Scanlon announces $622M city budget, proposes 8% property tax increase

BUFFALO, N.Y. (WIVB) -- Acting Buffalo Mayor Chris Scanlon announced on Tuesday a $622 million city budget for 2025-2026, a $4 million increase from last year, along with the Common Council's request for two pieces of legislation he said would address a $70 million structural deficit.

Scanlon cited operational costs, inflation, and an increase in contractual obligations as contributors to a $10 to $20 million cost increase. He also mentioned $30 million in cuts to departments, vacancy savings, and as ways the council closed the budget gap.

Along with cuts, Scanlon proposed an 8% property tax increase, which he said would generate $13.7 million for the city. For $150,000 homes, that would be an increase of $11.63 per month or $140 yearly.

Scanlon said the two pieces of legislation that would help avoid "monstrous" tax increases, layoffs, and departmental cuts are instilling a 3% hotel occupancy tax and selling city-owned parking ramps.

"The first is the Buffalo Parking and Mobility Authority, which would bring an infusion of cash to the city of Buffalo, somewhere between $40 and $60 million," he said. "In addition to that, and I think this is an absolute key component, is the fact that we will also receive a recurring revenue on a yearly basis from that agreement that we ultimately end up with and we will ultimately also end up with some oversight when it comes to parking rates."

The hotel occupancy tax would generate $3.5 million for the city as well, according to Scanlon.

Council Member Mitch Nowakowski said former Buffalo Mayor Byron Brown's 16-year refusal to raise property taxes is a main reason for the deficit and proposed 8% increase.

If the legislation doesn't pass, it would mean a tax increase over 26% and a reduction in jobs and city services.

State Senator Sean Ryan, who is running against Scanlon for Buffalo mayor, called the sale of parking ramps a "one-time revenue gimmick" to fix the city's budget. Scanlon refuted Ryan's response on Tuesday and called it a direct infusion of cash that would be used over several years.

Ryan called the budget "irresponsible" and Scanlon's plan for the city "half-baked."

"With Buffalo's reserves depleted and a massive deficit threatening our city's future, the acting mayor has instead put forth a budget that irresponsibly relies on selling revenue-generating city assets for a speculative, one-time infusion of cash," he said in a statement. "It's a plan whose details he either can't or won't explain to the state legislators he's relying on to pass it. Instead of working with the legislature to advance ideas that can win approval, the acting mayor is trying to jam through a slapdash plan that would deprive Buffalo of a long-term revenue source."

In response, Scanlon said he's disappointed in Ryan's comments.

"Can we say what's actually irresponsible is voting for a hotel bed tax in 20+ other communities, but when Buffalo proposes it, suddenly it's a problem?" Scanlon said in a statement.

Scanlon said the council will work to finalize the budget, which is still subject to the council's approval, in the coming weeks and that the city's deficit will take several budget cycles to fix.

"The impact that it will have on our residents is something that matters to all of us," said Council Majority Leader Leah Halton-Pope. "We are stewards of the community and it's important that when we make a final decision, it's responsible."

Scanlon also said the city will not cut or reduce services, and that there will not be a "single layoff."

Watch Scanlon's full press conference on the city budget in the video player below.