Buffalo’s American Rescue Plan (ARP) funds have been encumbered, according to a city finance official.
The assurance came from Acting Finance Commissioner Raymour Nosworthy after a public back and forth between the comptroller’s office and the acting mayor's office disputing the status of $2.5 million of the cash.
Late last week, Buffalo Comptroller Barbara Miller-Williams claimed that Scanlon’s administration had left a portion of the city's ARP dollars on the table according to the city's accounting system. In a letter, she asked Scanlon to clarify the status of the funds and reminded him that all ARP money had to be under contract by Dec. 31, 2024 with any unobligated cash to be returned to the federal government.
Scanlon said he "firmly rejects" the comptroller's claims in a Jan. 16 statement and said the money was in fact obligated, listing the accounts and allocations to support his assertion.
Speaking at Tuesday’s common council caucus meeting, Nosworthy said the bulk of the cash in question had been properly allocated to a property tax forgiveness program - an allocation approved by the council in December.
On Tuesday, councilmembers attempted to clear up the comptroller's concerns. But Councilwoman Zeneta Everhart said the issue should have been handled internally rather than played out in public.
"One conversation could have settled all of this. One conversation," a frustrated Everhart said. "It could have just been a conversation. I don’t understand why the adults in this building can’t talk to each other, I don’t understand it. It is blowing my brain."
Council Majority Leader Leah Halton-Pope agreed.
"Y'all just talk to each other," she told representatives from the comptroller's office and Scanlon's administration at the meeting.
Nosworthy said another $30,000 of the money queried by Miller-Williams was being held as a contingency fund for cultural institute projects, a practice allowed by federal guidelines if contracts expressly provide for them.
But Nosworthy did admit that a small amount might have to be handed back to the federal government: $1.40 left over from a cyber security allocation.
“We tried to line it up, but you know, that's probably the only one where we have to give back," he said.
Scanlon supported Nosworthy's explanations in a letter submitted to the council, below.
The council’s Finance Committee Chair, Mitch Nowakowski told WBFO he is now satisfied that the city’s $331 million in ARP funds are indeed encumbered.
“The council really was the person in the middle that made sure that we were able to get to the truth," he said.
WBFO contacted Miller-Williams for comment but was told she was unavailable.
The issue is set to be discussed at the council's upcoming finance committee meeting, Tuesday.
