Buffalo Cash Flow Projected to Dip Into Deficit in May

A city comptroller report says Buffalo expects to spend $884,000 more than it collects in May, drawing on school district funds.

Updated on Nov. 8, 2026 in Saving

Isometric editorial illustration of two stacked matte blocks joined by a pipe carrying flow between them, depicting interfund borrowing. — Buffalo's comptroller projects the city will spend $884,000 more than it collects in May, borrowing from the school district's general fund to cover the gap. AI Illustration. Upload story photo >

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The Buffalo comptroller's cash flow report, submitted to the Common Council, projects the city will spend $884,000 more than it collects in May. When spending exceeds revenue, the city borrows from the Buffalo Public Schools general fund, the two entities commingling their general funds.

Why it matters

The city spent more than it collected in six of 12 months in fiscal year 2025-26, including $89 million more in May 2026. The reliance on borrowing between city and school district funds highlights how short-term cash gaps are managed in Buffalo's budget.

The comptroller's cash flow report projects a $884,000 May shortfall, compared with an $89 million overspend recorded in May 2026. Whether state aid and one-time parking ramp proceeds will keep cash flow positive beyond the current cycle has not been determined.

The players

Buffalo Public Schools

The Buffalo Public Schools district operates the public school system in Buffalo and shares its general fund with the city, which borrows from it during negative cash flow months.

The details

When Buffalo spends more than it takes in, it borrows from the school district's general fund and repays once large state aid payments arrive, the largest coming in June. Officials attribute the recent positive trend to a $40 million increase in state aid, parking ramp sale proceeds, a 19% property tax levy increase, and unexpected sales tax revenue.

Fiscal year 2025-26: city spent more than it collected in six of 12 months.
May 2026: city spent $89 million more than it collected.
May (upcoming): projected $884,000 spending excess.
June: largest state aid payment expected, used to repay borrowed funds.
Fiscal year 27: additional $40 million in state aid reported.

Roadmap

State AIM aid had not significantly increased for years before this budget cycle, making the recent $40 million boost a notable departure. Buffalo's cash flow now depends on whether the state's four-year plan keeps the same funding level.

Buffalo residents may see the effects of the city's cash management through its budget decisions, since reliance on one-time proceeds and state aid leaves future revenue uncertain. Households should watch whether property tax and municipal service budgets change as parking ramp sale money runs out.

The takeaway

Short-term municipal cash gaps are often bridged by borrowing between related funds, but the arrangement depends on timely state aid. Monitoring state budget decisions gives the clearest signal of how Buffalo's finances may change.

What happens next

The city's cash flow will depend on June's largest state aid payment, which is expected to repay borrowed school district funds, and on whether the state's four-year budget plan keeps aid at its current level.