In response to the financial difficulties facing Dunkirk, New York, Senator George Borrello has proposed legislation (S.7497) to create the City of Dunkirk Interim Finance Authority. This financial control board aims to stabilize the city’s finances and restore fiscal health.
“Dunkirk is at a financial tipping point,” stated Senator Borrello. “With structural deficits, escalating debt, delayed audits, and a property tax increase of 84%, urgent action is needed. This legislation provides the structure and oversight necessary to ensure transparency, accountability, and a path forward for the city’s recovery.”
The closure of the NRG power plant in 2015 led to an imbalance between Dunkirk’s revenues and expenditures. The state provided mitigation funding over seven years to ease this transition, but the city did not adjust its finances adequately.
Last year, Borrello sponsored legislation with former Assemblyman Andy Goodell for up to $18.5 million in bonding to address multi-fund deficits. However, according to a November 2024 audit by the State Comptroller, liabilities now exceed $20.5 million.
“The City’s challenges are not just about numbers—they’re about maintaining essential services, protecting taxpayers, and restoring confidence in local government,” said Borrello.
The Finance Authority will be effective from June 30, 2025. It will provide fiscal oversight, approve financial plans, monitor budgetary compliance, issue bonds for city-related costs including refunding obligations and addressing tax claims.
The control board will have nine members: four appointed by the Governor (two must be Chautauqua County residents), one each recommended by Senate Majority Leader, Senate Minority Leader, Assembly Speaker, Assembly Minority Leader, and State Comptroller—all Chautauqua County residents.
Members will serve without compensation but will be reimbursed for expenses incurred during their duties.
The Authority can issue up to $800 million in bonds for specific costs like tax settlements initiated after June 1, 2025. Starting in 2031, bond issuances may reach $15 million annually for such liabilities before decreasing in subsequent years. Once responsibilities are complete, rights and assets will return to Dunkirk.
“This isn’t about taking over Dunkirk’s government — it’s about giving the city the tools and support it needs to regain financial stability,” said Borrello.
The Senate bill has been referred to the Senate Corporations Committee while Assemblyman Andrew Molitor introduces companion legislation in the Assembly.
“This is a critical step to restore fiscal integrity,” said Molitor. “Our constituents deserve responsible governance and sustainable solutions.”
