Some $166 million in federal stimulus money arrived at City Hall on June 1.
But a month later, not even Common Council members know how most of it will be spent.
So far the Brown administration has identified how to use $62 million of the money: $40 million to plug shortfalls from the recently ended 2020-21 city budget year; $13 million to continue an amnesty program for those who are behind in their water and sewer payments; and roughly $9 million for minority business grants, a youth employment program and a Northland Workforce Training Center scholarship program.
“I am and I think many of the Council members are frustrated with the lack of information that’s coming from the administration with regard to the stimulus money. We would like to know,” said Majority Leader David A. Rivera, who represents the Niagara District. “It’s unfortunate it’s been like pulling teeth … in trying to get information with regards to the stimulus. I’m not saying that they’re doing anything inappropriate, but the money that we received I believe needs to get to where it has to go. Get the money out there as quickly as you can.
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“Internally they’re probably making decisions, but we just don’t know what they are, and it would be good to include us in the planning process," Rivera added. "Don’t just come at the last minute and say, ‘Hey, this is what we’re doing.’ "
Buffalo is slated to receive $331 million in federal stimulus funding. Half of the windfall arrived last month. The second payment is expected to come next year. All of the funds must be spent within the next four years.
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When Brown announced the city had received the first lump sum, he said that for the past six months his administration had been in the planning stages, researching ideas and strategies to use the money in a way that is “sustainable and equitable to continue to promote the growth of the city.”
Announcements on spending the remaining stimulus money – some $104 million – are expected in the near future, said city spokesman Michael J. DeGeorge.
“Most of us have not heard a single thing about how that money will be spent,” University Council Member Rasheed N.C. Wyatt told The Buffalo News days before Mayor Byron Brown's press conference Friday announcing the amnesty program extension.
Wyatt stood alongside the mayor at the press conference with two other Council members, Council President Darius G. Pridgen and Masten Council Member Ulysees O. Wingo.
Wyatt, chairman of the council's Finance Committee, has said he would send a letter to Pridgen asking for a special session or committee meeting for residents to weigh in on how the federal aid should be spent.
The administration "will absolutely be working" with the Common Council regarding the American Rescue Plan funds, DeGeorge said.
"We look at this process similar to the city budget process," he said.
What others are planning
Other cities appear farther along in laying out their stimulus spending.
On June 11, Syracuse Mayor Ben Walsh unveiled specific plans for $123 million of the federal aid. The plan includes spending about $34.8 million to revitalize neighborhoods and support children and families; $29.8 million to reimagine parks and public spaces and improve public transportation and infrastructure; $12.3 million in jobs and economic opportunity; and $46 million to enhance government response and resilience.
Pittsburgh Mayor William Peduto has announced his plan for $335 million in stimulus spending. It includes $134 million to avoid laying off up to 600 people and restoring positions already cut. His plan also calls for $21 million to promote affordable homeownership; $20 million to remove lead from water lines and paint throughout the city; $19 million to improve recreation centers; $12 million for 8,000 new LED streetlights; $10 million to help low- to moderate-income homeowners make home improvements; $7.5 million for purchasing electric vehicles and infrastructure for the city’s fleet; and $2 million for public safety facilities to respond to the spike in violent crime.
Locally, Erie County Executive Mark C. Poloncarz unveiled his plan June 21 for the $89.22 million from the federal American Rescue Plan. He intends to spend millions on parks, building improvements, roads, sewers and salaries.
In Buffalo, mayoral candidate India Walton has not offered a specific, detailed plan on how to spend the pandemic relief money. Walton holds the Democratic line for the November mayoral election.
“Two of the reasons I ran for mayor were to give a seat at the table to those who’ve been left out of the political process and to provide resources to the communities in Buffalo that need them the most," she said. "We will allocate funding from the American Rescue Plan based on significant community input and prioritizing communities – especially on the East Side – that have not gotten the resources they need,” she said.
Buffalo's share
In early June, Brown announced the city will distribute its $331 million in federal pandemic relief through what Brown deemed the "Buffalo Transformation Fund." The four pillars of his plan to transform the city's social and economic landscape are people, places, progress and prosperity, he said.
Brown set up a survey on the city’s website so residents can give their opinions on how to spend the stimulus money. Residents also can call 311 to answer survey questions, and they can leave general comments at the end of the survey. Comments will be accepted through July 30.
Nearly 50 comments have been submitted, DeGeorge said.
As for decisions so far, Buffalo will spend approximately $40 million making up for lost revenue due to the Covid-19 pandemic, DeGeorge said, including sales tax, parking and permits and inspections revenue, user fees, public auction proceeds and income from special events.
Since early June, Brown has revealed other uses for the money.
The most recent announcement came last Friday when Brown announced continuation of the amnesty program – created during the Covid-19 pandemic – for those behind on their water and sewer payments.
The program was supposed to close at the end of July.
“We’re going to be using $13 million of American Rescue Plan funds to not only continue the amnesty program but expand the amnesty program, and our estimates indicate this will assist over 30,000 people in the City of Buffalo with their water and sewer bills,” Brown said.
"We will not ever again be turning off water in the City of Buffalo," said Brown, who called access to water a right – not a privilege. "We also will be helping every customer that is two quarters in arrears or has been affected by Covid through this program. We will completely wipe out their indebtedness for water and sewer bills. So they start with a fresh slate."
Those granted amnesty will be enrolled in an affordability program, Brown said. The city intends to hire a company to work with those in the amnesty program to help them keep current with their bills. Oakland, Calif., and Louisville, Ky., reported a 96% payment success rate among those in similar programs in those cities. That kind of success here would not only help those in the amnesty program but the remaining rate payers, who wouldn't have to make up the lost revenue from non-payers through higher rates, Brown said.
About $4.35 million of Buffalo's share of the American Rescue Plan money will be used to expand the Mayor's Youth Employment Program over three years to hire approximately 800 to 900 young people for year-round employment opportunities. About 42,000 young people between the ages of 14-21 live in Buffalo, with 40% of them in households categorized as poor. This funding will help eliminate poverty, DeGeorge said.
Minority-owned businesses in Buffalo will get a boost from $3.5 million in federal stimulus money. The federal aid will help pay for grants to existing businesses, try to attract entrepreneurs and startup companies to Buffalo and provide technical assistance to business owners. The program is meant to help Black, Latino and other minority business owners who often lack access to capital and face additional obstacles in launching and growing their companies.
At least $1 million will go to the Northland Workforce Training Center for a scholarship program. Only about 20% of advanced manufacturing jobs are held by people of color in this area, DeGeorge said, and 3,000 open positions are left unfilled because of the shortage of workers.
