July 24, 2009

LEGISLATORS RATH AND WALTER SPEAK OUT AGAINST LEGISLATURE'S MOVE TO INCREASE COSTS TO NOT-FOR-PROFITS

(Buffalo, NY) - Erie County Legislators Edward A. Rath III (15th District) and Raymond W. Walter (4th District) spoke out against the move taken by the Erie County Legislature today, increasing the costs for not-for-profits to borrow money to undertake capital projects. The item passed the legislature by a vote of 10-3, with Legislators Rath and Walter voting against it. "We had an opportunity to make it cheaper for not-for-profits to borrow money to build facilities to provide services to Erie County residents, and we opted to bow to special interests demands to impose hardships on these organizations," stated Legislator Rath. Rath and Walter supported an item offered by the County Executive which would have allowed not-for-profits to utilize tax exempt bond status in the Internal Revenue Service Code to lower interest rates on capital projects. "Instead of creating a vehicle to take advantage of tax exempt bonds, the majority attached prevailing wage requirements and project labor agreements to not-for-profits applying for these bonds, thereby raising the cost of the projects beyond the savings," commented Legislator Walter.

Legislators Rath and Walter view the vote as highly political. "The democrats who forced through amendment have accepted over $120,000 in donations from organized labor, who this amendment directly benefits. It is shameful that politics trumps good government yet again," commented Legislator Rath. "Instead of answering to the people of Erie County, the majority has chosen to listen to the special interests who fill their campaign coffers," added Legislator Walter, holding up three pieces of currency.

Legislator Rath and Walter expressed their disappointment that not-for-profits will not be able to take advantage of tax exempt bonds. "I hear that people want their government to adopt practices followed in their homes and in business. The majority in the legislature took steps today to make not-for-profits operate more like government. This is not good for the people of Erie County," stated Legislator Rath. Legislator Walter added, "Instead of encouraging development during difficult economic times, the majority today turned its back on local not-for-profits, the individuals that they serve and the entire Western New York community."

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