By Joyce Kryszak
Buffalo, NY – The Erie County Fiscal Stability Authority and the county are in another tussle over control of capital borrowing. After a year of arm wrestling over who can borrow the money for less, both sides are racing to a showdown Friday.
The control board passed two resolutions Wednesday. One gave the board permission to borrow $63 million for capital projects. The second resolution gave county officials until Friday to prove the county could borrow the money cheaper. Control board chairman Anthony Baynes said the control board expects and is ready to act, once they receive the county's numbers on Friday.
But the county has different plans for Friday.
The legislature has called a special session to vote on a measure that could authorize it to do its own borrowing. Lawmakers are expected to pass a home rule message asking their state colleagues to pass an amendment to the law that formed the control board in the first place. The new law, which is being introduced in the state legislature by members of the western new york delegation, would take away some of the control board's authority - specifically, on the issue of borrowing.
The law would permit the county to do its own borrowinbg as long as it has investment grade ratings from two ratings agencies at the time of borrowing.
Legislature Chairwoman Lynn Marinelli said the proposed amendment has support from lawamkers, as well asthe county executive and comptroller.
But control board member Stan Keysa said investment grade shouldn't be good enough.
The control board had agreed to borrow $63 million for a one year, short term bond anticipation note, or BAND. Who would convert that to long term borrowing was to be renegotiated in twelve months.
But if the state amendment is approved, Marinelli said the county will proceed with borrowing the rooughly $91 million needed for two years of road repair and other overdue projects. She said constituents want action now.
The issue will likely be decided soon. State lawmakers wind up their session next week.
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