‑adjusted, to add CHIPS and water swap funding in the 2526 budget, to provide flexible grant terms and longer time frames, and to hold a working group with local governments to simplify reimbursement for migrant‑related spending.