Mayor Lisa Brown: Spokane’s structural budget deficit requires swift action
By Mayor Lisa Brown
When I ran for mayor, I knew the city of Spokane was dealing with a major structural budget deficit. I estimated it was $20 million or $30 million, but it turned out to be even more than I anticipated.
Our community is facing the stark reality of a $50 million structural deficit across all city accounts, and we cannot afford to continue relying on quick fixes that will only delay the inevitable. We must reflect on the underlying causes that led us to this point and take swift, decisive action to achieve long-term structural reform.
When I first got to City Hall, my administration took a thorough analysis of the city’s financial landscape, and it is clear that the current level of city services is not supported by the current level of revenue.
This deficit did not materialize overnight. It is the culmination of many factors, including inflation, rising compensation costs, and frankly, spending one-time federal funding on ongoing expenditures.
Everyone – from employers to small business owners to consumers – is dealing with the burden of inflation. Just as the prices for goods and services are rising, so are the costs of providing essential public services. Additionally, compensation remains the largest expenditure for the city. Collective bargaining contracts went unresolved for years. New multiyear contracts were recently approved without adjusting the budget to ensure it is balanced.
In essence, the previous administration and City Council opted for a short-term patch by using one-time federal recovery funds, dipping into the city’s reserves, and pushing debt repayment into future years.
Although the structural deficit is significant, if we act soon, we can correct this course. I will see to it that the city returns to a place of fiscal stability and operates in a manner where projected expenditures and projected revenues are in alignment.
We will do this by doing what any household does when facing financial challenges: We will reduce or eliminate nonessentials and optimize what we have. My administration is working closely with the City Council and meeting monthly to review our budget. I have also directed my cabinet to identify efficiencies and explore opportunities to offset anything deemed unnecessary. Chief Financial Officer Matt Boston is creating a set of recommendations to ensure we are optimizing our city’s investment portfolio for long-term benefits.
I am committed to fiscal responsibility and repairing the damage that has been made, while doing right by our employees and addressing the challenges of our public safety needs. Simultaneously, I am committed to a transparent decision-making process that will hold the city of Spokane responsible for the management of taxpayer dollars, while also rebuilding trust with the community.
Tough decisions lie ahead, but they must be made and quickly. The road forward will be full of challenges, but we are moving quickly toward a path that will ensure a resilient and sustainable future for Spokane.
Lisa Brown was sworn in as mayor of Spokane on Jan. 1.