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The Seattle City Council approved its 2025-2026 budget, which closes a $268 million operating deficit, but city officials prepare for future challenges in 2027.
The 2025-2026 adopted budget heavily relies on the city’s JumpStart Payroll Tax to close the budget deficit, with $520 million coming from the tax that applies to the city’s largest companies.
The city also had to lay off approximately 70 city workers in order to fill the gap, although the city council successfully restored proposed layoffs to its Seattle Channel staff.
Highlighted budget initiatives include $342 million towards affordable housing in order to help the city handle one of its top priorities: homelessness. It also boosts the Seattle Police Department’s operating budget from $395.8 million in 2024 to approximately $458 million in 2025 and $462 million in 2026.
A recent revenue forecast for Seattle revealed a $48.6 million decrease in general fund revenue from 2024 through 2026 since the proposed 2025-2026 budget was transferred over to the Seattle City Council last month.
This update concerned council members and implies more work is to be done in order to address future budget deficits after 2026.
“Fiscally, we’re not out of the woods yet,” Seattle City Council Chair Sara Nelson said in a statement. “This budget isn’t perfect and there is more work ahead – but moving forward we are better positioned to make informed decisions about our investments and demonstrate our commitment to being accountable stewards of public resources.”
The budget was approved by an 8-1 vote with Tammy Morales being the lone vote in opposition. Morales said the city council has turned a blind eye and a deaf ear to constituents that showed opposition to the budget.
“Despite calls for fiscal responsibility, good governance, and data-informed decision making, this budget does not reflect Seattle’s values of care, prevention, equity, nor does it reflect the bold vision we need to create thriving and healthy neighborhoods,” Morales said in the council meeting.
Morales noted that the budget increases funding for Seattle Police and Fire Departments, Office of Emergency Management and the city’s Unified Care Team, but cuts their IT support by 25%, leaving the teams without the technology support they need.
She mentioned the recent “bomb cyclone” that hit the region, which resulted in hundreds of calls to the fire department. Seattle police staff emailed the council expressing their gratitude for the IT support during the storm.
“[During] future disasters, that support will be greatly diminished to our emergency response system,” Morales added.
With the city council’s approval, the budget package now goes to Seattle Mayor Bruce Harrell for his signature.