Assembly Speaker Carl Heastie says the final state budget will include approval for a Buffalo hotel bed tax and a new parking authority to manage parking ramps as the city's budget becomes a focal point of a Democratic mayoral primary.
Buffalo Acting Mayor Chris Scanlon requested the 3% hotel occupancy tax and parking authority as ways to close a roughly $70 million budget gap. His budget proposal includes an 8% tax levy increase, but says he has already cut about $30 million in spending for next year. The creation of the Buffalo Parking and Mobility Authority would involve selling four city parking garages to the state, which Scanlon's office says would generate $40-$50 million in immediate revenue.
The legislation for both measures has been carried in the state Assembly by Assembly Majority Leader Crystal Peoples-Stokes, but hasn't been introduced in the state Senate. Scanlon's budget and these proposals have faced criticism from state Sen. Sean Ryan who is running against Scanlon in a crowded Democratic primary for mayor. Ryan has been endorsed by the Erie County Democratic Committee.
Ryan introduced legislation to give the Buffalo Fiscal Stability Authority authorization to issue bonds to finance the city's deficit for the next four years, hoping it would be on the table for state budget talks He said the bed tax and parking authority won't do enough to close the city's budget deficit. Ryan has criticized the hotel bed tax, saying it will negatively impact Buffalo's tourism industry. Scanlon's team has pushed back, saying the tax would cost the average hotel guest mere dollars per night and is less than in comparable cities.
"Buffalo’s budget is once again being ‘balanced’ on speculative revenues. If the parking ramp revenue isn’t fully realized in the next six months, the city will run into cash flow problems this year and be left with another massive deficit next year," Ryan said. "That is why I proposed allowing the City of Buffalo to cover this year’s budget gap with deficit-financing bonds, a tool commonly used to help municipalities to resolve short-term budget shortfalls so that they can focus on long-term budget stabilization."
Ryan said he'll continue to push for his bond proposal in Albany so the city has the option if needed.
We've reached out to Scanlon's office for comment.