Buffalo Faces $109 Million Deficit Amid Controversial 25% Property Tax Hike Proposal
Buffalo Mayor Sean Ryan projected a $109 million municipal budget deficit for the upcoming fiscal year. He proposed a 25% property tax increase and requested state borrowing authorizations to stabilize the city's finances.
The City of Buffalo is currently operating under a severe fiscal crisis, with Mayor Sean Ryan projecting a $109 million deficit for the upcoming 2026-2027 fiscal year. Historically maintaining the lowest per-capita total tax levy among upstate New York cities, Buffalo allocates over 70% of current city spending strictly to fixed personnel costs and benefits. This leaves virtually no operational budget to trim without initiating mass layoffs in essential departments such as police, fire, and sanitation.
In response to the crisis, Mayor Ryan formally proposed a 25% increase in the city's property tax levy to bridge the structural gap. The administration is also seeking state authorization for three targeted revenue measures, including a supplemental tax on vacant and abandoned properties, a restructuring of homestead property tax rate eligibility, and a two-tiered real estate transfer tax. Additionally, the administration is pushing for a bill to allow the city to borrow upwards of $500 million through the Buffalo Fiscal Stability Authority (BFSA) over the next four years.
The response from legislative bodies has been fiercely critical, with the Buffalo Common Council demanding an independent state audit to verify the deficit figure. State Assembly Majority Leader Crystal Peoples-Stokes issued a stark ultimatum regarding the borrowing request, stating the state will not alter legislation unless Buffalo agrees to return to a "hard control board" status, effectively surrendering its financial autonomy to state oversight.