City Budget Office Releases Updated Economic Forecast Showing Better Than Expected Recovery and Additional Revenue For City Priorities in 2020 and 2021

SEATTLE (November 2, 2020) – The City Budget Office released an updated economic forecast and new revenue projections for 2020 and 2021. The City Budget Office now estimates an additional $57 million in net revenue from both the Real Estate Excise Tax, sales tax, and additional General Fund revenue. While some revenue sources increased following actual collection, some revenues fell below forecasts including the Commercial Parking Tax and Short Term Rental Tax. You can find the updated forecast here.

“Seattle has faced a year of unprecedented crises including a global pandemic, an economic crisis, a civil rights reckoning, and a climate crisis. While Seattle faces a long term recovery in the months and years to come, the revenue forecast released allows the City to restore some of the most difficult budget cuts,” said Mayor Durkan. “Additional resources should allow the City to meet its most pressing needs of a worsening COVID-19 crisis, including creating more shelter to address encampments across the City and addressing impacts of litter, garbage, and illegal dumping.”

In a letter to City Council, the Mayor detailed her priorities for these additional revenues, including increasing services for the individuals experiencing homelessness, a restoration of the strategic investment fund, a mitigation of City layoffs, and a citywide cleanup program to address litter and illegal dumping.

The Mayor also proposed restoring funding to the capital maintenance funding at the Transportation and Parks Departments. The Mayor’s letter to City Council can be found here.

Following the results on Proposition One and the recent Supreme Court decision on I-976, Mayor Durkan will release her plan in the coming days regarding transit and transportation funding.