BUFFALO, N.Y. (WKBW) — Acting Mayor Chris Scanlon unveiled a $622 million proposed budget for the City of Buffalo on Tuesday, aimed at tackling a significant structural deficit.
The plan includes an 8 percent property tax levy increase and leans heavily on two state-level proposals to bring in new revenue.
“This was not an easy budget,” Scanlon said. “It was very difficult. It was very challenging. But we’re using the challenge as an opportunity for Buffalo to become better, more innovative, and more efficient.”
Deficit and Budget Details
When he stepped into this role, Scanlon said he inherited a $17 million midyear shortfall for the current fiscal year and a structural deficit exceeding $70 million for the upcoming year.
The 2025–2026 proposed budget reflects less than a 1 percent spending increase from the current year, which Scanlon says required “tremendous effort.”
Departmental cuts totaling $10 million and an additional $16.5 million in vacancy savings helped trim expenses.
But those measures weren’t enough to close the gap. To stabilize finances, the administration is proposing:
- An 8 percent property tax levy increase, expected to raise $13.7 million. For a $150,000 home, that amounts to an $11 monthly increase.
- Creation of a Buffalo Parking and Mobility Authority, which could generate $40–$60 million from the sale of four city-owned ramps and provide recurring revenue.
- A new 3% hotel occupancy tax, expected to bring in $3.5 million annually.
RELATED: Buffalo mayor proposes parking authority to oversee city parking ramps
Scanlon emphasized that without those two legislative approvals from Albany, Buffalo could be forced to raise taxes by an additional 18% or enact service cuts and layoffs.
The budget outlines a four-year plan to address the city's structural imbalance, using proceeds from the parking ramp sales gradually rather than all at once.
“This is not a one-time gimmick,” Scanlon said, defending the ramp proposal. “We will receive recurring revenue and offload maintenance costs, all while retaining oversight over parking rates.”
Scanlon said he feels “very confident” about securing approval for the state legislation that underpins his plan. If those proposals fall through, he said, the administration will re-evaluate.
“We’ve done the work. We’re on a path where we’ll be okay,” he said.
Police & Fire Overtime, Healthcare Costs
The city is also working to rein in overtime spending, particularly within the police and fire departments. I asked Scanlon about that directly. He said changes in shift policies and operational strategy are already helping to reduce total hours worked.
Prescription drug costs—including pricey medications like Wegovy—have added about $2.3 million in pressure to the budget, but Scanlon said the city is working with partners to manage rising healthcare expenses.
No Cuts to Services or Jobs
Despite the steep financial challenges, Scanlon said the budget does not cut services, lay off workers or raise the city’s user fee.
“We think 8% is the number it needs to be,” he said. “If we drop it, we’d have to start looking at cutting other things—things that really impact residents.”
This year marked the first time Buffalo’s budget was delivered on April 8—a change made by the Common Council to allow for a longer review process, though Buffalo's Fiscal Stability Authority questioned the new timeline at a Council finance committee meeting Tuesday.
Council members received the budget Tuesday and will spend the next month and a half going through it and making changes before voting on May 26th.
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