When New York State Governor Andrew Cuomo announced that Buffalo was going to receive $1 billion over the next five years to raise the city from its near-poverty level, local politicians were already dreaming of how to spend the money. Cuomo declared in his second annual State of the State speech, “We must address the crisis in Western New York. It’s gone on too long. It’s going to stop today. We believe in Buffalo and we’ll put our money where our mouth is.”
Cuomo failed to say where the money was going to come from, but that didn’t stop politicians from salivating. Said Buffalo’s Mayor, Bryon Brown: “I think you heard that the governor’s commitment was for the City of Buffalo. He didn’t say ‘Buffalo and other communities.’ He said a billion dollars is [coming to] Buffalo.” The director for Erie County where Buffalo is located, Mark Poloncarz, wanted it all to stay in Buffalo: “As the city goes, so goes the whole county, so we need to strengthen the city. I think if you take a billion dollars and say we’re going to invest in the City of Buffalo and then you put it in other parts of the county, you defeat the purpose of helping the City of Buffalo.”
There are many problems with Cuomo’s promise. First of all, the state legislature cannot bind future legislative spending. Second, the money wouldn’t come in all at once but would, according to Cuomo, be spread over the next five years or so. Third, the offering would consist of tax breaks, cash grants, and access to low-cost energy. Much of it is out of Cuomo’s hands because federal matching job-creation funds would be involved.
But the one problem which Cuomo can’t solve is the primary one in Buffalo: political corruption. Back in 2004 the Buffalo News estimated that the city had received more federal redevelopment money per capita than any other city in the country — more than half a billion dollars — but had virtually nothing to show for it. According to the Wall Street Journal, politicians “squandered millions granting loans and subsidies that went bust.” The Journal added:
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