SEATTLE — Amid a $175 million budget shortfall, Seattle City Councilmember Robert Kettle says the city has to reconsider its spending and taxing in a letter to Seattle Mayor Katie Wilson.
“The ever-increasing tax burden funding new and expanded programs, layered on top of the ongoing affordability crisis, is hampering everyday Seattleites’ abilities to make ends meet,” Kettle wrote in the letter.
He proposes three steps as the Mayor’s office and City Council begin to ramp up the supplemental budget process:
- A priority-based budget system. Currently, the city carries over its budget year to year while adjusting for inflation. Kettle says the most prudent priorities should get funding first and see what else can get pared down with the funding that remains.
- Withdrawing from ‘unnecessary’ lines of business. Kettle mentions a $2.5 million contract for Seattle Police recruiting ads, saying the Council has done its own work to successfully recruit officers. He also says contracts worth hundreds of thousands of dollars for consultants should be evaluated. KIRO7 asked if there are contracts that aren’t worth what the city is paying.
“We have to ask that question and see are we getting that return on investment,” Kettle said, referring to the timeline that usually starts in late summer to adjust the budget to the reality of its revenues, versus the projections that help create the budget each year.
- Updating the (Jumpstart) Payroll expense tax. In recent years, the city has used the tax that began in 2021 to fill short falls in the General Fund, but the tax has been criticized for pushing larger employers from Seattle. While the revenue from the tax has increased every year since it was introduced, Kettle says that the city can’t rely on that in the future and worries revenue will drop if employers do leave. He proposes lowering the tax rate and lowering the threshold for what qualifies to be taxed will help make it more sustainable.
“Recent taxes aimed at sizeable Seattle businesses are now experiencing a backlash. Companies are asking their employees to work in Bellevue to avoid the growing tax burden in Seattle. I know employees who wish to work in Seattle but cannot. Underlining this point is that while tech jobs are growing across King County, they have stalled in the region’s marquee city.” Kettle wrote in a blog post.
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