Nearly 400 mayors and local officials from across New York sent a letter to New York Gov. Kathy Hochul and state legislative leaders asking the state to continue increasing funding for small governments as state budget negotiations take place in Albany, the New York state Conference of Mayors and Municipal Officials (NYCOM) announced late last week.

Known as AIM, or aid and incentives for municipalities, cities and towns received a $50 million boost in unrestricted funding in last year’s budget following an aggressive campaign from local leaders, the first increase in 15 years. These state funds are used by small governments to pay for things like supplies and wages for police officers and firefighters.

“The additional $50 million in funding is a welcome and much-needed step toward addressing the fiscal challenges our local governments face. We appreciate this recognition of the critical role municipalities play in improving the quality of life across New York State,” the letter, dated March 7 reads. “Unfortunately, local governments continue to grapple with the impacts of inflation, the end of federal ARPA funds, the flattening of sales tax revenue – and now the threat of losing federal aid. These factors, coupled with 15 years of level funding and a 2% tax cap, have placed significant financial strain on many municipalities. To ensure that local governments are better positioned to weather the economic challenges they face, we urge you as part of the 2025-26 state budget to build upon your recent investment by committing to consistent and predictable annual increases in AIM funding.”

The request comes a few weeks after state Comptroller Tom DiNapoli released a report saying local governments may face increased budget challenges this year due to factors like the expiration of federal pandemic-era aid, state aid not keeping up with inflation and slower growth in local revenue. Regarding AIM funding, DiNapoli said despite last year’s increase in funds, when adjusting for inflation, AIM funding has declined nearly 30% over that time, and is now worth less to local governments than what they received in fiscal year 2004-05, the year before the AIM program started.

“The message from our mayors and municipal officials is clear: we need the State of New York to increase its investment in its cities and villages,” said NYCOM Executive Director Barbara J. Van Epps in a statement. “We certainly appreciate the additional funding we received last year but given the challenges we face, a one-time increase is not sufficient. To truly empower local officials to make their communities safer and more affordable, we urge our state leaders to build upon this critical investment. The strength and vitality of our local governments depends on it.”

The state budget is due April 1.