Good morning.

I want to thank all of you for being here today.

Jason Maybach, a proud Eagle Scout, is a fine example of many of our local youth who are dedicated to service and the betterment of our community.

Thank you, Jason for leading us in the Pledge of Allegiance.

Rev. Darius Pridgen presides over his growing congregation each Sunday and he fights for the people of this community every day of the week.

Thank you Rev. Pridgen for taking time away from your busy ministry to offer this morning‘s invocation.

Larry Quinn is a leader at the Buffalo Sabres, as well as numerous community and charitable organizations.

Larry believes in this region, and is one of our most passionate and effective advocates.

Thank you, Larry for your kind introduction and for hosting us today at the Harbour Club here at HSBC Arena.

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When I was elected Erie County Executive in 2007 I promised to run Erie County like a business and focus on the fiscal health and stability of Erie County.

It’s a responsibility I take very seriously.

And it’s a responsibility that has been severely tested as the United State’s economy entered a free fall at the end of 2008 and severely impacted our sales tax collections that account for over 60% of our revenue.

We gather today as our nation continues its long, laborious climb out of the worst recession since the Great Depression.

As our nation struggles to recover, unemployment and underemployment remain near historic highs, and New York State is facing a budget shortfall of historic proportions.

Despite these issues, I am pleased and proud to report that the State of Erie County is strong, as we will end our 2009 budget year with a $44 million surplus, one of the largest year end surpluses in the history of Erie County.

Contrary to my critics’ predictions, we did not use one penny of Federal Stimulus dollars to balance our 2009 budget.

We not only absorbed an $11 million drop in sales tax collections, but also absorbed $2 million in expenses related to the crash of Flight 3407 and the 100 year flood in Gowanda and the surrounding area.

Every penny of Federal Stimulus Medicaid Relief was added to the multi million dollar operating surplus we generated by running Erie County like a business, focused on taxpayers, and implementing Lean Six Sigma across all county departments.

That is not the story in other counties across New York State where they struggle with multi million dollar deficits, double digit tax increases, one-shot revenue enhancers, and the sale of tax liens.

I will tell you that our success during these difficult economic times is a tribute to the hard work and dedication of our roughly 5,000 county employees, including my 25 commissioners and directors, who focus on best practices and the efficient delivery of services to county taxpayers.

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As I am sure you remember, I pledged to work for $1 per month for as long as the Erie County Fiscal Stability Authority remained a hard control board.

On June 2, 2009 the ECFSA acknowledged our hard work and voluntarily reverted to advisory status when they approved our Four Year Financial Plan.

I am pleased to say that my Brighter Future Fund donated over $180,000 to various charities in Erie County, mostly in the City of Buffalo, while I worked to convince the ECFSA that their direct oversight was no longer needed.

I am also pleased that the Stability Authority, under new Chairman Dan Oliverio, recently approved our 2010 budget and Four Year Plan, remaining in an advisory capacity.

Dan is here today.

I want to thank you for your leadership and confidence in my Administration.

Most people remember that I had previously opposed letting the Authority borrow on behalf of Erie County.

But the melt down on Wall Street dramatically changed the equation, and my mind.

Many of you know my directive – In God We Trust, All Others Bring Data.

The new data is compelling and can not be ignored.

Allowing the ECFSA to borrow $173 million to fund four years of capital projects can save county taxpayers $21 million over the next 13 years.

The Authority can now save another $5 million by refinancing some old bond debt over the same 13 years.

I have submitted a Declaration of Need to the Erie County Legislature and urge its members to approve this measure at their next meeting.

Together, we can achieve $26 million in savings for our hardworking taxpayers.

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Hardworking taxpayers will also greatly benefit from our 2009 surplus of $44 million.

This money belongs to the taxpayers of Erie County and they should know how my administration plans to use it.

This money will not be spent on new programs or new jobs.

This money will not be wasted or squandered.

It will, however, be used to protect taxpayers and to clean up Erie County’s balance sheet that was left in tatters by prior administrations.

$4 million will be used to eliminate the debt in the County’s Road Fund.

Using smoke and mirrors, the previous administration hid a $7 million operating deficit in this fund.

