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SHARON CANTILLON/Buffalo News A union rally at Niagara Square protests actions taken by the city's control board.

"We are here to do battle. And we will battle with the mayor and with the control board one day longer than they are ready to do battle," AFSCME International President Gerald McEntee shouted to the cheers of nearly 400 city workers. Demonstrators waved signs that read "Control Board . . . Ouija Board -- One and the Same," and "More Services, Less Control Board." The rally attracted union representatives from other regions, including New York City and Utica.

The actions taking place in Buffalo, including the control board's decision to freeze all wages and impose a hiring ban, could set a precedent in other parts of the state, speakers warned.

"I believe that Buffalo is a guinea pig city for union-busting control boards," said Kevin Fitzgerald, president of the city union that represents building inspectors. "If it works in Buffalo, it will be the model control board for Schenectady, Rochester and Syracuse."

Control board Chairman Thomas E. Baker insisted the oversight panel is not trying to derail unions.

"That's not our goal," he said. "We're here to make the city more fiscally stable than it is today. If that doesn't happen, the city will just bleed to death."

McEntee, whose union represents 1.4 million members nationwide, said he has encountered other control boards.

"But this one I would have to put at the top of the list of shame," he said. "There are even some members of this control board who don't even live in Buffalo. How the hell would they know the needs of the city, the citizens or the workers? They don't even live here!"

Two state lawmakers who are prospective candidates for mayor also spoke at the rally. State Sen. Byron W. Brown and Assemblyman Sam Hoyt, both Buffalo Democrats, said labor should have a "voice" on the control board.

Brown also criticized officials for failing to take a serious look at a union proposal he helped draft last year that some claim could help shave millions of dollars a year from budget gaps. The strategies included implementing a landlord licensing fee, allowing Buffalo to adjudicate its own traffic violations and making changes in city garbage collection.

Brown and Hoyt said members of the local state delegation planned to meet with Baker today to express their concerns.

As the sounds of Thursday's noisy rally ricocheted off the walls of City Hall, Common Council members were holding a third day of budget hearings in their 13th floor chambers. Deputy Police Commissioner Mark E. Blankenberg warned that the control board's decision to block raises that officers were scheduled to receive July 1 could slow the pace of retirements and make it tough for the department to meet attrition targets.

The city signed a lucrative contract with officers last year, banking on the assumption that retirements will result in the police force's shrinking by more than 200 over several years. Failure to meet the targets could trigger more fiscal turmoil, because the police contract also includes a no-layoff clause.

While Blankenberg said it's possible some officers might be more inclined to retire knowing that salaries are frozen, he told a reporter after the hearing that he suspects the freeze will have the opposite effect.

"I would guess that the freeze is going to slow retirements," he said.

Council Budget Committee Chairman Dominic J. Bonifacio Jr., Niagara District, agreed, claiming the board's decision to block 3.4 percent raises for officers likely will cost more than it saves.

Proposed changes in the Fire Department also were discussed Thursday. Fire and union officials said Masiello's plan to shift some employees from fire investigation and prevention into firehouses will have negative effects. They warned of likely backlogs in the processing of certain business licenses and permits that go through the Fire Prevention Bureau and the elimination of fire safety education programs.

Council President David A. Franczyk said he's worried Masiello is trying to make changes that were not included in recommendations from a consultant that helped draft a proposed restructuring of fire services. He said he is especially concerned about diminished fire investigations.

Some Council members also are objecting to Masiello's plan to cut five auditors and two vacant auditing jobs in his new budget. To offset the cuts, he wants to set aside $100,000 to use outside auditors.

Comptroller Andrew A. SanFilippo said his department has already suffered a nearly 50 percent cut in staffing over the past decade. He warned that further cuts will yank the "teeth" from Buffalo's fiscal watchdog and said he wouldn't rule out legal action to try to block the reductions.

e-mail: bmeyer@buffnews.com