Buffalo Acting Mayor Chris Scanlon and Councilmember Mitch Nowakowski have filed a lawsuit against city Comptroller Barbara Miller-Williams, escalating a power struggle over the city's record-setting $110 million capital budget.
The lawsuit, filed Monday in Erie County Court, seeks to compel Miller-Williams to issue and sell bonds already approved by the Common Council. It's funding that Scanlon argues is urgently needed to move forward with infrastructure and school improvement projects.
Miller-Williams has refused to issue bond anticipation notes for portions of the budget, citing concerns that exceeding the city’s debt cap would be fiscally irresponsible.
The capital improvement budget is $82 million over Miller-William’s recommended $28 million debt cap for the year.
Scanlon and Nowakowski are co-plaintiffs in the Article 78 proceedings - a legal mechanism used to challenge the decisions or actions of a public official or body which asks the court to decide whether they acted within the law or arbitrarily.
The lawsuit argues that by refusing get the money moving, Miller-Williams is acting “in excess of her jurisdiction and failing to perform a duty enjoined upon her under the City Charter and state law.”
Scanlon told BTPM NPR that the Buffalo Common Council authorizes spending in the City of Buffalo, and the comptroller’s role is only advisory.
“She does not view it that way. So we felt it was necessary, after talking outside counsel, to unfortunately go this route, to make sure that not only we get the 2025 capital budget and those projects off the ground and running, but that we set the precedent moving forward to say: ‘Listen, the capital budget as it's laid out in the city charter, is how things are to be followed,’” he explained.
The council’s Finance Committee Chair, Mitch Nowakowski, accused the comptroller of “usurping her powers” as written in the city charter.
“I am defending the independence the prerogative and the authority of the Common Council, which is the disposing body of funds and the appropriating body. And it is not the comptroller's chartered responsibility to interfere,” Nowakowski insisted.
Miller-Williams’ office said they are withholding comment until a scheduled public meeting on the matter Wednesday evening at the Buffalo Erie County Public Library.
The sticking point
Throughout the intergovernmental squabble, Miller-Williams has maintained it is her chartered responsibility to ensure the city is “fiscally sound,” and claims exceeding the debt cap “in a historical manner” could jeopardize the city’s long term fiscal health.
Scanlon argued that the $82 million exceeding the debt cap should not be viewed as irresponsible spending, since the majority of it is reimbursable. Of that total, $55 million is allocated for capital improvement projects within Buffalo Public Schools which he said are more than 97% reimbursable through the State Education Department, with the remaining costs covered by the school district. The other $26 million was to be issued as bond anticipation notes, to be repaid with federal funds earmarked for major infrastructure projects.
Why does it matter?
Until Comptroller Miller-Williams issues the bond anticipation notes, several capital projects remain stalled, including planned improvements within Buffalo Public Schools.
At Tuesday’s Finance Committee meeting, Lovejoy District Councilmember Bryan Bollman voiced frustration over delayed repaving work in his district, citing the holdup as a growing concern as the construction season comes to an end.
“I saw some work going on, so we thought it was moving forward. But my district, South District, Delaware - there are several capital budget projects that likely won't be done because we're running out of time.”
Cost to the taxpayer
Both sides have employed outside counsel to usher them through the legal proceedings. Law firm Connors LLP are acting on behalf of Scanlon and Nowakowski, while Miller-Williams has engaged Wood Oviatt Gilman, and all at a cost to the taxpayer.
“I hate that for us,” Scanlon said.
“It's very disappointing and upsetting that we had to go this route. But quite frankly, what's going to cost the taxpayers a lot more is delay in these projects. Every day that these projects don't get off the ground, it's going to cost us more to do them.
"You see this in construction all over the country - costs are skyrocketing - so the longer it takes for the comptroller to bond out, that's what's actually going to impact the taxpayers at a much greater rate than this legal action.”
