Section 54. Per capita state aid for the support of local government

1.
  Definitions. When used  in  this  section,  unless  otherwise  expressly
  stated:
    a.  (1)  "Population"  of  a  county,  city, town or village means the
  population as shown by the latest  preceding  decennial  federal  census
  completed and published as a final population count by the United States
  bureau of the census preceding the commencement of the state fiscal year
  in which the apportionment and payment are made, or a special population
  census  certified  to  the  state  comptroller pursuant to this section,
  whichever  is  later.  The  population  of  a  town  shall  include  the
  population  of any village or villages or parts thereof within such town
  but shall exclude the population of any city or part thereof within such
  town.
    (2) The population of  a  town  outside  village  area  shall  be  the
  population  of  the  town  minus  the population of the area of the town
  located in any village or villages for the same year and  shall  exclude
  persons residing within the boundaries of a military post or reservation
  under  the  jurisdiction  of  the  United States to the extent that they
  exceed twenty-five percent of the  population  of  a  town  outside  the
  village area.
    (3)  Where there is an alteration in the boundaries of a county, city,
  village, town or town outside village  or  a  municipality  is  created,
  population  shall  be  determined in accordance with subdivision four of
  this section.
    (4) Population excludes the reservation and school  Indian  population
  and  inmates  of  state institutions under the direction, supervision or
  control of the state department of correctional services and  the  state
  department  of  mental  hygiene  and  the  inmates of state institutions
  operated and maintained by the state division for youth.
    (5) Where the director of the  United  States  bureau  of  the  census
  certifies  that  the  population  of a county, city, town or village, as
  shown by such latest preceding decennial or  special  population  census
  should  be  corrected  because  it,  (a)  excludes a specified number of
  persons who were actually residing in such county, city, town or village
  at the time of such census,  or  (b)  includes  a  specified  number  of
  persons  who  were  not  actually residing in such county, city, town or
  village at the time of such census, a copy of such certificate shall  be
  filed  by  the  locality or state agency receiving such certificate with
  the state comptroller within ten days of receipt. In the case of a  gain
  in  population, the specified number shall be added to the population on
  the basis of which moneys are apportioned and paid in state fiscal years
  subsequent to  the  date  such  certificate  is  filed  with  the  state
  comptroller.  In  the case of a loss in population, the specified number
  shall be subtracted from the population of such county,  city,  town  or
  village  on the basis of which moneys are apportioned and paid under the
  provisions of this section commencing with the first state  fiscal  year
  beginning  not  less  than six months after the date such certificate is
  required to be filed with the state comptroller.
    b.  "Special  population  census"  or  "special  census"   means   the
  population  of  a  county, city, town or village certified by the United
  States bureau of the  census  as  of  a  date  not  earlier  than  March
  fifteenth and not later than May fifteenth in any year subsequent to the
  latest  federal  decennial  census, which shall have been filed with the
  state comptroller and not subsequently withdrawn, in accordance with the
  provisions of subdivision three of this section.
    c. "Full value" of a county, city, village or town  means  the  amount
  which  results  from  dividing  the  total  assessed  valuation  of real
  property taxable by it on its assessment roll by the state  equalization

  rate  established  by the state board of real property services for such
  roll except as otherwise provided in subdivision four of  this  section.
  The  assessment  roll of a county shall be the aggregate of the assessed
  valuations  taxable  for  county purposes on the assessment rolls of the
  cities and towns therein and the state equalization rate applied thereto
  shall be the county-wide rate established by the state  board  for  such
  roll  in  any  case where a regular or special census for all or part of
  the county taken in nineteen hundred sixty-six or a later year  is  used
  in the county aid calculation.
    In  the case of the city of New York, the city-wide state equalization
  rate established pursuant to article twelve of the real property tax law
  shall be used except that, if no such rate has been established for  the
  roll used in the calculation, the equalization rate shall be computed as
  provided  in  subdivision  one  of section four hundred eighty-nine-l of
  such law.
    "Full value" of a town outside village means the full  value  obtained
  by  applying  the  state  equalization  rate of the town to the assessed
  value of the unincorporated area of the town calculated on the basis  of
  the  town  assessment  roll,  except that where subdivision four of this
  section applies town outside village  full  value  shall  be  calculated
  under the provisions of such subdivision. Where the full value of a town
  includes  property  located within a city, the town outside village full
  value shall be calculated as if such city was a village.
    The assessment roll used in calculating aid for a city, village,  town
  or  town outside village under this section shall be the assessment roll
  completed in the calendar year preceding the calendar year of the census
  used in the calculation.
    The assessment roll used in calculating aid for a  county  under  this
  section  shall  be  the  county-wide  assessment  roll  completed in the
  calendar year preceding the calendar year of the latest census used  for
  all or part of the county in such calculation.
    Where full value is authorized to be estimated pursuant to subdivision
  four of this section such estimated full value shall be used.
    An  assessment roll shall be deemed to have been completed on the last
  date on which such roll was authorized by law to be finally completed.
    d. "Personal income" of a county means the estimate of the  income  of
  the  residents  of  the county, certified by the state tax commission in
  accordance with the provisions of this paragraph, for the  taxable  year
  preceding  the  year  of  the latest population census for the county or
  part thereof to be used in calculating per  capita  aid  payments  under
  this section.
    The  commissioner of taxation and finance shall prepare and furnish to
  the state board of real property services by October fifteenth  of  each
  year, a certified report setting forth an estimate of the total New York
  adjusted  gross  income, as defined in section six hundred twelve of the
  tax law, of all residents of the state and of each county  based  on  an
  examination  of  personal  income  tax  returns  filed  with  the  state
  department of taxation and finance for the preceding taxable year  under
  article twenty-two of the tax law.
    e.  "Full  value  per capita" of a county, city, town, village or town
  outside village means the full  value  of  such  municipality  or  area,
  divided by the population thereof.
    f.  "Personal income per capita" of a county means the personal income
  of the county divided by the population of the county.
    g. "Average of full value and personal income per capita" of a  county
  means  the  average of the full value per capita and personal income per
  capita of the county determined as provided by paragraphs  e  and  f  of
  this subdivision for payments to the county during the state fiscal year

  except   that  the  amount  for  personal  income  per  capita  used  in
  calculating such average shall be multiplied by the  ratio  computed  to
  the  sixth  decimal  point  of  the aggregate full value of taxable real
  property  in  the state to the aggregate personal income of residents of
  the state, for the calendar year preceding the year of the latest census
  to be used in the calculation of per capita aid payable to the county in
  such state fiscal year. In computing such  ratio  full  value  shall  be
  calculated upon the basis of assessment rolls completed in such calendar
  year  and  personal  income shall be the estimate filed by the state tax
  commission pursuant to paragraph d of  this  subdivision  for  the  same
  calendar year.
    h. "County", for the purposes of computation and payment of per capita
  aid  to  counties  under this section, means each county located outside
  the city of New York and the city of New York.
    i. "Town outside village" or "town outside  village  area"  means  the
  area  of  any  town  which  is  not  included within the boundaries of a
  village.
    j. The comptroller and the commissioner of taxation and finance  shall
  jointly prepare and furnish to the state board of real property services
  by  June  fifteenth of each year, a certified report setting forth total
  state tax collections during the prior state fiscal year.
    "Total state tax collections", for the  purposes  of  computation  and
  payment of aid under this section, means all net revenues accrued to any
  fund  of the state pursuant to the following provisions during the prior
  state fiscal year:
    (1) section twenty-five of chapter nine hundred twelve of the laws  of
  nineteen hundred twenty, as amended;
    (2)  section  two hundred nineteen of the racing, pari-mutuel wagering
  and breeding law, as amended;
    (3) article nine of the tax law, except fees  and  considerations  for
  releases of liens;
    (4)  article nine-A of the tax law, except fees and considerations for
  releases of liens;
    (5) article ten of the tax law, except  fees  and  considerations  for
  releases of liens;
    (6) article twelve of the tax law;
    (7) article twelve-A of the tax law, except license fees under section
  two hundred eighty-three-a of the tax law;
    (8) article thirteen of the tax law;
    (9) article eighteen of the tax law;
    (10) article twenty of the tax law;
    (11) article twenty-one of the tax law;
    (12) article twenty-two of the tax law;
    (13) article twenty-six of the tax law;
    (14) article twenty-six-A of the tax law;
    (15) article twenty-eight of the tax law;
    (16) article thirty-one of the tax law;
    (17) article thirty-two of the tax law;
    (18) article thirty-three of the tax law;
    (19) sections two hundred eight, two hundred twenty-eight, two hundred
  twenty-nine,  three  hundred  eighteen,  four  hundred eighteen and five
  hundred twenty-seven of the racing, pari-mutuel  wagering  and  breeding
  law;
    (20) the alcoholic beverage control law; and
    (21)  the  vehicle  and  traffic  law  for  the  registration of motor
  vehicles, trailers  and  motorcycles,  for  licenses  to  operate  motor
  vehicles, as operators or chauffeurs, and for learners' permits, and for

  licenses  for  drivers  schools,  automobile  dealers,  and  for lost or
  cancelled licenses and certificates.
    2.  Annual apportionment.  During each fiscal year of the state, there
  shall be apportioned and paid to the several counties, cities, towns and
  villages, from moneys appropriated by the  state,  for  the  support  of
  local  government including the state portion of local matching funds as
  required by section three hundred three, subdivision two of the  Omnibus
  Crime  Control  and  Safe Streets Act of 1968, as amended, the following
  amounts:
    a. City, village and town outside village.  To each city  and  village
  and  to  each town for the town outside village area, an amount equal to
  the population of such city, village or town outside village  multiplied
  by the following rates: cities, eight dollars and sixty cents; villages,
  three  dollars  and  sixty  cents;  and  town outside village areas, two
  dollars and five cents, plus an increase in such rate of five cents  for
  each  one  hundred dollars, or part thereof, by which the full value per
  capita of the city, village or town outside village is less  than  eight
  thousand dollars; and
    b.  Town-wide.  To each town for the entire town area, an amount equal
  to the population of the town multiplied by three dollars and fifty-five
  cents; and
    c. County.  To each county, an amount equal to the population of  such
  county  multiplied  by sixty-five cents plus an increase in such rate of
  five cents for each one hundred dollars, or part thereof, by  which  the
  county average of full value and personal income per capita is less than
  eight thousand dollars.
    d.  Additional  apportionment.    During  the fiscal year of the state
  beginning April first, nineteen hundred seventy-one  and  in  each  such
  year  thereafter  prior  to the fiscal year of the state beginning April
  first, nineteen hundred seventy-nine, there shall be paid to the cities,
  counties, towns and villages of the state, in addition  to  the  amounts
  provided  by  paragraphs  a,  b and c of this subdivision, an additional
  apportionment calculated by determining the amount of  nine  percent  of
  the  total  state personal income tax collections during the prior state
  fiscal year, subtracting the total amount required under paragraphs a, b
  and  c  of  this  subdivision,  determining  the  percentage  which  the
  remainder  is  of the total payments under paragraphs a, b and c of this
  subdivision, and then increasing the  amount  payable  to  each  county,
  town,  village  and city under paragraphs a, b and c of this subdivision
  by such percentage. During the fiscal year of the state beginning  April
  first,  nineteen  hundred seventy-nine and in each such year thereafter,
  there shall be paid to the counties, towns, villages and cities  of  the
  state,  in  addition to the amounts provided by paragraphs a, b and c of
  this subdivision, an additional apportionment calculated by  determining
  the  amount  of  four per cent of the total state tax collections during
  the prior state  fiscal  year,  as  certified  by  the  commissioner  of
  taxation  and finance pursuant to paragraph j of subdivision one of this
  section, subtracting the total amount required under paragraphs a, b and
  c of this subdivision, determining the percentage which the remainder is
  of the total payments under paragraphs a, b and c of  this  subdivision,
  and then increasing the amount payable to each county, town, village and
  city under paragraphs a, b and c of this subdivision by such percentage.
    e.  Additional  city  apportionment.    On June twenty-fifth, nineteen
  hundred seventy-one  and  in  each  year  thereafter  to  and  including
  nineteen hundred seventy-eight, there shall be paid to the cities in the
  state  in existence on April one, nineteen hundred sixty-eight an amount
  equal to nine percent of the total state personal income tax collections
  during the prior state  fiscal  year.  On  June  twenty-fifth,  nineteen

