2 weeks Ago
BUFFALO, N.Y. — In early December, acting finance commissioner Ray Nosworthy told the Common Council that the current budget deficit was $17.
6 million. That figure was based on data from the first quarter gap sheet, a report that is highlights revenues and expenditures. "This is just a snapshot as of Sept.
30," Nosworthy said during a Dec. 3 council meeting. While the Common Council amended the city's Rescue Plan spending on Monday , right now it's unclear if the the deficit remained stagnant at $17.
6 million or continued to rise after the September report. In a cash flow filing in the council Finance Committee, also on Monday, a report indicated a projected negative cash flow balance of more than $42 million by May of 2025. Even though the city could dip into cash reserves to soften the blow of such a high deficit/cash flow problem, there will undoubtedly be difficult decisions to make during the budget.
"We're using all of these things as a credit card — let's just continue to use the credit card, and we'll deal with those things later on," Niagara District Common Council member David Rivera said on Dec. 3. "Let's use our fund balance, and we'll make those decisions where we're completely broke.
" Every council member 2 On Your Side has spoken with in recent months, which is all eight of them, have mentioned that difficult decisions will have to be made. But what are the difficult decisions? Tax increases? City Hall layoffs? Essential services diminished? Acting Mayor Chris Scanlon says he wants to make sure the 2025-2026 budget negotiation is different than the ones under the Byron Brown administration. "I've been very clear with my colleagues in government and the council, I don't intend to drop a budget in their lap the day it's due," Scanlon said.
"I plan on having conversations well in advance so they know what's coming." One major difference in this budget cycle will be that the city doesn't have American Rescue Plan funds available to fill budget gaps. WGRZ asked Scanlon how the budget talks will go without substantial federal dollars to replace revenues.
"They're not going to be pleasant," Scanlon said. "What we've got to do is prioritize, make a list of priorities. We have to prioritize our spending.
We have to bring additional revenue into the building, and we've got to get creative in doing it." Scanlon says everything needs to be on the table during budget talks. "I think you're going to have to talk about everything," Scanlon said.
"The last thing you want to do is lay people off and raise taxes a large amount. But then the reality of the situation is, we need revenue. We need to prioritize spending, and we'll figure it out over the course of the next few months and how we get there.
" Despite the council amending Rescue Plan spending to replace revenues for the current fiscal year, it hasn't been decided whether or not they will be apply to the deficit this year, or next year. "We're coming up at the midpoint of the fiscal year, we'll get our second quarter gap sheet," Scanlon said. "We'll see how we're looking throughout this year, what we're anticipating moving forward, how much of the revenue replacement American rescue plan funds will be applied to this year versus next year, how much we might have and do that balancing act then.
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