April, 2007

Opportunity Exists for Reform in Erie County

The opportunity for reform exists within Erie County government and as the Legislature works through the 2007 budget, I will continue to support those initiatives that are beneficial to our community and vote against those measures which are not. Three such issues are currently before the Legislature.

Refinancing County Debt...Because the residents of Erie County deserve and need to see greater savings and reform, I strongly support the Hard Control Board that was given a more aggressive role in watching over Erie County's finances in January 2007. The Erie County Control Board has the opportunity to borrow money for Erie County or refinance its debt to free up cash and save taxpayers almost $5 million over 13 years - taking advantage of the Control Board's higher credit rating. In light of Erie County's bond rating being one of the worst in the nation for a large county government, the Administration and Legislature should move forward and request the Control Board to refinance the government's debt. All measures should be taken to reduce expenses and save taxpayer's money and I support the Control Board's borrowing for the County.

Dedicated Funding for Roads and Tourism...The Administration also needs to put an end to diverting tax revenues intended for necessary services such as road repair and marketing and promoting our area to travelers, conventions and businesses. Erie County government must stop relying on the transfer of money to the general fund from dedicated sources for the funding of general operational expenses.

I will continue to fight against the diversion of transfer tax monies - our dedicated road fund - for general purposes spending or to eliminate the tax if it continues to be diverted for other purposes.

Currently I am sponsoring legislation to officially dedicate 100% of the Hotel Occupancy Tax revenue to the Buffalo Niagara Convention and Visitors Bureau beginning April 1, 2008. More than two decades ago the Erie County Legislature established the "Bed Tax" which created a dedicated funding source for the Buffalo Niagara Convention and Visitors Bureau (CVB). During the height of the 2005 fiscal crisis, a significant amount of the Hotel Occupancy Tax revenue was diverted to the general fund for funding countywide expenses. Tourism generates $150 million in hotel revenues annually, $650 million in direct visitor spending, more than $50 million in sales tax revenues and 15,000 jobs and is vital to our community. It's about time the Bed Tax was dedicated for its intended purpose and not diverted for general purpose spending.

An integral part of reforming County government must also be to look at the collective bargaining agreements that are before the Legislature and take a hard look at benefits and paid time off vis-a-vis pay raises. Erie County needs to run on solid business principles rather than political considerations.

Reform needs to continue - county government must reduce spending, lower taxes and improve the quality of life in our community.

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