STATE AID TO CITIES

As shown by the area chart above, state aid represents a smaller share of total tax resources available to municipalities than it did 20 years ago. A review of the chronology and aid description links below demonstrates why this is the case: Aid to cities consists of four programs, three of which are funded in stable or declining amounts. The original personal property tax replacement funds have been set out in statute at a defined amount ($17.9 million) since 1977. The amounts actually appropriated have been less than that most years. In fact, the amount appropriated for 2002-03 was approximately $13.5 million.

The Municipal Infrastructure Redevelopment Fund is financed with a defined $3 million earmark from cigarette tax proceeds. The Municipal Equalization Fund is also financed with defined fund sources that have increased very little since the creation of the fund in 1998. Only the road and street aid program increases regularly.

 

Additional Information:

 

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