Buffalo and the rust belt
Download
1 / 30

Buffalo and the Rust Belt - PowerPoint PPT Presentation


  • 482 Views
  • Updated On :

Buffalo and the Rust Belt. PSC 312: Urban Policy Dr. Joseph Stefko University at Buffalo, SUNY Fall 2007. A Historical Sketch. Once a large, vibrant city One of the largest in the U.S. Thriving economy based on location Competitive edge waned City began to contract

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Buffalo and the Rust Belt' - Antony


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Buffalo and the rust belt l.jpg

Buffalo and the Rust Belt

PSC 312: Urban PolicyDr. Joseph StefkoUniversity at Buffalo, SUNYFall 2007


A historical sketch l.jpg
A Historical Sketch

  • Once a large, vibrant city

  • One of the largest in the U.S.

  • Thriving economy based on location

  • Competitive edge waned

  • City began to contract

  • Economic, demographic stagnation

  • Now, severe financial challenges


Buffalo s rise l.jpg
Buffalo’s Rise

  • In the mid-1800s, Buffalo was one of the most influential cities in the U.S.

  • Buffalo’s early competitive advantages

    • Large population

    • Beginning of significant growth

    • Location


An economy built on water l.jpg
An Economy Built on Water

  • Canal and lake shipping

  • Among nation’s largest port cities

  • Catalyst for economic growth


Buffalo harbor l.jpg
Buffalo Harbor

  • Incredible shipping activity yields growth and innovation

    • Automated grain elevator

    • Expansion of Buffalo Harbor (1847)

    • Passenger traffic begins to grow, in addition to goods


Other factors in the 1840s l.jpg
Other Factors in the 1840s

  • First major university (UB)

  • First railroad

  • Massive influx of immigrants

  • Vibrancy continues through century


The nation s largest cities l.jpg
The Nation’s Largest Cities

1900

NYC

Chicago

Philadelphia

St. Louis

Boston

Baltimore

Cleveland

(#8) Buffalo

San Francisco

Cincinnati

1910

NYC

Chicago

Philadelphia

St. Louis

Boston

Cleveland

Baltimore

Pittsburgh

Detroit

(#10) Buffalo

1920

NYC

Chicago

Philadelphia

Detroit

Cleveland

St. Louis

Boston

Baltimore

Pittsburgh

Los Angeles

(#11) Buffalo

1930

NYC

Chicago

Philadelphia

Detroit

Los Angeles

Cleveland

St. Louis

Baltimore

Boston

Pittsburgh

(#13) Buffalo


The nation s largest cities12 l.jpg
The Nation’s Largest Cities

1940

NYC

Chicago

Philadelphia

Detroit

Los Angeles

Cleveland

Baltimore

St. Louis

Boston

Pittsburgh

(#14) Buffalo

1960

NYC

Chicago

Los Angeles

Philadelphia

Detroit

Baltimore

Houston

Cleveland

Washington DC

St. Louis

(#20) Buffalo

1970

NYC

Chicago

Los Angeles

Philadelphia

Detroit

Houston

Baltimore

Dallas

Washington DC

Cleveland

(#28) Buffalo

1950

NYC

Chicago

Philadelphia

Los Angeles

Detroit

Baltimore

Cleveland

St. Louis

Washington DC

Boston

(#15) Buffalo


The nation s largest cities13 l.jpg
The Nation’s Largest Cities

1980

NYC

Chicago

Los Angeles

Philadelphia

Houston

Detroit

Dallas

San Diego

Phoenix

Baltimore

(#39) Buffalo

1990

NYC

Los Angeles

Chicago

Houston

Philadelphia

San Diego

Detroit

Dallas

Phoenix

San Antonio

(#50) Buffalo

2000

NYC

Los Angeles

Chicago

Houston

Philadelphia

Phoenix

San Diego

Dallas

San Antonio

Detroit

(#58) Buffalo

2005

NYC

Los Angeles

Chicago

Houston

Philadelphia

Phoenix

San Antonio

San Diego

Dallas

San Jose

(#66) Buffalo



Buffalo s economic history l.jpg
Buffalo’s Economic History

  • Built on manufacturing

  • “Production economy”

    • Grain distribution

    • Aircraft (1920s)

