ALBANY, NY (WRGB) — Albany is confronting what city officials describe as its most serious fiscal crisis in decades, with a projected $22.18 million budget deficit in 2026 and a $33.3 million deficit in 2027, according to the city’s midyear financial plan update.
The Applyrs administration, six months into its term, has completed an assessment of the city’s finances and concluded the problem is broader and more structural than initially reported, raising concerns about former Mayor Kathy Sheehan’s 2025 and 2026 budgets.
The midyear report indicates the 2026 adopted budget projected higher revenue and considerably less spending than what the city now expects. The city attributes the growing gap to excessive overtime, overestimated revenue streams, debt service obligations and limited options to pay for rising costs…