When I discovered this reality in 2008, we used $3 million of that year’s surplus to chip away at the deficit and will use $4 million of the 2009 surplus to zero out this deficit once and for all.

$8 million will be used to pay a pension obligation from many years ago.

Instead of paying in full, the previous administration pushed this debt into the future with a multi-year payment plan at 8% interest.

Instead of prolonging the pain, my administration will use surplus dollars to fully pay off this debt, eliminating four more years of principle and interest payments, and put this expense behind us once and for all.

$18 million will be used to pay off old capital debt related to the Erie County Medical Center.

This will totally eliminate our ECMC debt obligation today, instead of dragging it out into 2011 and 2012 and dealing with the uncertainty of those out years.

$4 million will be dedicated to cover unanticipated principal and interest costs associated with our recently negotiated 2010 bond sale.

Finally, $10 million will be set aside to create a Property Tax Stabilization Fund.

With all the uncertainly surrounding future years related to the economy, cost shifting from Albany, public pension obligations, inflation, and other variables, we can’t be too conservative when it comes to protecting our future.

I want to thank the members of the Legislature Minority for supporting this idea and I will be counting on your leadership to make it a reality on behalf of taxpayers.

Ladies and Gentlemen – think of what we have accomplished in two short years.

Every sin of the past has now been corrected and our Balance Sheet is absolutely pristine.

We not only have a 2010 balanced budget without smoke and mirrors, but have set aside money for use in the future.

I should also point out that we currently have a $45 million undesignated fund balance and have achieved our charter mandated 5% reserve.

We also have over $30 million of unsold tax liens that earn 18% interest per year.

We have come a long way in a very short amount of time.

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Enough on our budget, let’s talk about the business of Erie County.

As you all know, I made Lean Six Sigma the corner stone of my administration’s reform effort.

Now in our third year of implementation, we are making tremendous strides.

Nearly every county department is engaged in our Lean Six Sigma activities and hundreds of county employees have received various levels of training.

Our workforce now boasts 98 Yellow Belts, 37 Green Belts and 3 Black Belts. 6 of our Green Belts are actively working on Black Belt certification requiring over 200 hours of classroom training.

Our success has been noticed around the country, and in fact, around the world.

Just last month, I was the keynote speaker at the annual Lean Six Sigma Conference in Miami where I explained what we have done in Erie County.

We are setting an example for others, as all levels of government are under tremendous strain with no end in sight.

Lean Six Sigma is now being recognized as one of the few ways to improve service and simultaneously cut costs.

It’s too bad that New York State is not following our example to better serve taxpayers.

The projected savings from our Lean Six Sigma projects have exceeded all of our expectations.

In fact, our 2010 budget shows an increase in spending of only .02 of one percent over 2009, thanks in a large part to our success in Lean Six Sigma.

Let me take a minute to outline the details of two successful Lean Six Sigma projects.

These projects are diverse in scope and savings, impact and improvements.

They are great examples of what Lean Six Sigma in a government setting can achieve across all functions of government and service delivery.

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No one likes to pay their taxes.

But one of the main jobs of county government in New York State is to collect property taxes and distribute the appropriate amount to local cities, towns and villages.

Because of the recession and other factors, Erie County was owed approximately $35 million in delinquent taxes by the end of 2008.

Our Real Property Tax department implemented a Lean Six Sigma project to help improve the success rate of collecting those back taxes.

The project produced results, even in a tough economy.

Delinquent tax collections were up $4 million in 2009, an increase of 35% over 2008.

As you can clearly see, this Six Sigma project is impacting the County’s bottom line.

But our Lean Six Sigma projects are also impacting people’s lives.

That is the major distinction between Lean Six Sigma in a business versus government setting.

Erie County’s probation officers have partnered with our sheriff’s department and local judiciary on a Lean Six Sigma project to help reduce the population at the holding center.

Working together, these professionals began indentifying low risk offenders who could qualify for ‘release under supervision.’

In the past these low risk offenders….men and women with no history of violence or drug abuse….would often spend 30, 60 and sometimes 90 days at the holding center awaiting a court appearance because they couldn’t come up with the necessary money to post bail.

If we could release these offenders under the supervision of a probation officer, we knew we would be able to reduce the inmate population and related costs at the holding center.

