Select Budget Committee 6/4/25

The June 4th, 2025 Select Budget Committee meeting revealed a challenging fiscal landscape for Seattle, with the city facing a projected $217 million revenue shortfall through 2026. The meeting covered three major components: the fall 2025 budget process reforms, an executive budget update highlighting immediate fiscal challenges, and two technical budget ordinances. Director Ben Noble and the budget team presented significant changes to increase transparency and public engagement in the budget process, including earlier public hearings and a new phase for discussing councilmember proposals. The executive update from Director Eder detailed immediate actions taken to address the revenue shortfall, including spending freezes and departmental reduction targets of 2-8%. The meeting concluded with the passage of two technical measures: a $1.8 million budget exceptions ordinance (the smallest in recent history) and authorization to pay off 2014 bonds early using accumulated interest earnings.

Analysis in progress...

The meeting revealed tension between different approaches to addressing the budget crisis. Some councilmembers emphasized protecting essential services and exploring new revenue, while others focused on operational efficiencies and spending controls. The discussion around departmental reduction targets highlighted competing priorities, particularly regarding public safety departments. Council President Nelson advocated for treating the City Attorney's Office as public safety-related, while the executive proposed including it in the higher 8% reduction target group.

Citizens have several key opportunities to engage in the upcoming budget process: 1. Initial public hearing in early October 2025 2. Public hearing on the chair's balancing package in November 3. Committee meetings discussing councilmember proposals (Oct 28-30) 4. Final committee votes (Nov 14-17) The most strategic time to provide input will be during the initial proposal phase in October, before the chair's balancing package is developed.

The budget challenges connect to several broader policy issues: - Federal funding reductions affecting multiple city programs - Ongoing affordability crisis highlighted by new cost-of-living data - Potential new revenue authorities granted by state legislature - Upcoming renewal of the Families & Education Levy

The technical details reveal some positive trends in fiscal management: - Budget exceptions reduced to historic low ($1.8M vs previous $30M+) - New bond repayment strategy leveraging accumulated interest - Enhanced budget monitoring procedures showing results - More sophisticated revenue forecasting and scenario planning The committee is clearly working to strengthen fiscal oversight while maintaining transparency and public engagement in increasingly challenging circumstances.