Buffalo, NY (WBEN) The state's fiscal watchdog says Buffalo faces a projected general fund budget deficit of approximately $103 million in the 2026-27 fiscal year.
State Comptroller Tom DiNapoli says the deficit is in part, because the city historically has adopted budgets that relied on nonrecurring revenues to fund operations and underestimated expenditures, according to a budget review he released today.
“Buffalo used up its savings and one-time federal pandemic aid to cover past budget shortfalls, and now that money is gone and there’s no extra cushion left to help balance the proposed 2026-27 budget,” DiNapoli said. “While city officials have taken some steps to address the projected budget deficit, they should also focus efforts on better aligning recurring revenue with recurring expenditures to help restore long-term fiscal stability for the city.”
DiNapoli says moving forward, city officials must:
- Better align recurring revenues with current service costs,
- Discontinue using non-recurring revenues to fund ongoing operations, and
- Develop realistic financial plans that include rebuilding and maintaining adequate fund balance and reserves.
Miller Williams further stated that the findings are consistent with concerns and information her office has shared with the Buffalo Common Council and Administration over the last several years. She emphasized that the report reinforces the need for continued focus on structural balance, transparency, and responsible financial planning to ensure the City’s fiscal stability.
“The New York State Comptroller’s analysis confirms what I have been communicating for several years: there are real fiscal challenges facing the City of Buffalo that require thoughtful, proactive solutions,” said Comptroller Miller Williams. “I appreciate the diligence of Comptroller DiNapoli and his team, and I wholeheartedly concur with their findings. The identification of a $103 million deficit underscores the urgency of addressing these issues now. This report should serve as a roadmap for making the sound financial decisions necessary to protect the City of Buffalo’s future.”
DiNapoli’s budget review relied on data and information from the mayor’s proposed 2026-27 budget, the city’s audited financial statements, the city comptroller, and the Buffalo Fiscal Stability Authority.