We could also encourage and support positive behavior in the community instead of keeping these low risk offenders locked up for weeks with career criminals.

As a result of this project, weekend and weekday referrals to the program have increased, and the population and traffic flow at the holding center has decreased.

Knowing that it costs nearly $130 per day to care for an inmate in the holding center, the Release Under Supervision project will help save more than half a million dollars each year.

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To be truly successful, we also knew that we had to run a parallel program to Lean Six Sigma to help establish an environment where change would be embraced.

We all know that people naturally resist change, and Lean Six Sigma is all about change.

We knew we had to bring as many people into the fold as possible, so we introduced a Culture Change Program to all County employees.

Going forward, our Culture Change efforts will continue, and in some cases accelerate, because we know it provides a critical foundation on which to build our Lean Six Sigma program.

A large part of Culture Change is a focus on rewarding individual and team performance.

To that end, last month, we recognized 3 outstanding employees for their contributions in 2009.

Peter Curtis, Deputy Commissioner of the Department of Mental Health, and William Geary of our Public Works Department were jointly recognized as Employees of the Year.

Peter was nominated for the award based on his efforts to achieve sustainability in the Children’s System of Care.

He is a Six Sigma Green Belt, and is now training to earn his Black Belt.

Bill was selected based on his work during the aftermath of the crash of Flight 3407, the flooding in Gowanda, and his role in the Tonawanda Creek Road reconstruction project.

He is a Six Sigma Yellow Belt.

In addition to employee of the year, we also established the Partnership Award as a way to recognize an employee who has built strong working relationships with community organizations for the benefit of the County’s clients and taxpayers.

Gavin Kasper of Senior Services received the Partnership Award for his record of strong and effective collaboration with a number of community agencies and other County departments.

Peter, Bill and Gavin are with us today.

I would ask that they stand and be recognized for their hard work and dedication.

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My administration continues to stand up for taxpayers by resetting the table when it comes to union contracts.

This past summer, my Administration achieved a new labor contract with our approximately 1,700 AFSCME employees after months of negotiation.

The new contact, ratified late last month and approved by the County Legislature, is a win for both local taxpayers and our hardworking union employees.

This new contract continues to uphold my pledge to only sign new union contracts that deal with retiree health care costs in a real and meaningful way.

It is my firm belief that county employees are underpaid and over benefitted.

The new contract aligns the AFSCME employee benefit package with those commonly found in the private sector and provides our employees with a much deserved raise.

This 10 year contract eliminates retiree health care insurance for new employees, and ensures various levels of employee contribution to both active and retiree health care insurance for current employees.

Most significantly, this new contract is a major victory for our children, grandchildren and future generations.

The taxpayer savings generated by this new contract are small in the short run, but they grow significantly in future years as retiree health care costs come due.

The new AFSCME contract comes on the heels of a similar contract with our county nurses.

We are involved in current negotiations with the Teamsters and the CSEA and I am optimistic we will also be successful in new contracts with both unions that are fair to workers and fair to taxpayers.

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My administration continued to stand up for taxpayers by recently reaching an historic global settlement with the Erie County Medical Center that deals with ALL the past issues going back to 2003.

This settlement is the best possible news for local health care and local taxpayers.

Under the terms of the settlement, the County’s annual operating funding to ECMC will be $16.2 million.

A 2005 lawsuit had left the County on the hook for unlimited operational losses at the hospital and nursing home starting this year.

Also as part of the settlement, the leadership at ECMC agreed to reduce the County’s current capital obligation from $23 million to $11.5 million.

This funding will be earmarked toward construction of a new state-of-the art nursing home dedicated to caring for indigent seniors in Erie County.

The new nursing home will replace the current Erie County Home in Alden.

Building the new home on the Grider Street campus, near the main hospital, will help keep operating costs down, bring many residents closer to their family units, and add development to Buffalo’s economically disadvantaged East Side.

Significant for taxpayers, the settlement returns $101 million in bond debt incurred in 2003 back to ECMC.

This agreement also paves the way for ECMC to move forward in its partnership with Great Lakes Health and the hospital’s plans to build a Center of Excellence in Organ Transplant and expand orthopedic services.

