Spokane is facing a $13 million budget deficit, that city leaders aim to balance by late November. The city says there are a number of factors that led to the deficit and wrote in a press release:
Due to a slowing national economy, weak consumer confidence, and sales tax revenue not keeping pace with historical trends, the City of Spokane continues to face budget challenges, despite closing a $25 million structural budget deficit in 2024. This trend is not unique to Spokane and is being faced by local governments across the country. At a meeting with the Spokane City Council on Thursday, Mayor Lisa Brown outlined the City of Spokane’s $13 million deficit, which is also impacted by federal contract uncertainty, constrained by collective bargaining contracts, and exacerbated by inflation and rising jail costs. Costs for services at the Spokane County Jail have increased at a rate that far outpaces the increase in the city’s average daily population, resulting in $1 million in unanticipated costs for 2024.
City spokesperson Erin Hut said the previous mayor’s administration used a lot of the city’s reserves to balance budgets. She also noted that new sales tax revenue data has become available and shows a sharp decline, which the city attributes to low consumer confidence.
The city sets a budget every two years. The mayor and city council will work to pass a budget modification by late November.
Hut says there is a possibility of layoffs, but no decisions have been made at this point. Instead, city leaders are focused on “finding efficiencies through centralizing services, eliminating vacant positions, and refinancing and restructuring debt obligations. Mayor Brown also announced the suspension of leave buyouts for non-represented employees this year.”
“Closing an additional $13 million deficit is challenging, but I am confident we can do it while minimizing impacts to both the services our residents rely on and the staff who deliver those services,” Mayor Brown said in a press release. “We will continue working to address our budget challenges while keeping community safety at the forefront. Crime is down, neighborhood resource officers and the traffic enforcement unit are back, and we are committed to expanding and investing in behavioral health, all while moving toward a stronger place of fiscal responsibility.”
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