  hundred seventy-nine and in each year thereafter, there shall be paid to
  the  cities  in  the state in existence on April first, nineteen hundred
  sixty-eight, an  amount  equal  to  four  percent  of  total  state  tax
  collections  during  the  prior  state  fiscal  year as certified by the
  commissioner  of  taxation  and  finance  pursuant  to  paragraph  j  of
  subdivision  one  of  this  section. Such amount shall be apportioned to
  such cities on the basis of the percentage that the total population  of
  each city bears to the total population of all cities in the state.
    f.  Notwithstanding  any provision of law to the contrary, the amounts
  apportioned to the cities of the state pursuant to paragraph a  of  this
  subdivision  shall  be  paid on or before June twenty-fifth in the state
  fiscal year commencing April first, nineteen hundred seventy-one and  on
  or  before  June  twenty-fifth  of each subsequent state fiscal year and
  when the fiscal year of  a  city  ends  on  April  thirtieth  an  amount
  equivalent  to one-fourth of the amount payable to such city pursuant to
  this paragraph and  paragraph  a  of  this  subdivision  shall  be  paid
  annually  on  or before April twenty-fifth and when the fiscal year of a
  city ends on May thirty-first an amount equivalent to  one-half  of  the
  amount  payable  to such city pursuant to this paragraph and paragraph a
  of  this  subdivision  shall  be  paid  annually  on   or   before   May
  twenty-fifth.
    3.  Filing and withdrawal of special population census.  a.  Filing. A
  county, city, village or town may file on or before October first in any
  year a special census of the population within its boundaries  certified
  by  the  United  States  bureau of the census or a copy thereof and such
  special census unless withdrawn as provided  herein  shall  be  used  in
  apportioning  per capita state aid to such county, city, village or town
  in subsequent state fiscal years until a later census  become  effective
  for  such  apportionments  in  accordance  with  the  provisions of this
  section.
    b. Withdrawal.  A county, city, village or town upon notice filed with
  the state comptroller on or  before  December  first  of  any  year  may
  withdraw a special population census so filed. A special census filed by
  a  county,  city,  village  or  town in nineteen hundred sixty-eight and
  thereafter shall be used for the apportionment of per capita  state  aid
  to  such  county, city, village or town in subsequent state fiscal years
  until a later census becomes effective; provided, however, that if  such
  special  census  would result in a lesser amount of per capita aid being
  paid to such county, city, village  or  town  in  any  subsequent  state
  fiscal year, such special census shall be deemed to have been withdrawn,
  but  only  for purposes of the computation and payment of per capita aid
  in such subsequent year.
    c. Cross-filing by city, town or county.    Any  city  or  town  which
  receives  a certification of a special population census from the United
  States bureau of the census within ten days of its receipt shall file  a
  copy  of  such certification with the chief fiscal officer of the county
  within which it is located. Any county, which has a county-wide  special
  population  census,  within  ten days of receipt of the certification by
  the United States bureau of the census, shall file a copy with the chief
  fiscal officer of  each  city,  village  and  town  located  within  its
  boundaries.
    d.  Notice  to  state  board of real property services of contract for
  special census. Each county, city, village and town which enters into  a
  contract  with  the  United  States  bureau  of the census for a special
  population census  shall,  within  thirty  days  of  the  date  of  such
  contract,  file  written  notice  with  the state board of real property
  services.

    e. List of filings and withdrawals. On or before October fifth of each
  year, the state comptroller shall furnish to the  state  board  of  real
  property  services a list of the names of the counties, cities, villages
  and towns which filed  special  population  censuses  pursuant  to  this
  subdivision,  in  that  year, showing for each such locality the date of
  such filing and in the case of a county which has so  filed  for  county
  aid purposes a special census of some but not all of the cities or towns
  located therein, the names of such cities and towns. A copy of each such
  special  population census so filed shall be transmitted with such list.
  On or before December fifth of each year, the  state  comptroller  shall
  furnish  to  the  state  board  of real property services a list setting
  forth the name  of  each  county,  city,  village  and  town  which  has
  withdrawn  the  filing  of  a special population census pursuant to this
  subdivision including, in the case of a  county  where  the  census  was
  withdrawn  for  some  but not all of the cities and towns in the county,
  the names of such cities and towns.
    f. Notwithstanding paragraphs a through  e  of  this  subdivision,  no
  special  census  shall  be  used  for the computation, apportionment and
  payment of per capita state aid under this section to  a  county,  city,
  town  or  village  for  the  state  fiscal years commencing April first,
  nineteen  hundred  seventy-three,  nineteen  hundred  seventy-four   and
  nineteen  hundred  seventy-five.  Where a special census has been taken,
  certified by the United  States  bureau  of  the  census  for  the  year
  nineteen  hundred  seventy-one  and duly filed by the municipality, such
  census shall be used for the computation, apportionment and  payment  of
  per capita aid under this section.
    4.  Estimates  of  population,  full  value and equalization rates. a.
  Changes in boundaries; dissolution of municipalities;  creation  of  new
  municipalities; consolidation of municipalities. Where the boundaries of
  a  county,  city, village, town or town outside village are altered or a
  municipality is created, consolidated,  or  dissolved,  aid  under  this
  section  shall  be  calculated  to  reflect  such  change beginning with
  payments in the first state fiscal year commencing not less  than  three
  months  after  the  effective  date  of  such  change. The county, city,
  village or town shall file not later than February first in the  offices
  of  the state comptroller and the state board of real property services,
  a  certificate  of  any  change  in   boundaries,   dissolution   of   a
  municipality,  consolidation of municipalities or incorporation of a new
  municipality which  took  place  in  the  preceding  calendar  year  but
  subsequent  to  January  first or on January first preceding the date of
  filing and which affects the population or the full value of the county,
  city, village or town for payments under this section. Where  population
  or  full  value  to  be  used  in  calculating  such  payments is not in
  existence, it shall be estimated by the state  board  of  real  property
  services,  upon  the basis of information provided by the localities and
  such other information as may be available, to reflect  the  effects  of
  such  change.  Such  population  and full value shall be estimated for a
  newly incorporated city or  village  or  consolidated  town  as  of  the
  calendar  year  of  the effective date of incorporation or consolidation
  except that full value so estimated shall be at the period  price  level
  used  in  establishing  state  equalization  rates  for assessment rolls
  completed in the preceding calendar year. For  other  municipalities  or
  areas  affected  by  such  an  incorporation, consolidation or change in
  boundaries, estimates of population and full value shall be  as  of  the
  years  otherwise  applicable under this section. Where a municipality is
  dissolved or consolidated, the annual  amount  which  such  municipality
  would  be  eligible  to  receive  under  this  section  on  the date the
  municipality is dissolved or consolidated, less the  increase  in  state

  aid  under  this section which will be paid to the municipality in which
  the territory of the dissolved or consolidated municipality  is  located
  as  a  result of such dissolution or consolidation, shall continue to be
  paid  for  the  first  year  following  dissolution or consolidation and
  payments shall thereafter continue to be paid  for  an  additional  four
  years  in  reduced  amounts  as  follows:  in  the second year following
  dissolution or consolidation, eighty percent of such annual  amount;  in
  the third year, sixty percent; in the fourth year, forty percent; in the
  fifth  year, twenty percent; and thereafter such payments shall cease to
  be paid. Such payments shall be paid to the city,  town  or  village  in
  which  the  territory  of  the municipality dissolved or consolidated is
  located, or in the event such territory would not be located in a  city,
  town  or village, payment shall be made to the county. If such territory
  is located in two or more cities, towns or villages, the  payment  shall
  be  apportioned on the basis of population which was used in determining
  the amount of aid under this section heretofore paid to the dissolved or
  consolidated municipality.
    b. Period price level adjustment.  Where the state  equalization  rate
  for  an  assessment  roll  to be used in calculating payments under this
  section is based on a different period price level than the equalization
  rates generally  for  other  assessment  rolls  completed  in  the  same
  calendar  year,  with  the  year  of completion defined as prescribed in
  paragraph c of subdivision one of this section, a  special  equalization
  rate  shall  be  established  for such roll upon the basis of the period
  price level used generally in the  state  equalization  rates  for  such
  other assessment rolls.
    c.  Adjustment  for  differences between town and village roll.  Where
  the town assessment roll used in calculating town outside  village  full
  value  includes  taxable  property  located in a village, which property
  does not appear as taxable on the assessment roll of the village used in
  such calculation and where the assessed valuation of  such  property  in
  all  villages in the town on the town assessment roll is five percent or
  more of the total taxable assessed valuation of  property  in  the  town
  outside  villages  on such town assessment roll, the state board of real
  property services shall estimate the full  value  of  the  town  outside
  village,  provided  that the supervisor of the town applies to the state
  board on or before August first preceding the first state fiscal year in
  which such estimated full value is used in making payments of per capita
  state aid under this section.
    d. Railroad ceiling adjustment. Where the  taxable  full  value  of  a
  city, village or town declined by five percent or more between the years
  nineteen hundred sixty-one and nineteen hundred sixty-two, as determined
  by  application  of  the  state  equalization rates to the total taxable
  assessed valuations on the assessment rolls of  such  city,  village  or
  town  completed in such years, the state board of real property services
  shall adjust the full value for nineteen hundred sixty-one  by  reducing
  the  taxable  full  value of railroad real property, which was wholly or
  partly exempt on the  assessment  roll  completed  in  nineteen  hundred
  sixty-two  under  the provisions of title two-A or two-B of article four
  of the real property tax law, to the full value of  such  railroad  real
  property  which  was  taxable  on  the  first  assessment roll for which
  railroad ceilings were established under such titles without  the  taper
  adjustment  provided  in section four hundred eighty-nine-t of such law.
  Town outside village full value shall be calculated by the  state  board
  to  give  effect to a similar adjustment in any case where full value of
  the town is required to be adjusted pursuant to this paragraph.
    e. Lack of assessment roll or equalization  rate.  Where  on  November
  first preceding the date of the annual certification of aid payments, an

  assessment  roll  or  an  equalization  rate  required  to  be  used  in
  calculating such payments does not exist, full value shall be  estimated
  by  the  state  board  of  real  property  services,  upon  the basis of
  information provided by the localities and such other information as may
  be available for that purpose.
    5.  Information  to  be  supplied.  The  chief fiscal officer or other
  official of any county, city, village or town shall, upon request of the
  state board of real property services, furnish to  the  state  board  of
  real  property  services  such  information  as  may be required for the
  purpose of carrying out the provisions of this section.
    6. Payments. a. The  state  board  of  real  property  services  shall
  compute  and certify to the state comptroller in due time the amounts of
  per capita aid payable to counties, cities, villages and towns  pursuant
  to this section. For towns, the certification shall set forth separately
  the amounts payable for town-wide and for town outside village purposes,
  and  for the city of New York the state board shall set forth separately
  the amounts payable under the city and county per capita grants.
    b. The rates established and the calculations and  estimates  made  by
  the state board pursuant to this section shall be filed in the office of
  the state board.
    c. Upon such certification of the amounts payable to counties, cities,
  villages and towns for town-wide and town outside village purposes, such
  per capita aid shall be apportioned and paid to the chief fiscal officer
  of  each  such locality pursuant to this section on audit and warrant of
  the state comptroller out of moneys appropriated by the legislature  for
  such  purpose  to  the  credit  of  the  local assistance account in the
  general fund of the state treasury;  provided  however  that  upon  such
  certification  of  amounts  payable  to  the  city of New York, such per
  capita aid shall be apportioned and paid as  follows:  (i)  any  amounts
  required to be paid to the city university construction fund pursuant to
  the  city university construction fund act, (ii) any amounts required to
  be paid to the New York city housing development corporation pursuant to
  the New York city housing development corporation act, (iii) any amounts
  required to be paid by the city to the New York city  transit  authority
  pursuant  to  the  provisions  of  chapter seven of the laws of nineteen
  hundred seventy-two, (iv) any amounts required to be paid by the city to
  the state to repay an advance made in nineteen hundred  seventy-four  to
  subsidize  the  fare  of  the  New York city transit authority, (v) five
  hundred thousand dollars to the chief fiscal officer of the city of  New
  York for payment to the trustees of the police pension fund of such city
  pursuant  to  the  provisions  of  paragraph e of this subdivision, (vi)
  eighty  million  dollars  to  the  special  account  for  the  municipal
  assistance  corporation  for  the  city  of  New  York  in the municipal
  assistance tax fund created pursuant to  section  ninety-two-d  of  this
  chapter  to  the  extent  that  such  amount  has  been  included by the
  municipal assistance corporation  for  the  city  of  New  York  in  any
  computation for the issuance of bonds on a parity with outstanding bonds
  pursuant  to  a  contract  with  the  holders of such bonds prior to the
  issuance of any other bonds  secured  by  payments  from  the  municipal
  assistance  state  aid  fund created pursuant to section ninety-two-e of
  this chapter, (vii) the balance to the special account for the municipal
  assistance corporation for  the  city  of  New  York  in  the  municipal
  assistance  state  aid  fund created pursuant to section ninety-two-e of
  this chapter, and (viii) any amounts to be refunded to the general  fund
  of  the  state  of New York pursuant to the annual appropriation enacted
  for  the  municipal  assistance  state  aid  fund.  Notwithstanding  any
  existing  law,  no payments of per capita aid payable to the city of New
  York shall be paid to the state of New York municipal bond bank  agency,

