Board of Control needs members to advise on Buffalo’s finances

But these boards cannot be as strong as they should be without the full membership of the FSA. Currently, the authority is missing four members, including the president. Three of them are to be appointed by Governor Kathy Hochul and the fourth by the leaders of the New York Legislature.

No matter what happens to the city’s financial situation, these vacancies should be filled. With the current five members of the authority, all must be present at meetings and voting; there is no room for maneuver. Furthermore, the capacity of such a body to conduct healthy debate must necessarily diminish when the number of participating voices diminishes.

The Fiscal Stability Authority was created in 2003 by the state Legislature after it declared the city faced a “severe fiscal crisis” that “could not be resolved without state assistance.” The board became “advisory” in 2012, but could revert to controlling status if it determines a budget crisis is imminent or if the city fails to meet certain conditions, such as adopting a balanced budget or repaying its obligations on time.

Since 2012, the authority, even if it is not in a “control period”, is still required to fulfill its mission of reviewing the mayor’s four-year financial plans and annual budgets. She also stepped in by providing additional guidance, which she has already done this year. As the News’ Deidre Williams reported, officials considered the possibility of a hiring freeze, but then decided such a drastic measure was not necessary. Instead, he suggested “vacancy control,” where vacancies in the city would not be filled, if possible. He also suggested that the Brown administration develop a deficit plan to close the city’s budget shortfall.

But these were just suggestions. In the event that the city’s financial situation deteriorates to such an extent that a period of strict control is necessary, it would be preferable for vacancies on the board to be filled. This would be an all-hands-on-deck situation.

If such a draconian situation were to occur, it wouldn’t be as if officials had a magic wand ready to quickly stabilize Buffalo’s finances. The last time reimposition of a control period was considered was in 2020, when the city was suffering severe financial difficulties related to the pandemic. But the authority resisted, saying federal aid — which eventually arrived — was needed.

And, as the authority’s executive director, Jeanette Robe, said in another report by News reporter Williams at the time, “…our powers are quite limited.” Even during a period of control, we cannot generate income. What we can do is implement a wage freeze. We could implement a hiring freeze. Robe concluded that the authority preferred “a collaborative approach”.

Whether or not the fiscal cliff that many are talking about happens — many question marks remain — city officials should be ready to meet the challenge. The FSA needs all of its members to help Buffalo in such an eventuality.

Governor Hochul and legislative leaders, we wait.