Buffalo’s financial plan projects substantial cuts in spending beginning in July 2021

My post last week provided details on the City of Buffalo’s precarious 2020-2021 budget. Drawing on both budget facts that pre-dated 2020 and an analysis of the 2020-2021 budget prepared by the Buffalo Fiscal Stability Authority (BFSA), the numbers present a very dramatic and uncertain financial future.

Here is a summary of the ongoing dilemma that the city faces:

1. The city ran an operating deficit in 2019-2020 which required them to borrow $25 million. The city sold a Revenue Deficiency Note in that amount to close out the year. Continue reading

The city of Buffalo’s serious financial problems has led the Control Board to request state legislation authorizing $121 million of deficit financing over the next two years

A review of City of Buffalo finances has led the Buffalo Fiscal Stability Authority (BFSA) to call for special state legislation which would authorize borrowing up to $121 million over the next two years to maintain city services. How and when that money would be paid back is not known.

The agenda for a meeting on July 20 posted on the BFSA website included a “BFSA Review and Analysis of the City of Buffalo’s 2020-21 Adopted Budget and 2021-2024 Financial Plan”. That extensive document was followed by a resolution by the Authority Board. Continue reading