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Home > Leadership > City Comptroller > News Articles > Governor gets measure to reduce powers of citys control board

Governor gets measure to reduce powers of citys control board

By Tom Precious
NEWS ALBANY BUREAU
Published:December 7, 2010, 12:00 AM
Updated: December 7, 2010, 06:45 AM

ALBANY — Gov. David A. Paterson again is being asked to weaken the powers of Buffalo’s control board, but oversight officials say the request is largely unnecessary because the city is soon expected to get back much of the fiscal autonomy it has lived without since 2003.

A bill to hasten the status of the Buffalo Fiscal Stability Authority from its “hard” oversight role over city finances to an advisory body had been sitting idle in the State Senate since June, when both legislative houses passed the bill.

But it—along with four other bills left over from the session that ended last summer — was quietly dispatched to the governor’s office just last week to start a 10-day clock for him to act.

“At this point, it’s kind of a moot point,” said Jeanette Mongold, control board executive director.

Mongold said the city has met the state’s legal terms to transform the control board from a “hard” period into an advisory state. She said outside experts are preparing a final review that is expected to restore the city’s full financial powers.

The legislation pending before Paterson would change the terms — in the city’s favor—for what is considered “assistance” for the city by the control board. Paterson already has vetoed the measure twice the past two years, and then-Gov. Eliot L. Spitzer rejected a similar bill in 2007.

The legislation would have no effect on Erie County, which also operates under a control board.

A Paterson spokeswoman would not give the governor’s position on the bill, saying he still was reviewing it. He must act by next Monday.

Buffalo Mayor Byron W. Brown said the city is awaiting final fiscal reviews by the state and city comptrollers’ offices. “We know that it will happen,” Brown said of the city control board going into a “dormant” stage.

“The city has its highest credit rating in almost 40 years. We have met all the other requirements for the control board to go dormant, and we feel it’s just a matter of time before that occurs,” the mayor said.

The city control board, established by the state in 2003 during the height of Buffalo’s financial turmoil, has immense say over the city government’s finances. It also covers Buffalo Public Schools and the Buffalo Municipal Housing Authority.

Its powers include approving all collective bargaining agreements and annually reviewing a four-year financial plan for the city entities, which it must approve or reject.

The bill would hasten the move to an advisory state, empowering the board to “review” rather than approve the city’s financial moves.

“The board need not do things that extends itself, but should be supportive of the direction that the city is going into,” said Assemblywoman Crystal Peoples-Stokes, who sponsored the bill with outgoing Sen. Antoine M. Thompson, both Buffalo Democrats.

“These are things the city can deal with, and the control board is an expense that we don’t need to have,” she said.

Mongold said board is not likely to take up the control-versus- advisory issue at Wednesday’s meeting because officials still are awaiting financial statements on the city’s finances from outside auditors. The next meeting is scheduled for March, although officials believe the board could take up the advisory status plan in a matter of weeks.