Article in The Buffalo News

CITY FINANCES
Lawmakers huddle to discuss sharing sales tax
1/10/2004

As Erie County prepares to ask the state for another one-year extension of the extra 1 percent sales tax, city and state lawmakers are making behind-the-scenes efforts to snare additional county aid for Buffalo.
Few are expecting a sharing of the revenue this year, but some are shopping around for other options.

Late Friday afternoon, County Executive Joel A. Giambra and members of his staff met with Sam Hoyt, Robin L. Schimminger, Brian Higgins and Crystal D. Peoples of the Assembly.

"I would characterize the discussions as productive and cooperative, with a shared sense of wanting to reach an amicable resolution by all parties involved," Hoyt said Friday night.

That hasn't happened yet, Hoyt said, adding that he's optimistic there will be an announcement in the next week to 10 days. Giambra couldn't be reached to comment Friday night.

While Hoyt declined to describe the options on the table, there's talk of asking the county to pay more than $600,000 in annual interest costs associated with the city's planned borrowing of $7.8 million to close a deficit.

Other options include a county commitment to provide the city with money to help maintain highways or demolish decaying buildings.

"If the sales tax is going to be extended, there has to be some city-mindedness there," said Council President David A. Franczyk. "And this isn't a gimme, gimme handout. (The city) has shown we're moving in the right direction."

But Giambra said he has already advanced a series of reforms - including a county takeover of city public works functions - that he insists would save Buffalo $16 million. Giambra said the county continues to grapple with rising Medicaid costs and is in no position to provide aid beyond what he has already proposed. "We do not have any extra money to give the City of Buffalo," he said.

The extra penny is set to expire in seven weeks, and before a bill is introduced in Albany, Hoyt said the local state delegation wants to see a commitment by the county to help Buffalo.

"There's a consensus among the Assembly Democrats that the county needs to provide some type of assistance to the city," he said. "But we're not holding a gun to anyone's head and specifying exactly what type of assistance."

While many advocates for sharing the extra penny claim they're optimistic a formula will be devised, they doubt it will happen this year.

"We recognize that it would bankrupt the county at this time," said Hoyt. "We have no intention of shutting down county government."

But State Sen. Byron W. Brown, D-Buffalo, is insistent that some type of sharing formula be implemented this year. He said this week's promise by Gov. George E. Pataki to aggressively push for Medicaid reform bodes well for the county.

"I won't support an extension this year without a sharing (of the extra penny)," he said.

The city and its school district would have received between $27 million and $29 million in additional revenue each since 2000 if the extra 1 percent tax was shared in the same way that the remaining county tax is shared.

Franczyk plans to file a Council resolution this month urging officials to come up with new ways to assist Buffalo. But Franczyk agreed with Giambra that the county and city must take decisive steps to consolidate some services.