The nearly $400 million that was chopped by the Legislature last week from the 2008-09 state budget didn't include funding the state supplies annually to the cities of Ogdensburg and Watertown.

Watertown Mayor Jeffrey E. Graham spoke publicly at the start of the emergency legislative session held in Albany last week, saying that he expected nearly $300,000, or 6 percent, of the $5.1 million the state gives the city to be cut. State lawmakers didn't touch the Aid and Incentives for Municipalities program, however, meaning both cities will receive the entire amount they've budgeted for.

Ogdensburg City Manager Arthur J. Sciorra said his city won't lose an estimated $108,000 through the AIM program.

"The AIM program was supposed to be targeted in those budget cuts," Watertown City Manager Mary M. Corriveau said. "When the Legislature came back into session last Tuesday, they adopted budget cuts that were less serious than proposed."

The Legislature did cut local assistance spending designed to save $97 million this fiscal year and $160 million in the next. Those areas facing 6 percent cuts include programs and services in corrections, criminal justice, agriculture, alcohol and substance abuse, mental retardation, higher education opportunity, library aid, case services for disabled adults and school lunch and breakfast aid.

State programs that weren't cut include Restore NY, which provides grants to developers to rehabilitate commercial and residential properties, and the Consolidated Local Street and Highway Improvement Program, which helps fund county, city, town and village street and road projects.

Watertown has been the benefactor of 7 percent increases in the AIM program in recent years. Whether that trend of funding will remain is unclear, but city officials aren't optimistic for the future.

"We don't anticipate that we'll see the seven percent over the next five years as it was originally outlined," Mrs. Corriveau said.

The $5.1 million from the AIM program accounts for 13.6 percent of the $37.6 million in revenue the city expects to collect during the current fiscal year.

"It is a revenue stream we can't lose," the Watertown mayor said. "We could just rely on more rain."

The city sells excess electricity produced at the hydropower plant. The city expects to receive $2.8 million — or 7.1 percent of its annual revenue — from the power company during this fiscal year.

Still, Mrs. Corriveau said, she's expecting cuts to the state aid program. When that will happen and by how much is still debatable.

If necessary, cuts will be made to capital projects that include large equipment purchases and road reconstruction projects.

"At this point in time, we're trying to be cautious in spending," Mrs. Corriveau said.

Times staff writer David Winters contributed to this report.