Heeding the message that significant cuts to municipal aid would result in increased local property tax burdens, AIM funding for most municipalities was maintained at current year levels. It should be noted, however, that New York City's AIM allocation would be eliminated and that 33 cities would not receive a portion of an additional amount that was added by the Legislature in 2008-09 to their "core" AIM funding. Additionally, municipalities would lose $112 million in CHIPS highway aid under this plan.

On a positive note, the Budget includes several mandate relief initiatives that will help local governments lower costs and, in some cases, offset reductions in state aid. In addition to procurement reforms, proposals to reduce local government litigation costs, and additional relief from the state's Wicks Law requirements, including a five year Wicks-exemption for school districts, the Budget calls for a new Tier 5 for non-uniformed employees, and for uniformed employees in the City of New York. Even though pension rates have declined moderately in recent years, cities and villages budgets are still plagued by the tenfold increase in pension costs they experienced between 2003 and 2005. Creation of a more affordable pension tier will not harm a single existing worker, yet will ensure much-needed cost savings in years to come. Where this proposal falls short, however, is by limiting this new tier to the non-uniformed workforce, except in New York City. The anticipated savings to local governments would increase significantly if this much-needed pension reform was expanded to include all public sector employees.

Since its release, the headlines on the Budget have criticized just about every negative action proposed, from the cuts in school aid and Medicaid, to the elimination of certain sales tax exemptions. But given the looming deficits and the current economic climate, no one said it was going to be easy. Time will only tell what the final budget will look like, but there is one thing that is certain -- the next few months are bound to be interesting. It is worth pointing out, however, that New York's property taxpayers would be well-served if the Senate and Assembly, as they develop their priorities for aid restorations, place the cuts in AIM and CHIPS at the top of their lists.