‘We’re taking the administration by their word’: Spokane closes $25M deficit

(The Center Square) – Spokane’s elected officials approved the upcoming biennial budget on Monday, seemingly pulling the city out of a $25 million deficit, but the conservative minority has their doubts.

The Spokane City Council granted its approval close to midnight on Monday after a painstaking process that lasted several months. The officials debated and heard testimony for over six hours on the financial framework and other end-of-year items before adjourning.

The approved 2025-2026 budget includes over $1.24 billion in annual spending, totaling almost $2.5 billion. The general fund, which encompasses the deficit and is typically an indicator of financial health, balances its $534 million in total spending with roughly $30,000 left over.

“We saw over the years a lot of personnel growth in the city to really stay commensurate with our growth,” Councilmember Paul Dillon said, “and those are massive ongoing expenses, so that will really be, I think, the question before us.”

While the entire budget isn’t balanced due to long-term investments planned years in advance, the council and Mayor Lisa Brown’s administration were able to close the general fund deficit. However, questions remain over how the budget projection will hold up over the coming years.

After the council adopted two amendments to Brown’s proposed budget, the officials voted 5-2, with the minority dissenting, adopting the framework to guide their spending through 2026.

Council President Betsy Wilkerson’s amendment made numerous changes, the most notable being increased funding for code enforcement, removing junk vehicles, a temporary extension for a police nonprofit and a $200,000 salary for what was supposed to be a budget-neutral cabinet position.

Councilmember Michael Cathcart proposed two other amendments, one of which was adopted. The adjustment takes $30,000 from leftover general fund revenue for a study that looks into the city’s animal control contract and future options after the current one expires.

Both amendments tackle priorities from the council’s majority and minority, though the latter says not to the degree they hoped. Cathcart and Councilmember Jonathan Bingle wanted to provide more funding than the budget allows for things like removing junk vehicles, code enforcement and Spokane Community Oriented Policing Services, also called Spokane COPS.

Cathcart said there could’ve been more funding for those priorities had the administration been more interested and willing to undergo other significant reductions. The deficit presented an opportunity for reform, which he believes was largely passed on.

“I know what the numbers look like, but you can’t add two more employees, not truly make some reductions and suggest that the structural gap is going to be closed,” he said. “I’m betting that as we approach October and the mid-year biennial review that we are going to see that we are significantly off in a number of areas.”

Closing the $25 million deficit was among Brown’s top priorities since taking office last January. She continually pointed blame at the prior administration for relying on COVID-19 pandemic relief aid and other one-time funds to prop up new programs and recurring expenditures.

Brown accomplished her goal, but Bingle said it wasn’t without using one-time funds. He added that the budget came with a lot of “smoke and mirrors” and that the administration’s plan was clear: find revenue anywhere you can, even if it means raising the taxpayer’s burden.

The mayor’s budget included assumptions to balance the deficit, including raising property and sales tax. In addition, the council increased utility rates and development fees while extending a temporary 21% tax rate for another three years after it was supposed to go down in January.

The Brown Administration did propose and execute several budget cuts throughout the months-long process. While the city increased taxes, it also made reductions in varying degrees, and increased funding for public safety.

“Ultimately, I think we’re going to have a fiscally responsible budget if we stick to the budget over the next two years,” Councilmember Zack Zappone said. “[there’s] going to be some challenges to implementation, but we’re taking the administration by their word.”