Mayor Harrell 2025-2026 Budget Remarks As Prepared

Good afternoon and thank you for joining us here today as I introduce my proposal for the 2025-26 budget.

I want to offer my sincere thanks to Council President Nelson and all the members of the City Council for hosting us here today.

We're in Council Chambers because this is budget central for the next couple of months. This is the right place to have the conversation about what the future of our City budget investment strategy looks like. There will no doubt be long nights here and indeed public voices passionate about making sure we meet their needs. I want to thank you in advance for putting in this hard work.

Earlier this year, at the annual State of the City address, we discussed the significant General Fund budget deficit facing the City projected at over $250 million. You may recall, I committed to the people of Seattle to take a deep, analytical look at our entire budget portfolio, and I am very proud of the fact that my team embraced the process of scrubbing the budget.

We set out to consider not just what we are funding, but how we are funding it. We took immediate actions like implementing a hiring freeze, and then looked under the hood of programs and scrutinized streams of revenue.

My guiding principle as Mayor is that it is my obligation to you, the people of Seattle, to do our best to spend every dollar we have toward the needs of the city and its people in a responsible, efficient, effective way.

We don't have the luxury of a pie-in-the-sky "reimagining" of our budget based on a hope that our State's regressive tax system will magically change, or that Olympia would listen to the appeals of cities and counties large and small across Washington and lift the restrictive cap on local revenue.

We made a conscious decision not to make broad cuts to essential General Fund programs like police, fire, and homelessness response.

Instead, we thoughtfully and methodically reconstructed and reconfigured our budget built on the strong foundation and trajectory we have established. And, as a result, I am proud to say that we are sending the City Council a balanced budget that reflects our commitment to the people of Seattle.

This reconfiguration allows us to propose a budget that closes this $250 million gap without raising taxes and without noticeable impacts to the public-facing City services that residents count on like keeping our libraries, senior centers, and community centers open; providing youth programming and core parks services; maintaining critical infrastructure; and striving to deliver effective public safety for every resident in every neighborhood.

The approach we've taken also means that we don't have to slow down on our hard charging progressive priorities like record investments in affordable housing, expanding our innovative CARE Department, supporting the working families of the City, and infusing funds to energize arts and culture citywide.

Most importantly, it represents a first step - a big first step - in putting our city on a better fiscal trajectory.

This year, we are continuing to use some Payroll Expense Tax revenues to support the General Fund, just as the City has done every year since it was introduced. Over the last four years, the annual revenues brought in by the Payroll Expense Tax have essentially doubled, significantly surpassing initial forecasts.

This increase allows us to both maintain the spending amount forecast when the tax was originally proposed - and use it to fund the priority buckets of housing, the Equitable Development Initiative, climate action, economic development, and youth mental health and safety.

This reconfiguration also allows us to close the deficit and invest in General Fund essential services without tapping the "rainy-day" fund, our fiscal reserves, or putting our triple A bond rating at risk.

The proposals you hear about in this budget - and the deep, unacceptable cuts that we didn't have to propose - are possible only because of this approach.

I want to thank Interim Director Dan Eder, his predecessor Julie Dingley, and the entire team at the City Budget Office, many of whom are represented here today for their partnership in identifying this reasonable path forward. I also want to thank Budget Chair and Councilmember Dan Strauss, who since Day One of this budget cycle has been a thought partner willing to go outside the box and seek real solutions with a steady hand.

This reconfiguration does not mean that we were able to avoid tough decisions or ignore the structural budget challenges that put us in the position we are in. We took these issues head on.

Our department directors, who are here today, took a fresh eye to their departments to make efficiency gains, find ways to do more with less, and carefully consider all lines of business. They are embracing my expectation that the City is a learning, growing organization committed to delivering excellent service to our communities.

That means we have also had to make the difficult decision to propose some layoffs, informed by strategic thinking and our long-term approach to effective City services.

For City employees potentially impacted, I recognize that this is a challenging and uncertain time. You have my commitment that we will put forward every effort to support you in this time of change.