  the  New York state sports authority or the transit construction fund so
  long as amounts of such aid are required to be paid into  the  municipal
  assistance  state aid fund, and thereafter, after payment of the amounts
  described  in  subparagraphs  (i)  through  (viii) of this paragraph the
  balance shall be paid (A) to the state in repayment of the appropriation
  of two hundred fifty million  dollars  made  to  the  city  pursuant  to
  chapter  two  hundred  fifty-seven  of  the  laws  of  nineteen  hundred
  seventy-five providing emergency financial assistance to the city of New
  York at the extraordinary session held in such year, as amended, (B)  to
  the  state of New York municipal bond bank agency to the extent provided
  by section twenty-four hundred thirty-six of the public authorities law,
  (C) to the New York state sports authority to  the  extent  provided  by
  section  twenty-four  hundred sixty-three of the public authorities law,
  (D) to the transit construction fund to the extent provided  by  section
  twelve   hundred  twenty-five-i  of  the  public  authorities  law,  and
  thereafter (E) to the city.
    d. The amounts so annually apportioned shall be  paid  in  four  equal
  installments as follows:
    (1)  to the city of New York, on the twenty-fifth days of April, June,
  October and February;
    (2) to every county, city, village or town, other than the city of New
  York, whose fiscal year commences on the first day of June or  July,  on
  the twenty-fifth days of April, May, September and December;
    (3) to every county, city, village or town whose fiscal year commences
  on  the  first day of December, on the twenty-fifth days of April, July,
  September and November;
    (4) to any town in Westchester county whose boundaries are coterminous
  with those of one village, on the same days on  which  installments  are
  payable to such village pursuant to this paragraph; and
    (5)  to every other county, city, village or town, on the twenty-fifth
  days of April, July, September and December.
    e. The chief fiscal officer of the city of New York  shall,  from  the
  amounts  so  received by him, pay to the board of trustees of the police
  pension fund of such city, the aggregate  annual  sum  of  five  hundred
  thousand  dollars for the purposes of such fund and the balance into the
  general fund of such city.
    f. Where a town applies an amount received under this section  to  the
  reduction of the county tax in the town-wide area or in the town outside
  village  area,  or  as a credit against special ad valorem levies in the
  town outside village area as  provided  in  subdivision  eight  of  this
  section,  the  town  shall  file  notices  thereof with the chief fiscal
  officer of the county and the state comptroller, within five days  after
  the  last  day  for  adoption  of the town budget. Such amounts shall be
  credited against the amount of taxes or special ad valorem levies to  be
  levied   for  such  purposes  in  the  designated  area  and  the  state
  comptroller shall pay to the chief fiscal officer of  the  county,  from
  the moneys apportioned to the town for town-wide purposes or for outside
  of village purposes, as the case may be, the amounts so credited against
  the county tax or special ad valorem levies, in the same manner as other
  payments to counties under this section.
    g.  Notwithstanding  any provision of the law to the contrary, any aid
  derived by any city pursuant to paragraph d of subdivision two  of  this
  section  for  the  state  fiscal  year  commencing April first, nineteen
  hundred seventy-one and each subsequent state fiscal year which  exceeds
  the  total  aid paid to such city pursuant to paragraph a of subdivision
  two of this section during the state fiscal year commencing April first,
  nineteen hundred seventy shall be paid on  June  twenty-fifth,  nineteen

  hundred  seventy-one  and  on June twenty-fifth of each subsequent state
  fiscal year.
    h. Notwithstanding any provision of law to the contrary, payments made
  pursuant to subdivision two of this section during April and May of each
  state  fiscal  year  shall  be  based  on  estimates  of total state tax
  collections  to  be  provided  jointly  by  the  comptroller   and   the
  commissioner of taxation and finance to the state board of real property
  services  on or before April fifteenth of each year. Notwithstanding any
  provision of law to the contrary, amounts so paid during the balance  of
  each   state  fiscal  year  shall  compensate  for  any  overpayment  or
  underpayment which may have occurred during April and May of such fiscal
  year.
    i. Notwithstanding any other provision of law, the amount  payable  on
  June  twenty-fifth, to a city having a population of one million or more
  pursuant to this subdivision shall be  reduced  by  fifty-three  million
  five   hundred   eighty-five  thousand  five  hundred  eighteen  dollars
  ($53,585,518).  Such  fifty-three  million  five   hundred   eighty-five
  thousand  five  hundred  eighteen dollars ($53,585,518) shall be paid to
  such city on the December fifteenth next  following  June  twenty-fifth,
  which  payment  shall be for an entitlement period ending June thirtieth
  of the month in which the June twenty-fifth payment is made.
    7. Apportionment of special city, town and  village  aid.  During  the
  state  fiscal  year beginning April first, nineteen hundred eighty-eight
  and in each year  thereafter  aid  to  cities,  towns  and  villages  in
  addition  to the amounts apportioned pursuant to subdivision two of this
  section shall be apportioned, according to this subdivision.
    a. Definitions. As used in this subdivision:
    (1) "City" means each city having a population less than  one  million
  persons.
    (2)  "Town"  means  a  town for which complete population, full value,
  land area, and local tax effort per capita information,  as  defined  in
  this subdivision, are available as determined by the comptroller.
    (3)  "Village"  means  a  village  for which complete population, full
  value, land area, and  local  tax  effort  per  capita  information,  as
  defined  in  this  subdivision,  are  available  as  determined  by  the
  comptroller.
    (4) "Population" means for towns and villages the final population  as
  shown   by   the  nineteen  hundred  eighty  decennial  federal  census;
  "population" for cities means the  final  population  as  shown  by  the
  nineteen hundred seventy decennial federal census.
    (5)  "Population  density"  means  for each town and village an amount
  equal to its population divided by its  total  land  area  expressed  in
  square  miles  as  of  the  last  day of the local fiscal year ending in
  nineteen hundred seventy-nine.
    (6) "Full value" means for each town and village an  amount  equal  to
  the  total  taxable  assessed  value  of property on the assessment roll
  completed and filed in nineteen  hundred  seventy-nine  divided  by  the
  final  state  equalization  rate  established for such roll by the state
  board of real property services.
    (7) "Taxing capacity" means for each town and village an amount  equal
  to its full value divided by the population of such town or village.
    (8) "Average population density" means for towns the sum of population
  densities  for  all  towns  divided  by  the  number  of towns; "average
  population density"  for  villages  means  the  sum  of  the  population
  densities for all villages divided by the number of villages.
    (9)  "Average  taxing capacity" means for towns an amount equal to the
  sum of the taxing capacities for all towns  divided  by  the  number  of
  towns;  "average  taxing capacity" means for villages an amount equal to

  the sum of the taxing capacities for all villages divided by the  number
  of villages.
    (10)  "Assessed  value  tax  rate"  of  a  city means the tax rate for
  general city purposes for the  latest  twelve  month  city  fiscal  year
  ending  on  or  before  December  thirty-first, nineteen hundred eighty;
  provided, however, that for any city  with  a  population  greater  than
  twenty-one  thousand and less than twenty-two thousand persons, assessed
  value tax rate means the tax rate for  general  city  purposes  for  the
  latest  twelve  month  city  fiscal  year  ending  on or before December
  thirty-first, nineteen hundred seventy-eight.
    (11) "Full value tax rate" of a city means the assessed value tax rate
  of such city multiplied by the final state equalization rate established
  by the state board of real property services for the assessment roll  to
  which such assessed value tax rate applied.
    (12)  "Local tax effort per capita" means for each town and village an
  amount equal to the sum of all taxes,  fees,  charges,  assessments  and
  other  revenues  received less any revenues received from the federal or
  state government for the latest local fiscal year ending  on  or  before
  December  thirty-first,  nineteen  hundred  seventy-nine, divided by its
  population.
    (13) "Local tax effort factor" means for each town  and  village,  its
  local  tax effort per capita divided by the average local tax effort per
  capita for towns or villages as appropriate.
    (14) "Average local tax effort per capita" means for towns the sum  of
  the  local tax efforts per capita for all towns divided by the number of
  towns; "average local tax effort per capita" means for villages the  sum
  of  the  local  tax  efforts  per capita for all villages divided by the
  number of villages.
    (15) Provided, however, that for a town or village created on or after
  January first,  nineteen  hundred  eighty-one,  the  population  density
  pursuant to subparagraph five of this paragraph, the full value pursuant
  to  subparagraph  six  of  this  paragraph, and the local tax effort per
  capita pursuant to subparagraph twelve of this paragraph  shall  pertain
  to  the  first  completed  local fiscal year following such creation for
  which  applicable  information  is  available  as  determined   by   the
  comptroller.
    b. City aid. The sum of one hundred two million three hundred eighteen
  thousand   three  hundred  seventeen  dollars  ($102,318,317)  shall  be
  apportioned to cities as follows:
    (1) The sum of sixty-two million two hundred twenty-two thousand three
  hundred thirteen dollars  ($62,222,313)  shall  be  apportioned  in  the
  following manner:
       City of Buffalo .................................. $22,476,436
       City of Rochester ................................ $11,140,494
       City of Yonkers .................................. $12,508,626
       City of Syracuse ................................. $ 7,817,890
       City of Albany ................................... $ 3,812,897
       City of Binghamton ............................... $ 2,345,367
       City of Plattsburgh .............................. $   508,162
       City of White Plains ............................. $ 1,612,441
    (2)  The  sum  of  forty  million  ninety-six  thousand  four  dollars
  ($40,096,004) shall be apportioned to cities according to the  following
  formula:
    For all cities having a population of less than one hundred thousand a
  numerical  ranking  between  one  and  fifty-six shall be assigned. Such
  ranking shall correspond to each city's position in a schedule  of  full
  value tax rates of all such cities arranged in descending order.

