Spokane mayor announces cost-saving measures, budget outlook less bleak

The city of Spokane has announced another cost-cutting proposal, offering union employees an early retirement incentive, taking another step toward closing the city’s budget gap, which officials estimate will be $14 million for next year, a improvement over the $25 million hole. elected leaders were looking down in January.

Mayor Lisa Brown’s office has reached an agreement with the city’s Professional and Managerial Association, a union representing more than 300 employees, that offers a lump sum contribution to a tax-free health care reimbursement plan to eligible staff who agree to retire early. Contributions range from $10,000 to $20,000 for employees who have worked with the city for 10 to 20 or more years.

A different retirement incentive was offered earlier this year to several dozen police officers, positions the city plans to fill by hiring new junior officers into the salary program, saving about $1.2 million in the budget. next year.

The city hopes to be able to encourage staff to retire early to avoid or minimize layoffs, which union employees say will hit newer hires hard. Unlike the police department’s incentive, which was offered to no more than 25 senior officers, the city does not set a cap on the number of managers and professionals who can theoretically receive the incentive, although the mayor’s office and department heads will have to approve applications, said city spokeswoman Erin Hut.

The City Council will also have to approve the deal before it becomes official, Hut noted.

The city also announced that Brown’s cabinet officials will each waive cost-of-living adjustments for six months next year, in addition to the two mandatory vacation days announced this year. Those particular cost-saving measures didn’t do much to move the multimillion-dollar needle — the combined furlough days saved about $30,000 — but they were meant to show that top city officials were willing to is forgoing pay to balance the budget as union employees face possible cuts, said Hut, who is a cabinet member.

After the latest round of negotiations with all of the city’s unions, the city is spending more money, particularly on staff, than it expects to take in each year, which officials refer to as a structural gap.

While that imbalance has been temporarily stabilized in recent years with federal COVID-19 relief funds, that money dries up at the end of 2024, leaving Spokane with difficult decisions in the coming months as it prepares its next budget.

At the start of the year, city officials estimated they needed to plug a roughly $50 million hole that will remain in next year’s budget without major changes, including a roughly $25 million hole in the city’s general fund, the bucket of money that pays. for, among others, the city’s police and fire departments.

The city must pass a balanced budget, so unless enough cost savings are found before fast-approaching deadlines to pass the next budget, layoffs could be inevitable.

Brown previously told city employees they would know what layoffs were on the horizon by the end of September.

“… If it comes to a point where we believe layoffs need to be of great concern, we intend to notify affected employees that their positions may be affected,” though that decision won’t be final until the mayor releases the budget proposed, Hut wrote. in a statement.

“The administration fully recognizes that this is an uncomfortable time for employees, but we intend to be transparent with them about this process,” Hut added.

The administration cut about $750,000 in unfilled positions, eliminated the city’s Reproduction Department, which has dwindled from its peak to a single staff member, and renegotiated contracts with its IT vendors.

The city also recently eliminated the positions of two non-union communications officials, including Spokane Police Department spokeswoman Julie Humphreys.

Higher-than-forecast revenue from sales, property and utility taxes also bolstered the city’s financial projections for next year, Finance Director Matt Boston said, accounting for at least half of the city’s $11 million improvement against its original budget.

The administration has also identified about $2 million in other cuts, but isn’t ready to announce them publicly until later in the year, Boston said.