This settlement agreement is a win for our community in countless ways.

For taxpayers, it assures a fixed subsidy and defined capital investment for ECMC, taking a financial unknown off the table and allowing the County to accurately budget and plan for years to come.

For ECMC, it provides an appropriate subsidy in recognition of ECMC’s growing obligation to care for our community’s most vulnerable citizens.

Finally, for our senior citizens and Western New York in general, it helps ensure an outstanding level of medical care in our community.

I want to thank ECMC CEO Jody Lomeo and the Board of Directors, led by Sharon Hansen, for working in partnership with the County to reach this important agreement that is in the best interest of taxpayers and local health care.

Both Jody and Sharon are with us this morning.

Thank you both for your contributions to our community.

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My administration is also standing up for taxpayers by continuing to review all non-mandated health and social service programs currently provided by the County.

It is my strong belief that Erie County should not be competing with local not-for-profit or community organizations that have the expertise, ability and willingness to provide these services to County residents.

Last year, despite the wild distortions and personal attacks, my Administration successfully transferred the administration of the non-mandated Women and Infant Children’s program …commonly known as WIC…to Catholic Charities.

This transition went extremely well and did not disrupt service.

My 2010 Proposed Budget called for the transfer of non-mandated clinical services to Sheehan Health Network of Buffalo and 5 other local providers spread out over 13 locations throughout the City of Buffalo.

As predicted, the status quo employed scare tactics to frighten clinic clients and the Legislature Majority haphazardly restored some funding to protect union jobs.

As a result, some of our clinic services are currently being run at limited capacity.

And, as a result, many of our clients have already begun receiving care and treatment from the health care providers we previously indentified.

The county funding for these programs will run out this summer and our remaining clients will be referred to new providers who have the willingness and capacity to meet their needs.

This transfer of service is being coordinated with the New York State Department of Health to make sure no one loses service.

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In addition to reviewing non-mandated services, my administration is standing up for taxpayers by refusing to allow Albany to pass its burdens onto the taxpayers of our community.

New York State has consistently cut Erie County’s Child Care Block Grant, which supports day care subsidies for the working poor.

Since 2004, New York State has cut Erie County’s grant some $13 million, despite being home to the third poorest city in the United States.

These cuts forced our Department of Social Services to reduce the eligibility guidelines for this program.

This was not a decision made lightly and I fully understand the burden it caused many local families.

But I am unwilling to continue to use county tax dollars….in this case $10 million for 2010 alone…to keep state funded programs whole after Albany makes cuts to close its own budget gap.

It is not the job of local taxpayers to honor Albany’s promises and obligations that it can no longer keep.

And while I sympathize with families impacted by this decision, all of us are going to have to learn to do more with less if our state has any chance of economic recovery.

And if that makes me the bad guy in certain circles, I’m okay with that. It’s what I was elected to do.

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One thing I did not anticipate when I ran for office was my responsibility in times of emergency.

It’s hard to believe that in two short years we faced three major emergencies – the Hepatitis A emergency in February 2008, the crash of Flight 3407 in February 2009, and the 100 year flood in Gowanda in the fall of 2009.

Our community’s response to the crash of Continental Flight 3407 reminded me of why I am so proud to call Erie County and Western New York home.

Over the course of that long and stressful week, hundreds of county employees worked tirelessly on behalf of the victims’ family members.

I want to especially commend our employees from Emergency Services, Public Works and the Medical Examiners office for their efforts.

Our community was presented with the difficult task of responding to an incident we never anticipated.

From the immediate moments following the crash, and in the days that followed, Erie County’s professionals relied on their training, worked diligently, and acted with compassion.

This tragedy played out on a world stage and demonstrated that Erie County is prepared to deal with any emergency that comes our way.

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We are also standing up for taxpayers by tackling the needs of our aging infrastructure.

Erie County has over 1,200 lane miles of county road….the most of any county in New York State.

Despite the best efforts of our highway crews, there is always work to be done and not enough money to do it.

We did meet the challenge presented by the collapse of Tonawanda Creek Road in Clarence.

After nearly 5 years, we re-opened the road to traffic this past June.

Tonawanda Creek Road collapsed in 2004 after a series of heavy storms that were later declared a disaster by the federal government, making the project eligible for FEMA assistance.