    An  aid  rate for each city with a population of less than one hundred
  thousand shall be determined from the following schedule:
       Cities with Rankings                                  Aid Rate
       One through twelve.....................................$ 17.00
       Thirteen through twenty-three..........................$ 15.00
       Twenty-four through thirty-four........................$ 13.00
       Thirty-five through forty-five.........................$ 11.00
       Forty-six through fifty-six............................$ 10.00
    For each city not eligible for apportionments pursuant to subparagraph
  one  of  this  paragraph, a base aid amount shall be calculated equal to
  the population of such city multiplied by its aid rate.  For  each  such
  city  an aid percentage shall be calculated equal to its base aid amount
  divided by the sum of the base aid amounts  for  all  such  cities.  The
  amount  of  special  aid  to  be  apportioned to each such city shall be
  calculated by multiplying such city's aid percentage  by  forty  million
  ninety-six thousand four dollars ($40,096,004).
    c.  Town  aid.  The  sum  of  nineteen million five hundred forty-four
  thousand  seven  hundred  twenty-six  dollars  ($19,544,726)  shall   be
  apportioned to towns according to the following formula:
    For  each  town, a population density factor shall equal the lesser of
  the amount calculated by dividing such town's population density by  the
  average population density for towns, or the number five;
    For  each  town,  a  taxing  capacity  factor  shall  be calculated by
  dividing the average taxing capacity for towns  by  such  town's  taxing
  capacity;
    For   each   town,  a  weighted  population  shall  be  calculated  by
  multiplying such  town's  population  by  the  product  of  such  town's
  population density factor multiplied by the sum of such town's local tax
  effort factor plus such town's taxing capacity factor;
    For  each  town,  an  aid  percentage shall be calculated equal to the
  weighted population of such town divided by  the  sum  of  the  weighted
  populations for all towns;
    The  amount  to  be  apportioned  to  each town shall be calculated by
  multiplying such town's aid percentage by nineteen million five  hundred
  forty-four thousand seven hundred twenty-six dollars ($19,544,726).
    Notwithstanding  the  definition  of  town  in  paragraph  a  of  this
  subdivision, any town as defined in section two of the town  law,  which
  is  not  included  in  the  definition  of  town  in paragraph a of this
  subdivision shall be apportioned three hundred ninety-two  dollars.  The
  total  of  any  such  amounts shall be deducted on a pro rata basis from
  those towns apportioned  more  than  three  hundred  ninety-two  dollars
  pursuant to the above formula.
    In  such case where the apportionment to a town in accordance with the
  above formula is less than three hundred ninety-two dollars,  such  town
  shall  be  apportioned  three hundred ninety-two dollars. The difference
  between three hundred  ninety-two  dollars  and  the  amount  determined
  pursuant  to  such  formula  shall  be deducted on a pro rata basis from
  those towns apportioned  more  than  three  hundred  ninety-two  dollars
  pursuant to such formula.
    d.   Village   aid.  The  sum  of  twenty-six  million  three  hundred
  eighty-five thousand  three  hundred  eighty-one  dollars  ($26,385,381)
  shall be apportioned to villages according to the following formula:
    For  each  village, a population density factor shall equal the lesser
  of the amount calculated by dividing such village's  population  density
  by the average population density for villages, or the number five;
    For  each  village,  a  taxing  capacity factor shall be calculated by
  dividing the average taxing capacity  for  villages  by  such  village's
  taxing capacity;

    For  each  village,  a  weighted  population  shall  be  calculated by
  multiplying such village's population by the product of  such  village's
  population  density factor multiplied by the sum of such village's local
  tax effort factor plus such village's taxing capacity factor;
    For  each  village, an aid percentage shall be calculated equal to the
  weighted population of such village divided by the sum of  the  weighted
  populations for all villages;
    The  amount  to  be apportioned to each village shall be calculated by
  multiplying such village's aid percentage by  twenty-six  million  three
  hundred   eighty-five   thousand   three   hundred   eighty-one  dollars
  ($26,385,381).
    Notwithstanding the definition of  village  in  paragraph  a  of  this
  subdivision, any village as defined in section fifty-four of the general
  construction  law, which is not included in the definition of village in
  paragraph a of this  subdivision  shall  be  apportioned  three  hundred
  ninety-two dollars. The total of any such amounts shall be deducted on a
  pro  rata  basis from those villages apportioned more than three hundred
  ninety-two dollars pursuant to the above formula.
    In such case where the apportionment to a village in  accordance  with
  the  above  formula  is less than three hundred ninety-two dollars, such
  village shall be  apportioned  three  hundred  ninety-two  dollars.  The
  difference  between  three  hundred  ninety-two  dollars  and the amount
  determined pursuant to such formula shall be  deducted  on  a  pro  rata
  basis from those villages apportioned more than three hundred ninety-two
  dollars pursuant to such formula.
    e.   Special   city,  town,  village  aid.  (1)  Not  later  than  May
  twenty-fifth of each state fiscal year the comptroller shall certify  to
  the  director  of  the  budget,  the  chairman  of  the  senate  finance
  committee, and the chairman of the assembly ways  and  means  committee,
  the  amount  of special city, town, village aid which is payable to each
  city,  town  and  village  for  such  fiscal  year  pursuant   to   this
  subdivision.
    (2) For each state fiscal year the amount apportioned pursuant to this
  subdivision  and certified as payable pursuant to this subdivision shall
  be paid to each city, town and village (i) on the last day of its  local
  fiscal  year  which  is current as of October thirty-first of such state
  fiscal year or (ii)  on  February  first  of  such  state  fiscal  year,
  whichever  is  earlier; provided, however, that the payment date for any
  city, town or village shall be March fifteenth,  of  such  state  fiscal
  year  if  the  comptroller  receives  a  written  request for such later
  payment date from the chief fiscal officer of such city, town or village
  at least ten days prior to the date on which the payment would otherwise
  have been made. The comptroller shall notify the director of the budget,
  the chairman of the senate finance committee and  the  chairman  of  the
  assembly ways and means committee of any such written request.
    f.  Notwithstanding any provision of this subdivision to the contrary,
  for fiscal years beginning April first, nineteen  hundred  eighty-eight,
  the  amount  apportioned to each city, town and village pursuant to this
  subdivision shall be multiplied by sixty-six percent.
    8. Use of per capita state aid. a. The chief fiscal officer  of  every
  county,  city,  village  and  town shall pay the amounts received by him
  under the provisions of this  section  into  the  general  fund  of  the
  county,  city, village or town for general county, city, village or town
  purposes respectively, except that such amounts received by a  town  for
  the  town  outside village area shall be used for the following purposes
  in the order stated: (1) for town purposes for which taxes may be levied
  on the area of the town outside of villages, (2)  as  a  credit  against
  amounts  of  taxes  levied  or  to  be  levied ad valorem for other town

  purposes on all taxable property in the town outside village  area,  (3)
  as  a  credit against amounts of taxes levied or to be levied ad valorem
  for county purposes on all taxable property in the town outside  village
  area,  (4)  as a credit against special ad valorem levies on property in
  the town outside village area in a town where the  entire  town  outside
  village  area is subject to special ad valorem levies provided that such
  credit shall be a uniform rate on assessed valuation in all parts of the
  town outside village area and such uniform rate  shall  not  exceed  the
  total of the rates for special ad valorem levies in any part of the town
  outside village area. The rate on assessed valuation for each special ad
  valorem  levy,  as  shown  on the tax bill for each parcel, shall be the
  rate before application of such credit. Such credit shall be shown as  a
  rate  on  assessed  valuation  and  as a percentage of the total of such
  rates for such special ad valorem  levies  on  such  parcel.  Each  such
  special  ad  valorem  rate  shall be deemed to have been reduced by such
  percentage.
    b. In no event shall such amounts received by  a  town  for  the  town
  outside village area be used as part or all of the local share necessary
  to qualify for state assistance pursuant to the highway law.
    9.    a. Notwithstanding any inconsistent provision of this section or
  of any other provision of law to the contrary, the  payment  of  general
  purpose local government aid for the support of local government for the
  state  fiscal  year  commencing April first, two thousand four, shall be
  paid from an appropriation made for such purposes pursuant to the public
  protection and general government budget for such state fiscal year in a
  manner consistent with this subdivision. Subdivisions one through  eight
  of  this  section  shall  not be applicable to the payment of per capita
  state aid for the support of local government.
    b. Notwithstanding any inconsistent provision of article five  of  the
  general  construction  law,  in  the fiscal year of the state commencing
  April first, two thousand four, any city  having  a  population  of  one
  million  or more shall be entitled to receive the same amount of general
  purpose, local government aid that it received for such purpose pursuant
  to chapter fifty of the laws of two  thousand  three,  constituting  the
  public  protection and general government budget, and section fifty-four
  of the state finance law, as added by section  twelve  of  chapter  four
  hundred  thirty  of the laws of nineteen hundred ninety-seven, as if the
  provisions of such section fifty-four were in full force and effect  for
  the  entire state fiscal year commencing April first, two thousand four.
  Except as provided in paragraph c of this subdivision, each city,  other
  than  any  city  having  a  population  of one million or more, town and
  village that was  appropriated  general  purpose  local  government  aid
  pursuant  to  chapter  fifty  of the laws of two thousand three shall be
  entitled to receive a total of one hundred five percent of the amount of
  aid that it would be entitled to receive under section fifty-four of the
  state finance law, as added by section twelve of  chapter  four  hundred
  thirty  of  the  laws  of  nineteen  hundred  ninety-seven,  as  if  the
  provisions of such section fifty-four were in full force and effect  for
  the  entire state fiscal year commencing April first, two thousand four.
  Notwithstanding the provisions of this subdivision in the  state  fiscal
  year  commencing  April  first,  two  thousand  four the village of East
  Nassau, Rensselaer county, newly  incorporated  on  January  fourteenth,
  nineteen  hundred  ninety-eight,  shall  be entitled to receive the same
  amount of general purpose local government aid that it received for such
  purpose pursuant to chapter fifty of the laws of two thousand three. All
  aid pursuant to this section shall be paid in the  same  "on  or  before
  month  and  day"  manner  as  specified  in chapter fifty of the laws of
  nineteen hundred ninety-six, constituting the general government budget.

    c. Consolidations, mergers,  or  dissolutions-entitlement  to  general
  purpose  local  government  aid.  In  the  case where any city, town, or
  village consolidates, merges or dissolves, and the  resulting  successor
  government  has  filed  with  the  office  of  the  state  comptroller a
  certificate  of  any  such  consolidation,  merger, or dissolution, such
  successor government shall  be  entitled  to  receive  any  payments  of
  general  purpose  local government aid which, pursuant to paragraph b of
  this subdivision, would have been otherwise payable  to  the  individual
  cities, towns, or villages who were party to such consolidation, merger,
  or  dissolution  in addition to the general purpose local government aid
  such  successor  government  is  entitled  to  receive   had   no   such
  consolidation,  merger,  or  dissolution  occurred. The annual amount of
  general purpose local government aid that any city, town, or village  in
  which  a  municipality  has  consolidated, merged, or dissolved shall be
  eligible to  receive  on  the  date  such  city,  town,  or  village  is
  consolidated, merged, or dissolved shall continue to be paid pursuant to
  paragraph  b  of  this subdivision for every state fiscal year following
  the date of such consolidation, merger,  or  dissolution.  In  instances
  where  only  a  portion  of  a  city,  town,  or  village  is party to a
  consolidation, merger, or dissolution, general purpose local  government
  aid  payable  to the resulting successor government shall include only a
  pro rata share of the aid otherwise due and payable to such city,  town,
  or  village.  Such  pro  rata share shall be based on a ratio of the two
  thousand  federal   decennial   census   population   of   the   portion
  consolidated, merged, or dissolved as compared to the total two thousand
  federal  decennial census population of the city, town, or village party
  to such consolidation, merger, or dissolution.
    d. Notwithstanding any other law to the contrary, in the state  fiscal
  year  beginning  April  first,  two thousand four, and each state fiscal
  year thereafter, the city of Amsterdam shall receive on or  before  June
  twenty-fifth,  the  same amount of aid it received by June twenty-fifth,
  two thousand three, plus, pursuant to a memorandum of understanding with
  the director  of  the  budget,  three  hundred  fifty  thousand  dollars
  ($350,000) that would have been payable on or before March thirty-first,
  two thousand five.
    e.  Notwithstanding any other law to the contrary, in the state fiscal
  year beginning April 1, 2004, and each  state  fiscal  year  thereafter,
  twelve   million   five   hundred   thousand  dollars  ($12,500,000)  of
  supplemental municipal aid otherwise due and payable on or before  March
  31  shall  be  paid  to the city of Yonkers, pursuant to a memorandum of
  understanding with the director of the budget, on or before June 30.
    10.  Aid  and  incentives  for  municipalities.  Notwithstanding   any
  inconsistent  provision of this section or of any other provision of law
  to the contrary, the payment of general purpose local government aid for
  the support of local government for state fiscal years commencing  April
  first,  two thousand seven, shall be paid from an appropriation made for
  the aid and incentives for municipalities program pursuant to the public
  protection and general government budget for such state fiscal years  in
  a manner consistent with this subdivision. Subdivisions one through nine
  of  this  section  shall  not be applicable to the payment of per capita
  state aid for the support of local government.
    a. Definitions.  When  used  in  this  subdivision,  unless  otherwise
  expressly stated:
    (i)  "Municipality"  means  a  city  with  a  population less than one
  million, town or village.
    (ii) "Aid and incentives for municipalities" means the  total  of  all
  aid  payable  to  municipalities pursuant to this subdivision except for
  grants payable pursuant to paragraphs j, m and n of this subdivision.

