{"id":2354079,"date":"2024-10-12T14:54:57","date_gmt":"2024-10-12T18:54:57","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/new-estimates-reduce-spokanes-deficit-to-7-9m-increases-to-18-3m-by-end-of-2026-washington-examiner\/"},"modified":"2024-10-12T14:58:03","modified_gmt":"2024-10-12T18:58:03","slug":"new-estimates-reduce-spokanes-deficit-to-7-9m-increases-to-18-3m-by-end-of-2026-washington-examiner","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/new-estimates-reduce-spokanes-deficit-to-7-9m-increases-to-18-3m-by-end-of-2026-washington-examiner\/","title":{"rendered":"New estimates reduce Spokane\u2019s deficit to $7.9M, increases to $18.3M by end of 2026 &#8211; Washington Examiner"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">34<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fnew-estimates-reduce-spokanes-deficit-to-7-9m-increases-to-18-3m-by-end-of-2026-washington-examiner%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2354079&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Spokane officials have presented a budget update revealing that the anticipated \u200cdeficit for 2025 has decreased to approximately \u200c$7.9 million, down from a previously projected $25 million when Mayor Lisa Brown took office earlier this year. However, projections indicate that the deficit could reach $18.3 \u200cmillion by the end of 2026 \u2064due to ongoing revenue and expenditure discrepancies, with a projected deficit \u2064of $10.4 million for\u200b that year alone. Chief Financial Officer Matt Boston noted that improved utility numbers and expenditure reductions contributed to this positive adjustment. Mayor Brown is expected\u200c to propose a balanced budget by November 1. A critical point\u2064 of contention is a \u2064proposed 0.1% \u200cCommunity Safety Sales Tax, which will\u2064 be subject\u200b to a vote shortly after the \u200cbudget proposal. Some business\u200b leaders are hesitant\u200d to support this tax \u200dincrease, citing concerns about downtown safety and cleanliness, especially amid a 106% increase in \u2063homelessness since 2016.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">New estimates reduce Spokane&rsquo;s deficit to $7.9M, increases to $18.3M by end of 2026<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_1834130\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>(The Center Square)&nbsp;&ndash;&nbsp;Spokane officials provided a budget update on Thursday, noting that the anticipated deficit heading into next year is now down to about $8 million.<\/p>\n<div class=\"article-paywall\">\n<p>Chief Financial Officer Matt Boston ran the city council through projections showing the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/spokane-mayor-stumps-for-proposed-40-million-annual-tax-in-state-of-the-city\/\" title=\"Spokane Mayor advocates for  million annual tax proposal in State of the City address\">general fund deficit<\/a> currently at $7.9 million for 2025. However, due to ongoing discrepancies between revenues and expenditures, he said the projections show a deficit of $10.4 million in 2026.&nbsp;<\/p>\n<p>When combined, according to the city&rsquo;s&nbsp;<strong><a href=\"https:\/\/static.spokanecity.org\/documents\/budget\/2025-2026\/2025-2026-preliminary-biennium-budget.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">preliminary<\/a><\/strong>&nbsp;budget, the general fund will have an estimated deficit of over $18.3 million by the end of 2026 under these current projections.<\/p>\n<p>The deficit was almost&nbsp;<strong><a href=\"https:\/\/www.thecentersquare.com\/washington\/article_7d0b8cf0-0752-11ef-8fc5-33e7f6b69812.html#:~:text=For%20three%20years,to%20%2425%20million.