City's capital plan not at risk from state budget cuts
The worsening economic crisis should not have an impact on Buffalo's proposed capital budget, which would earmark $21.5 million for bricks-and-mortar projects next year.
City officials said today the spending plan already reflects modest spending reductions, and they do not anticipate having to make last-minute cuts.
The Common Council will meet today with officials from the comptroller's office, city budget division and Public Works Department to discuss finances. There are growing concerns in City Hall following word from from Albany that municipalities such as Buffalo stand to lose millions of dollars in state aid next year due the fiscal mess.
But budget experts said they don't expect capital projects to be affected in the coming year, including planned upgrades at several parks, improvements at the Broadway Market and $2.3 million for an ongoing demolition program.
Where the escalating fiscal crisis could have an effect is how much money the city spends in the coming year from its general funds for capital projects. As Buffalo's surplus continued to grow in recent years, some pushed for a pay-as-you-go approach to finance certain projects, as opposed to incurring long-term debt by selling bonds.
Deputy Comptroller Jeanette M. Mongold said there have been discussions in recent days about trying to avoid the use of funds for capital projects that could otherwise become a cushion in the event the economic outlook worsens.
"Now is the time to show fiscal restraint, because there is so much uncertainty in these economic times," said Mongold.
The city's proposed capital spending would already be at its lowest level in years. City Comptroller Andrew A. SanFilippo has set the 2009 debt ceiling for financing city projects at $21.5 million. By comparison, the city earmarked $22 million for such projects this year, and the amount ranged between $24.1 million and $26.7 million in the four previous years.
The Council has until mid-December to approve any changes to Mayor Byron W. Brown's plan. Last year, the mayor's capital budget took effect by default after a power struggle between Council factions resulted in lawmakers failing to vote on the plan.
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