    • Automobile (1900-20s)

    • Power

    • Lumber

    • Chemical Industry (1920s )

    • Steel


Bethlehem steel l.jpg
Bethlehem Steel

  • Acquires Lackawanna Steel in 1922

  • By 1940s, is world’s largest

  • Employs 20,000 through 1960s

  • Reduction begins in 1970s

  • Steel-making ended in 1982

  • Plant closes in 1983


Changing economic character l.jpg
Changing Economic Character

  • Competitive advantages wane

  • Immigration slows/stops

  • Filling in of Erie Canal

  • Role of outside interests

  • Great Depression

  • Delay in New Deal

  • “Founding industries” collapsing


Changing economic character18 l.jpg
Changing Economic Character

  • Dependence grows

  • Diversification declines

  • Founding industries gone by 1950s

  • St. Lawrence Seaway (1960s)*

  • Growth of Buffalo’s suburbs

  • UB North Campus

  • Bethlehem Steel closes


Buffalo s economy today l.jpg
Buffalo’s Economy Today

Largest Employers:

State Government

Federal Government

Tops Markets

Erie County Government

Buffalo City School District

UB

Kaleida Health

M&T Bank

HSBC Bank USA

Catholic Health System


The economic toll l.jpg
The Economic Toll

  • Lack of economic growth

  • Rapidly declining population base

  • Poverty concentrations

  • Decaying tax base

  • High unemployment rates

  • Suburbanization of wealth


Buffalo s control board l.jpg
Buffalo’s Control Board

  • Buffalo Fiscal Stability Authority Act(signed into law July 3, 2003)

  • Other control board examples

    • Washington DC (1997)

    • NYC (1975)

    • Yonkers (1975)

    • Pittsburgh (2004)

    • Philadelphia (1991)

    • Nassau County (2000)

    • Erie County (2005)


Historical context of control board l.jpg
Historical Context of Control Board

  • Decades of decline

  • Ability to grow revenues weakens

    • Elastic revenues, defined

  • State aid increases in late 1990s

  • Post-2001 impact

  • State Legislature requests OSC review


State comptroller s report l.jpg
State Comptroller’s Report

  • Long-term economic weakness

  • Population decline

  • Structural budget deficit

  • Growth in budget gaps


A look at buffalo s budget l.jpg
A Look at Buffalo’s Budget

  • $300 million

    • Major revenues are NYS, Sales Tax and Property Tax

  • Vast majority is employee-related cost

  • Health insurance, pensions driving costs

  • 2,500 employees in City government


State comptroller s report continued l.jpg
State Comptroller’s Report (continued)

  • Projected growth in budget gaps (up to $50 million in 2004 if problems weren’t addressed)

  • First to recommend a control board: Buffalo Oversight and Recovery Board

  • Legislature takes findings, negotiates bill w/ Governor creating Board


The control board l.jpg
The Control Board

  • 9 members (5 by Governor, 1 by State Legislature, 1 by OSC, Mayor and CE)

  • Chair, Vice Chair appointed by Governor

  • Diverse board: Public, private and non-profit sectors; Community leaders; Experts in their fields


Control board powers l.jpg
Control Board Powers

  • Four-Year Financial Plan

  • Approval/Rejection of Budget

  • Ensure budget balance

  • Close budget gaps

  • Can impose budget plan if necessary

  • Can freeze wages if necessary

  • Can impose hiring freeze if necessary

  • Can borrow on behalf of City


How the financial plan works l.jpg
How the Financial Plan Works

  • How the City must close its budget gaps

    • 30% in 2004

    • 45% in 2005

    • 60% in 2006

    • 80% in 2007

    • 100% in 2008 and thereafter


How the financial plan works29 l.jpg
How the Financial Plan Works

  • New actions with recurring value

  • Narrow (and eventually close) structural budget gap

  • Deficit borrowing

    • “Easing” the City’s way to budget balance

    • Avoiding draconian budget/service cuts


What s next for buffalo l.jpg
What’s Next for Buffalo?

  • Accomplishments w/ the Control Board

  • How long is the Control Board in place?

  • A challenging agenda

  • A new Mayor

  • What should the focus be?

  • What are Buffalo’s assets? Liabilities?