Moody's Cuts Buffalo Outlook to Negative as $14.5 Million Reserve Drop Strains Finances
Updated
Updated · Buffalo Toronto Public Media · Jul 13
Moody's Cuts Buffalo Outlook to Negative as $14.5 Million Reserve Drop Strains Finances
1 articles · Updated · Buffalo Toronto Public Media · Jul 13
Summary
Buffalo's credit outlook was lowered to negative from stable, while Moody's affirmed the city's A1 issuer rating.
A $14.5 million reserve decline in fiscal 2025 helped drive the move, alongside ongoing fiscal pressure and reliance on one-time revenues to balance budgets.
Moody's said rising expenditures and stagnant recurring revenue growth have left Buffalo using temporary measures to close budget gaps despite a growing local economy and regional importance.
City Comptroller Barbara Miller Williams said the change underscores the need for immediate action to restore structural balance and rebuild reserves for long-term stability.
The report also flagged the Buffalo Board of Education, which has stronger reserves than the city but still projects significant budget gaps in coming years.