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Falls does enact spending freeze

by TSchmitt
Tue, Apr 3rd 2012 11:13 am

As we reported yesterday, cash flow problems have indeed left the Niagara Falls city council in the lurch.

The city has had to borrow about 18-million-dollars annually since the Seneca Nation stopped sharing casino revenue with the state three-years ago.  That's why the council voted to freeze all spending immediately.

If casino revenues do not arrive by the end of 2012, City Controller Maria Brown predicts the city will face a cash shortfall of $21.6 million. 

City Council Chairman Sam Fruscione said: "In a worst case scenario it might be gone forever. Not to act at this point is more than foolish, it's irresponsible. The days of free-wheeling expenditures on consultants, reports and questionable projects are over."

 

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