Buffalo, N.Y. (WBEN) - Buffalo City Comptroller Barbara Miller-Williams says S&P Global Ratings has affirmed the City of Buffalo "A+" General Obligation (GO) bond ratings, while revising the city’s outlook from "Stable" to "Negative" due to concerns over weakened financial performance and fiscal pressures.
Miller-Williams says the outlook revision reflects financial challenges following a significant reserve drawdown in Fiscal Year 2024-25, and the city’s continued reliance on one-time measures to close budget gaps. While the city ended Fiscal Year 2024-25 close to breakeven, S&P noted that the expiration of Federal stimulus funds and rising operating costs pose ongoing risks to the city’s financial stability.
According to S&P, rising expenditure, reduced revenue flexibility, and budgetary constraints have contributed to the revised outlook. The "Negative" outlook signals that the City’s financial position could face further strain in the near term if corrective actions are not taken.
"While we are encouraged that S&P affirmed our A+ rating, we take the revision of our outlook very seriously," said Miller-Williams in a statement. "This underscores the importance of continuing to strengthen the City of Buffalo’s financial foundation, control expenditures, and pursue strategies that stabilize and grow revenues. Our office remains committed to transparency, fiscal discipline, and protecting the City’s long-term financial health."
Fillmore District Councilman Mitch Nowakowski says the downgrade should come with an asterisk.
"Most council members point to, where it shows negative from stable should have been negative for a few fiscal cycles," said Nowakowski while appearing on WBEN with Joe Beamer. "They cite one-time revenues as not a way to plug budget gaps. And that's no revelation to myself or anybody else, but that means, but in in perpetuity, that the rating didn't change, just the outlook."
He adds he doesn't want Miller-Williams to use that as an excuse to not conduct bond issues.
Nowakowski and Mayor Chris Scanlon have filed a lawsuit against the comptroller for the lack of bond issuances.
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