Seattle – Today, the Office of Economic and Revenue Forecasts released updated projections for 2023 and 2024 City revenues. Major revenue projection updates across 2023 and 2024 relevant to the ongoing budget process include:
- $9.8 million increase in General Fund
- $14.2 million increase in Jumpstart Payroll Expense Tax
- $1.9 million increase in Admission Tax
- $5.0 million decrease in combined transportation revenues
- $3.5 million decrease in Real Estate Excise Tax
In response to this update, Mayor Harrell said, “The revenue improvements in this forecast are good news and an encouraging sign for our recovering economy as we continue to focus our budget on strengthening public safety, addressing homelessness and affordability, revitalizing Downtown, and supporting workers and small businesses. It is up to the Budget Chair and City Council to reconcile these adjustments with our proposed budget, and I look forward to their leadership in this regard. I would encourage the Council to consider focusing this additional revenue on restoring investments in school safety through automated traffic enforcement cameras, resolving open labor contracts for our City employees, and paying down the looming deficit in 2025.”
“We know the upcoming General Fund revenue deficit is projected to be as large as $251 million in 2025. That deficit will be addressed next year with a comprehensive approach in collaboration with the City Council. We will continue to thoughtfully consider all factors, including the latest revenue projections, a thorough analysis of current spending, which is ongoing, and the potential for new or adjusted revenue sources. None of these steps should be taken absent the others, which will provide the complete picture needed to ensure we create a balanced 2025-26 budget that delivers on the essential needs of residents and puts us on a sustainable fiscal trajectory,” said Mayor Harrell.
Select key investments proposed in Mayor Harrell’s 2023-24 Mid-Biennial Budget adjustments include:
- $334 million investment in affordable housing, representing a 32% increase from the 2023 adopted budget.
- $106 million investment in the King County Regional Homelessness Authority (KCRHA) to support outreach, shelter, and other critical programs.
- $26.5 million to support the new Community Assisted Response and Engagement (CARE) Department, an increase of 30% over 2023.
- $26 million for the Housing for Workforce Stabilization Fund to support permanent supportive housing providers’ wages.
- $23 million investment in human service provider wages and wage equity, representing a 9.5% increase in pay over 2023, along with childcare worker retention bonuses.
- $17 million toward diversion programs like LEAD, supporting the recently passed law regarding public consumption by prioritizing diversion for drug users.
- $15 million to support the Downtown Activation Plan (DAP) and Future of Seattle Economy agenda ($3.9 million DAP, $6.6 million Future of Seattle Economy, and $4.7 million overlapping).
- $2 million to expand the Seattle Fire Department’s Health 99 Post Overdose Response Team and other health services, building on $7 million toward capital improvements in treatment centers to address addiction with a health-forward approach.
- $1.9 million for an additional year of funding to We Deliver Care providing outreach as part of the Third Avenue Project.
- $1.8 million investment in piloting a new suite of advanced safety technologies to protect neighborhoods impacted by recurring gun violence, collect new evidence to solve crimes, and address the increase we see in stolen vehicles.
- $850,000 in start-up costs for the new Social Housing Public Development Authority.
- $350,000 to expand the Trees for Neighborhoods program to 1,300 trees planted in 2024 and evaluate siting a One Seattle Tree Nursery to grow trees locally, building on recent $12.9 million grant from the Biden-Harris administration to expand Seattle’s tree canopy.
- $150,000 to Immigrant and Safety Access Network to continue increased support and resources for immigrant and refugee communities.