(The Center Square) – Mayor Lisa Brown unveiled her 2025-2026 budget proposal on Saturday, potentially pulling Spokane out of a $25 million general fund deficit if approved by the city council.
The proposal marks the first budget to come from the Brown Administration, totaling $2.5 billion across all accounts for the next biennium. It’ll likely face tweaks from the city council but could close Spokane’s general fund deficit that would’ve snowballed to $50 million over two years.
“I am excited to put forward a budget that is not only balanced, but puts the City of Spokane back on track to fiscal stability, all while making critical investments in our collective future,” Brown wrote in a news release.
The administration attributed the balance to several cost-saving measures and a reduction of at least 22 positions. The strategy allowed Spokane to close its general fund deficit without tapping into unallocated reserves, which were depleted by roughly $12.3 million over the past few years.
Brown’s proposal does assume a few things: an increase in property taxes by the 1% allowable by state law; sales tax growth of 2% for 2025 and 2.9% for 2026; and residential growth but “less than robust commercial construction until interest rates begin to decrease.”
Lastly, the budget assumes the passing of Brown’s Community Safety Sales Tax increase.
“This budget reflects the investments outlined in the tax proposal,” Brown wrote in a letter to the city council, “including an expanded Neighborhood Resource Officer program, a revitalized SPD traffic safety unit, enhanced resources and equipment for the Fire Department, and increased case management in Municipal Court—all aimed at creating safer, more efficient outcomes.”
The entire budget is broken down into several accounts: enterprise funds at 32%; special revenue funds at 24%; the general fund at 22%; internal service funds at 12%; capital funds at 5%; fiduciary funds at 4% and debt service funds accounting for 1%.
The general fund, where the city’s $25 million deficit originates, is the most flexible account acting as the “backbone of city finances,” according to the budget overview. It mainly covers police and fire, with courts, legal, parks and other community services following behind.
Brown’s proposal includes $536 million in general fund revenues, which is about $64.3 million, or 13.6%, more than budgeted for 2023-2024. Taxes, including Brown’s community safety hike, make up 79% of that. If it fails at the ballot on Tuesday, the city will have to adjust its approach.
Meanwhile, Brown floated a similar increase to the city’s general fund expenditures, $63.7 million, or 13.5% more than the past two years. The projection takes the total general fund spending up to $535.2 million over the next biennium, leaving a surplus of about $802,000.
Salaries and wages account for the biggest chunk of general fund expenditures at 39%, but according to the budget overview, personnel account for 85% of the city’s total operating costs.
“Crafting a balanced budget is about more than numbers – it is about ensuring the City’s financial health while aligning resources with community needs,” Chief Financial Officer Matt Boston wrote in the release. “This budget reflects our commitment to fiscal responsibility and lays a solid foundation for sustainable growth and improved resources.”