\" target=\"_blank\" rel=\"noreferrer noopener\">$25 million<\/a><\/strong>&nbsp;when Mayor Lisa Brown took office earlier this year, and reserves were depleted by another $21 million. The mayor will propose her official budget for the next&nbsp;<strong><a href=\"https:\/\/www.thecentersquare.com\/washington\/article_ee611262-32f9-11ef-9242-4bb78fb57314.html\" target=\"_blank\" rel=\"noreferrer noopener\">biennium<\/a><\/strong>&nbsp;on Nov. 1, which&nbsp;<strong><a href=\"https:\/\/app.leg.wa.gov\/RCW\/default.aspx?cite=35.33.075\" target=\"_blank\" rel=\"noreferrer noopener\">state law<\/a><\/strong>&nbsp;requires to balance the rest of the deficit.&nbsp;<\/p>\n<p>&ldquo;The updated projections are based on our 2024 utility numbers being better than anticipated, user fees [and] our expenditure&nbsp;<strong><a href=\"https:\/\/www.thecentersquare.com\/washington\/article_02098010-7201-11ef-808a-cbf54fee84dd.html#:~:text=Brown%20and%20Boston,roughly%20%243.2%20million.\" target=\"_blank\" rel=\"noreferrer noopener\">reductions<\/a><\/strong>&nbsp;that have been taken by the administration that were either a part of the&nbsp;<strong><a href=\"https:\/\/www.thecentersquare.com\/washington\/article_fb4e1fd4-16e2-11ef-bfda-473b91a72935.html\" target=\"_blank\" rel=\"noreferrer noopener\">10% exercise<\/a><\/strong>&nbsp;or prior,&rdquo; Boston said.&nbsp;<\/p>\n<p>He ran through projections with Brown last month that took the deficit from $14 million in July down to&nbsp;<strong><a href=\"https:\/\/www.thecentersquare.com\/washington\/article_02098010-7201-11ef-808a-cbf54fee84dd.html\" target=\"_blank\" rel=\"noreferrer noopener\">$10.9 million<\/a><\/strong>; with the hole now at $7.9 million that translates into the total being but by nearly 70%.&nbsp;That doesn&rsquo;t include the additional $10.4 million deficit projected for 2026.&nbsp;<\/p>\n<p>Boston said all these projections through 2026 don&rsquo;t account for Brown&rsquo;s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/florida-republicans-push-ahead-with-largest-tax-cut-in-state-history\/\" title=\"Florida Republicans Push Ahead With Largest Tax Cut in State History\">proposed <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/erickson-let-david-slay-goliath\/\" title=\"ERICKSON: Let David Slay Goliath\">sales tax<\/a><\/a>.<\/p>\n<p>Less than a week after Brown unveils her budget proposal next month, voters will decide whether to adopt her 0.1%&nbsp;<strong><a href=\"https:\/\/www.thecentersquare.com\/washington\/article_1ddff7de-3d5d-11ef-9a0d-2f2755dc133f.html\" target=\"_blank\" rel=\"noreferrer noopener\">Community Safety<\/a><\/strong>&nbsp;Sales Tax. While her administration&nbsp;<strong><a href=\"https:\/\/www.thecentersquare.com\/washington\/article_02098010-7201-11ef-808a-cbf54fee84dd.html#:~:text=If%20voters%20approve,supplementing%20current%20costs.%E2%80%9D\" target=\"_blank\" rel=\"noreferrer noopener\">painted<\/a><\/strong>&nbsp;it as a way to fund &ldquo;<strong><a href=\"https:\/\/my.spokanecity.org\/communitysafety\/#:~:text=Key%20Funding%20Investments\" target=\"_blank\" rel=\"noreferrer noopener\">new investments<\/a><\/strong>,&rdquo; many were previously suspended due to the financial turmoil.<\/p>\n<p>Several business owners, developers, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/u-s-real-estate-brokerages-must-face-home-sellers-class-action-over-commissions\/\" title=\"U.S. real estate brokerages must face home sellers\u2019 class action over commissions\">real estate brokers<\/a> and others have said they want to see the city clean up&nbsp;<strong><a href=\"https:\/\/www.thecentersquare.com\/washington\/article_949adc12-866a-11ef-8265-b36937ea1629.html\" target=\"_blank\" rel=\"noreferrer noopener\">downtown<\/a><\/strong>&nbsp;before committing to the tax increase. Many have&nbsp;<strong><a href=\"https:\/\/www.thecentersquare.com\/washington\/article_0dba5e3c-34c8-11ef-bb00-5fd3882ed5c8.html\" target=\"_blank\" rel=\"noreferrer noopener\">criticized<\/a><\/strong>&nbsp;Brown and the Spokane Police Department over the issue amid a&nbsp;<strong><a href=\"https:\/\/www.thecentersquare.com\/washington\/article_99435198-84f5-11ef-81b0-cb1a602ebc71.html#:~:text=Another%20priority%20for,to%20people%20yet.