(The Center Square) – As the City of Spokane climbs out of a $25 million hole, its city council discussed projections on Monday that show the deficit will continue to increase into the next biennium despite reductions.
Mayor Lisa Brown is expected to release her preliminary budget on Oct. 1, with a more well-rounded proposal by Nov. 1. Balancing the structural deficit is one of her administration’s top priorities, already taking the shortfall from around $25 million to $10.9 million since taking office.
Despite Brown reducing the deficit heading into next year, she said in April that general fund reserves had also sunk by nearly $21 million since 2019. When paired with the initial deficit, it accounted for an almost $50 million structural gap.
On Monday, Council Budget Director Kate Fairborn told the officials that despite Brown’s reductions, the general fund deficit is still growing due to declining tax revenues. She said the city is approximately $35 million behind what it projected to generate in tax revenue by Sept. 20.