This project was extremely complicated and time consuming, but our Public Works department kept nearby residents apprised of every step along the way and pushed forward despite numerous setbacks.

While the circumstances surrounding the reconstruction of Tonawanda Creek Road were unique, it’s symbolic of a larger problem.

Erie County must prioritize the repair and reconstruction of our community’s roads and bridges by investing county dollars and leveraging state and federal resources.

We are also standing up for taxpayers by investing in the county parklands….beautiful areas that have unfortunately experienced much of the same neglect as our roadways.

Chestnut Ridge is the largest park in all of Erie County and it has been a winter time destination for generations of families because of its storied toboggan runs.

Sadly, they fell into disrepair and were closed 5 years ago.

That all changed this winter as the County made a targeted investment to reconstruct the toboggan runs and reopened them to the public…making them available for a whole new generation.

Our Parks Department also reopened Wendt and Bennett beaches this past summer after years of complete or partial closure.

And, tomorrow we will reopen the Sugar Shack in Sardinia after several years of neglect and closure.

Our new maple syrup production will actually make money for the taxpayers of Erie County and allow school children to once again witness how maple syrup is made.

These changes, among countless others, are proof that our County park system is healthy and vibrant…something taxpayers deserve.

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Last year, we unveiled our Road to a Bright Future, indentifying our 10 key economic drivers and an action item list to help us accomplish our goals.

I am proud to say that over the last year, through the hard work of our Department of Environment and Planning…working together with our strategic partners…we have completed or made significant progress on many of these items.

Our work continues on many others.

One area of particular focus has been entrepreneurship, innovation and the needs of our local small businesses.

With strong assistance from Erie County, I am pleased to say that over the last year, the Erie County Industrial Development Agency has become the first call for local businesses looking for help and assistance.

Mayor Bryon Brown is with us today and I want to acknowledge and thank the Mayor for all his assistance at the ECIDA as we focus on job creation in the City of Buffalo and Erie County.

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As a small business owner, I know how valuable time is.

The last thing a small business owner has time to do is research what grants, low interest loans, and incentive programs they may qualify for.

That’s why we launched the “Your Growth is our Business” initiative late last year.

It’s a collaborative program aimed at helping local businesses access programs and services needed to expand and create jobs.

“Your Growth Is Our Business” is a communications outreach program to remind business owners of the many programs the ECIDA, and its various partner organizations, offer to help them achieve success.

To date, we have directly contacted over 120 local businesses to better understand their needs and how the ECIDA, or a local partner agency, can be of assistance.

As you know, these agencies have the tools and the ability to help, but business owners have to know that help is available.

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Last year, the ECIDA adopted an Adaptive Reuse Policy that is helping to change the landscape of downtown Buffalo and surrounding areas.

The policy provides tax incentives to developers committed to renovating and transforming old, vacant buildings for commercial and residential use.

Several local projects are currently benefiting from the Adaptive Reuse Policy and I’m pleased to announce that these projects are generating nearly $40 million of private investment.

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Despite the rhetoric, government doesn’t create jobs….people do.

I know, because having spent 35 years in the private sector, I have created jobs.

And instead of just talking about the importance of small business, we should be doing everything possible to help small businesses grow and thrive.

To that end, the ECIDA created the Minority Entrepreneur Grant and Loan Program.

This program targets high risk businesses that usually don’t qualify for traditional bank loans.

To help ensure success and loan payback, participants are required to complete an approved ‘mentoring’ program to reduce potential rookie business mistakes.

In its first year, the program attracted 70 applications and ultimately 10 companies were awarded nearly $400,000 in low interest loans and grants.

Nine of those companies – ranging from a gourmet catering firm, to a bowling center, to a day spa – remain in operation today and support 23 new local jobs.

We will be announcing a second round of funding shortly.

Erie County also created a Microenterprise Loan Fund to be administered by the ECIDA.

Using $200,000 of Community Development Block Grant resources, this Fund will provide financing and mentoring to qualifying businesses with no more than five employees, including the owner.

As our local economy continues to shift away from manufacturing, small businesses become even more critical to our economic success.

