City of Spokane Faces New Budget Deficit Amid Slowing National Economy, External Pressures

Erin Hut, Communications Director, [email protected]

Thursday, September 18, 2025 at 11:52 a.m.

Due to a slowing national economy, weak consumer confidence, and sales tax revenue not keeping pace with historical trends, the City of Spokane continues to face budget challenges, despite closing a $25 million structural budget deficit in 2024. This trend is not unique to Spokane and is being faced by local governments across the country.

At a meeting with the Spokane City Council on Thursday, Mayor Lisa Brown outlined the City of Spokane's $13 million deficit, which is also impacted by federal contract uncertainty, constrained by collective bargaining contracts, and exacerbated by inflation and rising jail costs. Costs for services at the Spokane County Jail have increased at a rate that far outpaces the increase in the city's average daily population, resulting in $1 million in unanticipated costs for 2024.

At Thursday's meeting, Mayor Brown outlined her budget priorities, which include investing in community safety and replenishing the city's reserves, as well as the City Council's budget priorities. She also detailed some of the administrative actions already underway, including finding efficiencies through centralizing services, eliminating vacant positions, and refinancing and restructuring debt obligations. Mayor Brown also announced the suspension of leave buyouts for non-represented employees this year.

Additional cost-saving measures will be discussed and implemented as Mayor Brown and the City Council pass the mid-biennial budget modification in late November.

"Closing an additional $13 million deficit is challenging, but I am confident we can do it while minimizing impacts to both the services our residents rely on and the staff who deliver those services," Mayor Brown said. "We will continue working to address our budget challenges while keeping community safety at the forefront. Crime is down, neighborhood resource officers and the traffic enforcement unit are back, and we are committed to expanding and investing in behavioral health, all while moving toward a stronger place of fiscal responsibility."

Related Documents

• Rising Jail Costs Line Graph
• Budget Discussion Presentation (PDF 371 KB)

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