    (iii) "Full valuation" means "full valuation for taxable purposes"  as
  reported  in  the state comptroller's special report on local government
  finances for New York state for local fiscal  years  ended  three  years
  prior  to  the beginning of the state fiscal year in which an additional
  annual  apportionment  or  per  capita adjustment is payable pursuant to
  paragraphs d and e of this subdivision.
    (iv) "Population" means population data based  upon  the  most  recent
  federal decennial census.
    (v)  "Full  valuation  per  capita"  means  the  full  valuation  of a
  municipality divided by the population of such municipality.
    (vi) "Average full valuation per capita for municipalities" means  the
  sum  of  the full valuation for municipalities divided by the sum of the
  population of the municipalities as reported in the state  comptroller's
  special report on local government finances for New York state for local
  fiscal  years  ended  three  years  prior  to the beginning of the state
  fiscal year in which an additional annual apportionment  or  per  capita
  adjustment   is   payable  pursuant  to  paragraphs  d  and  e  of  this
  subdivision.
    (vii) "State aid"  means  the  total  amount  of  aid  a  municipality
  received  in  the state fiscal year commencing April first, two thousand
  six, under  the  aid  and  incentives  for  municipalities  program,  as
  appropriated in chapter fifty of the laws of two thousand six, and under
  the  additional  municipal aid program pursuant to section two of part A
  of chapter fifty-six of the laws of two thousand six, as appropriated in
  chapter fifty of the laws of two thousand six.
    (viii) "Prior year aid" means:
    (1) for the state fiscal year commencing  April  first,  two  thousand
  seven,  the  total amount of state aid a municipality or county having a
  population  of  less  than  one  million  but  more  than  nine  hundred
  twenty-five  thousand  according  to the federal decennial census of two
  thousand received in the state fiscal year commencing April  first,  two
  thousand six.
    (2)  for  the  state  fiscal year commencing April first, two thousand
  eight and in each state fiscal year thereafter,  the  base  level  grant
  received  in  the  immediately  preceding  state fiscal year pursuant to
  paragraph b of  this  subdivision  plus  any  additional  apportionments
  received  in  such  year pursuant to paragraph d of this subdivision and
  any per capita adjustments received in such year pursuant to paragraph e
  of this subdivision plus  any  additional  aid  received  in  such  year
  pursuant to paragraph p of this subdivision.
    (ix)   "Per  capita  state  aid"  means  the  prior  year  aid  for  a
  municipality divided by the population of the municipality  as  reported
  in the most recent federal decennial census.
    b.  Base level grants. Within amounts appropriated in the state fiscal
  year commencing April first, two thousand seven and in each state fiscal
  year thereafter, there shall be apportioned and paid to a county with  a
  population  of  less  than  one  million  but  more  than  nine  hundred
  twenty-five thousand according to the federal decennial  census  of  two
  thousand,  cities  with a population of less than one million, towns and
  villages a base level grant in an amount equal to  the  prior  year  aid
  received by such county, city, town or village.
    c. "Fiscal distress indicators" shall include:
    (i)  Full  valuation per capita less than fifty percent of the average
  full valuation per capita for municipalities.
    (ii) A population at least ten percent less  than  the  population  as
  reported in the nineteen hundred seventy federal decennial census.

    (iii)  Greater than sixty percent real property tax limit exhausted in
  the most recent local fiscal year as reported to  the  division  of  the
  budget by the state comptroller.
    (iv)  A  percentage  of individuals living below the poverty level, as
  reported for a municipality in the most recent federal decennial census,
  in excess of one hundred fifty percent  of  the  average  percentage  of
  individuals   living   below   the   poverty   level   as  reported  for
  municipalities in the most recent federal decennial census.
    d. Additional annual apportionments. Within  amounts  appropriated  in
  the  state fiscal year commencing April first, two thousand seven and in
  the state fiscal  year  commencing  April  first,  two  thousand  eight,
  municipalities shall receive additional aid apportioned as follows:
    (i)  Any  municipality with an average full valuation per capita equal
  to or less than the average full valuation per capita for municipalities
  that is a city, a town with a population greater than fifteen  thousand,
  or  a  village  with  a  population  greater than ten thousand, shall be
  eligible to receive an additional annual apportionment equal to:
    (1) nine percent of  such  municipality's  base  level  grant  if  the
  municipality  meets all of the fiscal distress indicators in paragraph c
  of this subdivision,
    (2) seven percent of such  municipality's  base  level  grant  if  the
  municipality  meets  any  three  of  the  fiscal  distress indicators in
  paragraph c of this subdivision, or
    (3) five percent of  such  municipality's  base  level  grant  if  the
  municipality  meets  at  least  one  but  no more than two of the fiscal
  distress indicators in paragraph c of this subdivision.
    (ii) Any municipality with an average full valuation per capita  equal
  to or less than the average full valuation per capita for municipalities
  that  is  a  town  with  a  population  of fifteen thousand or less or a
  village with a population of ten thousand or less  which  meets  one  or
  more  of  the  fiscal distress indicators in subparagraphs (i), (ii) and
  (iii) of paragraph c of this subdivision shall be eligible to receive an
  additional  annual  apportionment  equal  to  five   percent   of   such
  municipality's base level grant.
    (iii)  Any municipality that does not qualify for an additional annual
  apportionment pursuant to subparagraphs (i) and (ii) of  this  paragraph
  shall be eligible to receive an additional annual apportionment equal to
  three percent of such municipality's base level grant.
    e.  Per  capita  adjustment.  Within amounts appropriated in the state
  fiscal year commencing April first, two thousand seven and in the  state
  fiscal  year  commencing April first, two thousand eight, additional aid
  shall be apportioned as follows:
    (i) For the purposes of subparagraphs (ii), (iii),  (iv)  and  (v)  of
  this  paragraph,  the threshold percentage shall be seventy-five percent
  in the state fiscal year commencing April first, two thousand seven  and
  eighty  percent  in  the  state  fiscal year commencing April first, two
  thousand eight.
    (ii) A municipality with an average full valuation per capita equal to
  or less than the average full valuation per  capita  for  municipalities
  that  is  a  city with a population greater than or equal to one hundred
  twenty-five thousand and receives per capita  state  aid  less  than  or
  equal  to  the  threshold  percentage  of  the average for cities with a
  population greater than or equal to  one  hundred  twenty-five  thousand
  shall be eligible to receive additional aid of four and one-half percent
  of such city's base level grant, subject to the availability of funds.
    (iii)  A  municipality with an average full valuation per capita equal
  to or less than the average full valuation per capita for municipalities
  that is a city with a  population  less  than  one  hundred  twenty-five

  thousand,  meets  one  or  more  of  the fiscal distress indicators, and
  receives per capita state aid  less  than  or  equal  to  the  threshold
  percentage  of  the  average  for cities with a population less than one
  hundred  twenty-five  thousand  that  meet  one  or  more  of the fiscal
  distress indicators, shall be eligible to receive additional aid of four
  and one-half percent of such city's base level  grant,  subject  to  the
  availability of funds.
    (iv) A municipality with an average full valuation per capita equal to
  or  less  than  the average full valuation per capita for municipalities
  that is a town with a population greater than  fifteen  thousand,  meets
  one  or  more of the fiscal distress indicators, and receives per capita
  state aid less than or equal to the threshold percentage of the  average
  for  towns with a population greater than fifteen thousand that meet one
  or more of the fiscal distress indicators, shall be eligible to  receive
  additional  aid  of  four and one-half percent of such town's base level
  grant, subject to the availability of funds.
    (v) A municipality with an average full valuation per capita equal  to
  or  less  than  the average full valuation per capita for municipalities
  that is a village with a population greater than ten thousand, meets one
  or more of the fiscal distress indicators, and receives per capita state
  aid less than or equal to the threshold percentage of  the  average  for
  villages  with  a  population greater than ten thousand that meet one or
  more of the fiscal distress indicators, shall  be  eligible  to  receive
  additional aid of four and one-half percent of such village's base level
  grant, subject to the availability of funds.
    (vi)  If  sufficient funds are not available for additional aid in the
  amount authorized pursuant to subparagraphs (ii), (iii), (iv) and (v) of
  this paragraph, additional aid shall be apportioned to each municipality
  eligible for such aid based on the  municipality's  pro  rata  share  of
  available funds.
    f.  Use of additional aid by distressed municipalities. As a condition
  of  receiving  more  than  one  hundred  thousand  dollars  in  combined
  additional  aid  pursuant  to  subparagraph  (i)  of paragraph d of this
  subdivision and paragraph e of this  subdivision,  if  applicable,  each
  municipality that is eligible for such aid, other than a city subject to
  a control period under a state imposed fiscal stability authority, shall
  be required to use the additional aid for the following purposes:
    (i) To minimize or reduce the real property tax burden.
    (ii)  To  support  investments  in  technology or other efficiency and
  productivity  initiatives  that  permanently  minimize  or  reduce   the
  municipality's operating expenses.
    (iii)  To  support  economic development or infrastructure investments
  that are necessary  to  achieve  economic  revitalization  and  generate
  growth in the municipality's real property tax base.
    Provided,  however,  that  if  the additional aid for the state fiscal
  year commencing April first, two thousand seven  is  enacted  after  the
  adoption of a municipality's budget for the fiscal year beginning in two
  thousand   seven   and   cannot   be  used  for  such  purposes  in  the
  municipality's current fiscal year, such additional aid shall be held in
  fund balance or reserve and used for such purposes in the municipality's
  subsequent fiscal year.
    g. Accountability requirements. (i) As a condition of  receiving  more
  than one hundred thousand dollars in combined additional aid pursuant to
  subparagraph  (i)  of paragraph d of this subdivision and paragraph e of
  this subdivision, if applicable, each municipality  that  qualifies  for
  such additional aid, other than a city subject to a control period under
  a state imposed fiscal stability authority, shall submit a comprehensive
  fiscal  performance  plan  to  the  director of the budget and the state

  comptroller. Such plan shall be submitted to the director of the  budget
  and   the   state  comptroller  within  sixty  days  of  adoption  of  a
  municipality's most recent budget or within sixty days of the  effective
  date of this subdivision, whichever is later, and shall include:
    (1) a multi-year financial plan including projected employment levels,
  projected  annual  expenditures  for  personal service, fringe benefits,
  non-personal  services  and  debt  service;  appropriate  reserve   fund
  amounts;  estimated  annual  revenues  including  projected property tax
  rates, the value of the taxable real property and  resulting  tax  levy,
  annual  growth  in  sales  tax  and  non-property  tax revenues, and the
  proposed use of one-time revenue sources. Such multi-year financial plan
  shall consist  of,  at  a  minimum,  four  fiscal  years  including  the
  municipality's  most  recently completed fiscal year, its current fiscal
  year adopted budget, and the subsequent two fiscal years.
    (2) a fiscal improvement plan covering the same  time  period  as  the
  multi-year  financial  plan  that  contains key fiscal performance goals
  necessary to achieve and maintain long term fiscal  stability,  proposed
  local  actions necessary to achieve such goals, and proposed performance
  measures necessary to assess actual progress in implementing such  local
  actions.  In the development of such plans, proposed local actions shall
  include,  but  not  be  limited  to,  improved   management   practices,
  initiatives  to  minimize  or  reduce  operating  expenses,  and  shared
  services agreements with other municipalities; and
    (3) a fiscal accountability report that, for  the  state  fiscal  year
  commencing  April  first,  two thousand seven, describes accomplishments
  and  progress  during  the  preceding  two  local  fiscal  years  toward
  achieving  management  improvements,  operational efficiencies and other
  actions necessary to achieve fiscal stability. Beginning  in  the  state
  fiscal  year  commencing  April  first,  two thousand eight, and in each
  fiscal year thereafter through  and  including  the  state  fiscal  year
  commencing  April  first,  two  thousand  ten, the fiscal accountability
  report shall include: (A) a description of the progress toward achieving
  fiscal performance  goals  identified  in  the  previous  year's  fiscal
  performance  plan; and (B) an accounting of the use of additional annual
  apportionments  and  per  capita  adjustments  provided  for   in   this
  subdivision.
    (ii)  As  a  condition  of  receiving  a  base level grant pursuant to
  paragraph b of this subdivision, each municipality that is a city, other
  than a city subject to a control period under  a  state  imposed  fiscal
  stability   authority   or   a  city  subject  to  the  requirements  of
  subparagraph (i) of this paragraph  and  each  municipality  that  is  a
  village  that,  meets all four fiscal distress indicators in paragraph c
  of this subdivision shall  develop  a  multi-year  financial  plan  that
  includes: projected employment levels, projected annual expenditures for
  personal  service,  fringe  benefits,  non-personal  services  and  debt
  service; appropriate reserve fund  amounts;  estimated  annual  revenues
  including  projected  property  tax rates, the value of the taxable real
  property and  resulting  tax  levy,  annual  growth  in  sales  tax  and
  non-property  tax  revenues,  and  the  proposed use of one-time revenue
  sources. Such multi-year financial plan shall consist of, at a  minimum,
  four  fiscal  years including the municipality's most recently completed
  fiscal year, its current fiscal year adopted budget and  the  subsequent
  two  fiscal  years.  On or before March thirty-first, two thousand eight
  and on or before March thirty-first in each year thereafter through  and
  including  two  thousand  eleven,  the  chief  elected  official of such
  municipality shall submit written certification to the director  of  the
  budget that such municipality has complied with the requirements of this
  subparagraph.

