Press Releases: Click here for the latest news

John J. Mills - District 13 October 6, 2008 Legislators Call on Erie County to Borrow for Capital Projects Say delays have cost taxpayers millions of dollars (Erie County Legislature - Buffalo, New York) Erie County Legislature Minority Leader John J. Mills (Legislator - 13th District), joined by Michael H. Ranzenhofer (Legislator - 4th District) and Edward A. Rath, III (Legislator - 15th District), called on the Erie County Fiscal Stability Authority (ECFSA) to permit Erie County to undertake borrowing money necessary to complete 2007 and 2008 capital projects. "The cost to taxpayers of further delay far outweighs any other consideration. Since the ECFSA struck out in the financial markets, it's time to move forward," stated Legislator Ranzenhofer. Legislator Mills added, "Taxpayers in Erie County have been forced to wait too long for their roads to be fixed. Worse, it is costing them millions." Mills was referring to the recent Revenue Anticipation Note, which the ECFSA was to secure, because it argued that it could save taxpayers dollars by borrowing the money instead of the County. Ultimately, the ECFSA was unable to secure the loan, forcing the county to quickly secure a loan on its own or risk shutting down. Because of the ECFSA's failure to secure the loan, the cost of the loan rose to $1 million over the ECFSA's projected costs. In September, the ECFSA and Erie County agreed that the ECFSA would secure a Bond Anticipation Note and the Revenue Anticipation Note, because it argued that it could borrow the money at a lower cost. The agreement became necessary after Governor David Paterson vetoed a bill, overwhelmingly passed in the State Senate and Assembly, that would have allowed Erie County to borrow money without ECFSA approval. "The cost of borrowing is rising. The cost of raw materials to complete projects is rising. The Control Board has demonstrated its inability to borrow. We need to get these projects started before costs increase any further. The ECFSA should act in the best interests of taxpayers and allow Erie County to borrow the money for these capital projects," stated Legislator Ranzenhofer. "Governor Paterson's veto has kept capital improvements in Erie County at a standstill. His veto is being called the 'million dollar veto.' Unfortunately, as our roads deteriorate, our buildings crumble and the cost of borrowing increases, the price tag is going up every day we delay starting these projects," stated Legislator Rath. "We need to start these projects now." Legislator Mills added, "This isn't just a financial issue. It is also a safety issue. As our roads deteriorate, so do driving conditions. We cannot put the safety of taxpayers at risk by delaying these projects further." Erie County needs to borrow nearly $90 million in order to complete its capital projects for 2007 and 2008. A few road projects have been started anticipating that capital borrowing would occur to fund the completion of the projects, but the majority of projects have not. Back to District 13 Homepage