Some WNY lawmakers oppose bill that would allow Buffalo to borrow funds

“I’m surprised that anyone would vote against this bill,” former Mayor Anthony Masiello told the Buffalo News after the state legislature approved the legislation, “because it’s really something that’s necessary, important and, quite frankly, often used by every city in the state.”

Masiello, whose lobbying firm represents the city of Buffalo, where he served as mayor between 1994 and 2005, said in a telephone interview Thursday that the bill was a standard measure. The bill, if passed, would allow Buffalo to use the private bond market to borrow $26 million for its capital budget for expenses such as buildings, vehicles and infrastructure, according to Mike DeGeorge, spokesperson for Mayor Byron Brown.

A memo for the bill, sponsored by Assembly Majority Leader Crystal Peoples-Stokes and Sen. Sean Ryan, both Buffalo Democrats, describes it as simply a one-year extension of existing law that has given the City of Buffalo “a valuable tool to provide quick funding for projects that require immediate attention.” It adds: “Since this law has already proven its usefulness, a one-year extension is appropriate and would provide the City with sufficient financial flexibility to address other needs during this period.”

Asked what would happen if the bill didn’t pass, Masiello said: “It would be a huge headache and a huge heartbreak for the city. They borrow money on a regular basis. And for them not to have access to the private bond market would be a disaster for them and for all the shovel-ready projects that have short-term liquidity needs. It would create havoc.”

The legislation easily passed both houses of the state Legislature on June 5, two days before the end of the Legislature’s annual session. The Assembly vote was 129-17, the Senate vote was 58-1.

The bill now heads to Gov. Kathy Hochul’s desk, and the Buffalo-born governor is expected to sign it.

But the bill’s passage was not without opposition from elected officials whose districts are in the Buffalo area or in the eastern parts of western New York. Among the lawmakers who voted against it were Reps. Michael Norris, a Republican from Lockport, and David DiPietro, a Republican from East Aurora, whose districts include Erie County; Reps. Andy Goodell, a Republican from Jamestown; and Reps. Marjorie Byrnes, Jeff Gallahan, Brian Manktelow and Phil Palmesano, Republicans from the Rochester and Finger Lakes regions.

Assembly Minority Leader Will Barclay, a Republican from Oswego County, and a number of Republican lawmakers, primarily from Long Island, also voted against it. The only senator to vote against the bill was Sen. Jacob Ashby, a Republican from Rensselaer County.

On Friday, Norris told the News he voted against the bill because he would prefer a more competitive and transparent public process to get the best possible rate.

“I just think that, for the most part, I vote against these bills,” he said. “That’s exactly what I’ve always felt philosophically.”

Asked about Masiello’s remarks, Norris said: “I have a lot of respect for Mayor Masiello. I work with him on a lot of issues. I just think in this case … we need to open the doors to make sure that we have the most competitive rates.”

Goodell told The News he would have voted for the bill if Buffalo had been in as much financial trouble as it was when the measure was first introduced. But he said Fitch Ratings, a credit rating agency, upgraded Buffalo’s bond rating from A to A+ last year, and the city received ratings of A1 from Moody’s Investors Service and A+ from S&P Global Ratings.

He explained that most cities use a public bidding process when they want to borrow money. The exceptions he noted were Buffalo, New York, Newburgh, Yonkers and Dunkirk in Chautauqua County. He said he would only support private bond sales to municipalities still in financial distress.

“All I’m saying is that an open and transparent process where everyone has an equal opportunity, where you ask everyone to give you the best price possible, historically in New York State and throughout the country, helped obtain better prices for the municipality and avoid collusion and corruption,” Goodell said. “And if someone from Buffalo says, ‘Oh, we didn’t do this privately with our preferred borrowers or lenders, that would be a disaster’…Was that a disaster for Rochester, Syracuse , Albany or any of the thousands of other municipalities in the state? The answer is no. »

All votes against the bill came from Republicans, but a number of Republicans in Western New York supported the measure, which aims to financially help Buffalo, the state’s second-largest city. State and the economic anchor of the region. Among those votes were Reps. Angelo Morinello, R-Niagara Falls; Joseph Giglio, R-Gowanda; Stephen Hawley, R-Batavia; and Josh Jensen, R-Greece, along with Senate Minority Leader Robert Ortt, R-North Tonawanda; Sen. Patrick Gallivan, R-Elma; Sen. George Borrello, R-Sunset Bay; Sen. Pamela Helming, R-Canandaigua; and Sen. Thomas O’Mara, R-Big Flats.

Also voting for the bill were Peoples-Stokes, Ryan, Buffalo-area Assembly members Patrick Burke, Monica Wallace, William Conrad, Jonathan Rivera, Karen McMahon and Rochester-area Assembly members Jennifer Lunsford and Sarah Clarke.