BUFFALO, N.Y. (WKBW) — The City of Buffalo is facing tough financial times, but Acting Mayor Chris Scanlon says he's optimistic about what’s ahead.
"For a number of years, this upcoming fiscal year was pointed at by a lot of people as the year the City of Buffalo falls off the financial cliff," Scanlon said. "I don't view it that way. I think this is the year we turn the corner."
Scanlon recently proposed a $622 million budget, which calls for an 8% property tax hike. The budget is now under review by the Buffalo Fiscal Stability Authority, commonly known as the Control Board.
However, some board members are raising concerns about whether the budget is truly balanced.
"Given the assumptions that are made in this budget, we can't say for certain that they have a balanced budget," said Fred Floss, a member of the Control Board.
Scanlon's budget includes plans to create a new hotel bed tax and a Buffalo Parking and Mobility Authority to bring in additional revenue.
"We think we would generate tens of millions of dollars. We actually think it's more," Scanlon said.
But both initiatives require approval from the New York State Legislature, and with the state budget still delayed, that new revenue is far from guaranteed.
Erie County Executive Mark Poloncarz also voiced skepticism, particularly about the city's plan to sell four parking ramps and transfer operations to a new parking authority.
"I am concerned about the actual amount of revenue brought in," Poloncarz said.
Poloncarz suggested the city should consider a slightly higher property tax increase this year and again next year, arguing that property taxes are a more reliable source of revenue.
"It may make sense to do a slightly higher property tax increase this year and slightly higher one next year to help, because that's guaranteed revenue," he said.
Floss agreed, warning that if the city doesn't raise property taxes gradually now, it could face much steeper increases down the road.
"I would hope that we could raise property taxes over the next few years," Floss said. "And again, what are we talking about? We're talking about raising property taxes, maybe $10 to $20 a month for the next couple of years."
Because of these concerns, the Control Board voted to formally request a "gap plan" from the city — essentially a backup strategy to address any potential budget shortfalls. The board asked for the plan to be delivered by late next month.
Scanlon said he’s already been preparing one.
"During that process, we've had conversations with the Control Board to make sure we're all on the same page," he said. "They just want some additional information — we don't have a problem with that."
The gap plan is due May 28th.
This story was initially reported by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