And, I want to thank all City workers, who tirelessly serve their neighbors and the residents of Seattle in so many different ways. Our budget includes the contract we signed earlier this year that centered wage equity, responded to record inflation, and will help us recruit and retain highly qualified employees to provide the essential services residents expect. These valued workers are a key part of this mission to create a City government that is a learning and growing organization.

One group that represents the resilience and spirit of our City's workforce are our supported employees, members of our team with developmental disabilities or other similar challenges. Many of them are here with us today. They serve across the city in different departments, and I can tell you, they are some of our hardest working and most enthusiastic teammates.

Last week, I popped into the monthly meeting with our supported employees and responded to their questions. I believe they represent the best in all of us - committing to public service and overcoming any challenges put before them. I am proud to be on their team.

Why don't we give them a round of applause? I'm proud to say that our budget protects this valuable program.

Taking a top to bottom approach to rebuilding the budget allows us to continue prioritizing programs that support City workers and build on programs that address Seattle's fundamental needs, such as protecting the gains we're making to build and maintain affordable housing.

Our approach to housing is ambitious, multi-pronged, and a high priority in this budget. We know bringing down the cost of housing is central to our efforts to make Seattle an affordable city for all residents and making additional progress on the homelessness crisis.

In this budget, I am proposing $342 million toward affordable housing in 2025 - the largest single investment in Seattle's history. Let me say that again: The largest single investment in affordable housing in the City's history. That is, until 2026, when I am proposing an even-higher $343 million investment.

Altogether, that's nearly $700 million toward affordable housing over two years, on top of the $800 million we've invested in my first three years in office.

This means thousands of more units of affordable and permanent supportive housing for those most in need. Pairing our historic investments with other partners is critical, such as the state of Washington, philanthropies, and private companies like Amazon - including their recent commitment to put $1.4 billion toward affordable housing.

Working together, we're addressing the significant challenges facing affordable housing providers and taking advantage of the opportunity to create needed new places for people to live.

That said, we know these investments in housing and stability alone will not make Seattle more affordable for families, workers, and neighbors. Simply put, we need more housing and more kinds of housing across the city. Over the last year, we've advanced a number of common-sense solutions to increase and diversify our housing stock - making it easier to build, reducing permitting hurdles, and promoting housing types like ADUs.

Next month, we will take another major step forward by sharing more details about our revised One Seattle Comprehensive Plan Update, reflecting a massive opportunity to build new kinds of housing in new places.

Some of the changes we'll be making include improving the size and types of family-sized housing that can be built in our neighborhood residential zones, more incentives to build affordable housing citywide, and additional neighborhood centers - areas where we can build stronger communities, encourage walkability, and encourage housing options and affordability in all parts of Seattle.

Our plan puts access, opportunity, and community first - allowing corner stores everywhere in the city and focusing on connecting people to transit, with increased density along major arterials and transit routes.

As part of our budget, we'll go even further to invest in the next piece of our One Seattle Plan - funding a supplemental environmental review that will explore how we can further add housing in places that already have increased density.

A second supplemental environmental review is also planned to continue efforts to bring 500 new units of housing to the Fort Lawton site in Magnolia - combining home ownership, rental properties, and transitional housing. This transformational investment opportunity in what is currently underutilized U.S. Army property is the single largest investment we can make in new, affordable, mixed-use housing in our city - while also adding over 20 acres of green space to Discovery Park. I recently took HUD officials to the site, and they too realize what a beautiful opportunity we have.

Finally, our plan includes strategies to fight displacement and support the communities who have long called Seattle home, but who are at risk of being pushed out by rising costs and a changing landscape. One important tool in this effort is the Equitable Development Initiative, a program I can say my budget would increase to $28 million total for 2025.

I look forward to continuing our ongoing work with Councilmember and Land Use Chair Tammy Morales as the Council considers the One Seattle Plan - and all of the housing programs we are proposing, like our revised ADU code, that are going to make our city a place everyone can call home.

This gives us the opportunity to demonstrate that words like equity and opportunity are not mere buzz words, but real values that will convert to budget policy. As that little boy whose mom worked at the local YMCA and dad worked at City Light, being able to live in the core city was literally life changing for me. Let's give other little children this possibility.

