Sean Ryan suggests bonds to solve Buffalo's budget issues
22
BUFFALO, N.Y. (WIVB) -- On Sunday, New York State Senator Sean Ryan took to Niagara Square to announce his plan to deal with the financial problems of the Queen City -- deficit finance bonds.
“We have to look at solutions that actually provide a structural balance to our budget. And this is the solution,” said Ryan.
Ryan proposed introducing legislation that looks to allow the Buffalo Control Board to issue a deficit-financing bond to cover the city's budget gap this year and for the next four years.
“This is restructuring. This is the way you do it and this is the way you get out of your structural imbalance,” said Ryan.
The bonds are meant to help local governments resolve current budget shortfalls, allowing them to focus on long-term budget stabilization.
Acting Mayor Chris Scanlon called the plan "laughable."
“If I'm being honest, I think it's laughable,” said Scanlon. “The senator's out there talking today simply about borrowing money and adding on to our debt with interest costs and things like that,” said Scanlon.
Ryan said the city will use recurring revenue sources to pay for the bond over time. He added that this will stop residents from seeing raises in taxes or cuts in services.
“The debt that the city has ... it can't be paid back with our current revenues. We can't do massive tax increases -- it's too destabilizing,” said Ryan.
Scanlon’s plan, with the backing of NYS Assembly Majority Leader Crystal Peoples-Stokes, looks to instill a 3% hotel occupancy tax along with selling city-owned parking ramps to stabilize the budget.
“We've come up with creative solutions to bring money and maintain our current revenue sources and add to them,” said Scanlon.
Scanlon's plans are still waiting on state approval. When asked what will be in the state’s budget to address Buffalo’s deficit, Gov. Kathy Hochul said she "knows that Crystal Peoples-Stokes has enormous influence in this building. This issue has come up. It's just not resolved at this time."
Recent letters from City of Buffalo Comptroller Barbara Miller-Williams to the mayor’s office, along with County Executive Mark Poloncarz sending a letter to the Buffalo Fiscal Stability Authority, raise concern over Scanlon's plan.
“They all have this same negative, doom and gloom pessimistic approach to everything ... we don't view things that way. We don't operate that way,” said Scanlon.
Ryan hopes the bill will be passed before the Buffalo Common Council finalizes the budget later next month, while Scanlon continues to be optimistic that the state budget will back his plan.
Dillon Morello is a reporter from Pittsburgh who has been part of the News 4 team since September of 2023. See more of his work here and follow him on Twitter.