$7 Million Dollar Settlement To Be Paid In Cash By Erie County

February 24, 2012 Updated Feb 24, 2012 at 11:55 AM EDT

By WKBW News

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$7 Million Dollar Settlement To Be Paid In Cash By Erie County

February 24, 2012 Updated Feb 24, 2012 at 11:55 AM EDT

(Erie County, NY) –( release) The Erie County Legislature’s Minority Caucus approved a plan to pay the $7 million Morales case settlement using cash, and avoid incurred interest down the road.

A resolution put forth by County Executive at the Feb. 23, 2012 session requested the Legislature approve a plan to fund the settlement using sales tax revenue and risk retention dollars.

“The Minority Caucus is pleased with the outcome and the decision to pay for the settlement in cash and avoid unnecessary borrowing. It has been our position that paying the settlement with available funds was the best option. In these difficult economic times, it is imperative that we not rely on the county’s credit card, increase debt and force future generations to pay for it. The county is in a good financial position to be able to pay the entire $7 million and solve this issue today. The agreement to pay for the settlement in cash protects the taxpayers’ interests, present and future.”
- Erie County Legislature’s Minority Caucus
Leader John J. Mills and Legislators Lynne Dixon,
Kevin Hardwick, Joseph Lorigo and Edward Rath

With the recent announcement that the County’s sales tax exceeded the anticipated budgeted amount for 2011 by more than $14 million, the Caucus reiterated its position using cash on hand was prudent and respectful of taxpayers’ dollars.

With approval of the resolution, the County will be able to make the $7 million payment to Ms. Morales before the March 5 deadline and avoid incurring any penalties or interest costs.