Local Government Assistance

Mission

Local Government Assistance programs provide general purpose aid to municipalities, as well as targeted grant programs and incentives for local government efficiency and consolidation actions. State General Fund-supported programs include the Aid and Incentives for Municipalities Program, Temporary Municipal Assistance, Citizen Empowerment Tax Credits, the Citizens Re-Organization Empowerment Grant Program, the Local Government Efficiency Grant Program, the Local Government Performance and Efficiency Program, Video Lottery Terminal (VLT) Aid, and the County-Wide Shared Services Initiative.

Major Programs

County-Wide Shared Services Initiative

Funding for the State's match of the first year of savings from shared services actions that were included in a finalized county-wide shared services plan.

Aid and Incentives for Municipalities

Unrestricted State aid to cities, towns, and villages.

Temporary Municipal Assistance

One-time unrestricted State aid to cities, towns, and villages. FY 2026 will be the second and final year of this aid.

Citizens Reorganization Empowerment Grants

Funding for local governments to cover costs associated with planning and implementing local government reorganization activities, such as consolidations and dissolutions.

Citizen Empowerment Tax Credits

Annual tax credits for cities, towns, or villages that consolidate or dissolve are equal to 15 percent of the newly combined local government’s tax levy. At least 70 percent of such amount must be used for direct relief to property taxpayers.

Local Government Efficiency Grants

Competitive funding to help cover costs associated with local government efficiency projects, such as planning for and/or implementing a functional consolidation, shared or cooperative services, and regionalized delivery of services.

Local Government Performance and Efficiency Program

Grants and/or loans awarded by the Financial Restructuring Board for Local Governments to assist with implementing Board recommendations.

Video Lottery Terminal Aid

Funding for local governments to cover costs associated with hosting a video lottery terminal facility.

Budget Highlights

The Executive Budget recommends $877.3 million in All Funds appropriations to fund miscellaneous State aid and assistance programs. This includes $2.5 million in General Fund State Operations support for the Financial Restructuring Board for Local Governments.

ALL FUNDS
APPROPRIATIONS
(dollars)
Category	Available FY 2025	Appropriations Recommended FY 2026	Change From FY 2025	Reappropriations Recommended FY 2026
State Operations	2,500,000	2,500,000	0	0
Aid To Localities	859,848,107	877,259,107	17,411,000	302,908,246
Total	862,348,107	879,759,107	17,411,000	302,908,246

STATE OPERATIONS
ALL FUNDS FINANCIAL REQUIREMENTS BY FUND TYPE
APPROPRIATIONS
(dollars)
Fund Type	Available FY 2025	Recommended FY 2026	Change
General Fund	2,500,000	2,500,000	0
Total	2,500,000	2,500,000	0

STATE OPERATIONS
ALL FUNDS FINANCIAL REQUIREMENTS BY PROGRAM
APPROPRIATIONS
(dollars)
Program	Available FY 2025	Recommended FY 2026	Change
Financial Restructuring Board
General Fund	2,500,000	2,500,000	0
Total	2,500,000	2,500,000	0

STATE OPERATIONS - GENERAL FUND
SUMMARY OF NONPERSONAL SERVICE AND MAINTENANCE UNDISTRIBUTED
APPROPRIATIONS AND CHANGES
FY 2026 RECOMMENDED
(dollars)
Program	Total
Program	Amount	Change
Financial Restructuring Board	2,500,000	0
Total	2,500,000	0

STATE OPERATIONS - GENERAL FUND
SUMMARY OF NONPERSONAL SERVICE AND MAINTENANCE UNDISTRIBUTED
APPROPRIATIONS AND CHANGES
FY 2026 RECOMMENDED CONTINUED
(dollars)
Program	Contractual Services
Program	Amount	Change
Financial Restructuring Board	2,500,000	0
Total	2,500,000	0

AID TO LOCALITIES
ALL FUNDS FINANCIAL REQUIREMENTS BY FUND TYPE
APPROPRIATIONS
(dollars)
Fund Type	Available FY 2025	Recommended FY 2026	Change
General Fund	859,848,107	877,259,107	17,411,000
Total	859,848,107	877,259,107	17,411,000

AID TO LOCALITIES
ALL FUNDS FINANCIAL REQUIREMENTS BY PROGRAM
APPROPRIATIONS
(dollars)
Program	Available FY 2025	Recommended FY 2026	Change
Aid and Incentives for Municipalities
General Fund	758,172,213	758,172,213	0
Aid to Municipalities with VLT Facilities
General Fund	30,119,594	30,119,594	0
Miscellaneous Financial Assistance
General Fund	21,339,000	38,750,000	17,411,000
Small Government Assistance
General Fund	217,300	217,300	0
TEMPORARY MUNICIPAL ASSISTANCE
General Fund	50,000,000	50,000,000	0
Total	859,848,107	877,259,107	17,411,000

Note: Most recent estimates as of 01/21/2025

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