    h.   Compliance  review.  (i)  Compliance  with  the  requirements  of
  paragraphs f and g of this subdivision shall be subject to review by the
  state comptroller, including any  compliance  review  requested  by  the
  director of the budget.
    (ii)  The  state  comptroller  may direct a municipality to modify and
  resubmit its fiscal performance plan pursuant  to  subparagraph  (i)  of
  paragraph  g  of  this  subdivision  if  necessary  to  comply  with the
  requirements of paragraph g of this subdivision.
    (iii) If upon review the state comptroller finds that  a  municipality
  has  not  satisfied  the  requirements  of  paragraphs  f  and g of this
  subdivision he or she shall notify the municipality and the director  of
  the  budget of such finding. Such notice may include a recommendation to
  withhold aid pursuant to subparagraph (iv) of this paragraph.
    (iv) Upon notice pursuant to subparagraph (iii) of this paragraph, the
  director  of  the  budget  shall  be  authorized  to  direct  the  state
  comptroller to withhold aid and incentives for municipalities payable to
  such  municipality  up  to the amount of additional annual apportionment
  and per capita adjustment paid in the year  in  which  the  municipality
  failed to comply with such requirements until compliance is satisfied.
    (v)  In  the  event a city fails to provide the certification required
  under the aid and incentives  for  municipalities  program  appropriated
  pursuant to chapter fifty of the laws of two thousand six or pursuant to
  subparagraph  (ii)  of  paragraph g of this subdivision, the director of
  the budget shall be  authorized  to  direct  the  state  comptroller  to
  withhold  aid  and incentives for municipalities payable to such city up
  to  the  amount  of  additional  annual  apportionment  and  per  capita
  adjustment   paid  pursuant  to  such  chapter  until  certification  is
  provided.
    i. Payments. (i) In the state fiscal year commencing April first,  two
  thousand  seven  and  in  each  state fiscal year thereafter through and
  including the state fiscal year commencing  April  first,  two  thousand
  ten, base level grants shall be paid in the same "on or before month and
  day" manner as:
    (1) paid in the state fiscal year commencing April first, two thousand
  six under the aid and incentives for municipalities program in effect at
  that  time and appropriated in chapter fifty of the laws of two thousand
  six; or
    (2) set forth in part R of  chapter  fifty-six  of  the  laws  of  two
  thousand four relating to unrestricted aid to certain cities.
    (ii)  In  the  state  fiscal year commencing April first, two thousand
  seven and in each state fiscal year thereafter through and including the
  state fiscal year commencing April first, two thousand  ten,  additional
  annual   apportionments   and   per  capita  adjustments  authorized  in
  paragraphs d and e of this  subdivision  shall  be  paid  on  or  before
  December fifteenth for cities with fiscal years beginning January first,
  on  or  before  March  fifteenth for all other cities, and for towns and
  villages, in the same "on or before month and day" manner as their  base
  level grants are paid pursuant to subparagraph (i) of this paragraph.
    (iii)  Aid  and incentives for municipalities shall be apportioned and
  paid to the chief fiscal officer  of  each  municipality  on  audit  and
  warrant  of  the  state  comptroller  out  of moneys appropriated by the
  legislature for such purpose to  the  credit  of  the  local  assistance
  account  in  the  general  fund  of the state treasury. Any municipality
  receiving  aid  and  incentives  for  municipalities  pursuant  to  this
  subdivision  shall  use  such  aid  only  for general municipal purposes
  except as provided in subparagraph (iv) of this paragraph.
    (iv) Amounts payable to any city having  a  population  of  less  than
  fifty-five  thousand  but more than fifty-four thousand according to the

  federal decennial census of nineteen hundred ninety shall be apportioned
  and paid to the special account for the municipal assistance corporation
  for the city of Troy in the municipal assistance state aid fund pursuant
  to  section  ninety-two-e  of  this  chapter  and  chapters  one hundred
  eighty-seven and one  hundred  eighty-eight  of  the  laws  of  nineteen
  hundred ninety-five.
    (v)  Notwithstanding  any  inconsistent  provision  of law, additional
  annual apportionments pursuant to paragraph d of  this  subdivision  and
  pursuant   to   the   aid  and  incentives  for  municipalities  program
  appropriated in chapter fifty of the laws of two thousand six shall  not
  be  considered  state  aid pursuant to title two of article ten-D of the
  public authorities law for any eligible city subject to a control period
  under a state imposed fiscal stability authority. Such additional annual
  apportionments shall be paid to such authority for distribution to  such
  city  within  the  context  of an authority-approved four year financial
  plan, for the following purposes:
    (i) To maintain, minimize, or reduce the real property tax burden;
    (ii) To support investments in  technology  or  other  efficiency  and
  productivity   initiatives  that  permanently  minimize  or  reduce  the
  municipality's operating expenses;
    (iii) To support economic development  or  infrastructure  investments
  that  are  necessary  to  achieve  economic  revitalization and generate
  growth in the municipality's real property tax base; and
    (iv) To minimize or prevent reductions in city services.
    j. Special aid and incentives for municipalities to the  city  of  New
  York.  In  the  state  fiscal  year commencing April first, two thousand
  seven a city with a population of one  million  or  more  shall  receive
  twenty  million  dollars  on  or before December fifteenth. In the state
  fiscal year commencing April first, two thousand eight, a  city  with  a
  population  of  one million or more shall receive two hundred forty-five
  million nine  hundred  forty-four  thousand  eight  hundred  thirty-four
  dollars  payable  on  or  before December fifteenth. In the state fiscal
  year commencing April first, two thousand nine, and in each state fiscal
  year thereafter, a city with a population of one million or  more  shall
  receive  three  hundred  twenty-seven  million eight hundred eighty-nine
  thousand six hundred sixty-eight dollars payable on or  before  December
  fifteenth.  Special aid and incentives for municipalities to the city of
  New York shall be apportioned and paid as required as follows:
    (i)  Any  amounts  required  to  be  paid  to  the   city   university
  construction fund pursuant to the city university construction fund act;
    (ii)  Any  amounts  required  to  be paid to the New York city housing
  development  corporation  pursuant  to  the  New   York   city   housing
  development corporation act;
    (iii) Five hundred thousand dollars to the chief fiscal officer of the
  city  of New York for payment to the trustees of the police pension fund
  of such city;
    (iv) Eighty million dollars to the special account for  the  municipal
  assistance  corporation  for  the  city  of  New  York  in the municipal
  assistance tax fund created pursuant to  section  ninety-two-d  of  this
  chapter  to  the  extent  that  such  amount  has  been  included by the
  municipal assistance corporation  for  the  city  of  New  York  in  any
  computation for the issuance of bonds on a parity with outstanding bonds
  pursuant  to  a  contract  with  the  holders of such bonds prior to the
  issuance of any other bonds  secured  by  payments  from  the  municipal
  assistance  corporation  for  the  city  of  New  York  in the municipal
  assistance state aid fund created pursuant to  section  ninety-two-e  of
  this chapter;

    (v)  The  balance  of the special account for the municipal assistance
  corporation for the city of New York in the municipal  assistance  state
  aid fund created pursuant to section ninety-two-e of this chapter;
    (vi)  Any  amounts  to be refunded to the general fund of the state of
  New York pursuant to the annual appropriation enacted for the  municipal
  assistance state aid fund;
    (vii)  To  the  state  of  New  York municipal bond bank agency to the
  extent provided by section twenty-four hundred thirty-six of the  public
  authorities law; and
    (viii)  To  the  transit  construction  fund to the extent provided by
  section twelve hundred twenty-five-i of the public authorities law,  and
  thereafter to the city of New York.
  Notwithstanding  any  other  law to the contrary, the amount paid to any
  city with a population of one million or  more  on  or  before  December
  fifteenth  shall  be  for  an  entitlement period ending the immediately
  preceding June thirtieth.
    k. Contingency payments for the city of New York. For the state fiscal
  year commencing April first, two thousand seven and in each state fiscal
  year thereafter through and including the state fiscal  year  commencing
  April first, two thousand ten, a contingency appropriation shall be made
  available in the event payments are required as follows:
    (i)   Any   amounts  required  to  be  paid  to  the  city  university
  construction fund pursuant to the city university construction fund act;
    (ii) Any amounts required to be paid to  the  New  York  city  housing
  development   corporation   pursuant   to  the  New  York  city  housing
  development corporation act;
    (iii) Five hundred thousand dollars to the chief fiscal officer of the
  city of New York for payment to the trustees of the police pension  fund
  of such city;
    (iv)  Eighty  million dollars to the special account for the municipal
  assistance corporation for  the  city  of  New  York  in  the  municipal
  assistance  tax  fund  created  pursuant to section ninety-two-d of this
  chapter to the  extent  that  such  amount  has  been  included  by  the
  municipal  assistance  corporation  for  the  city  of  New  York in any
  computation for the issuance of bonds on a parity with outstanding bonds
  pursuant to a contract with the holders  of  such  bonds  prior  to  the
  issuance  of  any  other  bonds  secured  by payments from the municipal
  assistance corporation for  the  city  of  New  York  in  the  municipal
  assistance  state  aid  fund created pursuant to section ninety-two-e of
  this chapter;
    (v) The balance of the special account for  the  municipal  assistance
  corporation  for  the city of New York in the municipal assistance state
  aid fund created pursuant to section ninety-two-e of this chapter;
    (vi) Any amounts to be refunded to the general fund of  the  state  of
  New  York pursuant to the annual appropriation enacted for the municipal
  assistance state aid fund;
    (vii) To the state of New York  municipal  bond  bank  agency  to  the
  extent  provided by section twenty-four hundred thirty-six of the public
  authorities law; and
    (viii) To the transit construction fund  to  the  extent  provided  by
  section  twelve hundred twenty-five-i of the public authorities law, and
  thereafter to the city of New York.
    l. Consolidations, mergers, or dissolutions; entitlement  to  aid  and
  incentives  for municipalities. (i) In the case where any city, town, or
  village consolidates, merges or dissolves, and the  resulting  successor
  government  has  filed  with  the  office  of  the  state  comptroller a
  certificate of any such  consolidation,  merger,  or  dissolution,  such
  successor  government  shall  be entitled to receive all payments of aid

