Buffalo’s Big Budget Hole Grows Bigger, New Taxes On The Way

After months of discovering all sorts of inconsistencies in city finances, Buffalo's acting Mayor released his initial 2025/26 budget for the Buffalo Common Council to review and debate, and some of the things coming out of the budget are much worse than people have realized.

New York State's second-largest city has a total top-line budget that is nearly $2 billion of taxpayers' money, but somehow, city officials are saying the city isn't going to have enough money to cover its bills this year if something isn't done.

It was initially estimated that city bank accounts would be around $50 million short this year, but the newly released budget shows that number to be much higher.

Buffalo's Big Budget Hole Grows Bigger, New Taxes On The Way

City officials are ringing the alarm that something needs to be done about the amount of cash coming into the government's bank accounts. Officials estimate that the budget shortfall is much closer to $70 million, as opposed to the $50 million that was initially thought.

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According to WIVB-TV, the city is blaming the shortfall on several factors, including inflation and increased medical costs.

To combat the shortfall, the city proposes doing a few things to close the gap. Acting Mayor Scanlon wants to introduce a new hotel tax, sell a number of city-owned properties, and increase the property tax.

If the tax increase is approved by the Buffalo Common Council, it would be a rare feat, as the City of Buffalo has not raised taxes much over the last two decades.

Something must be done because things will not just fix itself.