By Mike Desmond

BUFFALO (2008-09-26) The long-running fight between the county control board and county government took another twist when the board told Comptroller Mark Poloncarz Thursday that it couldn't borrow a vital $75-million, blaming the national financial crisis.

The Erie County Fiscal Stability Authority has long been saying it could borrow the money at a lower interest rate. But the deal fell through.

The comptroller says he's not surprised.

"Last week I warned based on the market conditions that it would be doubtful that the control board could close any type of loan," Poloncarz said.

Poloncarz says he had a contingency plan ready and is prepared to secure a loan with Bank of America.

"Bank of America has the cash and the liquidity available to close this loan," Poloncarz said.

Poloncarz says the interest rate on the year-long loan is under three-percent, saving the county around $750,000 compared to the interest rate on last year's 75-million dollar loan.

The funding is needed to keep county government operating and must be in place by next week in order to meet the county's payroll.