Seattle – Today, Mayor Bruce Harrell released the following statement after the Office of Economic and Revenue Forecasts (OERF) released the 2024 Year-end Revenue Report: 

“Today’s announcement that PET revenues collected in 2024 were $47 million lower than projected requires action to ensure our budget remains balanced. We also know this news only adds to significant negative impacts for future years when combined with President Trump’s actions to rescind grants to our city, implement harmful tariffs, and focus on failed economic policies that prioritize the wealthy over working families. 

“Faced with a significant deficit, our 2025 budget nonetheless made historic investments in affordable housing and keeping shelter beds open, maintained critical public safety spending, and funded essential services and supports to build thriving, healthy communities. Our budget proposal was designed based on the projections of the independent Office of Economic and Revenue Forecasts and sought to create a $43 million payroll expense tax reserve, recognizing that this revenue source is subject to significant fluctuation. 

“We will be closely monitoring OERF’s April forecast to understand the full implications and what steps are necessary to maintain a balanced budget. As we develop the City’s 2026 budget, my office will consider all options, including additional revenue sources and appropriate expense reductions, to ensure we are making the priority investments and funding the essential services that matter to our residents. 

“This news also underscores why I have been consistent in noting the fragile nature of our economic recovery – we know this decrease in revenue is aligned with recent reports of major employers moving thousands of high-paying jobs out of Seattle to other cities in our region. 

“Large corporations should pay their fair share and we should be wary when they use job placements to avoid paying funding that our communities rely on, but we also must recognize businesses will make choices based on their bottom line. We need to design our tax policies with the full context of our economy and a comprehensive view that ensures we raise the revenue needed to support all of our residents in a progressive way, aligned with our values. 

“I’m grateful for the work of legislators in Olympia who have proposed lifting the arbitrary and antiquated 1% lid on funding local government services, which would allow us to more closely keep up with inflation and other rising costs. As they do difficult work to consider new revenue and design a state budget over the next several weeks, my office will continue to offer support and feedback toward a fairer tax code that helps Seattle and communities across Washington meet current needs and address future challenges.” 

Budget Committee Chair and Councilmember Dan Strauss said, “For all of its successes, and there are many, the JumpStart Payroll Expense Tax is still a new tool that we are learning more about. Until now, the projections have always gone up, but we have known since we passed the legislation that would not always be the case. While this is hard news to receive, one bright spot is that these numbers do not reflect the recent return of many workers to downtown full-time. Just like last year, when we closed a $250-million-plus deficit, we are ready to roll up our sleeves and get to work.”