City of Buffalo elected officials are voicing their opposition to State Senator Sean Ryan’s proposal that would allow the Buffalo Fiscal Stability Authority to issue deficit bonds of up to $150,000,000 — plus extend the life of the authority until 2046.
Acting Mayor Chris Scanlon, who’s an opponent of Ryan’s in the June Democratic Mayoral Primary, said the proposed legislation “flies in the face” of taxpayers.
“It's a proposal that forces taxpayers to take on decades of unnecessary debt and associated interest costs," said Scanlon "It is the equivalent of borrowing $150 million and putting it on a credit card just because you can't pay your mortgage. Worse yet, it extends the life of the BFSA for 25 years"
The BFSA was put into place in 2003 by the state, as a hard control board, due to a then-looming $100 million city budget shortfall. It took on advisory status in 2012. Buffalo is now in another another large shortfall of around $70 million. Scanlon is adamant going through the BFSA is not a solution.
“It really just kicks the can down the road. You have very talented, very capable people on the Buffalo Common Council, in the comptroller's office, all throughout this building," he said. "[They] can figure the issues out that we have and take the challenges in front of us”
Buffalo Comptroller Barbara Miller-Williams, who she herself raised issues with Scanlon proposed city budget, felt like the proposed debt bond legislation excludes local leaders.
"There is no need to exclude us and leave us out. I do not support superseding that decision making, leaving it up to New York State Senator Sean Ryan and unelected members, specifically those individuals that serve with the Buffalo Fiscal Stability Authority," said the comptroller. "Furthermore, financially, it has not been determined whether it is fiscally more responsible for the BFSA to even borrow on [our] behalf."
Scanlon’s two major proposals to solve budgetary issues is a 3% city hotel tax, and selling city-owned parking lots to a public authority. Both need state legislature approval, but so far only have Assembly support. Both State Senators April Baskin and Ryan oppose the plans.
“We don't know when the state budget will finally, ultimately be passed, but I'm hopeful that they're in there," said Scanlon. "I'm somewhat confident. I'm very confident, they're going to be in there based on the work we've done on this end, and having conversations with our partners in government”
In a statement, Ryan was defensive of his plans to involve the BFSA, noting it would continue in an advisory capacity under his legislation.
“My legislation clearly states that 'Such bonds may be issued whether the City of Buffalo is in a control period or an advisory period.' Buffalo is in an advisory period, and this legislation would not change that,” wrote Ryan. “I strongly oppose a hard control board for the City of Buffalo. My legislation would not impose a hard control board, period. Chris Scanlon created Buffalo’s financial crisis, and instead of taking responsibility for his failures, he continues to deflect blame.”
At a BFSA meeting earlier in the month, the authority took some issues with Scanlon’s proposed budget. They advised he should put together a gap, or back-up plan, incase certain projected revenues fall through. Scanlon, a member of the authority himself, motioned to approve such a plan.
