NYS delivers nearly $17 million in casino funds

BUFFALO, NY – Help is on the way for three Western New York cities in the form of millions of dollars in federal funding related to a Seneca casino revenue-sharing agreement.

The governor’s office said it will deliver more than $5.5 million to Buffalo, about $7.6 million to Niagara Falls and another $3.5 million to Salamanca and Cattaraugus County. Buffalo’s new acting mayor, Chris Scanlon, said the city has budgeted $11 million in casino money.

“Actually, the entire budget is a question of case, right? There are very few things that are set in stone that you can rely on and contribute to the revenue side. Obviously the number always fluctuates a little, but you “We have to adapt to it. The $11 million is included in the budget. So of course it’s a huge relief to hear that this money is coming through,” Scanlon said.

The funding represents about half a year’s income and the state said it should be processed in the coming days. The current gambling contract between the Senecas and New York expired last December, and while both sides agreed to extend the terms, including sharing 25% of the so-called net slot decline, the Senecas have that money in escrow paid in.

But Republican Sen. George Borrello said the state is committed to continuing payments to cities.

“I’m in business myself. If one of my customers does not pay me, that does not relieve me of my obligation to pay my debts to my suppliers,” said Borrello.

Regardless, Mitch Nowakowski, finance chair of the Buffalo Common Council, said the money comes at a crucial time as the city could lose access to federal American Rescue Plan funds and may face additional costs for things like snow removal.

“We know we will need liquidity as ARP dollars strengthen. “We need cash flow in our coffers so we can continue to maintain our bills between the budget payments we receive from the state aid, sales tax and other resources,” Nowakowski said.

The Buffalo Fiscal Stability Authority estimates the budget shortfall at $10 million to $15 million, but Nowakowski says that number depends on the city’s expectation that it can redistribute promised American Rescue Plan funds to community groups. Without them, he said, the deficit would likely be closer to $40 million.

“While I understand that it is so important to provide essential services, I think it would cause mass chaos if money were diverted to pay for city services and I just don’t know if that is appropriate People and these organizations planned this,” Nowakowski said.