So, after all that endless talk, there is a new mayor in the City of Buffalo. That’s quite an event considering that Chris Scanlon is only the fifth mayor the city has had in the past 50 years.
Mayor Byron Brown wrapped thing up last week and handed over the keys to Scanlon. Everyone said nice things. Scanlon got to work, meeting with the mayor’s cabinet – all of them appointed, of course, by Brown.
The issues facing the city’s mayor did not change from one day to the next. The city still faces a high rate of poverty among its residents. Lead paint is a serious problem throughout the city. So are the lead pipes that carry the city’s drinking supply.
Can more be done to reduce gun violence? There is a tremendous need for more affordable housing. How can the School System get more students to show up regularly? Streets and parks need attention. Is the city ready for winter and snow fighting?
All of these issues have persisted for many years, and in some cases the situation has grown much worse. Whether Chris Scanlon is mayor for just 14 and a half months, or whether he goes on to be elected to the office and serve well into the future, depends a lot on how voters in 2025 will view his management of the issues. They might choose someone new who is offering better solutions.
All of the important issues are interlinked by one factor: money; or the lack thereof. At this point in time we are talking mostly about a lack of money, to the tune of tens of millions of dollars in 2025 and every year going forward after that.
Mayor Brown, in his final days in office, insisted that the city is short just $25 million, a much smaller number than others inside and outside of City Hall are projecting.
Here is a summary of key revenue and expense items in the current city budget that will have a negative impact both this year and for years to come:
- Use of the remaining ARPA Federal Funds in the amount of $25.8 million. No additional funds are available past 2024.
- Use of fund balance in the amount of $14.9 million is another source of revenue that will not be available in the next fiscal year.
- The 2024-2025 budget included state enacted legislation that would create a hotel occupancy tax. The legislation was not approved, leaving a $4.2 million hole in the budget. The tax was projected thereafter to produce $5 million annually.
- The Common Council declined to approve increased parking rates, leaving an additional $2 million hole in the budget this year and going forward.
- The uncertainty concerning the amount and timing of projected casino revenues, which require a new compact between the state and the Seneca Nation of Indians, may create another budget hole.
- The amount of revenue projected from cannabis sales is questionable in the face of the slow start of the program.
- Over the past six years overtime expenses in the Police and Fire Departments have exceeded approved budgets by an average of $3.9 million.
The Chairman of the Common Council’s Finance Committee, Mitch Nowakowski, recently told the Buffalo News “The incumbent mayor has stated that the budget deficit isn’t as large as the one … that other members are saying, and I can pull out the budget book and show that and see that $25 million is being used in (American Rescue Plan) dollars that won’t be there. We’re using $14.9 million in reserve funds. And then, you know, we’re looking at sketchy revenue of a hotel bed tax that hasn’t been approved by Albany. We’re not going to get that money, and it’s budgeted for.”
Acting Mayor Scanlon is quoted in the News as saying, “my colleagues in government on the Council are probably closer [to the likely deficit amount than Mayor Brown]… Some people talk about cutting, some people talk about revenue. It has to be both… we have to prioritize that spending, coupled with increasing revenues. Quite frankly, we don’t bring enough in revenues right now.”
The leadership of the city is being realistic. In the imminent fiscal crisis, admitting that there is such a large problem is the first step in the right direction – but only the first step.
The problem also seems to be getting on the radar in Albany. Last Wednesday the state announced that it was advancing a payment of $5,563,094 to Buffalo in anticipated future payments from a new gaming compact between the state and the Seneca Nation. It was reported that the money represents revenues generated between mid-December 2023 and June of 2024. The advance is helpful but represents perhaps only half or less of the amount the city has anticipated in the current fiscal year.
Governor Kathy Hochul also said that her administration in the past three years has provided Buffalo more than $2 billion for transportation, welfare, and aid and incentive to municipalities (AIM) programs, including an additional $5 million this year. No breakdown was provided for the $2 billion as to what transportation and welfare funds were being referenced. The city does not provide welfare services. The Governor told the News “I’m concerned about the finances, and we have been very generous in supporting the City of Buffalo to get through their crisis.” Actually that crisis is just beginning as the city exhausts the $330 million in federal pandemic relief.
At some point in time the Governor will need to fill out the four vacant seats on the Buffalo Fiscal Stability Authority so that the organization can exercise a full range of powers that may be necessary to deal with the city’s financial problems.
Admitting to the problem starts the ball rolling but no one involved in the imminent fiscal crisis has come up with any solutions broad enough to put the city back on the road to balanced budgets for years to come. Scanlon, who has been a member of the Council for 12 years along with most of the current members elected prior to 2023, has acquiesced to the questionable practices in previous budgets that have brought the city to this point.
Assuming Scanlon will be a candidate for mayor, he will have the tough job of preparing the next budget over the next six months while heading toward the primary election that is just eight months away. All other potential candidates, however, also bear the responsibility to offer their own solutions for what needs to be done. The budget debates will be very difficult. The race for mayor is going to be one hell of a campaign.
Early Voting
Early voting in New York State begins on Saturday, October 26, and runs through Sunday, November 3. Here is a link for locations and times in Erie County: https://elections.erie.gov/pdfs/EARLYVOTING%202024General9-
Here is Niagara County’s information: https://elections.niagara.ny.us/wp-content/uploads/2024/09/2024-09-04-161207-2024-general-election-early-voting-schedule.pdf
Here is Wyoming County’s information: https://wyomingco.net/DocumentCenter/View/15513/2024-Early-Voting-Dates-and-Hours-General-Election
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