  and incentives for municipalities which, pursuant to paragraphs b, d and
  e of  this  subdivision,  would  have  been  otherwise  payable  to  the
  individual   cities,   towns,  or  villages  that  were  party  to  such
  consolidation, merger, or dissolution.
    (ii)  The  annual  amount  of  such payments of aid and incentives for
  municipalities that any city, town, or village in which  a  municipality
  has  consolidated,  merged, or dissolved shall be eligible to receive on
  the date such  city,  town,  or  village  is  consolidated,  merged,  or
  dissolved shall continue to be paid pursuant to paragraphs b, d and e of
  this  subdivision for every state fiscal year following the date of such
  consolidation, merger, or dissolution. In instances where only a portion
  of a city, town, or village is party  to  a  consolidation,  merger,  or
  dissolution,  aid  and  incentives  for  municipalities  payable  to the
  resulting successor government shall include only a pro  rata  share  of
  the  aid  otherwise due and payable to such city, town, or village. Such
  pro rata share shall be based on a ratio of  the  two  thousand  federal
  decennial  census  population  of  the  portion consolidated, merged, or
  dissolved as compared to the total two thousand federal decennial census
  population of the city, town, or village party  to  such  consolidation,
  merger, or dissolution.
    m.  Shared municipal services incentive awards applicable to the state
  fiscal year commencing April first, two thousand five.  (i)  Within  the
  amounts  appropriated  in  chapter sixty-two of the laws of two thousand
  five therefor, the secretary of state may award  competitive  grants  to
  two  or  more  municipalities  to  cover  costs associated with mergers,
  consolidations, cooperative agreements, dissolutions and shared services
  of municipalities where authorized by state law.
    (ii) For the purposes of this paragraph, "municipalities"  shall  mean
  counties, cities, towns, villages and school districts.
    (iii)  Such  grants  may  be  used  to cover the costs associated with
  consolidations, dissolutions, cooperative agreements and shared services
  of municipalities, including, but not limited to, legal  and  consultant
  services,  feasibility studies, capital improvements and other necessary
  expenses.
    (iv) The maximum grant awarded shall not exceed one  hundred  thousand
  dollars per municipality.
    (v)  Local  matching funds, equal to ten percent of the total approved
  project cost, shall be required.
    (vi) No part of the grant shall be used by the applicant for recurring
  expenses such as salaries.
    (vii) The secretary of state shall, prior to the acceptance  of  grant
  applications,  adopt  rules  and  regulations  to  establish eligibility
  requirements, application forms and procedures, criteria of  review  and
  grant approval guidelines.
    n. Shared municipal services incentive program applicable to the state
  fiscal  year  commencing  April  first,  two  thousand seven. (i) Shared
  municipal services incentive awards. Within the amount  appropriated  in
  chapter  fifty of the laws of two thousand seven therefor, the secretary
  of state may award competitive grants to two or more  municipalities  to
  cover  costs  associated  with  consolidations,  mergers,  dissolutions,
  cooperative agreements  and  shared  services  of  municipalities  where
  authorized by state law as follows:
    (1)  For  the  purposes of this paragraph, "municipalities" shall mean
  counties, cities, towns, villages, special improvement  districts,  fire
  districts, and school districts; provided, however, that for purposes of
  this  definition,  a  school district shall be considered a municipality
  only in instances where a school district advances an application for  a
  grant  to  cover  costs associated with cooperative agreements or shared

  services. For purposes  of  this  definition,  a  board  of  cooperative
  educational   services  shall  be  considered  a  municipality  only  in
  instances where such board of cooperative educational services  advances
  a  joint  shared  service  application on behalf of school districts and
  other  municipalities  within  the  board  of  cooperative   educational
  services  region;  provided, however, that any shared service agreements
  with a board of cooperative educational services:
    (A) shall not generate additional state aid;
    (B) shall be deemed not to be a  part  of  the  program,  capital  and
  administrative  budgets of the board of cooperative educational services
  for the purposes of computing charges upon  component  school  districts
  pursuant  to  subparagraph  seven  of paragraph b of subdivision four of
  section nineteen hundred fifty and subdivision one of  section  nineteen
  hundred fifty-one of the education law; and
    (C) shall be deemed to be a cooperative municipal service for purposes
  of  subparagraph  two  of  paragraph  d  of  subdivision four of section
  nineteen hundred fifty of the education law.
    (2) Such grants may be used to cover costs, including, but not limited
  to,  legal  and  consultant  services,  feasibility   studies,   capital
  improvements,  and  other  necessary  expenses. The amounts awarded to a
  school district pursuant to this paragraph shall not be included in  the
  approved  operating  expense  of  the  school  district  as  defined  in
  paragraph t of subdivision one of section thirty-six hundred two of  the
  education law.
    (3)  The  maximum  grant awarded shall not exceed two hundred thousand
  dollars per municipality.
    (4) Local matching funds, equal to ten percent of the  total  approved
  project or initiative cost shall be required.
    (5)  No part of the grant shall be used by the applicant for recurring
  expenses such as salaries.
    (6) In the selection of grant awards, the  secretary  of  state  shall
  give priority to applications that:
    (A)  include  a  municipality  that  meets  any of the fiscal distress
  indicators in paragraph c of this subdivision;
    (B) plan or implement the  consolidation,  merger  or  dissolution  of
  municipalities;
    (C)  share services between school districts and other municipalities,
  including applications submitted by boards  of  cooperative  educational
  services as defined in clause one of subparagraph (i) of this paragraph;
    (D)   share   highway  services,  including  joint  highway  equipment
  purchases, capital improvements  that  benefit  two  or  more  municipal
  highway  departments, contractual services between two or more municipal
  highway departments or for the consolidation of two  or  more  municipal
  highway departments;
    (E)   consolidate   health  benefit  plans  offered  by  two  or  more
  municipalities;
    (F) encourage countywide shared services, where a  county  develops  a
  countywide  shared  services  plan  under  which  municipalities in such
  county agree to participate  in  shared  services,  including,  but  not
  limited  to,  public  safety, purchasing, payroll, and real property tax
  assessment.
    (7) The secretary of state shall, prior to  the  acceptance  of  grant
  applications,  promulgate  rules  and  regulations  including,  but  not
  limited to, (A) award eligibility criteria, and (B) application,  review
  and grant approval procedures. The secretary of state shall also require
  that  such  awards  be granted only for services that would otherwise be
  individually provided by each grantee and  that  demonstrable  financial
  savings result from such sharing, unless such awards are for feasibility

  studies.  The  secretary  of  state may consult with the commissioner of
  transportation, the president of the state civil service commission,  or
  any  other  appropriate state official as needed to establish such rules
  and regulations.
    o.  Local  government  efficiency grant program beginning in the state
  fiscal year commencing April first, two thousand eight. (i) Definitions.
  (1) For the  purposes  of  this  paragraph,  "municipality"  shall  mean
  counties,  cities,  towns, villages, special improvement districts, fire
  districts, public libraries, association libraries,  water  authorities,
  sewer  authorities,  regional  planning  and  development boards, school
  districts, and boards of  cooperative  educational  services;  provided,
  however,   that  for  the  purposes  of  this  definition,  a  board  of
  cooperative educational services shall be considered a municipality only
  in instances  where  such  board  of  cooperative  educational  services
  advances  a  joint  application  on behalf of school districts and other
  municipalities within the  board  of  cooperative  educational  services
  region;   provided,  however,  that  any  agreements  with  a  board  of
  cooperative educational services: shall not  generate  additional  state
  aid;  shall  be  deemed  not  to  be  a part of the program, capital and
  administrative budgets of the board of cooperative educational  services
  for  the  purposes  of computing charges upon component school districts
  pursuant to subparagraph seven of paragraph b  of  subdivision  four  of
  section  nineteen  hundred fifty and subdivision one of section nineteen
  hundred fifty and subdivision one of section nineteen hundred  fifty-one
  of  the education law; and shall be deemed to be a cooperative municipal
  service for purposes of subparagraph two of paragraph d  of  subdivision
  four of section nineteen hundred fifty of the education law.
    (2)  For  the  purposes  of this paragraph, "functional consolidation"
  shall mean when  one  municipality  completely  provides  a  service  or
  function  for  another  municipality,  which  no  longer engages in that
  service or function.
    (ii) High priority planning grants.  (1)  Within  the  annual  amounts
  appropriated  therefor,  the  secretary  of  state may award grants to a
  municipality to cover costs associated with plans and studies  developed
  for  a  city  or  county  charter  revision  which  includes  functional
  consolidation or increased shared services and for the dissolution of  a
  village;  and  to  two  or  more  municipalities  for  plans and studies
  developed  for  mergers,  consolidations,  and   dissolutions;   sharing
  services  or  transferring  functions  that  would  be  performed  on  a
  countywide basis; and conducting services on a multi-county or  regional
  basis. Additional grant categories may be identified by the secretary of
  state,   in   consultation  with  the  commission  on  local  government
  efficiency  and  competitiveness,  and  included  in   a   request   for
  applications.
    (2)  Such  plans  and  studies  shall  include  an  examination of the
  potential  financial  savings  and  management  improvements  from  such
  charter revision, consolidation, dissolution, merger or shared services.
    (3)  High  priority  planning  grants  may  be  used  to  cover  costs
  including, but not limited to, legal and consultant services  and  other
  necessary expenses. The amounts awarded to a school district pursuant to
  this  subparagraph  shall  not  be  included  in  the approved operating
  expense of the school district as defined in paragraph t of  subdivision
  one  of  section thirty-six hundred two of the education law. No part of
  the grant shall be used by the applicant for recurring expenses such  as
  salaries.
    (4)  The maximum high priority planning grant awarded shall not exceed
  fifty thousand dollars per application. Award amounts may vary by  grant
  category as identified in the request for applications.

    (5)  Matching  funds  equal  to  ten  percent  of  the  total  cost of
  activities under the grant work plan approved by the department of state
  shall be required.
    (iii)  General  efficiency  planning  grants.  (1)  Within  the annual
  amounts  appropriated  therefor,  the  secretary  of  state  may   award
  competitive  grants  to  two  or  more  municipalities  to  cover  costs
  associated with plans and studies for potential functional consolidation
  or shared services involving two or more municipalities.
    (2) Such plans  and  studies  shall  include  an  examination  of  the
  potential  financial  savings  and  management  improvements  from  such
  functional consolidation or shared services.
    (3) General efficiency planning grants may  be  used  to  cover  costs
  including,  but  not limited to, legal and consultant services and other
  necessary expenses. The amounts awarded to a school district pursuant to
  this subparagraph shall  not  be  included  in  the  approved  operating
  expense  of the school district as defined in paragraph t of subdivision
  one of section thirty-six hundred two of the education law. No  part  of
  the  grant shall be used by the applicant for recurring expenses such as
  salaries.
    (4) The maximum general efficiency planning grant  awarded  shall  not
  exceed   twenty-five   thousand   dollars   per   application   for  two
  municipalities,  with  an  additional  one  thousand  dollars  for  each
  additional  municipality  participating  in  the  application; provided,
  however, that in no case shall such an application receive a grant award
  in excess of thirty-five thousand dollars.
    (5) Local matching funds equal to ten percent of  the  total  cost  of
  activities  under the grant work plan approved by the secretary of state
  shall be required.
    (6) In the selection of grant awards, the  secretary  of  state  shall
  give  the  highest  priority  to  applications  that would result in the
  complete functional consolidation of a municipal service and shall  also
  give priority to applications that include a municipality which meets at
  least  three  of  the  fiscal distress indicators in paragraph c of this
  subdivision, that include the  consolidation  of  health  benefit  plans
  offered  by  two  or  more  municipalities,  or  that  would  result  in
  contractual services between two or more municipal  highway  departments
  or  the  consolidation  of  two  or  more municipal highway departments;
  provided, however, that to receive a general efficiency  planning  grant
  award,  an  applicant  shall  indicate that an objective of the study or
  plan for functional consolidation  or  shared  services  is  to  realize
  financial savings upon implementation.
    (iv)  Efficiency  implementation grants. (1) Within the annual amounts
  appropriated therefor, the secretary  of  state  may  award  competitive
  grants  to  two  or  more  municipalities to cover costs associated with
  consolidations, mergers, dissolutions, cooperative agreements and shared
  services where authorized by state law and where demonstrable  financial
  savings  would  result  from  such  consolidation,  merger, dissolution,
  cooperative agreement or shared service.
    (2) Efficiency implementation  grants  may  be  used  to  cover  costs
  including,  but  not  limited to, legal and consultant services, capital
  improvements,   transitional   personnel   costs   essential   for   the
  implementation  of  the  approved  efficiency  implementation grant work
  plan, and other necessary expenses.  Grants  may  be  used  for  capital
  improvements,  transitional personnel costs or joint equipment purchases
  only where such expenses are integral to the coordinated or consolidated
  service delivery. The amounts awarded to a school district  pursuant  to
  this  subparagraph  shall  not  be  included  in  the approved operating

