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Control Board Cool to Administration Idea of Replenishing Reserves

By Joyce Kryszak

Buffalo, NY – The long-term fiscal health of Erie County was largely overlooked last week because of a proposal to halt revenue sharing with schools. But the administration's revised plan also proposed another shift of funds to help stabilize the budget.

Members of the Erie County Fiscal Stability Authority listened skeptically last week to the Giambra administration's plan to shift more state aid to local school districts. They say re-engineering county government is what is really needed. Eighteen million dollars earmarked by the state for initiative grants would help to do just that. But County Budget Director James Hartman proposes using half the money instead to bolster reserves. He told the board he thinks the state would allow it -- but he's not really sure.

"The language that created you (the control board) is delightfully ambiguous," Hartman said.

What that means is that the control board, which is charged with overseeing the grants, would have to agree to Hartman's plan. Board members immediately balked. They agreed reserves need to be replenished. But Vice Chair Bill Joyce quickly pointed out how they were depleted in the first place.

Hartman, who now must fix the problems of the past, shares those concerns.

"Some people will see this as a slush fund," Hartman said. "I want it fairly protected."

Former Gorski Budget Director and Board Member Ken Kruly was quick to sympathize. And to offer a solution.

"There's nothing to prevent us for doling this out as we choose through the year as a contingent account, coming from us rather than as a lump sum through you," Kruly said. The board will discuss that idea as well as other details of the revised four-year plan at its next meeting on September 6th.