A report released by the Albany chief city auditor Thursday found the city's last two budgets included federal pandemic relief money for the Albany for All initiative that was exhausted by the end of 2024, resulting in a total $9 million budget shortfall.
That includes an up to $6 million budget shortfall for 2026, which Chief City Auditor Sam Fein says was already included in the city's estimated $26 million budget gap for this year.
The audit also concluded the city did not accurately report the usage of COVID relief funds to the Common Council and did not maintain consistent financial records.
"These reporting requirements exist for a reason: they're an oversight mechanism. They provide transparency," Fein said in an interview. "So this is one example of a lack of transparency that would have given the Common Council and the public more information, potentially making them more aware of the larger financial picture of this program."
Fein is calling on the city's administration to centralize its records and reconcile the budget gap. Remaining Albany for All projects will now have to rely on city resources.
In a response to the audit, Applyrs wrote that parts of the audit "require additional context or reconciliation," but she "generally agrees that opportunities existed to strengthen centralized recordkeeping, financial tracking, contract administration, voucher documentation and grant closeout procedures."
"My Administration inherited both the outstanding Albany for All commitments and the associated General Fund exposure," Applyrs wrote. "Since taking office, my Administration has worked to identify and quantify that exposure, incorporate it into the City's broader 2026 deficit projection, and actively manage the program toward final closeout."
WAMC is waiting on a statement from Applyrs.
Fein said previous Budget Director Gideon Grande, who resigned in March, did not participate in the audit. The Times Union reported this week that Grande was hired to make budgets for Schenectady County.
