The mayor of New York’s second-largest city has called on the state to help shore up its finances as it battles a large deficit.
Buffalo Mayor Sean Ryan, who assumed office on January 1, has said that New York State may be willing to help the city improve its financial outlook, and Governor Kathy Hochul has not dismissed the idea.
Newsweek reached out to Ryan’s office for comment via the contact form on the city website.
How Much Is the Deficit?
A first-quarter gap analysis from the city comptroller shows the city faces a budget shortfall of at least $42.8 million, and suggests it could climb to $80.3 million this year. The former administration, led by acting Mayor Christopher Scanlon, reported in November that the deficit would be in the region of $2.3 million.
“The First Quarter Gap Report underscores serious structural challenges facing the City’s finances,” said Comptroller Barbara Miller Williams. “While forecasts rely on historical trends, the magnitude of the projected deficit and the continued strain on revenues, expenditures, and fund balances warrant vigilant and immediate attention. It is critical that fiscal decisions made this Fiscal Year prioritize long-term stability and transparency for City of Buffalo citizens and taxpayers for future generations.”
The financial conundrum facing Buffalo dates back to issues that arose during former Mayor Byron Brown’s administration, which relied on American Rescue Plan funds, reserves, and other resources to cover budget gaps before Brown left office in 2024.
Prior to his inauguration at the start of this month, Ryan said, “My message was clear, we’re in a deep bind. We’re going to need some help, but we’re going to come to you with a real plan, and a plan where we’re going to put our shoulder behind this and we’re going to do everything we need to do, and only then are you going to be able to ask your partners for assistance.”
WXXI News reported in November that Ryan’s transition team was developing what he has called a three-year fiscal plan, which included seeking assistance from Albany.
“You start establishing a transparent relationship, and you start devising a plan to help get us out of this mess, and the soft landing will come only when we have a better idea of exactly how big our out your deficits are, how much money we can save through revenue raisers and efficiencies,” Ryan said. “That’s when you ask your government partners if they can help you with a soft landing.”
Hochul: ‘We Need to Look at This’
When asked about the potential for a bailout in Buffalo, Hochul said this week that while Albany is open to reviewing the situation, it expects the city to conduct its own evaluation first.
“Mayor Ryan is inheriting a system that has been in place a long time,” Hochul said. “Are there areas where there could be improvement, any curtailment of services that are redundant, unnecessary? We ask the cities to do their own self-reflection with our help before they come asking for that assistance. So the answer is not no. The answer is, we need to look at this.”