In response to the financial crisis in Dunkirk, NY, Senator George Borrello announced his intention to sponsor legislation for a financial control board to manage and oversee the city’s finances. The initiative comes amid structural deficits, mounting debt, and delayed audits threatening the city’s stability.
“The City of Dunkirk’s deteriorating fiscal situation has reached a crisis point,” stated Senator Borrello. He mentioned discussions with various stakeholders, including New York State Comptroller Tom DiNapoli. Despite attempts to support local governance, he emphasized that “the problems have proven to be too large and complex.”
Senator Borrello plans to introduce legislation establishing a finance authority to structure Dunkirk’s financial operations while supporting local leadership. “This type of oversight has worked in other New York communities during times of crisis,” said Borrello, citing Buffalo and Nassau County as examples.
Assemblyman Andrew Molitor will introduce companion legislation in the Assembly. He stated that by introducing this legislation, they aim to ensure necessary oversight while empowering local leaders. “This is about providing the city with a chance to regain its fiscal footing,” said Molitor.
Previously, the City of Dunkirk Fiscal Recovery Act allowed issuing up to $18.5 million in debt for deficit management. However, an audit by the New York State Comptroller’s Office revealed outstanding liabilities exceeding $20.5 million along with challenges such as delayed audits and inaccurate financial records.
