BUFFALO, N.Y. — We saw what played out recently in Buffalo City Hall with a rather contentious budget process and an eventual pared-down property tax levy increase.
So WGRZ decided to take a closer look at the financial role of the Buffalo Fiscal Stability Authority which is better known as the City's control board
Most of us probably didn't realize it but the Buffalo Fiscal Stability Authority, which costs state taxpayers over a million dollars to run, has been meeting as the city's financial watchdog since it was first established by the state back in 2003. That is when Buffalo was at its taxable limit of 98 percent. And as a "hard" control board back then it could restrict city spending and limit contracts.
BFSA Board Member Fred Floss is also a Professor of Finance at Buffalo State University. He refers to the difficult days back in 2003 which was also just before the state created Erie County's control board following the 2004-2005 Red-Green Budget Crisis.
Floss points out that in regards to the city of Buffalo back then "We could not raise property taxes anymore to meet the needs of citizens of the city of Buffalo. That's not true anymore."
With more prudent budgets, better borrowing rates, and more downtown development, Buffalo City government restored its financial health and the control board actually went soft in 2012. Now it is in more of an advisory role with its review of four-year financial plans for city spending.
And on city taxes in the recent budget, the BFSA was very influential according to Floss. "The control board suggested the nine percent property tax increase. I mean that didn't come out of thin air. We pushed the Mayor (Byron Brown ) behind the scenes to do that. So if individuals want to blame the property tax increases - you can look at me."
And even as that proposed tax increase was cut in half by the common council, the rest of the control board agreed that it's a bitter but necessary financial pill to swallow. City leaders have to balance varying city revenues beyond taxes and fees like state aid, casino money, marijuana sales, and even parking fees against the fluctuating costs of city services like police, fire, infrastructure maintenance, and of course snow removal, as well as salaries and benefits for nearly 2,800 city workers.
Floss says the city does have room now to raise taxes. So he notes "The control board has said we expect to see property tax increases over the next few years. We need to also be able to protect those who are most vulnerable in their homes."
So could the board, which is appointed by the Governor and local leaders, ever go hard again? Well, they would actually vote on that Floss says "We've had discussions but we don't believe at this point that there is a reason to - that it would be in the best interest of the city."
Floss says he also fears going to a hard control board now might be seen as too drastic and could cause potential panic among residents and maybe even drive away would-be new residents with a bad image.
The Fiscal Stability Authority also covers the Buffalo Urban Renewal Authority and Buffalo Municipal Housing Authority as well as the city school district which has its own significant spending issues to be resolved.