State comptroller projects roughly $103 million Buffalo general-fund gap as adopted budget moves to implementation

↻Ask Interactive NewsLook for updates to this storyFind out what has changed since this story was published.→

New York State Comptroller Thomas P. DiNapoli’s office projected that Buffalo faced an approximately $103 million general-fund deficit for fiscal 2026-27 in a budget review released May 8, placing the city’s financial outlook under continued scrutiny as its adopted budget moves into implementation.

The review examined Buffalo’s proposed 2026-27 budget, rather than providing a final audited result or an assessment of the subsequently adopted plan. The city has since posted its adopted 2026-27 budget documents, marking a shift from budget development to implementation and oversight.

Proposed budget was balanced on paper i

The proposed budget listed $681.1 million in general-fund revenues and transfers-in, matching $681.1 million in appropriations and transfers-out. Despite those matching totals, the comptroller’s office projected the approximately $103 million general-fund gap for the fiscal year.

The state review said Buffalo had used savings and one-time federal pandemic aid to cover earlier shortfalls. It warned against using nonrecurring revenues to pay for continuing operations, a practice that can leave recurring costs without a continuing source of funding.

The review therefore distinguishes between a budget document whose listed revenues and spending totals were equal and the broader fiscal outlook identified by the comptroller. The projected deficit is an estimate from the state review, not a final audited operating result.

Solid-waste fund obligation identified i

DiNapoli’s office also documented a separate obligation involving the city’s solid-waste fund. As of March 30, 2026, the fund owed Buffalo’s general fund $27.3 million and did not have sufficient resources to repay that amount, according to the review.

That obligation is relevant because the general fund supports the city’s general governmental operations. The comptroller’s findings focused on recurring revenue, spending pressures and internal fund balances as Buffalo prepared for the new fiscal year.

Adopted plan now governs fiscal year i

Buffalo’s fiscal year 2026-27 began July 1, 2026. The city’s budget webpage, dated June 1, provides adopted materials for the general fund, enterprise funds, education, debt service and city departments.

The available sources do not provide a complete cash-flow update after adoption, and the comptroller’s May analysis was based on the proposed budget. As a result, the sources establish that an adopted budget is in place, but do not establish whether changes in that final plan altered particular revenue or appropriation assumptions examined in the state review.

The next phase is implementation of the adopted budget and oversight of the financial risks identified in the review, including the projected general-fund gap, reliance on one-time resources in earlier years and the solid-waste fund’s obligation to the general fund.

Sources

• DiNapoli Releases Budget Review for City of Buffalo, New York State Comptroller
• 2026-2027 Adopted Budget, City of Buffalo

↻Ask Interactive NewsLook for updates to this storyFind out what has changed since this story was published.→

⇄Ask Interactive NewsRelated NewsDive deeper into these stories and how they connect.→

• Buffalo challenges federal land status for 5 Miami Street
• Buffalo Council Approves $94 Million 2026 Capital Budget
• State audit flags delayed deposits in Cato town clerk’s handling of $5.8 million in collections
• Buffalo Releases Budget Plan to Address Structural Deficit