Legislature Destroys Opportunity To Create Jobs & Economic Opportunity

July 24, 2009

Collins says member's ties to organized labor influenced vote

Erie County Executive Chris Collins expressed extreme disappointment that the Erie County Legislature Majority wasted an opportunity to support millions in economic development and create hundreds of construction jobs in Erie County. Instead, the majority of the legislators – led by Chairwoman Lynn Marinelli – put the interests of organized labor ahead of taxpayers.

The Administration had asked the Legislature to support a resolution that would give the Buffalo and Erie County Industrial Land Development Corporation (ILDC) the ability to issue tax exempt bonds for local not-for-profit organizations looking to finance capital projects. The Erie County Industrial Development Agency (ECIDA) estimates the Administration's resolution would create between 500 and 1,300 local construction jobs.

In a special session this afternoon, the Legislature passed their own resolution adding protections for organized labor. The pro-labor modifications not only negate the tax exempt savings of the original proposal, but make the projects cost prohibitive for most not-for-profits.

"The lack of leadership on display today highlights the reason why our community continues to lose businesses, jobs and population," said Erie County Executive Chris Collins. "Our so called elected leaders – time and time again – put the needs and wants of the special interests ahead of what is best for the hardworking taxpayers of Erie County. In an election year, certain members of our legislature have allowed campaign donations to drive their decision making, and as usual, the taxpayers lose."

A review of Board of Elections filings shows that the Legislature Majority has received nearly $120,000 in union contributions since 2006.

Several Erie County not-for-profits are ready to move forward with millions of dollars in local capital projects, but are unable to secure tax exempt bond financing. Not-for-profits used to be able to bond through local Industrial Development Agencies, but the New York State Legislature has failed to reauthorize the necessary legislation for nearly two years. The Collins Administration worked with attorneys at the ECIDA to find a way to help the not-for-profits move their projects forward despite the inaction of the New York State Legislature.

"Our original resolution is an innovative way for Erie County to move forward with these important, job creating projects despite the dysfunction in Albany," continued Collins. "How certain legislators could throw away the opportunity to create hundreds of jobs in the worst economy since the great depression boggles my mind."

Local projects that are currently stalled include work at the Buffalo Niagara Medical Campus, construction projects at several local charter and private schools, as well as capital improvements at local healthcare and senior care agencies.

The ECIDA estimates that the original resolution would have allowed not-for-profits to save as much as 15% on their projects. The proposed labor union protections suggested by certain legislators would not only negate those savings, but dramatically increase the final project cost by nearly 30%.