Several Buffalo Board of Education members used the June 18 meeting to publicly press city officials and the comptroller’s office over a delayed municipal bond sale and an external auditor finding that the city had not been paying interest on district funds the auditor said the district was owed.

Board members said the district’s capital slate—21 projects approved in the city capital budget and by bond counsel—remains “authorized but unissued” because the comptroller’s office held the bond sale; board members and district staff said the controller capped the immediate sale at a lower amount than requested and that the delay prevents the district from issuing bonds intended to fund planned facility projects. The board record quotes a comptroller cap at $34 million for the city and notes competing city requests had at times exceeded that figure.

Trustees raised an audit finding—cited by the board’s external auditor—that the city has been using district cash and not paying full interest the district’s auditors estimate the city owes approximately $5 million annually. District staff said the office of the comptroller is reviewing the matter in the course of negotiating a bond sale and that the district will present calculations and potential corrective actions at a future board meeting; the superintendent and staff said they expect options to be presented in July.

Board members framed the situation as a funding and accountability issue: city capital approvals and common-council recommendations are in place, but the bond sale’s hold-up at the comptroller’s office has left the district unable to move forward quickly on rehabilitations including windows, roofs, pool renovations and other facility work. District staff said some projects are largely state-reimbursable, which would lower the city’s net cash cost, but the timing of the sale affects cash flow.

District officials said they would return with a calculation and several possible courses of action for the board; one trustee said she would bring a future resolution seeking stronger remedies if needed.