For too long our economic development strategy in New York has been focused on attracting major employers by giving away the store at taxpayer expense.

Instead of waiting and hoping for hundreds of jobs at once, we will be better served by working hard every day to help our small businesses create one job at a time.

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In line with the Road to a Bright Future, we continue to work with our partners to create prime, shovel ready sites for future development in our community.

County funding brought down Memorial Auditorium as the Erie Canal Harbor Development Corporation moves forward with its plan to make our waterfront a world-class destination.

And Erie County has coordinated the systematic remediation and demolition of the Spaulding Fiber site in the City of Tonawanda.

To help local and out of town developers realize the potential of shovel ready sites all across the County, we will launch a feature on erie.gov this spring to showcase available locations.

And through the efficient use of Community Development Block Grants and other federal dollars, we have recently made smart, targeted investments in local neighborhoods and commercial districts, in the cities of Lackawanna and Tonawanda and the village of Gowanda.

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Erie County also continues to come up with creative solutions to some of our local economic development problems caused by New York State.

Because of inaction in Albany, $200 million in not-for-profit capital projects are currently stalled in Erie County.

My administration worked with attorneys at the ECIDA to find a way to help the not-for-profits move their projects forward.

Our solution was to reestablish the existing, yet dormant, Buffalo and Erie County Industrial Land Development Corporation and have it issue tax exempt bonds for our local not-for-profits.

Our proposal was an innovative way around the state’s purposeful delay and would have put people to work immediately.

Sadly, a few county legislators decided to send the proposal to committee and then led an effort to fill the resolution with protections for organized labor including Project Labor Agreements, apprenticeship programs and prevailing wage requirements.

As we see far too often in this community, too many of our elected leaders continue to cater to the special interests instead of helping create jobs and rebuild our economy.

I call on our new legislature to right this wrong and pass new legislation that will put hundreds, if not thousands, of people back to work in Erie County.

We need those jobs now.

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As you know, Erie County is the sole funder of the Buffalo Niagara Convention and Visitors Bureau.

And, I make no apology for pushing for a leadership change in that organization to ensure a better return on that investment.

The CVB staff is top rate and I am so pleased to be working closely with new CEO Dottie Gallagher, who is joining us this morning.

To her new post, Dottie brings a fresh perspective, a passion for Buffalo and the necessary marketing and managerial experience to direct the CVB.

Dottie and I both agree that our community needs to be appropriately rebranded and I know Dottie will make us all proud as she leads that effort.

Thank you Dottie for the energy you bring to your new job.

Soon we will be able to welcome visitors to Buffalo in a newly refurbished Convention Center.

$7 million of county funding is being used to update the Convention Center…inside and out, including a marquee that actually works.

One of the main reasons people visit Erie County is to experience our cultural riches.

I am proud that Erie County was able to increase funding, not only to the CVB, but also to our large cultural anchors in the 2010 Budget.

I am also pleased to report that our Rare Books Commission, created last year, is well on its way to recommending an action plan to finally showcase the treasures currently stored in Buffalo area educational, cultural and historical institutions.

The Commission will have its final report to me by the fall of 2010.

It will include recommendations to help ensure that our collections are preserved and developed with a sustainable source of funding and support, and that the exhibition of this collection helps promote cultural and historical tourism in Erie County.

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Finally, I want to remind everyone that we gather today less than a month from the State budget deadline.

Whether our leaders in Albany will pass a budget by April 1st is anyone’s guess – but if past history is any guide, don’t hold your breath.

What is predictable, however, is that Albany will once again pass up an historic opportunity to enact real reform, to cut real spending and take real steps to make New York financially competitive.

As unbelievable as it sounds, some in Albany are actually suggesting we borrow our way out of this current crisis and pass the buck to future generations.

Everyone in this room doesn’t agree on all the issues, let alone everyone in our community.

But we can all agree that dramatic changes have to be made in Albany if we have any chance to provide a bright future for our children and grandchildren.

We are all victims of Albany’s dysfunction.

And, it would be my hope that we could, at times, put aside our differences…partisan and otherwise…and speak with one voice about the real dangers of Albany’s continued indifference to Upstate New York and its hardworking taxpayers.

Our future depends on it.

Thank you all very much.