NORWICH – Proposed mid-year cuts in state assistance money for local governments would not impact the City of Norwich in 2009, according to Governor David Paterson’s plan.
Eighteen cities that operate on an April 1 to March 31 fiscal schedule – the same as the state – will however see an 8 percent reduction in what’s called Aid and Incentives to Municipalities funding (AIM) totaling $67 million.
The cut is part of Paterson’s plan to close the state’s budget gap by $5 billion over the next two years. He’s calling for a $1.8 billion across-the-board reduction in administrative, education, Medicaid, social services, health programs, transportation and higher education spending. If enacted, the state would withhold part or all of the remaining assistance payments in 2009.