Final month, Mayor Bruce Harrell’s 2025-2026 finances proposal siphoned off lots of of thousands and thousands of {dollars} from a fund earmarked for inexpensive housing to stability town’s finances, sparking outrage amongst housing advocates. In the present day, Price range Chair Dan Strauss unveiled town council’s counter proposal. Lo and behold, as a substitute of exhibiting advocates that the council had heard their issues, he doubled down, raiding tax {dollars} obligated for inexpensive housing to keep away from levying new taxes on companies and the rich.
In his newly unveiled package deal, Strauss did not reverse the JumpStart raid, sustaining the Mayor’s sacrifice of $200 million in inexpensive housing funding. A number of public commenters, significantly these from the housing and homelessness sector, referred to as on the council to return the JumpStart funding to housing, maintain the income legally obligated to its unique priorities, and decide taxes from the Progressive Income Stabilization Workgroup to handle the deficit.
Had Strauss and Harrell not siphoned off JumpStart income to stability the overall fund’s deficit, they might have adhered to the authorized obligation to spend 62% of these funds on inexpensive housing. Reasonably than the $133 million they deliberate for 2025, this strategy would have allotted greater than $333 million in JumpStart {dollars} for town.
In 2020, the Seattle Metropolis Council handed JumpStart, a payroll tax on the largest companies within the metropolis, and legally obligated its income to pay principally for inexpensive housing, in addition to Inexperienced New Deal initiatives, financial revitalization, and equitable growth. Nonetheless, the council allowed the income to stability the finances because the Metropolis clawed its means out of the COVID-19 disaster over the previous few years. JumpStart’s prime sponsor, former Council Member Teresa Mosqueda, set 2025 for the Metropolis to lastly totally respect the JumpStart spend plan.
The Mayor did no such factor. As an alternative, in his September proposal, Harrell buttoned up a $250 million shortfall by reducing 159 Metropolis jobs, $80 million in Metropolis programming, and raiding $330 million from JumpStart income.
In his newly unveiled package deal, Strauss did not reverse the JumpStart raid, sustaining the Mayor’s sacrifice of $200 million in inexpensive housing funding. A number of public commenters, significantly these from the housing and homelessness sector, referred to as on the council to return the JumpStart funding to housing, maintain the income legally obligated to its unique priorities, and decide taxes from the Progressive Income Stabilization Workgroup to handle the deficit.
Mosqueda tried to keep away from future raids of JumpStart by establishing the Progressive Income Stabilization Workgroup in partnership with the Mayor to seek out new income streams in 2022. That workgroup, regardless of the Seattle Metropolitan Chamber of Commerce’s SHOCKING effort to derail it, produced an inventory of potential new income choices to fill the deficit with out cuts to common fund applications or JumpStart priorities. Mosqueda recognized three viable choices: an enlargement to the statewide capital beneficial properties tax, a rise to JumpStart, and a CEO pay-ratio tax. Cowering at the specter of a Republican-backed initiative to repeal the statewide capital beneficial properties tax, the earlier council deserted their quest to lift new income on the finish of 2023, leaving it to a much more conservative council.
Strauss clung onto his progressive clout in his 2023 marketing campaign by advocating for brand new income. The stance separated Strauss from his in any other case equal opponent, significantly as he lurched rightward on policing. To be truthful, even when Strauss got here out swinging for brand new income, he lacks the votes within the conservative majority council, beholden to the very companies a brand new tax would goal.
The Council will reveal extra about their long-term intentions with JumpStart within the November 13 assembly after they talk about draft coverage adjustments.
Fortunately, Strauss’s package deal corrected a few of Harrell’s most outrageous cuts. The package deal saves about 10 jobs and delays 54 layoffs by six months. Council Member Tammy Morales proposed an modification to partially restore reductions to tenant companies and one other to save lots of the unrealized tenant workgroup. Strauss proposed an modification to reverse Harrell’s detrimental $600,000 reduce to the Workplace of Labor Requirements (OLS) and one other to save lots of three full-time OLS positions. The Price range Committee additionally saved the Seattle Channel from cuts that might price them six full-time staff and all of its unique programming. Strauss made clear that is one-time funding and he can not promise ongoing funding within the subsequent biennium.
Strauss’s balancing package deal proposed two new tiny shelter villages, further funding to the storefront restore program, 4 new 911 dispatchers, one other $10 million for the Seattle Police Division (SPD), Council Member Rob Saka’s goofy proviso to take away the site visitors barrier on he in comparison with former President Donald Trump’s border wall, and far more. The Chair would pay for this by recouping $6.5 million a 12 months from SPD wage financial savings, a $10 million underspend assumption, and principally, $33 million from JumpStart that the Mayor needed to park in a model new reserve fund. Strauss thanked the Mayor for that reserve within the finances assembly Wednesday. He stated with out it, they might not stability the finances after the awful income forecast they noticed earlier this month.
Due to the collaborative strategy the Chair took in crafting his package deal, the council in all probability gained’t have many earth-moving amendments. Apart from, council members can solely suggest amendments with two different sponsors and an recognized funding supply. Plus, they solely have till Friday to submit them.
To have your voice heard, you’ll be able to attend the subsequent public listening to on November 12.