%E2%80%9D\" target=\"_blank\" rel=\"noreferrer noopener\">106%<\/a><\/strong>&nbsp;increase in homelessness since 2016.<\/p>\n<p>&ldquo;NO ENFORCEMENT vote NO SALES TAX,&rdquo; wrote Sheldon Jackson, founder and <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/canadian-olympic-committee-warns-athletes-not-to-criticize-china\/\" title=\"Canadian Olympic Committee Warns Athletes Not to Criticize China\">chief executive officer<\/a> of Selkirk Development, in his email thread of more than 300 community members.&nbsp;&nbsp;<\/p>\n<p>Around $1.6 million in savings from the administration&rsquo;s reductions arose from a voluntary SPD retirement program that contributed to a loss of up to 25 officers with decades of experience. The city intends to fill the vacancies, but at a cheaper price point, it could mean less experience.&nbsp;<\/p>\n<p>According to the preliminary budget, another $2.6 million in additional revenue will help alleviate the deficit through a temporary increase to the city&rsquo;s utility tax rate. Most of the other savings came from cutting vacancies and certain departmental expenses.&nbsp;&nbsp;<\/p>\n<p>A few &ldquo;budget assumptions&rdquo; also help alleviate the deficit, such as the assessed value of new construction and existing properties increasing by 1%. Boston said that growth means more revenue for the city, and with wages following inflation, sales tax should follow suit.<\/p>\n<p>Boston has continually said his projections are conservative to avoid perpetuating the issue further. Other budget assumptions included increased engineering revenue and other tax revenue from private utility companies.&nbsp;<\/p>\n<p>&ldquo;Next, we&rsquo;re going to be meeting in November,&rdquo; he said. &ldquo;Obviously, we&rsquo;ll have the proposed budget by then, so we&rsquo;ll have a lot more to talk about.&rdquo;<\/p>\n<\/div>\n<p> <script data-cfasync=\"false\" src=\"http:\/\/www.washingtonexaminer.com\/cdn-cgi\/scripts\/5c5dd728\/cloudflare-static\/email-decode.min.js\"><\/script><script>!function(){var g=window;g.googletag=g.googletag||{},g.googletag.cmd=g.googletag.cmd||[],g.googletag.cmd.push(function(){g.googletag.pubads().setTargeting(\"has-featured-video\",\"true\")})}();<\/script><script>var _bp=_bp||[];_bp.push({\"div\":\"Brid_1834130\",\"obj\":{\"id\":\"27789\",\"width\":\"1280\",\"height\":\"720\",\"stickyDirection\":\"below\",\"video\":\"1834130\"}});<\/script><script defer src=\"https:\/\/services.brid.tv\/player\/build\/brid.min.js\"><\/script><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Spokane&#8217;s deficit is now estimated at $7.9M, rising to $18.3M by 2026<\/p>\n","protected":false},"author":1,"featured_media":2354080,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/04\/AP24014160623172-1-1024x683.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[42877,42875,42876,32585,32076],"class_list":["post-2354079","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-2026-projections","tag-budget-deficit","tag-financial-estimates","tag-spokane","tag-washington-examiner"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2024\/04\/AP24014160623172-1-1024x683.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2354079","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2354079"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2354079\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2354080"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2354079"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2354079"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2354079"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}