Political posturing during the last session of the Erie County Legislature before its summer recess puts the County at great risk of paying upwards of a million of dollars in interest unnecessarily.

The session included two requests for Revenue Anticipation Notes, a routine item necessary for the County’s annual borrowing plan to cover the County’s cash flow needs. Both requests would allow the County to borrow $90 million in mid-September. One request was from the County Executive and the second from the Comptroller. The County Executive’s request granted the Erie County Fiscal Stability Authority to borrow on behalf of the County.

Despite the ECFSA’s assurance and proven record that it can borrow at a better rate than the County, and save approximately $900,000, the Majority Caucus approved the Comptroller’s request while tabling the other. The Minority Caucus is frustrated with the actions of their colleagues.

“My colleagues are choosing to side with the Comptroller because he has a ‘D’ after his name, rather than the County Executive who has an ‘R.’ The result will be borrowing that costs taxpayers $900,000 more, all for political gain at the expense of everyday people’s pocketbooks,” said Minority Leader John J. Mills, R-Orchard Park.

The Majority Caucus, led by Majority Leader Maria Whyte, and including Legislators Christina Bove, Betty Jean Grant, Daniel Kozub, Thomas Loughran, Lynn Marinelli, Tom Mazur and Tim Whalen voted to table the County Executive’s item indefinitely, jeopardizing the ECFSA’s ability to borrow. The same block of Legislators voted in favor of the Comptroller’s request, which did not include any cost saving estimates. Members of the Majority Caucus adamantly voiced uncertainty as to who could borrow at a better rate and save money but still voted in favor of the Comptroller.

“We went through this exact same issue last year and in the end allowed the control board to borrow because it always has a better rating and proved time and time again to cost less,” said Legislator Kevin Hardwick, R-Tonawanda. “The control board said very clearly that if the Comptroller came back with better numbers then we could go with him, but they still tabled the ECFSA item, that is how I know it’s a political move.”

The ECFSA has a superior bond rating; AA+ compared to the County’s bond rating of A, and can receive a much lower interest rate than the County, saving upwards of $900,000.

“This was a terrible vote taken by the Democrats. They have done a disservice to the people of Erie County and, most likely, have made a costly mistake. I would request that the Legislature return to a special session and allow the ECFSA to be prepared to borrow on behalf of the County and take politics out of the people’s business,” Legislator Ray Walter, R-Clarence said.

The Minority Caucus supported both resolutions, which would have allowed the Comptroller and ECFSA to be in a position to go to the market in September. By tabling the County Executive’s request, the Majority Caucus has locked the ECFSA out of the process, knowing full well that it has saved millions for the county in the past and can borrow at a superior rate.

“Clearly my colleagues chose to vote how they did for political reasons and are putting the County at great risk of wasting nearly $1 million. Both the Comptroller and the Fiscal Stability Authority should be allowed to go to market and determine who can borrow at a cheaper rate.  It seems to me that this move by the Legislature Majority is nothing more than an effort to boost a countywide political campaign at taxpayer expense, but it ultimately sends the wrong message to all Erie County residents,” Legislator Lynne Dixon, Hamburg said.

In the past, the Comptroller has never been able to borrow at a better rate than the ECFSA. Just last month, the Legislature unanimously approved a resolution allowing the ECFSA to borrow on behalf of the Erie County Medical Center; saving an estimated $118 million compared to if the County borrowed the money.

“Historically the ECFSA has been able to go to market with a better rating and save millions of dollars in interest. Why now would we block them from borrowing again this year? This is a crucial and costly decision made by my colleagues on the other side of the aisle to support a political ally,” Legislator Edward A. Rath, R-Amherst, said.

“The politics being played by the Democrats is wasting taxpayer dollars. Any sensible person knows that you borrow money at the best rate available. Every day we have taxpayers that request loans for themselves, they would never pay more than they have to. We should respect their money and do the same,” said Legislator Dino Fudoli, R-Lancaster.

The County Executive’s request was sent to the Finance and Management Committee, which is not scheduled to meet.