Buffalo, N.Y. (WBEN) - Wednesday is deadline day for the Buffalo Common Council to approve the proposed $618 million operating budget that was proposed by Mayor Byron Brown a few weeks ago.
This proposed budget would see a tax levy increase of 9% for the 2024-25 fiscal year as a result of inflation and increases in union contracts, FICA & Medicare, health insurance costs, New York State Pension and Capital Debt. If approved as proposed, it would be the highest tax increase ever made under Mayor Brown's administration.
At the time he proposed the budget, Mayor Brown acknowledged there are hard decisions made in this budget, but he feels they are necessary to continue the progress and adapt to the challenges and the shift in how people have chosen to live and work since the COVID-19 pandemic.
In the lead up to Wednesday's budget vote at Buffalo City Hall, leadership of the Buffalo Common Council has been negotiating non-stop with the Mayor's administration to hammer out a fair budget for the city and its residents. At 2 p.m. ET, Council President Chris Scanlon will convene the body of the whole, where members will debate the budget as proposed, and also as amended.
"We could be working up until the late hour, we don't know how it's going to go. But right now, the Common Council's leadership and the administration are in current deliberations," said Fillmore District Councilman Mitch Nowakowski in an interview with WBEN on Tuesday.
Right now, the 9% tax levy increase is deciphered between two categories: Non-homestead property tax rate, which is commercial ($2.32 increase per $1,000 of assessed value), and homestead property tax rate, which is the residents' rate for taxes ($0.78-cent increase per $1,000 of assessed value). Council members, including Nowakowski, have been making a push to ensure the residential burden is lowered in this budget.
"The fact of the matter is over the course of 13 years, the city did not systemically, continually and responsibly raise taxes a little bit at a time, so now everyone's getting sticker shock at a 9% tax levy," Nowakowski said. "That's why I want my constituents and the residents of the City of Buffalo to be very keen to when people say, 'We're not going to raise taxes, we're holding the line for 13 years,' and then 'Bam!', we're hit with a fiscal cliff and no revenue to be able to cover it."
For Nowakowski, as the Council's Finance Committee chair, the most important and concerning part of the city budget comes from the City Comptroller's Office, and Barbara Miller-Williams' response to the budget.
"She references, 'There are three primary items, which are of particular concern, namely $40 million of non-reoccurring revenues, which balances the recommended budget and will not be available in the future,' which includes $25 million in ARP [American Rescue Plan] dollars, which is the last year to use federal stimulus, and then $14.9 million in appropriated fund balance - our savings account - and then this budget is relying on $11 million to a Tribal Compact Agreement that is completely speculative, at that point," Nowakowski noted. "When we're looking at over $40 million in revenue that we're relying on in this budget, that we know we won't have next, what do you do? And the amount of taxes that are proposed to increase this year, what that money would generate would just basically cover the increase in expenses that we have this year. That means we're not even out of the hole."
Nowakowski feels the Common Council and the Brown administration have been playing ping pong for years, whenever if comes to the city budget and raising taxes for residents and local businesses.
"Nobody wants to say, 'Wait a minute, if we have spotty revenues and we know next year is going to be completely tough, we have to show some restraint.' I would rather show restraint, or have some basic cuts this year so that next year, it's not catastrophic, and it also demonstrates that we can make hard decisions," Nowakowski said. "I'm going to tell you, this is not the budget for Council members to placate to people or to spread misinformation, or to look like they're cutting taxes on behalf of everyone and they're stealing from the rich and protecting the poor. That's not what we're doing right now, and that's not where we're at. We have to have real conversations where we balance budgets, consecutive budgets with revenues and money that will be disappearing at the end of this year."
With the potential of a looming $40-plus million gap next year, Nowakowski believes there has to be discussions about a systematic approach to raising taxes.
"If we don't raise it to the proposed levy of 9%, what does this look like in the out years? I'd hate for us to raise taxes this year, and say, 'Well, we got through that,' and then next year, walloped with another huge tax increase without having a proper plan to demonstrate, 'Look, there's a trade off. We didn't raise taxes for 13 years, taxes have to go up to be responsible to meet the needs of the city for police, fire, infrastructure and to keep us safe. And this is what we're looking at,'" Nowakowski noted.
"I think that this budget, we need to be very honest with residents of the City of Buffalo, and to project that we're not going to inflict huge, steep increases at once. But that there's an actual plan to start leveling off our increases, because it's not going to help anyone if we pass a budget with speculative revenue, with money that's shoring up and walking around with a blindfold asking everyone to give us money. That's irresponsible, and we need to get real."
In an interview with WBEN a week-and-a-half ago, Mayor Brown believes the proposed budget for the city is a "good budget", and gives Buffalo the positioning to continue to grow and create additional opportunities for residents.
While Nowakowski respects Mayor Brown, he says he is not happy with this budget, and hasn't been happy with the city budgeting over the last few years.
"It has relied on speculative revenues with increasing expenses, and it doesn't really show the fortitude that we can be fiscally sustainable throughout many years," Nowakowski argued. "I think we've been hand-to-mouth so many years, and been so scared to talk about the increase in taxes or additional revenues, or cannabis management that now we're at a standstill. I listened to his response, and I think reporters have to push back a little bit and say, 'What do you do next year when over $40 million of revenue shores up, and then we don't have any recourse?'"
Nowakowski adds he'd rather make small budgetary cuts now with this budget rather than being forced to make catastrophic cuts later due to a large budget deficit.
"I don't believe it's rational or, in reality, to walk around and ask everyone for money for a year. I don't. What are we going to [do], keep walking around and ask the County Legislature to open up the sales increase?" he said. "Cannabis management, you've seen the debacle where the implementation of cannabis stores has not been run well at all. The Governor's even addressing that and how she can remediate that, the City of Buffalo relies on that. We don't have any other real information on this $11 million Tribal Compact Agreement, it's completely speculative at this point, we're not given any direction. I think what I want to see is us getting real, and having hard conversations, because next year, a lot of us are going to be holding a pretty serious bag."
In the end, Nowakowski wants the residents he represents to know the Common Council is working tirelessly to come up with a budget that is realistic, responsible, and maintains city services while not inflicting a large tax burden on the people of Buffalo.
"If taxes are going to raise because of the revenues needed, it should be done in a responsible and systemic approach so people can prepare, and make sure they're really getting their own household in order and making sure they qualify for senior exemptions or veteran exemptions, they come down to City Hall to make sure they do that," Nowakowski said. "But I think that being honest with my residents is the best thing. I think that the worst thing elected officials can do is to pander and come up with excuses when next year, we could be facing almost a catastrophic budget gap."
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