By Joyce Kryszak
Buffalo, NY – The Erie County Comptroller wants all road work stopped in Erie County until Congress sorts out the mess on Wall Street.
The Wall Street crisis has finally hit Main Street. Or at least Wherle Drive, Tonawanda Creek Road and the Freeman Road bridge. Comptroller Mark Poloncarz says he doesn't have any more money to advance from his operating budget for the work being done in these places. And he says with the current credit crunch it could be awhile before the county can get the $85 million bond needed to finish projects and pay itself back. But Erie County Executive Chris Collins says the work must continue.
The Wall Street crisis has hit in Erie County at least in part because of its own earlier meltdown. The county and the Fiscal Stability Authority tussled over who should borrow the $85 million capital bond. The control board won, but couldn't borrow the money after all because of the Wall Street crisis. About $15 million has been extended so far from operating funds so far. But Poloncarz says that's all he has to extend. And he says it will be awhile before any municipality should borrow - even if it can. He says interest rates have doubled.
The comptroller, the county executive and the Control Board will meet on Monday to Control Board to work out a plan to deal with their own local credit crunch. Control Board Executive Director Ken Vetter says the problems on Wall Street are no longer very far away.
Officials say just how much pain depends on how long it takes Congress to come up with a rescue plan.
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