Mayor Wilson's 2027-2028 Proposed Budget

Dear Neighbor,

I have an important budget update I want to share today.

Mayor Wilson's 2027-2028 Proposed Budget focuses on providing responsible fiscal management of public funds for the people of Seattle. After years of unsustainable one-time fixes that did not address the deficit in future years, the mayor's first budget begins the important, necessary work of stabilizing Seattle's budget so that we can continue to provide essential services to the people of this city.

The people of Seattle deserve good government that delivers a city that is safe, affordable, and inclusive for all of Seattle's residents. Mayor Wilson’s 2027-2028 Proposed Budget is structured to provide it. The decisions made in this proposed budget are not easy and come amidst a difficult backdrop of an inherited ongoing General Fund deficit that is compounded by actions taken at the federal level. Mayor Wilson's budget is intended to help Seattle residents build a resilient city and create the conditions for lasting prosperity by making real progress towards closing the deficit and breaking the cycle of annual budget crises.

For the Department of Neighborhoods (DON), our total budget allocation for 2027-2028 in the General Fund and Sweetened Beverage Tax Fund (SBTF) represents an 8.5 percent decrease in funding in 2027 ($1.7M net reduction), and a 7.3 percent decrease in funding in 2028 ($1.4M net reduction), relative to the 2026 budget. Every City department is making reductions to help address one of the largest budget deficits in Seattle’s history. 

Key changes for DON in this budget include:

Reduction in Grant Funding

The Sweetened Beverage Tax Fund (SBTF) revenue, which supports the Food Equity Fund, continues to decline. The Proposed Budget reduces Food Equity Fund awards by 37 percent ($1.04M) in 2027. This will result in approximately 15-20 fewer awards to community-led projects in 2027. The Food Equity Fund reduction in 2027 will ensure that the City is proposing a balanced budget for the SBTF.

In 2028, the Food Equity Fund budget will receive a one-time allocation of $1.8M from the General Fund to maintain the level of grant funds in 2027 and the staff to manage the fund. DON, in partnership with the Mayor’s Office and the City Budget Office, will continue to look for opportunities to restore funding for this program in future years.

The Neighborhood Matching Fund (NMF) will not be reduced in 2027-2028.

Changes to Two Program Activities

To streamline DON’s programs and to preserve staffing, the funding added in 2026 for Government 101 training offered through the Neighborhood Matching Fund is eliminated, saving $100,000. The training has not been offered in recent years and has not received significant interest. DON will continue to support the People’s Academy for Community Engagement (PACE) program that partners with linguistically and culturally specific organizations to co-create civic education programming.

The Show Up Seattle Day of Service (SUSDOS), an inaugural 2026 activity with a $350,000 budget, will be reduced to $100,000 in 2027-2028. 

Next Steps

For the next two months, the City Council will review the Mayor’s 2027-2028 Proposed Budget, with final adoption expected in late November. More information about the Mayor’s proposed budget is available here: Office of the Mayor - Mayor Katie B. Wilson

If you have questions, please send them directly to MOS_COMMS@seattle.gov. 

Sincerely, 

Quynh Pham (she/her)

Director