First-term Albany Mayor and former City Auditor Dorcey Applyrs says the city is facing a growing multi-million budget deficit. WAMC’s Samantha Simmons joins us now to provide more information.
Hi, Sam.
Hi, Lucas.
So last night the Democratic mayor told media she would hold a briefing today to discuss the city’s fiscal situation. So, what did you learn today?
Well, to start, Applyrs, the city’s former chief auditor, told reporters that she was unaware of the budget deficit until just before she became mayor. Applyrs says the city has a roughly $15 million structural deficit and expects a $22 million deficit for FY 2026. All of this comes as the city’s budget director recently resigned. Applyrs now says several measures have now been implemented to reduce costs.
“This included number one, a hiring freeze. We've also instituted limits on non-essential spending and enhanced financial oversight measures. This includes pausing non-essential hiring, limiting expenses like travel to conferences and meetings and equipment purchases. It also includes reducing nonemergency related overtime,” Applyrs said.
Now the mayor said this hiring freeze only impacts non-essential, non-emergency positions. So, the police department, which is already short on officers, will continue to be able to hire officers. And Applyrs doesn’t expect this to impact summer youth employment in the city, either.
As we mentioned, Applyrs was the city auditor prior to being mayor. In that role, shouldn’t she have known about this deficit?
Applyrs says no. Here’s a clip from Applyrs when I asked how she didn’t see this coming.
“I think one of the misconceptions about the city's Office of Audit and control, it is a performance audit shop, and so the city works with a consulting firm who conducts, a third-party firm, that conducts the city's fiscal audits, and so as I shared in my opening remarks, as I was transitioning out of that role, the treasurer's office started to alert city leaders that they were projecting clouds ahead,” Applyrs said. “So, I would say, as someone who served as the city auditor, having access to all of the information that I did have, this is not something that a city auditor, given the responsibilities per the city code that I would have seen.”
Per city code, the city auditor is responsible to QUOTE “ conduct internal performance audits of all City departments and offices; to audit all investments made by the city treasurer on behalf of the city; and to warrant as valid all accounts payable and claims prior to payment of same by the city treasurer.” And, of course, the city treasurer is responsible for the collection and custody of all taxes and other monies due to the city.
So, how did the city get to this point?
Applyrs says inflation, the loss of federal funding, payment in lieu of taxes agreements never materializing, over-projections in revenue created this deficit, and overtime. City officials have now directed all departments to create budgets that reflect 7, 10, and 15 percent decreases in spending. Officials say they expect the first meeting with department heads to discuss these changes will happen next week.
Some residents and reporters have expressed concerns on spending by the new administration for trips and inaugural festivities. Applyrs says city staff who signed up for trips, such as for one to Baltimore for professional development, paid out of their pockets and she covered the cost of inaugural events.
And Sam, does this have an impact on the $400 million downtown revitalization initiative planned for the city?
It shouldn’t. Applyrs says that project uses only state granted funds and that she believes the state wants to see the city succeed and won’t penalize the city for this deficit.
Thanks, Sam.
Thank you, Lucal.
