There will not be a control board this year in the city of Dunkirk. Instead, it appears as more money may come in the form of a New York state loan to the financially struggling municipality.

In a joint statement by Sen. George Borrello, R-Sunset Bay, and Assemblyman Andrew Molitor, R-Westfield, the two representatives say they are “deeply disappointed and concerned” over a proposal by Gov. Kathy Hochul to give the city a $13 million loan at a 7.75% interest rate to be repaid over 15 years.

Both state officials note the loan is not a solution because it leaves the city “deeper in debt.”

“This would cost taxpayers millions in interest while doing nothing to correct the underlying problem: chronic mismanagement and a lack of oversight,” they said.

Both Borrello and Molitor had been pushing for a Control Board in April to assist the city ion managing its finances and future budgets. Dunkirk Common Council, specifically Natalie Luczkowiak, opposed the idea as did Mayor Kate Wdowiasz.

At the moment, New York state appears to be backing those sentiments. “The governor’s response is more money — without conditions, oversight, or a plan to fix the dysfunction,” Borrello and Molitor said. “We firmly believe this step will only perpetuate this ongoing crisis. A better solution would be for the Senate and Assembly to pass our legislation establishing a financial control board, which would provide the oversight, structure, and accountability that is clearly and desperately needed. It would help protect taxpayers and restore fiscal order.”

According to recent estimates, the city is in a $20 million deficit.

Last December, funding was so awry that Common Council had to approve an 84% property tax increase. Since then, there has been little done by the government to address the massive spending that has taken place in recent years.

“The Mayor (Kate Wdowiasz) claims a control board is too costly, but supports saddling taxpayers with millions in interest payments,” the state officials said. “That’s not responsible leadership.”

In addition to the $13 million loan that is being considered for Dunkirk by Hochul this year, $18.5 million in emergency aid was delivered to the municipality in 2024, which authorized the city to issue deficit bonds for repayment.

“The city spent the money — but never issued the bonds,” Borrello and Molitor said. “Despite repeated requests, officials failed to provide the documentation required by the Comptroller to certify them. The repayment for the emergency aid is due in July 2025, and this proposed loan is meant to cover that without addressing the city’s fiscal negligence.

“This is not the first time Dunkirk has ignored the Comptroller’s Office. The city still hasn’t submitted financial records for recent audits.”

Both Borrello and Molitor believe the city’s fiscal troubles will worsen through the loan while not addressing mounting expenses that are part of this year’s $28 million budget.

“Without real oversight, Dunkirk is headed for bankruptcy — nullifying contracts, gutting services, and triggering massive tax hikes,” they said.

“We will not support any legislation that fails to include financial accountability, like a control board. Dunkirk needs real help — not another blank check.”