BILL NUMBER: S9161
SPONSOR: BASKIN
 
TITLE OF BILL:
An act to amend the public authorities law, in relation to providing
secondary bonding authority to the Buffalo fiscal stability authority
 
PURPOSE:
The purpose of this bill is to authorize the Buffalo Fiscal Stability
Authority to issue bonds between July 1, 2026 and June 30, 2030.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1: amends subdivision 3 of section 3852 of the Public Authori-
ties Law by extending the existence of the Buffalo fiscal stability
authority through 2070 so that bonds may reach final maturity.
Section 2: creates a new section of Public Authorities Law, section
3862-a, providing secondary bonding authority to the Buffalo Fiscal
Stability Authority.
Subsection 1 outlines the financeable costs to which funds from the
issuance of such bonds may be applied and describes what percentage of
the projected gap the issuance of such bonds may cover in a given fiscal
year.
Subsection 2 provides that the final date of maturity for such bonds is
June 30, 2070.
Subsection 3 clarifies that bonds may be issued without regard to the
provisions of local finance law.
Subsection 4 permits the Buffalo Fiscal Stability authority may delegate
the authority to set the financial terms of bonds to the chairperson, or
any director or officer of the authority.
Subsection 5 describes how the bonds may be executed and sold.
Subsection 6 specifies all the ways in which the authority is permitted
to secure the payment of the bonds.
Subsection 7 grants the authority the power to enter into agreements for
the benefit of bondholders, including the entrusting, pledging or
creation of any security interest in any such revenues.
Subsection 8 specifies that the proceeds from the sale of any bonds in
this section not applied to deficit financing may be used to directly
pay obligations of the city where such bonds were purchased by the city.
Subsection 9 establishes the validity of security interests in, or
pledges of, revenues, moneys, or other personal property made or created
by the authority.
Subsection 10 specifies that all bonds, notes, or other obligations of
the authority are negotiable instruments under the UCC.
Subsection 11 specifies that the director of the authority and anyone
executing bonds on the authority's behalf cannot be held personally
liable on the bonds. The State of New York and the City of Buffalo also
cannot be held liable.
Subsection 12 grants the authority the power to buy back its own bonds.
Subsection 13 provides that nothing in this section shall be construed
as authorization to reimpose a control period.
Section 3: amends section 3854 of Public Authorities Law to provides
authority to enter into interest rate exchanges or arrangements, includ-
ing provisions as to default or early termination and indemnification by
the authority resulting in the loss of benefits. Any such losses are
capped at 25% of the amount authorized in section 3862-a for the speci-
fied purposes.
Section 4: specifies that remedies of bondholders under section 3863 of
Public Authorities Law are applicable to bonds issued pursuant to
section 3862-a
 
EXISTING LAW:
Section 3862 of Public Authorities Law provides primary bonding authori-
ty to the Buffalo Fiscal Stability Authority.
 
JUSTIFICATION:
In 2003, the New York State Legislature created the Buffalo Fiscal
Stability Authority (BFSA). This body exists to exercise oversight over
the financial affairs of the City of Buffalo. At that time, the BFSA was
granted bonding authority to provide financial relief to the City. Muni-
cipalities, public benefit corporations, and other governmental entities
issue bonds to fund day-to-day operating as well as capital projects.
These instruments are functionally a series of loans from an assortment
of buyers, who are guaranteed regular interest payments and repayment of
the full principal upon "maturity" of the bond. The BFSA was initially
authorized to issue no more than $170 million in bonds at one time, with
a maturity date of 2037.
At present, the City of Buffalo is on the precipice of a fiscal cliff.
The City currently estimates a budget gap of $50 million. Erie County
says that this figure may be larger, and the BFSA and City Comptroller
have both expressed concerns. The City needs a long-term plan to close
this budget gap, and time to implement that plan.
To that end, this bill authorizes the BFSA to issue up to an additional
$500 million in bonds between July 1, 2026 and June 30, 2030, with a
maturity date of June 30, 2070. In each of those four fiscal years, the
BFSA is authorized to issue a total bond amount no greater than an annu-
ally decreasing set percentage of the total budget gap. This funding
will shrink the budget gap by a set percent each year, permit the City
of Buffalo to come up with long-term revenue generating policies, and
collect said revenue to the point that such funding will no longer be
necessary.
 
LEGISLATIVE HISTORY:
S.7682 of 2025.
 
FISCAL IMPLICATIONS:
None.
 
LOCAL FISCAL IMPLICATIONS:
This bill will raise up to $500 million in revenue for the City of
Buffalo.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S9161: 3852 public authorities law, 3852(3) public authorities law, 3854 public authorities law, 3854(9) public authorities law, 3863 public authorities law