Over the past week, the County Executive has been aggressive in pushing Legislators to support Erie County borrowing $188 million on behalf of ECMC.  After a thorough review of the proposal, I cannot support that plan and encourage ECMC to pursue the other options it laid out. Hospital officials have stated they are building a new trauma center, even if the Erie County Legislature chooses not to support this borrowing plan. While I recognize ECMC is a valuable asset to our community as Erie County’s only Level 1 Trauma Center, the plan put forward for our approval is irresponsible, we cannot support 30 years of financing to cover a short-term budget gap.  While the County Executive’s pitch has been that approving this shows support for ECMC and helps save ECMC and Erie County money that simply isn’t true. 

Last week the County Executive admitted that his actions during the past five years have led to an $18 million budget gap in 2017.  He also claimed that the only solution was borrowing more money.  Much to my disappointment, he immediately deflected the blame, and threatened the services you expect, pay for, and deserve. The 2017 budget is set, and it includes designated funding for parks, road repairs, Sheriff’s road patrols, community groups and more.  The County Executive cannot threaten these services.  

The Executive wants to borrow $188 million on behalf of ECMC for construction of a new emergency room and to refinance old debt.  ECMC, a public benefit hospital, gets reimbursed by Erie County for any care provided to uninsured patients, costing taxpayers tens of millions of dollars every year.  That increased care has led to higher costs to the county, which have not been accounted for in the Executive’s ever rising budget.

Under the Executive’s proposal, ECMC would use the county’s lower interest rate and credit the difference back to the county using a hypothetical rate for ECMC and federal reimbursement dollars for the capital improvement portion of the plan.  Ultimately this will shortchange the hospital and utilize the hospital’s federal reimbursement monies to plug a county budget hole and puts the burden of paying the additional borrowed money on the shoulders of future taxpayers. 

The County Executive plans to apply the credit up front, and deplete it in only a few years.  That is irresponsible.  The budget gap exists because the administration kept adding new programs and initiatives, while assuring the Legislature we can afford it.  The truth is we can’t.  

The time has come to review the $90 million in new spending the County Executive has proposed the past five years, and tighten our belts.  I cannot, in good conscience, accept this borrowing scheme to “save face” today, only to have the budget blow up again in a few years.  As a steward of your tax dollars, I will not double Erie County’s debt to bridge an $18 million budget gap.  Taxpayers should not be saddled with a red/green decision tomorrow for an easy decision today.  ECMC will build its ER, and Erie County will right its fiscal ship.