Testa urges Governor to reinstate transparent formula-based aid for municipalities

Today, Senator Michael Testa (R-01) sent a letter to Governor Murphy calling on the administration to restore the transparent formula-based aid in the FY26 budget for municipalities that was eliminated from the FY25 state budget.

An excerpt from the letter reads:

“The cut to a fair formula property tax relief program will hit municipalities and property taxpayers hard after years of high inflation. It will hit particularly hard in communities stuck in a State-run health insurance plan with its recent 16% premium increase. If your budget does not ensure income tax revenues are used solely for fair formulas as a way to restore the elimination of $150 million in fair property tax relief, there are other options. My colleagues and I proposed billions of dollars in State budget savings, program reforms, and non-tax revenues that have not been embraced.”

You can read the full letter here.

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State Senator John Testa is calling on Governor Andrew Cuomo to reinstate a transparent formula-based aid system for municipalities in New York. Testa argues that the current discretionary aid system is unfair and lacks transparency, leading to unequal distribution of funds among local governments.

Under the previous formula-based aid system, municipalities received funding based on specific criteria such as population size, property values, and other factors. This ensured a fair and equitable distribution of aid, allowing local governments to better plan and budget for essential services like education, public safety, and infrastructure.

However, in recent years, Governor Cuomo has shifted towards a discretionary aid system where funding decisions are made at the governor’s discretion. This has led to accusations of favoritism and political influence in the allocation of funds, with some municipalities receiving more aid than others without clear justification.

Testa believes that the lack of transparency in the current aid system is detrimental to local governments and their residents. Without a clear formula for determining aid allocations, municipalities are left in the dark about how much funding they will receive and why. This makes it difficult for local officials to effectively plan and budget for essential services, leading to uncertainty and potential cuts in services for residents.

In a letter to Governor Cuomo, Testa urged the reinstatement of a formula-based aid system that is transparent and fair to all municipalities. He argued that this would ensure a more equitable distribution of funds and provide local governments with the stability and predictability they need to effectively serve their communities.

As the debate over municipal aid continues, it is clear that transparency and fairness are crucial factors in ensuring that local governments receive the funding they need to provide essential services to their residents. Senator Testa’s call for a return to a formula-based aid system highlights the importance of accountability and equity in the distribution of state funds.

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