BUFFALO, N.Y. -- Erie County Medical Center is in need of TLC, and County Executive Mark Poloncarz says the hospital's namesake should loan the money to get emergency room upgrades done.
"We will borrow on their behalf. Erie County does not make the payment associated," said Poloncarz, D-Erie County. "It would be as if you borrowed on behalf of someone else for their mortgage, but the mortgage was paid for by the other individual, so Erie County does not pay for the debt service associated with the borrowing. ECMC does. There's no risk to the county."
The plan would include $88 million in bonds to refinance a current loan and a $100 million loan for improvements. Poloncarz says the plan would save ECMC millions of dollars.
The loan would also help cover an $18 million budget deficit for Erie County, but comptroller Stefan Mychajliw is among leaders not sure it's a good idea.
"Erie County taxpayers should not be putting almost $200 million on the county credit card. It's not a good for taxpayers. It's not a good deal for Erie County," said Mychajliw, R-Erie County.
"This credit mechanism that the county executive has proposed, we're not even sure is legal," said Legislature Majority Leader Joseph Lorigo, R-West Seneca. "The Legislature, the control board and the Comptroller's Office have been asking for seven months whether or not the credit mechanism is legal. We have yet to have been given an opinion stating that it is so, so based on that, I do not believe we can do this credit."
The Erie County Legislature voted not to refinance the current loan Thursday. Legislators will continue discussing the matter in committee next week.