State’s Local Governments Turning to Increased Taxes to Offset Poor Growth

According to a report issued on Wednesday by State Comptroller Thomas DiNapoli, local governments across New York are increasingly turning to local tax revenue to make up for sluggish growth in federal and state aid.

The report is the latest in a series of reports DiNapoli will issue to highlight the causes of fiscal stress in New York’s local governments.

From 2001-2011, total federal and state aid has grown at an average of 2.2 percent annually, slower than the 2.4 percent rate of inflation.

The relative share of federal and state aid as a percentage of total local government revenues diminished from 22 percent of revenues 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.