ALBANY – More than a half-dozen Republican legislators from Western New York voted against a bill to allow the City of Buffalo to borrow money for emergencies – a law enacted 40 years ago that remains in place to avoid possible “disaster.”
“I’m surprised somebody 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, used often by all the cities in the state.”
Masiello, whose lobbying firm represents the City of Buffalo, where he served as mayor between 1994 and 2005, said in a phone interview Thursday that the bill is a standard measure. The bill, if enacted, would allow Buffalo to use the private bond market to borrow $26 million for its capital budget for expenditures such as buildings, vehicles and infrastructure, according to Mike DeGeorge, a spokesman for Mayor Byron Brown.
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In less than 12 months, the City of Buffalo will face a budget gap of at least $41 million, but it could be more than $55 million.
A memo for the bill, sponsored by Assembly Majority Leader Crystal Peoples-Stokes and Sen. Sean Ryan, both Buffalo Democrats, described it as a simple one-year extension of existing law that has given the City of Buffalo “a valuable tool to provide expeditious funds for projects which require immediate attention.” It added, “Since this law has already proven its usefulness, an extension for one year is appropriate and would provide the city with enough financial flexibility to encounter any further needs in that time frame.”
Asked what would happen if the bill were not to become law, Masiello replied: “It would be a serious headache and heartache 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 any projects that were ready to go, short-term cash needs. It would create havoc.”
The legislation easily passed both houses of the state Legislature on June 5, two days before the Legislature concluded its annual session. The Assembly vote was 129-17, the Senate vote 58-1.
It is now headed to the desk of Gov. Kathy Hochul, and the Buffalo-born governor is expected to sign it.
But the bill’s passage did not come without opposition from elected officials whose districts are rooted in the Buffalo area or eastern sections of Western New York. Among the legislators voting against it were Assembly Members Michael Norris, R-Lockport, and David DiPietro, R-East Aurora, whose districts include Erie County; Assembly Members Andy Goodell, a Jamestown Republican; and Assembly Members Marjorie Byrnes, Jeff Gallahan, Brian Manktelow and Phil Palmesano, Republicans in the greater Rochester area and Finger Lakes region.
Assembly Minority Leader Will Barclay, a Republican from Oswego County, and a number of GOP lawmakers, mostly from Long Island, were additional no votes. The only senator to vote against the bill was Sen. Jacob Ashby, a Republican from Rensselaer County.
![Michael J. Norris](https://bloximages.chicago2.vip.townnews.com/buffalonews.com/content/tncms/assets/v3/editorial/3/5c/35c49a29-4c5e-5c7d-bb37-0945a978d0d0/5ef2a73ae078b.image.jpg?resize=150%2C224 150w, https://bloximages.chicago2.vip.townnews.com/buffalonews.com/content/tncms/assets/v3/editorial/3/5c/35c49a29-4c5e-5c7d-bb37-0945a978d0d0/5ef2a73ae078b.image.jpg?resize=200%2C299 200w, https://bloximages.chicago2.vip.townnews.com/buffalonews.com/content/tncms/assets/v3/editorial/3/5c/35c49a29-4c5e-5c7d-bb37-0945a978d0d0/5ef2a73ae078b.image.jpg?resize=225%2C336 225w, https://bloximages.chicago2.vip.townnews.com/buffalonews.com/content/tncms/assets/v3/editorial/3/5c/35c49a29-4c5e-5c7d-bb37-0945a978d0d0/5ef2a73ae078b.image.jpg?resize=300%2C449 300w, https://bloximages.chicago2.vip.townnews.com/buffalonews.com/content/tncms/assets/v3/editorial/3/5c/35c49a29-4c5e-5c7d-bb37-0945a978d0d0/5ef2a73ae078b.image.jpg?resize=400%2C598 400w, https://bloximages.chicago2.vip.townnews.com/buffalonews.com/content/tncms/assets/v3/editorial/3/5c/35c49a29-4c5e-5c7d-bb37-0945a978d0d0/5ef2a73ae078b.image.jpg?resize=404%2C604 540w)
Michael Norris, R-Lockport
On Friday, Norris told The News that he voted against the bill because he would prefer a more competitive and transparent public process to yield the best rate possible.
“I just think principally, in most cases, I vote against these bills,” he said. “That’s just what I’ve always felt philosophically.”
Told of Masiello’s remarks, Norris said, “I have a lot of respect for Mayor Masiello. I work with him on many issues. I just think in this case ... to open it up to make sure we have the most competitive rates.”
Goodell told The News that he would have voted for the bill if Buffalo was struggling as financially 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 that the city received ratings of A1 from Moody’s Investors Service and A+ by S&P Global Ratings.
He said most cities use a public bidding process when they want to borrow money. The exceptions he noted are Buffalo, New York City, Newburgh, Yonkers and Dunkirk in Chautauqua County. He said he would only support private bond sales for municipalities still struggling financially.
“All I am saying is that an open, transparent process where everyone has the same equal chance, where you’re out there asking everyone to give you the very best price they can, historically across New York State and across this nation, has resulted in better prices to the municipality and avoids collusion, corruption,” Goodell said. “And for somebody from Buffalo to say, ‘Oh, we didn’t do it privately with our favorite borrowers or lenders, it would be a catastrophe’ …what, has it been a catastrophe for Rochester or Syracuse or Albany or any of the other thousands of municipalities across the state and the answer is no.”
All the votes against the bill were from Republicans, but a number of Republicans from Western New York backed the measure, which is intended to financially aid Buffalo, the second-largest city in the state and region’s economic anchor. Those votes included Assembly Members Angelo Morinello, R-Niagara Falls; Joseph Giglio, R-Gowanda; Stephen Hawley, R-Batavia; and Josh Jensen, R-Greece, as well as 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, as well as Buffalo-area Assembly Members Patrick Burke, Monica Wallace, William Conrad, Jonathan Rivera, Karen McMahon, and Rochester-area Assembly Members Jennifer Lunsford and Sarah Clarke.