By Joyce Kryszak
Buffalo, NY – Erie County lawmakers say the 2007 budget is tight but remains structurally balanced. But there could be debate among county officials about how to keep it that way.
The hearings showed that several potential holes are opening up in the current budget. That's according to lawmakers who invited department heads last week to provide a status report of their finances.
The biggest gaps come from a nearly nine million dollar payment to the Erie County Medical Center, and another roughly five million lost from the failed tax lien sale.
But Legislature Chairwoman Lynn Marinelli said they have a close eye on the bottomline. And she said, worse case, they have reserves to meet any shortfalls.
Comptroller Mark Poloncarz Monday did announce a nearly $24 million surplus for 2006. But lawmakers, by law, can only use 2005 reserves. Poloncarz said that roughly $14 million would be enough to cover any shortfalls in the 2007 budget.
But he doesn't recommend it.
He said bond rating agencies are looking for the county to replenish rreserves, not further deplete them.
He said the best solution is for the county to reach an agreement with ECMC over the medicaid payments. And, most importantly, for the Erie County Fiscal Stability Authority to approve the recently restructured tax lien sale.
That vote could come by mid August.
Barring those two things however, Poloncarz said using reserves would be inevitable.
As for 2008, without the tax lien sale, a tax rate increase would be a possibility. Bob Reynolds chairs the legislature's finance committee. Reynolds said he doesn't foresee a tax hike.
But to avoid that lawmskers will have to manage shortfalls in other departments as well. To name only a few, other problem areas include nagging overtime in the Sheriff's department, a drop off in expected health department fees, and more money needed for parks.
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