Senate Bill S1216

                                 BILL NUMBER:  S1216

 TITLE OF BILL :
An act to amend the public authorities law, in relation to placing
restrictions on the Buffalo fiscal stability authority's ability to
impose a wage and/or hiring freeze


 PURPOSE :
This bill specifies conditions under which the City of Buffalo will no
longer be required to impose a wage and/or hiring freeze upon itself
or on members of any collective bargaining organization.

 SUMMARY OF PROVISIONS :
This bill stipulates the exact conditions under which the City of
Buffalo and collective bargaining organizations would no longer be
required to adhere to a strict wage and hiring freeze.

Section 1 of the bill specifies that the Buffalo Fiscal Stability
Authority cannot impose a wage and/or hiring freeze upon the City of
Buffalo or any covered collective bargaining organization or City
employees if the following conditions are met: the city of Buffalo
adopts a balanced budget; the city of Buffalo pays the interest on any
of its bonds or notes when due; incurs an operating deficit of less
than 1% in the aggregate resulting from operations of any major fund
of the city of Buffalo or a covered organization assuming the
              

Financial Plan is reported in accordance with Generally Accepted
Accounting Principles; and the City of Buffalo does not violate any
provisions of the original Buffalo Fiscal Stability Authority Act of
2003.

Section 2 of the bill stipulates the effective date (immediately).

 JUSTIFICATION :
The City of Buffalo has a much improved financial situation compared
with four years ago.  The City of Buffalo has a total fund balance
totaling approximately $95 million before designations and
approximately $9 million for reserves which represents 28% of total
fund expenditures. In fact, Buffalo's total fund balance has increased
steadily since 2002-03.  The city of Buffalo has reduced its workforce
by nearly 800 since 2001-02 demonstrating the seriousness of its
financial situation at that time.  Furthermore, in February 2007,
Moody's Investors Service followed Standard and Poor's decision and
upgraded the city of Buffalo's General Obligation (GO) bond rating,
from Baa3 to Baa2, the highest rating from Moody's since 2001. In
December 2006, Standard and Poor's, highlighting the City's improved
financial condition, beneficial financial management practices, and
the continued effective oversight exhibited by the Buffalo Fiscal
Stability Authority, raised the City's investment grade rating to BBB
(stable), the highest rating since 1999.

 LEGISLATIVE HISTORY :
New Bill. This bill amends Section 3858 of the Public Authorities Law
enacted in 2003 (Chapter 122 of the Laws of 2003).

 STATE FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
Immediately.