Housing is a critical component of our efforts to address the homelessness crisis, and we also recognize we need intermediate places for people living unsheltered to go and begin recovery - places like shelter and tiny home villages with culturally competent care and services onsite.

Our city and region entered this year staring down at a funding cliff for shelters and tiny home villages, facing the risk of losing about 300 beds as federal and one-time grants are set to expire at the end of the year. That's 300 spaces where people can safely sleep at night, 300 respites from the cold of the winter and the extreme heat of the summer, 300 footholds for people looking to find recovery.

We appreciate places like the Keiro Building in the Central District. Operated by Africatown, it serves up to 150 people every day and night, with a specific focus on the Black community who are disproportionately represented in our homeless population. I know Councilmember Joy Hollingsworth understands the important impact this shelter is making in her district and across the city.

We can't lose these places. Not here, not now, not in Seattle. So, in this budget, we worked with King County to ensure these beds stay open - taking on these investments ourselves and changing them from one-time to ongoing. Our proposal includes $3.2 million to keep these beds open. This was a must include for my administration.

I also want to express my gratitude to the workers who serve these communities and change lives - our human service providers. This budget invests in their well-being and the retention of this critical workforce, keeping us on track with our commitment to provide inflationary adjustments and needed equity pay. We need these amazing workers doing these essential jobs.

Further, we are maintaining funding for homelessness services, including contracts administered by the King County Regional Homelessness Authority. I'm pleased with the early conversations I've had with KCRHA's new CEO Dr. Kelly Kinnison, as she brings diligence, experience, and compassionate urgency for those living unsheltered to KCRHA. Together with Dr. Kinnison and the reforms in front of the City and County Councils, we can take this organization to its next phase from start up to upstart, disrupting the status quo and reducing unsheltered homelessness.

My budget proposal will also expand the service capacity of our Unified Care Team - allowing us to more immediately respond to areas most frequently repopulated with encampments. Our Unified Care Team has made a significant difference for the people of Seattle, housed and unhoused, and has decreased tent encampments by 72% since I took office while shelter referrals have continued to climb.

We know that mental and behavioral health is often intersectional with homelessness, and while any person in our city can be lost to the devastation of fentanyl and synthetic opioids, we recognize those living unsheltered are at a significantly disproportionate risk.

That's why, last week, I announced a new public health strategy centered on increasing our investment in the greatest public health challenge that we face: the fentanyl crisis. Next year, we will nearly triple our spending to take on substance use disorder, funding the new programs and proven strategies that are already making a difference.

Over the last year, we've seen an 18% decrease in fatal overdoses across King County, and that reduction is even higher in our Downtown core. Programs called for in my April 2023 Executive Order - like Seattle Fire Department's Health 99 Post-Overdose Team, expanding mobile medication delivery, and a pilot to distribute lifesaving drugs that reduce cravings and withdrawal symptoms - are making a difference, as is our collaboration with Public Health - Seattle & King County and our service provider partners.

Next year, with this funding, we can forge ahead on our next set of initiatives in this area. In partnership with DESC, we will open the ORCA Center - which will provide care to those in the immediate aftermath of an overdose, as well as the tools and support to seek recovery and treatment. And next month, we'll begin a pilot with Valley Cities to provide dedicated detox and inpatient treatment beds for up to 150 people per year.

Helping people access care to get well is an essential part of our plan for creating a vibrant and welcoming city. It is also just one part of our investment strategy to support our Downtown Activation Plan and build the Downtown of the future.

Our budget contains millions of dollars toward art, activation, beautification, renovation, and long-term planning in Downtown. This is a priority of mine, and I know it's a priority of Council President Nelson, who has been a staunch advocate for this neighborhood since taking office and in our discussions on the budget.

One of the areas I'm most excited about is our proposal to invest in Westlake Center and ensure it is once again the heart of Downtown. The World Cup opportunity coming in 2026 can ignite lasting changes at Westlake. Over the last year, we've had a preview of what this could look like with great turnout at Westlake for watch parties for the U.S. Men's and Women's soccer teams.

Yesterday, I attended the memorial of Mayor Charley Royer, a champion for Seattle who made Westlake's revitalization a centerpiece of his administration. We can continue advancing his vision and make Westlake the world-class plaza it deserves to be - a gathering place, a community commons, the nexus linking Downtown, the Waterfront, and Seattle Center.

