Tag Archives: budget

‘Upward revision’ — Seattle forecast shows slight improvement amid ongoing economic volatility

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Seattle leaders looking in every nook and cranny trying to balance the city’s budget in 2026 got some cautiously delivered good news Monday as the nation’s volatile economy and ongoing efforts at federal cutbacks under the Trump administration are whipsawing local forecasts across the country.

The bottom line in Monday’s briefing (video) to the Seattle City Council’s budget committee is a $14.6 million “upward revision” in the city’s latest 2026 economic forecast.

Seattle’s annual general fund budget is around $2 billion but nearly $15 million is the kind of revenue that can fund important social programs and services.

The new forecast part of the city’s ongoing analysis as the council takes on finalizing Mayor Bruce Harrell’s 2026 budget plan appears to be part of what will be ongoing oscillation as economic markets have experienced unprecedented volatility. Continue reading →

Harrell’s 2026 Seattle budget plan: Public safety hits 50% as progressive revenue — and expectation that voters approve overhaul of the city’s B&O tax — hoped to stave off cuts to other departments

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More than half of Seattle’s general fund spending will be on public safety under the 2026 Harrell proposal

View the full 2026 Budget Proposal (PDF)

Trailing progressive challenger Katie Wilson headed into the November election, Mayor Bruce Harrell has delivered his most uncertain Seattle budget plan yet since taking office four years ago. This budget season, the incumbent mayor is depending on Seattle voters for large chunks of the just under $2 billion in general fund spending his administration has proposed.  And economic realities under the Trump administration have put the accountants in major West Coast cities on edge with potentially debilitating whipsaws in policy.

Plus, Harrell might be budgeting for a city he won’t lead after a terrible showing in the August primary.

Besides all that, the 2026 Seattle budget proposal has now taken firm shape with Harrell handing over his 702-page plan to the Seattle City Council for debate, and, if those economic forecasts swing wildly lower again, cuts before the end of the year.

The administration says its plan is already overcoming a $150 million shortfall caused by the economic uncertainties.

The 2026 Harrell plan might be set on more unstable foundations but it has a familiar shape, like last year, placing a priority on police and public safety spending.

The adjustments in the big picture are about decimal points. Transportation spending stable at 5% of the general fund, administration spending down two points to 19%, arts and culture spending down a point to 7%, education up a point to 15%, spending to combat displacement and affordability up to 4%, and and public safety climbing once again — up a point to 50% in the 2026 proposal.

Seattle is now spending around $490 million a year on its police department with plans to spend more than a billion total on all its public safety departments in 2026. Continue reading →

City council hears update on Seattle’s improving — but still weakened — economic forecast

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The economic forecast has improved at Seattle City Hall and a looming budget deficit may end up smaller than originally predicted, according to an analysis presented Wednesday morning at Seattle City Council’s Finance, Native Communities, and Tribal Governments Committee.

At the core of the changes are decisions over which “scenario” city analysts should build from — the most “pessimistic” models including high impacts from threatened tariffs and job loss or the “optimistic” view fueled by gains in the tech stock market and “significantly lower” inflation. Continue reading →

Seattle voters to decide in November if city cuts B&O for small businesses, boosts taxes on Amazon, Starbucks, and ‘many other hometown companies’

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Seattle voters will decide in November on changes hoped to boost small businesses while generating new revenue for the city.

In a special Monday meeting, the Seattle City Council approved the so-called “Seattle Shield Initiative” proposal that would exempt any business generating less than $2 million a year from the city’s B&O tax while raising the tax rate on the city’s most prosperous companies like Amazon and Starbucks. The proposal would eliminate or reduce the tax for around 90% of Seattle businesses while generating an estimated $81 million in new revenue.

Mayor Bruce Harrell signed the legislation following Monday’s vote putting the proposal on track to appear on the November ballot for the city’s voters. Continue reading →

Seattle City Hall 2026 budget guidance — 2% cuts for public safety, homelessness, 8% for everything else

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If you are worried about Seattle defunding the police, a few data points from Wednesday’s session (PDF) of the Seattle City Council’s budget committee should set your mind at ease.

As the city grapples with a “pessimistic” revenue forecast, Mayor Bruce Harrell’s administration is holding the line at two separate thresholds for cutbacks to city departments.

When it comes to the 2026 budget, City Hall is preparing for planned 8% cuts to departments supported by the city’s General Fund and payroll tax on its largest employers. The Seattle Police Department and all “public safety related” departments number? 2%. Same for the city’s spending on homelessness. Continue reading →

King County Council leaders urge action on newly authorized sales tax to avert cuts to services and public safety

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King County Council Chair Girmay Zahilay and Budget Chair Rod Dembowski have issued a call to Executive Shannon Braddock urging swift action to prevent drastic cuts to vital public safety and criminal justice services.

