The city's fiercest battle was against the governor's plan to stop $328 million in annual unrestricted aid payments.

A high percentage of technical assistance and direct aid payments were not documented.

By comparison, our foreign aid payments to Colombia were a paltry $11.5 million.

Several countries suspended aid payments in 2012 following these allegations.

This is the largest single foreign aid payment except for Israel.

These "Chapter 70" payments are in addition to separate local aid payments to town and city governments' general funds.

At that time, the state will sell about $3.3 billion of notes to finance its accumulated budget deficit and make aid payments to local governments.

Mayor Milan had threatened last week to file for bankruptcy protection if the city did not receive the aid payment.

But today the state missed the first aid payment it was supposed to make to local school districts in this fiscal year.

We must therefore make aid payments dependent on the performance of these countries, and that is what we are doing.