Before the proposal, the City projected a General Fund shortfall of about $175 million for 2027.13 When the council adopted the 2026 budget, staff had put it at $148 million.12 The mayor’s office says the plan closes the gap without new taxes and without drawing down reserves.13 The City Budget Office and council staff describe these main tools:
- Spending cuts of more than $50 million a year in the General Fund.3,12
- Fund swaps of about $50 million a year, moving costs from the General Fund to other funds. The largest is $46.6 million in homelessness programs moved to JumpStart.3,8
- A one-time $65 million freed up in the JumpStart fund by changing how the Office of Housing budgets for past housing awards.10
- Eliminating 128 positions, saving about $16.5 million in 2027, roughly half of it General Fund. Council staff count 115 of the positions as vacant and 13 as subject to layoff; the mayor’s office says 15 are filled.12,13
- Higher revenue forecasts, including a JumpStart forecast KOMO reported as $58 million higher.17
- Fee and tax changes outside the General Fund, including the parking tax increase and higher street-use and permit fees.11,21
These pieces overlap, and the sources do not publish a single reconciliation that adds up to $175 million, so this report does not chart them as one.
Two descriptions of “balanced”
The mayor’s office says the plan balances 2027 and keeps the General Fund balanced through 2030, which it calls a first since the pandemic began.13
Council central staff wrote that the proposal “does not fully resolve the structural deficit and still relies on one-time resources to achieve balance.”12 Council memos reported by The Center Square put the remaining ongoing gap at $23.2 million in 2027, $18.2 million in 2028 and $14 million in 2029, covered by fund balances, before a $9 million surplus in 2030. The same memos say $19 million in cuts would be needed to balance the JumpStart fund in 2029.21