In a letter delivered Friday, the councilmembers pressed the executive to propose a new 0.1% sales and use tax, a revenue option recently authorized by the state legislature through House Bill 2015.

The urgency stems from a projected $160 million deficit facing King County in the upcoming two-year budget. Zahilay and Dembowski say that without new revenue, the county would be forced to implement severe cuts across core services, including law enforcement, public defense, prosecution, the court system, public health initiatives, and support services for victims of crime.

“The residents of King County rely on us to ensure their safety and well-being,” Zahilay said in a statement. “Without decisive action, our communities will face unacceptable cuts to services that touch every corner of the justice and safety system — from emergency response to violence prevention.” Continue reading →

Seattle’s ‘Pessimistic Scenario Forecast’ has city looking at tightened belts, ‘new revenue solutions’

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If you think your retirement plans look bad after the last few months, check out the latest forecast for the City of Seattle’s revenue sources. The latest analysis shows revenues for City Hall missing the mark by $244 million over the next two years. Mayor Bruce Harrell is talking belt tightening. The Seattle City Council’s leading progressive and most junior member is talking about “new revenue solutions” and will be holding a series of town hall this summer “to hear directly from constituents.”

“The revenue forecast released today presents a dire challenge that requires immediate action. This shortfall is real, it’s significant, and it threatens critical essential services that Seattle residents depend on daily,” Councilmember Alexis Mercedes Rinck said in a statement. Continue reading →

Seattle Council rejects capital gains tax proposal for housing and food programs one last time in 2024 — Next year could be a different story

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Seattle won’t add a capital gains tax this year.

Supporters of the proposed capital gains tax in Seattle to fund housing and food assistance programs made one last push Thursday as the Seattle City Council executed a series of votes to finalize the 2025 budget.

CHS reported here on the final 2025 spending plan including a $10 million reallocation from Black Lives Matter “participatory budgeting” to fund disadvantaged communities and a roster of Capitol Hill public safety investments.

Included in Thursday’s final votes was the capital gains proposal from North Seattle City Councilmember Cathy Moore that would implement a 2% tax on capital gains over $250,000 from the sale or exchange of assets like stocks, bonds and business interests. Tuesday, a majority of the council’s budget committee rejected the proposal. Thursday’s full council also voted the plan down with only three members in support as District 3’s Joy Hollingsworth opted to side with the “no” votes. Continue reading →

Hollingsworth shepherds D3 priorities through to Seattle’s final 2025 budget including $10M reallocation from Black Lives Matter ‘Participatory Budgeting’

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(Image: Garfield Super Block)

(Image: Garfield Super Block)

District 3 representative Joy Hollingsworth sat out much of the debate Tuesday as the Seattle City Council shaped the final plan to change how it will spend $250 million in revenue from the city’s JumpStart payroll tax on its largest employers — but it was a big day for her office as the first-year legislator shepherded millions of dollars in Capitol Hill and Central District-focused line items to the finish line of the 2025 budget season.

Hollingsworth initiatives include a $10 million reallocation from the city’s Participatory Budgeting program to better support the city’s Black and disadvantaged communities along with a roster of spending to address public safety on Capitol Hill.

Hollingsworth successfully advanced a batch of community-driven line items including $125,000 for a new Capitol Hill community safety coordinator position and $150,000 to support a new street Ambassador Program on Capitol Hill that are part of the final package approved Tuesday by the council’s budget committee.

The D3 representative sat out much of Tuesday’s debate centered on changes to the JumpStart tax, choosing to abstain on a raft of amendments seeking to soften the blow of raiding the tax and directing the spending to help patch the city’s predicted $250 million deficit. Continue reading →

Council committee set for last vote on Seattle budget plan including JumpStart spending changes, proposed capital gains tax, and Capitol Hill public safety line items

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The Seattle City Council has added an additional period of public comment Tuesday morning before it votes on a few key pieces of legislation shaping the city’s 2025 budget.

“Several amendments to the JumpStart Payroll Expense Tax legislation have been proposed since the public hearing last week,” an announcement from the budget committee reads. “In response, Chair Strauss has added an additional public comment period at the start of tomorrow’s committee meeting at 9:30 a.m. to hear from community members.”

CHS reported on the two major elements on the table for a committee vote after the additional comment period Tuesday.

Repurposing the JumpStart payroll tax has been a core debate during budget deliberations. Mayor Bruce Harrell’s proposed budget leaned heavily on the JumpStart tax and City Hall job cuts to overcome a $250 million budget deficit from growing costs related to inflation and soaring wages. The council budget committee vote could cement Harrell’s proposal with a plan that would divert revenue from the tax originally implemented to fund housing and services budgets coming out of the pandemic. The plan would also eliminate the tax’s oversight committee. Continue reading →