  expense of the school district as defined in paragraph t of  subdivision
  one of section thirty-six hundred two of the education law.
    (3)  The  maximum  efficiency  implementation  grant awarded shall not
  exceed two hundred thousand dollars per municipality; provided, however,
  that in no case shall such an  application  receive  a  grant  award  in
  excess of one million dollars.
    (4)  Local  matching  funds  equal to ten percent of the total cost of
  activities under the grant work plan approved by the department of state
  shall be required. In the event an applicant is implementing  a  project
  that  the  applicant developed through a successfully completed planning
  grant funded under the local government efficiency grant program or  the
  shared  municipal  services  incentive grant program, the local matching
  funds required shall be reduced by the local matching funds required  by
  such successfully completed planning grant.
    (5)  No part of the grant shall be used by the applicant for recurring
  expenses such as salaries, except that the salaries of certain personnel
  essential for the effectuation of the joint activity shall  be  eligible
  for a period not to exceed three years.
    (6)  In  the  selection  of grant awards, the secretary of state shall
  give the highest priority  to  applications  that  would  implement  the
  merger,  dissolution  or  consolidation  of municipalities or that would
  implement the complete functional consolidation of a municipal  service,
  and  shall  also  give  priority  to  applications that are submitted by
  applicants that successfully completed a high  priority  planning  grant
  pursuant  to  subparagraph  (ii)  of  this paragraph or a planning grant
  under the shared municipal services incentive grant program for  one  of
  the  types  of high priority activity identified in subparagraph (ii) of
  this paragraph; that include a municipality which meets at  least  three
  of  the  fiscal  distress indicators in paragraph c of this subdivision;
  that would consolidate health benefit  plans  offered  by  two  or  more
  municipalities; or that would result in contractual services between two
  or  more  municipal  highway  departments or the consolidation of two or
  more municipal highway departments.
    (v) Twenty-first century demonstration project grants. (1) Within  the
  amounts   appropriated   therefor,   subject  to  a  plan  developed  in
  consultation with the commission  on  local  government  efficiency  and
  competitiveness  and  approved  by  the  director  of  the  budget,  the
  secretary of state may award competitive  grants  to  municipalities  to
  cover  costs  associated  with  a  functional  consolidation or a shared
  services agreement having great potential to achieve  financial  savings
  and   serve   as   a  model  for  other  municipalities,  including  the
  consolidation of services on a multi-county basis, the consolidation  of
  certain  services countywide as identified in such plan, the creation of
  a  regional  entity  empowered  to  provide  multiple  functions  on   a
  countywide  or regional basis, the creation of a regional or city-county
  consolidated municipal government, the consolidation of school districts
  or supporting services for school districts encompassing the area served
  by a board of cooperative educational services, or  the  creation  of  a
  regional smart growth compact or program.
    (2)  Twenty-first  century demonstration project grants may be used to
  cover  costs  including,  but  not  limited  to,  legal  and  consultant
  services,  capital  improvements, transitional personnel costs essential
  for  the   implementation   of   the   approved   twenty-first   century
  demonstration  project  grant  work  plan, and other necessary expenses.
  Grants may be used  for  capital  improvements,  transitional  personnel
  costs or joint equipment purchases only where such expenses are integral
  to the coordinated or consolidated service delivery.

    (3)  The  maximum  twenty-first  century  demonstration  project grant
  awarded shall not exceed four hundred thousand dollars per municipality.
  Award amounts may vary by grant category as identified  in  the  request
  for applications.
    (4)  Local  matching  funds  equal to ten percent of the total cost of
  activities under the grant work plan approved by the department of state
  shall be required.
    (vi) The secretary of state shall, prior to the  acceptance  of  grant
  applications,  promulgate  rules  and  regulations  including,  but  not
  limited to, (1) award eligibility criteria, and (2) application,  review
  and grant approval procedures. The secretary of state shall also require
  that  such  awards  be granted only for services that would otherwise be
  individually provided by each grantee and  that  demonstrable  financial
  savings result from such sharing, unless such awards are for feasibility
  studies.  The  secretary  of  state may consult with the commissioner of
  transportation, the president of the state civil service commission,  or
  any  other  appropriate state official as needed to establish such rules
  and regulations.
    (vii) Evaluation of grant  program.  The  department  of  state  shall
  prepare  an  annual  report  to  the governor and the legislature on the
  effectiveness of the shared municipal services incentive program and the
  local government efficiency grant program. Such report shall be provided
  on or before October first of each year and shall include,  but  not  be
  limited to, the following: a summary of applications and awards for each
  grant  category,  an  assessment  of  progress  in the implementation of
  initiatives that received grant awards, estimated financial savings  and
  significant improvements in service realized by municipalities that have
  received  grants  and  an  evaluation  of  the effectiveness of regional
  technical assistance and state agency assistance  provided  pursuant  to
  subparagraphs (vii) and (viii) of this paragraph.
    (viii)  Regional  technical  assistance.  Within  the  annual  amounts
  appropriated  therefor,  a  portion  of   the   administrative   funding
  appropriated  for  the  local government efficiency grant program may be
  used  to  support  technical  assistance  provided  by  regionally-based
  organizations, pursuant to a plan submitted by the secretary of state in
  consultation  with  the  commission  on  local government efficiency and
  competitiveness and subject to approval by the director of  the  budget,
  including  but  not limited to regional planning and development boards,
  not-for-profit organizations that support local government concerns, and
  academic institutions. Regional technical assistance shall include,  but
  not  be  limited to, developing service sharing and consolidation guides
  and manuals, providing presentations on how to undertake consolidations,
  and providing assistance in developing consolidation and shared  service
  agreements. Providers of regional technical assistance shall measure and
  report to the secretary of state on the effectiveness of such assistance
  in facilitating shared services or consolidation among municipalities.
    (ix)  State  agency assistance. Within the annual amounts appropriated
  therefor, a portion of administrative funding appropriated for the local
  government efficiency grant program may be used to support new  programs
  of   state   agency   assistance  to  achieve  financial  savings  among
  municipalities  through  functional  consolidation  or  shared  services
  pursuant to a plan submitted by such agency and approved by the director
  of the budget. State agencies that provide such assistance shall measure
  and  report  to  the  director  of  the  budget, the commission on local
  government efficiency and competitiveness, and the secretary of state on
  the effectiveness of such assistance in  achieving  cost  savings  among
  municipalities.

    p.   Local   government  efficiency  grant  program  municipal  merger
  incentives. For the purposes of this paragraph,  "municipalities"  shall
  mean cities with a population less than one million, towns and villages.
  Within    the    annual   amounts   appropriated   therefor,   surviving
  municipalities   following   a   merger,  consolidation  or  dissolution
  occurring on or after the state fiscal year commencing April first,  two
  thousand  seven  may  be awarded additional aid in the state fiscal year
  following such merger, consolidation or  dissolution  equal  to  fifteen
  percent  of  the combined amount of real property taxes levied by all of
  the  municipalities  participating  in  the  merger,  consolidation   or
  dissolution  in  the local fiscal year prior to the local fiscal year in
  which  such  merger,  consolidation  or  dissolution  took  effect.   In
  instances of the dissolution of a village located in more than one town,
  such  additional  aid shall equal the sum of fifteen percent of the real
  property taxes levied by such village in the village fiscal  year  prior
  to  the  village  fiscal year in which such dissolution took effect plus
  fifteen percent of the average amount of real property taxes  levied  by
  the towns in which the village was located in the town fiscal year prior
  to the town fiscal year in which such dissolution took effect, and shall
  be  divided  among  such towns based on the percentage of such village's
  population that resided in each such town as of the most recent  federal
  decennial  census.  Such additional aid shall be apportioned and paid to
  the chief fiscal officer of each consolidated or merged municipality  on
  audit and warrant of the state comptroller out of moneys appropriated by
  the  legislature  for such purpose to the credit of the local assistance
  fund in the general fund of the state treasury in the same "on or before
  month and day" manner as the municipality's base  level  grant  is  paid
  pursuant  to  subparagraph  (i)  of paragraph i of this subdivision. Any
  municipality  receiving  a  merger  incentive  award  pursuant  to  this
  paragraph  shall use such aid only for general municipal purposes. In no
  case shall the additional aid pursuant  to  this  paragraph  exceed  one
  million  dollars.  Such  additional aid shall in subsequent state fiscal
  years be considered prior year aid for the purposes of determining  such
  merged,  consolidated  or  surviving  municipality's  base  level  grant
  pursuant to paragraph b of this subdivision.
    q.  Local  government  efficiency  grant  program  highway  functional
  consolidation  incentive.  (i)  When  used  in  this  paragraph,  unless
  otherwise expressly stated:
    (1) "Municipalities" shall mean counties, cities, towns or villages.
    (2) "Functional consolidation" shall  have  the  same  meaning  as  in
  clause two of subparagraph (i) of paragraph o of this subdivision.
    (3)  "Highway  services"  shall  include,  but not be limited to, road
  maintenance and snow and ice control services.
    (ii) If the functional consolidation of highway services in  a  county
  results  in  one  municipality  providing  highway services for at least
  ninety percent of the lane miles in such county,  excluding  lane  miles
  for  which the state has jurisdiction and maintenance responsibility, or
  if all of  the  towns  in  a  county  functionally  consolidate  highway
  services,  then  each one of the municipalities party to such functional
  consolidation  shall  in  the   state   fiscal   year   following   such
  consolidation  receive additional aid equal to thirty percent of the aid
  that such municipality received pursuant to section ten-c of the highway
  law in  the  state  fiscal  year  preceding  such  consolidation,  which
  additional  aid  shall then be reduced in equal parts over the following
  four years; provided, however, that in no case shall the total  of  such
  additional  aid  provided  in  a state fiscal year to all municipalities
  party to one such consolidation  exceed  one  million  dollars.  If  all
  municipalities party to one such consolidation would otherwise receive a

  total  of  more  than  one million dollars of such additional aid in any
  state fiscal year, each such municipality shall instead  in  such  state
  fiscal year receive a pro rata share of one million dollars based on the
  ratio  of  the  aid which such municipality received pursuant to section
  ten-c of the highway  law  in  the  state  fiscal  year  preceding  such
  consolidation  to  the  total aid which all such municipalities received
  pursuant to section ten-c of the highway law in the  state  fiscal  year
  preceding  such  consolidation. Such additional aid shall be apportioned
  and paid to the chief fiscal officer of each municipality party to  such
  functional consolidation of highway services on audit and warrant of the
  state comptroller out of moneys appropriated by the legislature for such
  purpose  to  the credit of the local assistance fund in the general fund
  of the state treasury and shall not be deemed to be  consolidated  local
  highway  assistance  payments  pursuant  to section ten-c of the highway
  law.
    11. Additional municipal aid program. 1.  Definitions.  When  used  in
  this  section,  unless  otherwise  expressly  stated  "Base level grant"
  means:
    For state fiscal year commencing April first, two  thousand  six,  the
  total  amount of aid for each municipality, other than a school district
  and the counties of Essex, Hamilton and Franklin, received in the  state
  fiscal year commencing April first, two thousand five, under the aid and
  incentives  for  municipalities  program  in  effect  at  that  time and
  appropriated in chapter fifty of the  laws  of  two  thousand  five,  as
  amended,  which constitutes the public protection and general government
  budget bill.
    2. Additional municipal aid. Additional municipal aid program shall be
  distributed as follows:
    The City of:
    Buffalo shall receive $13,644,637
    Rochester shall receive $12,000,000
    Syracuse shall receive $9,000,000
    Yonkers shall receive $11,750,685
    3. Additional municipal aid for cities. All cities having a population
  of less than one hundred twenty-five thousand, in addition to any  other
  aid  paid  by the state pursuant to the budget for the state fiscal year
  commencing April first, two thousand six, shall be eligible  to  receive
  an  apportionment  equal  to  13.1113  percent of such city's base level
  grant payable in the state  fiscal  year  commencing  April  first,  two
  thousand six.
    4.  Additional  municipal  aid  for  towns and villages. All towns and
  villages shall be eligible to receive an additional annual apportionment
  equal to 16.7145 percent of such town's and village's base  level  grant
  payable  in  the  state fiscal year commencing April first, two thousand
  six.
    5. Payments. In the state fiscal  year  commencing  April  first,  two
  thousand  six,  all  payments  of  grants set forth in subdivisions two,
  three and four of this section shall be paid in the same "on  or  before
  month and day" manner as set forth in subdivision ten of this section.