Thu August 9, 2012
Poloncarz challenges control board over borrowing
County Executive Poloncarz is heating up the fight with the County Control Board over a planned short-term borrowing next month.
The county executive is under pressure to continue borrowing through the control board rather than doing it directly through Comptroller David Shenk.
That was the practice before county finances fell apart a decade ago and the control board wound up with a better fiscal rating and did the borrowing.
Board members and Republican county legislators want that to continue, saying it will save money.
The county executive and the comptroller are starting the procedures to borrow up to $80 million directly, while waiting to see if the loan can receive the same rating as the control board has.
Poloncarz says the county is in good shape, compared to most governments across New York.
"Unlike most other counties in New York State which are having significant problems, we're not," Poloncarz said.
"You may have seen just recently that the New York Post reported that the governor and the state comptroller are considering doing a super control board, not because of borrowing. It's because these other communities have reached basically their taxing and borrowing limits and are incapable of moving forward."
Poloncarz says any savings by borrowing through the control board are far less than the costs of operating that agency, making the savings meaningless.