Woodward unveils draft 2021 Spokane city budget

Spokane Mayor Nadine Woodward introduced a preliminary 2021 city budget this week that, despite an economy hampered by the coronavirus, does not call for layoffs or deep cuts.

The $989 million budget prioritizes spending on public safety and economic development, both areas that have been a focus for Woodward since she took office in January. But it also leaves a glaring question mark on spending for homeless shelters and services, allowing the city to keep its cards close to its chest as it lobbies the county and neighboring cities to participate more directly in the region’s response to homelessness.

The preliminary budget is a rough draft that will kick-start weeks of negotiations with the City Council before Woodward is due to submit a formal budget proposal on Nov. 2. The 2021 budget will be the first steered by the mayor, who won election in 2019, and will require approval by the council.

Council President Breean Beggs and Council member Candace Mumm, who chairs the Finance and Administration Committee, were not available Wednesday for comment .

The preliminary budget calls for $989 million in overall city spending. That’s an 11% cut from 2020, with the decline mostly attributable to the completion of the city’s massive combined sewer overflow (CSO) tank project this year.

The general fund, which encompasses basic city functions like public safety and planning, would increase by 1% to $209 million.

Because of the economic fallout caused by the coronavirus, the administration predicts general fund revenues will fall by $3.2 million, owing mostly to a drop in retail and sales tax.

The mayor’s spending plan includes a $1.4 million transfer to keep the Spokane Fire Department solvent and $350,000 to continue the city’s partnership with Frontier Behavioral Health on a program that pairs mental health professionals with police officers.

The mayor also plans to restructure City Hall and create a new division of city government, Community and Economic Development. The plan will require the addition of one full-time employee at a cost of $201,200.

Aside from $20,000 designated to the regional Bridge Housing Project, the budget does not allocate city funding for homeless services and instead calls for the city to negotiate with leaders across Spokane County before committing to a funding level. Any additional funds for homeless services would have to be pulled from city’s contingency reserves next year.

The budget would, however, fund three additional code enforcement officers who would target illegal camps and focus on graffiti cleanup.

The mayor expects to pull $5 million from the city’s reserves – excluding any amount used to fund homeless services – to balance the budget. The city’s general fund reserve balance is estimated at $47.5 million to start 2021. The preliminary spending plan would not eliminate or cut back core city services, but calls for a close examination of spending and deep consideration before any open position is filled.

Homeless services and shelter

Taking action on a refrain made throughout her campaign, Woodward’s administration hopes to work with Spokane County and other local governments on shifting the burden of homelessness services from “city-centric” to regional, according to city spokesman Brian Coddington.

That push and pull between the city and rest of Spokane County is hardly new, but the administration sees cause for optimism. The coronavirus pandemic has forced local leaders to collaborate on a response to homelessness, as social distancing requirements limited capacity at existing Spokane shelters earlier this year. After temporary emergency shelters were opened at the Spokane Public Library downtown and the Spokane Arena, the county purchased a building on Mission Avenue and tapped the Salvation Army to operate it as a shelter provider.

Conversations on a long-term solution to the homeless shelter are “progressing methodically,” Coddington said. But the administration will not budget for a resolution, lest it tip off regional partners to what it might be willing to spend.

The pandemic has further complicated the shelter planning process, Coddington said, forcing the city “to plan for an unknown in terms of how long the pandemic is going to last, but also the impact of the pandemic on the (shelter) system need.”

“It makes a complicated problem even more complex,” Coddington said.

In a letter to Woodward accompanying the budget, Chief Financial Officer Tonya Wallace said the preliminary budget will prioritize investments in the four areas the mayor promised to address as she entered office in January: public safety, economic development, housing and homelessness.

“A strategically crafted 2021 budget will serve as a reassurance to our community that despite the challenges of 2020, the city remains committed to improving services and delivering results,” Wallace wrote.

Though it predicts a slow and steady economic recovery in 2021, the administration expects revenues to continue to fall short of pre-pandemic levels.

The 2021 budget will undoubtedly prove to be another test of the relationship between the City Council and executive branch of city government, both of which have worked to mend ties under the new mayor.

The 2020 budget process put former Mayor David Condon and the City Council sharply at odds, with Condon accusing the latter of needlessly expanding the budget of its own office and dramatically increasing its role in city government.

But Woodward has already worked closely with the council on key initiatives, such as opening a new police precinct downtown.

Prior to this week’s budget unveiling, council members had met with administration officials to discuss the budget and outline their priorities. They will now hold a series of weekly study sessions to discuss the budget in public.