This comes as we prepare to complete our revolutionary Waterfront project, with its grand opening right around the corner next year. On October 4th, I hope you'll join me as we build on the momentum of the Seattle Aquarium's Ocean Pavilion and officially introduce Overlook Walk as Seattle's latest iconic urban element.

It will create a first of its kind pedestrian connection between Downtown and the waterfront, bridging Pike Place Market and the new Park Promenade. Good things are happening Downtown.

Another area of investment is my proposal to maintain our enhanced cleaning efforts through our $1.5 million investment in the MID. Last week, I had the pleasure of speaking directly to the MID Ambassadors, the folks you see out there every day cleaning and helping people Downtown. I know you see them - you just can't miss those bright yellow vests.

Many of these MID Ambassadors come from difficult backgrounds - they may have experienced challenges with homelessness, substance use, or incarceration. When we met, what I told them was, first: Thank you. Thank you for your hard work every day in making our city a more welcoming place.

Second, that they are the example for what my administration is trying to achieve in Seattle - a city where people have opportunities and second chances to restore not just their own lives, but to help others in need get on that same path.

And, third, that they too are part of our One Seattle Team. They too are part of our efforts to pump life and vibrancy into our streets. I share their passion for creating a safe, friendly Downtown. And that I'm matching that passion with action.

I will soon be issuing an Executive Order to better improve vibrancy and safety across the city. We have seen improvements driven by tactical surges to clean up the streets, help people access the services and referrals they need, and make arrests for criminal activity.

This Executive Order will establish a new Downtown Activation Team to make these changes sustainable - building on the proven model and coordination of our Unified Care Team.

The Downtown Activation Team will bring together nearly 15 City departments with our partners and service providers like the Downtown Seattle Association, MID Ambassadors, and We Deliver Care. It will allow us to better coordinate place-based activations, cleanings, and safety operations in Downtown, the Chinatown International District, and Little Saigon. I know how important safety in these neighborhoods is to Councilmember and Public Safety Chair Bob Kettle, and that if this proves to be a successful approach that we can bring it citywide.

Based on best practices in re-setting community norms and established principles in criminology, the new team will implement what we are calling Scheduled Restoration Actions, intended to clean areas, enhance public safety, and facilitate artistic and cultural expression. Teams will be visible and consistent. This is the kind of strategic coordination we need to further restore the vibrancy and livability of these cherished neighborhoods.

Elements of this plan and the work of the Downtown Activation Team have already begun, and we are seeing positive early results Downtown. For Seattle to thrive, the vibrancy of our economic and cultural centers must continue to be restored. This is a priority for my administration.

What we know is that public safety touches on virtually every city department and every function of our government. To keep people safe, my administration takes a holistic approach that recognizes the importance of mental health, food access, treatment availability, and housing stability as it does law enforcement and diversified responses to 911 calls. While our first responders are a crucial part of our system and do incredibly important and valuable work daily, all City departments have a responsibility to improve safety in Seattle. This is the One Seattle approach.

This approach for sustainable and measurable safety is what guides my administration and what informs the proposed investments in this budget.

This includes efforts like resolving 9-1-1 calls by rebuilding and optimizing officer staffing and expanding response options to best match the situation. That's why our budget continues to invest in an expanded Seattle Fire Department recruiting class and SPD recruiting, where this year we are on pace to have nearly 4,000 officer applicants, which would be the highest number since 2013, over a decade ago.

Our budget also reflects our new agreement with King County, which will expand flexibility and capacity in our use of the King County Jail. Our approach to addressing people engaged in unlawful activities requires a diverse array of strategies and approaches - including the option to book someone into jail.

It's for that reason - the need for the right response at the right time, that we're also funding the citywide expansion of CARE responders, our new paradigm in public safety, adding ongoing funding for an additional 18 responders and three supervisors.

These responders will allow CARE to answer calls citywide, seven days a week - reducing strain on limited police resources and helping meet people where they are by providing direct behavioral interventions and crisis de-escalation, resource and service navigation, transportation, and more.

