Government Aid Goes Down, Local Taxes Go Up

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Local governments across New York are increasingly turning to local tax revenue to make up for sluggish growth in federal and state aid, according to a report from the state's comptroller.

According to a report released Wednesday by state Comptroller Thomas DiNapoli, total federal and state aid grew at an average of 2.2 percent annually from 2001 through 2011.

That's slower than the 2.4 percent rate of inflation.

DiNapoli says federal and state aid have slowed down while costs have risen.

"New York’s municipalities and school districts have been forced to rely largely on sales taxes and property taxes to make ends meet," DiNapoli said.

"When this model breaks down, it causes fiscal shortfalls and hits the pockets of local taxpayers.”

The report says the relative share of federal and state aid as a percentage of total local government revenues diminished from 22 percent in 2001 to 20 percent in 2011.

In comparison, revenue generated from sales taxes increased 5.9 percent and property taxes by 4.2 percent over the past decade.

See the full report.

See the news release from DiNapoli's office.

Wednesday, November 26, 2014
, Watertown, NY

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