SPOKANE, Wash. — The City of Spokane is facing a $13 million budget deficit, which city leaders say is being driven by slowing economic conditions, rising costs and outside financial pressures.
According to a press release from Mayor Lisa Brown’s office, Brown outlined the shortfall during a City Council meeting Thursday, saying the city’s challenges include weaker sales tax revenue, inflation, rising jail costs and uncertainty around federal contracts.
The mayor’s office said that the new deficit comes less than a year after the city closed a $25 million structural budget gap in 2024. Officials said Spokane is not alone, as cities nationwide are reporting similar financial pressures.
According to the city, costs at the Spokane County Jail have risen faster than the increase in the city’s daily inmate population, leading to about $1 million in unanticipated expenses this year.
Brown said her budget priorities include maintaining investments in community safety and rebuilding city reserves, while also seeking efficiencies through steps such as eliminating vacant positions, centralizing services and refinancing debt. She also announced a suspension of leave buyouts for non-union employees.
“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,” Brown said.
The City Council is expected to review additional cost-saving measures as part of the mid-biennial budget adjustment process in November.
