Seattle mayor proposes $9.1B budget with no new taxes
SEATTLE - Seattle Mayor Katie Wilson is proposing a roughly $9.1 billion budget for 2027 and 2028, with no new tax increases included in the proposal.
Instead, the plan relies on spending reductions, updated revenue forecasts and moving money between city funds to address the city’s budget gap.
The proposal includes more than $90 million in General Fund spending reductions. City Budget Office Director Aly Pennucci said the city is also focused on making its finances more sustainable.
A view of the Seattle skyline on May 15, 2024. (FOX 13 Seattle)
Seattle dipping into JumpStart funds for homeless services
By the numbers:
The proposal continues an existing transfer of about $200 million a year from the JumpStart Fund to the General Fund.
One of the biggest changes involves the JumpStart payroll tax.
For the first time, the city would use JumpStart funds directly to pay for homelessness services. Under the proposal, about half of the city's homelessness service investments would come directly from the JumpStart Fund.
"This is the first year that homeless services are being funded directly out of the JumpStart tax," Pennucci said Tuesday afternoon during a media briefing.
The city already transfers roughly $200 million a year from JumpStart to the General Fund. That existing transfer would continue under Wilson's proposal.
The budget calls for more than $500 million annually for affordable housing, renters and homelessness services.
The mayor's homelessness plan also includes $37 million for new shelter capacity, with 960 shelter beds planned by the end of 2027. The city estimates those beds could serve about 1,750 people each year.
Seattle public safety budget changes
Big picture view:
Public safety remains one of the largest portions of the budget. About 53% of the General Fund goes toward public safety, and the Seattle Police Department would see a $68 million net increase in 2027 compared with 2026.
The proposal funds 1,250 police officer positions, but eliminates funding for 128 full-time positions, including 113 vacant positions and 15 filled positions.
The mayor's staff pointed out that just because funding is eliminated, this would not automatically mean people would lose their jobs.
What's next:
Overall, the administration says the budget is designed to move Seattle toward structural balance while continuing investments in housing, homelessness, public safety and other essential services.
The Seattle City Council will now review the proposed 2027-28 budget. The council's budget process includes department presentations beginning Sept. 24 and a public hearing Oct. 6.
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The Source: Information in this story comes from original reporting by FOX 13 Seattle reporter Alejandra Guzman.