We're also making a push in SPD to better leverage civilian roles to support sworn officers, hiring civilian employees to help ongoing investigations; crime technicians to provide swift analysis and informative data; and expanding the role of parking enforcement officers to review traffic safety cameras.

Transportation safety is public safety too - and this budget includes an expansion of 38 traffic safety cameras in 19 school zones, more than doubling the current count. You'll note I'm not talking much about transportation in this year's budget announcement but building the transportation infrastructure we need to meet housing, economic, safety, and mobility goals is critical to our future.

Let me just say, I suggest you thoroughly review your voter guide statement this year and make an informed decision when you vote in November. Not just on our proposed transportation levy, but on everything on your ballot. Everything.

And I'd like to recognize Councilmember Rob Saka for partnering with us to refine and propose the levy that is on your ballot this year.

Our budget also includes environmental changes like new overhead pedestrian lighting that makes the city look more beautiful and helps people feel safe.

I strongly believe in using the latest technology as a tool to strengthen our public safety efforts. This budget will fund a Real Time Crime Center at SPD to improve our ability to respond to and solve crimes. It also invests in our CCTV pilot in neighborhoods Downtown, the Chinatown International District, and along Aurora Avenue.

My budget proposes investing in supporting those who need our help, including a $2 million investment in services for people being trafficked and exploited on Aurora. We have an obligation to support those being victimized and connect them with the organizations and service providers who can make a difference in their lives. I know Councilmember Cathy Moore agrees with this approach and will be a champion for these needed support services.

This budget seeks to invest in the next stage of our plan for youth mental health and safety, bringing our total to nearly $20 million to expand mental health counselors, telehealth services, and violence prevention, intervention, and interruption resources, in addition to $12.5 million in base investments supporting youth safety.

Our overall investment in community safety through our Human Services Department is $38.3 million, with continued investments in the community-based organizations that are using lived experience and credible messengers to disrupt gun violence near schools and across the city. Councilmember Maritza Rivera has been an important partner in thinking through these investments with a focus on improving outcomes for youth.

These investments are all part of our broader approach to creating thriving communities. The projected general fund deficit required us to be strategic in the areas I've discussed - squeezing the most from every dollar, investing in the programs that make the biggest difference.

One example of adapting budget priorities to meet urgent needs is our proposal to establish the One Seattle Tree Nursery, a new program critical for meeting tree canopy restoration goals, and ultimately a money saver, because we will be able to grow our own local trees instead of purchasing them from other states.

The City's remarkable Trees for Neighborhood Program delivers hundreds of trees to residents across the City, but just this year, we've had to offer fewer trees than expected because of production issues by outside providers. We can improve this by growing the best trees for Seattle's climate ourselves.

We have been relentless in our climate efforts, especially seeking grants from the state and the federal government at this historic time of investment. In the last year, we've brought in $61.5 million in state and federal climate grants focusing on things like green buildings, affordable heat pumps, clean electricity rebates, and more. These resources have allowed us flexibility to restructure the funding of our Office of Sustainability and Environment.

Finally, I want to reiterate that I am proud of the kinds of programs we've been able to preserve in this proposed budget restructuring, like maintaining all grants in the Office of Arts and Culture, including the Centering Arts and Racial Equity program. I know this is a priority for Councilmember Tanya Woo, as well, as we work to foster art in our city and support a strong creative economy.

Seattle must continue to not only be known as a city of innovation and resiliency, but also arts, expression, and culture.

In all, I believe we've achieved a lot in this budget. We've closed our $250 million General Fund deficit in 2025 and 2026. We've protected the Payroll Expense Tax to meet its original commitments, while also funding important priorities, and preventing more devastating cuts. We've made tough, but necessary decisions about our programs, return on investments, and future spending to begin charting a new trajectory.

And, most importantly, I believe we met our commitment to you, the residents of Seattle. This strategy allowed us to put every dollar we have toward the needs of our city - strong public services, historic affordable housing and homelessness investments, needed public safety programs, resources for thriving communities, and so much more.

I hope this budget offers a strong starting point as we continue a conversation with the Council and with the community about how to use our resources. I welcome your feedback and conversation, as we continue working together to build One Seattle.

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