Comptroller Miller Williams Raises Serious Concerns on Deficit Bonding, Calling for a Collaborative Fiscal Strategy

City of Buffalo Comptroller Barbara Miller Williams

Buffalo, NY — City of Buffalo Comptroller Barbara Miller Williams has issued her response to the Administration’s consideration of using deficit bonding as part of its strategy to address the City of Buffalo’s current and projected budget gaps.

Comptroller Miller Williams identified several key concerns associated with deficit bonding, including the total cost of borrowing over time, the potential impact on the City’s credit profile, and the long-term implications for Buffalo’s financial outlook. It also raises the question as to whether borrowing through the Buffalo Fiscal Stability Authority (BFSA) would pro vide more favorable terms than borrowing as an inde pendent municipality. Under the current proposal, the BFSA’s involvement in City finances could extend to the year 2070, well beyond its current authorization which is set to expire on June 30, 2037. The City currently bud gets approximately $1 million annually to support BFSA operations, a figure that could increase if its responsibilities expand.

Furthermore, additional or new borrowing will increase the City’s annual debt pay ment, already totaling approximately $33 million for Fiscal Year 2025-2026. Deter mining if future revenue growth will be sufficient to sustain a potential increase of required debt payments which come from property tax dollars without placing additional strain on citizens and taxpayers is of the utmost importance.

Comptroller Miller Williams acknowledges the seriousness of the City’s fiscal challenges and concerns about the use of deficit bonding to cover operational shortfalls: “The City of Buffalo continues to face serious fiscal challenges that require thoughtful and sustainable solutions,” stated Comptroller Miller Williams. “While it is undeniable that the City of Buffalo is facing a critical deficit, any decisions and conversations regarding these fiscal challenges warrant collaboration with all City elected officials. It is crucial to recognize our responsibility as leaders to ensure that the citizens and taxpayers have a voice and remain informed of decisions impacting their City.”

The Department of Audit and Control remains com mitted to monitoring the City’s financial performance and providing updates to the Administration, the Buffalo Common Council, the Buffa lo Fiscal Stability Authority, and the citizens and taxpay ers of Buffalo.