Control Board criticizes Byron Brown Budget Proposal

[Ragin]

Control board pans city budget

Faults mayor's plan for spending as too risky

Mayor Byron W. Brown's honeymoon with the control board officially ended Tuesday when the panel criticized his first proposed budget, noting it calls for the largest spending increase in at least 15 years and makes risky revenue assumptions.

In its first public comment on Brown's budget, the Buffalo Fiscal Stability Authority faulted the mayor for not including enough cost-cutting strategies.

"There's very little in this budget where we are trying to reduce costs by doing things differently," said Robert G. Wilmers, M&T Bank Corp. chairman, who was among the most outspoken control board members Tuesday.

"We're hoping to break some old habits and move to the point where the city is on firmer ground," said board vice chairman Alair Townsend.

One "troubling" element of Brown's plan involves a significant increase in spending, Wilmers said.

"I'm terribly concerned when I see a budget that increases at 9.1 percent when the rate of inflation is at 2.7 percent," Wilmers said. "No business can survive when its costs are going up at three-and-a-half times the rate of inflation."

The control board said it expects to see some revisions when it meets June 6 to vote on the plan. The panel has approval power over all city spending. Outgoing city Finance Commissioner James B. Milroy challenged Wilmers' critique, arguing no one knows what inflation will be in the coming year. Milroy added that inflation is higher in the Northeast, and that costs such as utilities and gasoline are driving up costs.

Control board members also questioned Brown's assumption that Buffalo will continue to receive the same amount of state aid in the next four years that it will receive in the coming year. Albany has significantly increased aid to municipalities, but board members note that the state could face a deficit next year of $7 billion to $10 billion.

Buffalo is becoming increasingly reliant on state aid, which will make up 53 percent of the proposed budget, board Executive Director Dorothy A. Johnson said. Three years ago, she said, state aid accounted for 36 percent of the city budget.

http://www.buffalonews.com/editorial...17/1015587.asp

[biker]

Outgoing city Finance Commissioner James B. Milroy challenged Wilmers' critique, arguing no one knows what inflation will be in the coming year. Milroy added that inflation is higher in the Northeast, and that costs such as utilities and gasoline are driving up costs.
http://www.buffalonews.com/editorial...17/1015587.asp

Milroy is the same guy who has been driving up water rate increases for the past three years, much higher than the rate of inflation. The reason the increases are needed, Milroy has repeatedly said, is that the City is losing population and those that remain are using much less of the more costly water.

DUH!!!

This nimrod is the financial genius of the City. He must be a true giant among lilliputians.

His warped view of "higher costs=greater need=higher taxes" are symptomatic of how Buffalo, NYS and the Northeast don't "get it."

The City is demonstrating it doesn't know how to make do with less.

And---with Brown's new budget----it shows it doesn't even care.

[biker]

Buffalo is becoming increasingly reliant on state aid, which will make up 53 percent of the proposed budget, board Executive Director Dorothy A. Johnson said. Three years ago, she said, state aid accounted for 36 percent of the city budget.

http://www.buffalonews.com/editorial...17/1015587.asp

This is ominous for the City.

In the post-9/11 NYS retrenchment, Buffalo saw iits state aid slashed. That is why it flirted with bankruptcy and why it has a Control Board.

Looks like the City is headed for another dose of "tough love".

[fireman]

This is ominous for the City.

In the post-9/11 NYS retrenchment, Buffalo saw iits state aid slashed. That is why it flirted with bankruptcy and why it has a Control Board.

Looks like the City is headed for another dose of "tough love".

As much as some people may fantasize about a city bankruptcy and the voiding of labor contracts, you need to wake up. The Federal Bankruptcy Code does allow for municipal bankruptcy, but only if the state in which the municipality resides allows it. New York State does not.

Even if the State did allow municipalities to declare bankruptcy, Buffalo would not qualify. In previous posts, biker and others made mention of the Control Board forcing the City to borrow money when it actually had a surplus. In fact, Buffalo had a surplus every year of the Masiello Administration and will have one for Brown's first fiscal year. Not exactly bankruptcy material.

[biker]

The Control Board borrows on behalf of Buffalo, takes a cut and turns it over to the City.

The City reports this as "revenue".

Fireman is extremely well versed in state law and bankruptcy and studiously avoids understanding the charade of the Control Board/City of Buffalo.

He's not delusional; he knows the reality.

But he has a vested interest in throwing up FUD to confuse the mushier headed members of the City workforce.

[citymouse]

The control board is slapping Brown. They are not going to just rubber stamp his budget after he and his staff has criticized them. Add to that the fact that he will not name Dottie Johnsons hand picked lackey (some scmuck from Syracuse ) as the man to replace Milroy as budget director. Then throw in to the mix that this control board knows that when Spitzer takes office in January their present incarnation will be revisited and restructured and you can see why they are lashing out in death throes of desperation.
They failed in their mission of busting the city unions. Now, since we have to have a fiscal stability board, maybe we can get down to solving the cities underling problems. Lack of a tax base, decliining population, and little development. Trying to bring the city to long term fiscal stability by dismantaling it's work force wasn't the answer. Contracting out to connected companies wouldn't work either. That approach would not reduce cost it would just feather the partnerships nest.
Thank good our long municiple nightmare is almost over.

[biker]

maybe we can get down to solving the cities underling problems. Lack of a tax base, decliining population, and little development.


Thank good our long municiple nightmare is almost over.

So when is the bacchanalia to begin?

This plan to repopulate the City via the municipal workforce is certainly innovative.

Do you guys intend to woo the ladies of the City? Maybe flowers and dinner?

Or will you just nail every girl walking down the street?