Dyster Facing ‘Tough Decisions’

We’re rich! But where did all the money go?

Niagara Falls Mayor Paul Dyster, as expected, did not present city lawmakers with his proposed “disaster” spending plan for 2012 at Monday’s council meeting, saying he was still facing “tough decisions” on how to close what some officials estimate is a $7 million gap between projected revenues and expenses.

Dyster stunned lawmakers two weeks ago when he did not present his budget plan on its Charter due date of Oct. 1, saying then he needed more time to put his proposed spending plan together in the face of the loss of nearly $60 million in casino revenue over the last two years due to the gaming fight between the Seneca Nation and the state.

Dyster had let it be known last week that he would still not have a plan ready for this week’s council session, and he said Monday night “I don’t want a fast budget, I want a good budget.” The mayor, who told the Reporter that he is in constant touch with Albany on the budget situation, would not elaborate on how those talks are going.

Clearly, the mayor is hoping the city will get state help in trying to meet its budget problems, and the mayor said he is working hard to come up with a plan that will “sustain an acceptable level of services” for residents in the coming year.

Among the tough decisions he’s facing is how to deal with the $3.1 million of city’s $17 million in state aid that would go to USA Niagara, a subsidiary of Empire State Development, if the city renews its contract with USAN for the coming year. That looms large because of the possibility a disaster budget would trigger layoffs among the city work force and reduce services. And the $3.1 million due to USA Niagara would go a long way toward easing that pain.

Jason Cafarella, president of the fire fighters’ union, tells the Reporter that he’s most concerned about the impact of expected job cuts on public safety which he termed “the utmost concern” in any budget plan. And he specifically mentioned the USA Niagara contract as one area that would not be acceptable if it meant cuts in fire and police services.

Other possible deficit-closing measures include tax increases and service cutbacks but with personnel costs representing about 80 percent of the spending, layoffs would likely be necessary to close the expected $7 million gap.

Anxious city lawmakers say they are taking the budget delay one day at
a time, and say they will be ready to go to work when the mayor’s proposed plan finally arrives.

“Eventually, he’s got to get a budget out,” said Council Member Glenn Choolokian, “and when it gets here, I’ll being going over it line by line, as will the other members, and we’ll see what happens. Right now, I would say we are a little confused and intrigued by what he has on his mind, but we will be ready when it gets here.”