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Buffalo schools CFO warns of $87 million level-2 deficit for 2025-26; district outlines multi-year plan
Summary
The district’s chief financial officer presented a level-2 budget showing an $87 million projected deficit for 2025-26, outlined a multi-year financial plan and said the district is pursuing revenue and cost-containment steps while preparing potential staffing and school-closing options for future years.
The Buffalo Board of Education received a detailed budget briefing April 9 from Chief Financial Officer Jim Burns that outlined current-year improvements and a projected shortfall for next year.
CFO Burns said the district’s current-year deficit projection improved to about $55 million, down from a previously reported $73 million, but that the draft level-2 budget for 2025-26 shows an $87 million deficit. "This is based upon our draft quarter 3 results," Burns said. He said the level-2 deficit was down from an earlier level-1 estimate of $117 million.
Burns identified major drivers: salaries and benefits (about 60% of expenditures) are rising; new transportation contract costs are expected to add roughly $8–8.7 million; charter school tuition costs are projected to increase about $7.8 million; and benefits are projected to rise about $14.5 million. He said an expected $23 million increase in state aid and a roughly $12 million reduction in debt service partly offset those pressures.
Nut graf: The CFO presented a multi-year view and said district leaders will balance near-term budget choices against a four-year plan that had forecast a smaller deficit. Key uncertainties include state budget finalization, ongoing contract negotiations with multiple bargaining units and actual retirements, which have come in far below earlier projections.
Burns described next steps: the district will continue department-level reviews, finalize responses to about 55 unbudgeted FTE requests, hold weekly meetings with the superintendent to review reduction options and begin board-level budget review meetings in late April. He warned that staffing changes and school-closing planning for 2026-27 may be necessary if structural gaps remain.
Board members asked for more detail on revenue generation and cost containment. One board member asked the CFO to share additional detail on Medicaid billing increases and other revenue gains the CFO said had narrowed current-year deficits. The CFO said staff would provide additional detail at subsequent meetings.
Ending: The board heard that the superintendent will present a proposed budget to the board in May and that a final vote on the superintendent’s budget is scheduled for the May 21 meeting.
