By Aaron Allen, The Seattle Medium
Last week, Seattle Mayor Bruce Harrell unveiled his 2025-2026 budget proposal, and outlined his plan to fostering a safe, equitable, and thriving city under his “One Seattle” initiative. With the city facing a $250 million budget deficit, Harrell’s says that his proposal balances cost-cutting measures with investments in urgent priorities such as public safety, affordable housing, homelessness, and small business support.
“It is my obligation as mayor to ensure the City is spending every dollar we have toward the needs of Seattle communities in a responsible, efficient, and effective way,” Harrell said. “This year presented both a challenge and an opportunity to meticulously review and reconstruct our budget, optimizing our spending to match the greatest priorities for our city, such as delivering effective public safety for every neighborhood, advancing health-forward approaches to save lives and combat the opioid crisis, and building more affordable housing to address affordability challenges.”
The proposed $8.3 billion budget includes $1.9 billion from the General Fund. Significant allocations include $916 million for public safety, $264 million for education and human services, and $145 million for arts and recreation. The budget notably features historic investments in affordable housing, with $342 million allocated in 2025 and $343 million in 2026—marking the largest housing investment in Seattle’s history.
However, the city’s ability to fully address housing affordability is limited due to state laws prohibiting rent control. “City governments like Seattle are currently prohibited from imposing limits on rent or any form of rent control due to state preemption,” city officials explained. Despite this, Harrell has continued to push an aggressive housing policy, focusing on developing more housing stock and expanding homeownership opportunities for low-income residents.
Harrell’s proposal includes a range of investments aimed at addressing the city’s most pressing issues. Highlights include $3.2 million to maintain 300 shelter beds previously funded by federal sources; $1.9 million to expand the Community Assisted Response and Engagement (CARE) Department to offer services citywide, seven days a week; and $19.25 million for youth mental health and safety outcomes for Seattle students, building on ongoing investments through the Human Services Department. In addition, $7.4 million is allocated to support small businesses, including initiatives to activate vacant storefronts and provide access to capital, and $5.7 million will establish the Opioid Recovery & Care Access (ORCA) center, a post-overdose stabilization facility.
The mayor’s proposal also includes $28 million for the Equitable Development Initiative to prevent displacement and support property ownership for community-based organizations. Other key investments include $1.2 million to more than double Automated School Zone Cameras at 19 school zones, aimed at curbing dangerous speeding and improving student safety; $3.1 million to create a Real Time Crime Center to coordinate emergency responses and hire civilian staff to support sworn officers; and $2.9 million to provide dedicated detox and inpatient treatment beds for substance use disorders. Additionally, $2.7 million will go toward increasing firefighter recruits and paramedic students in the Seattle Fire Department, and $2.5 million will fund downtown art activations, building on the success of the Downtown Mural Project.
Mayor Harrell also emphasized that the proposed investments would benefit all Seattle residents, particularly historically underserved communities. According to city officials, “Mayor Harrell’s budget directly impacts and benefits the needs of African American residents, as well as all residents in our city. The mayor’s priority in addressing equity issues is to deliver tangible improvements and meaningful positive outcomes for the Black community, communities of color, and other historically underserved groups.”
One of the central components of Harrell’s commitment to equity is the Equitable Development Initiative (EDI). Designed to prevent displacement and support community-based organizations with property acquisition and capacity building, the EDI will receive $28 million in 2025 and $29 million in 2026—an increase from previous years. The initiative is part of the city’s broader strategy to ensure equitable access to housing, jobs, education, childcare, and other resources.
“The EDI ensures that organizations serving our diverse communities can plant roots and have a permanent home in our city,” Harrell explained.
The budget also continues to fund the Liberty Project, a program designed to accelerate revenue growth and expand opportunities for businesses owned by underrepresented communities, particularly Black-owned businesses.
Harrell’s budget proposal aims to close the $250 million General Fund deficit while maintaining essential services. To achieve this, the city has implemented a hiring freeze, spending reductions, and layoffs. The proposal also relies on increased revenues from the Payroll Expense Tax, which has doubled since its introduction. Payroll Expense Tax revenues have allowed the city to allocate $287 million to the General Fund, $233 million to specific tax categories, and $43 million to create a new Payroll Expense Tax reserve to provide greater fiscal stability.
“By maintaining these revenue streams and continuing to invest in key priorities, we are putting our city on a better financial path while ensuring residents continue to receive the services they depend on,” Harrell said.
City Council deliberations on the proposed budget began last week with a presentation from Interim City Budget Director Dan Eder to the Select Budget Committee. Over the next two months, there will be a series of presentations from City and Council staff, as well as public hearings on October 16 and November 12. The City Council plans to hold a final vote on the 2025 budget on November 21.
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