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Seattle Mayor Bruce Harrell has announced details of the planned 2025-26 budget, which includes $287 million collected from the Payroll Expense Tax, also known as JumpStart, to address a $250 million shortfall in the city’s general fund. This tax targets payrolls at the city’s largest companies, including tech giants like Amazon, and was passed five years ago to fund affordable housing, homeless services, economic development projects, and environmental initiatives. The budget also includes $233 million for priority areas and $43 million for a new Payroll Expense Tax reserve for fiscal security.

The revenue from JumpStart would help the city meet its obligations while also allowing for additional funding in other areas, such as public safety, administration, education, and human services. Mayor Harrell’s proposal aims to avoid cutting essential services and prevent tapping into the rainy-day fund or risking the city’s credit rating. The budget includes layoffs for 76 employees and the elimination of 159 jobs to address budget shortfalls that the city has been facing.

Amazon’s decision to have its employees work in the office five days a week starting in January has been viewed positively by city leaders, as it is expected to boost economic revitalization by increasing foot traffic and commerce near the company’s headquarters in downtown Seattle. The use of JumpStart revenue as proposed by Mayor Harrell is seen as a way to prevent deep budget cuts and support the city’s recovery from the impact of COVID-19 shutdowns. While some have recommended suspending the JumpStart tax to increase competitiveness and attract new companies, the mayor’s budget plans have been praised for balancing the budget without raising taxes.

In total, the JumpStart tax is expected to provide $287 million to the general fund, supporting essential services and allowing the city to make historic investments in housing and homeless services. The proposal also includes funds for youth mental health, safety, and climate action initiatives. The higher amount of revenue collected through JumpStart than originally predicted when the tax was enacted gives the city the ability to maintain spending forecasts while addressing current budget challenges.

City leaders have emphasized the importance of utilizing the additional JumpStart funds to prevent service cuts and maintain essential programs while also investing in areas that need support for recovery. Harrell’s budget proposal has received support from organizations like the Chamber of Commerce, which commended the mayor for his efforts to balance the budget without raising taxes and make investments in public safety, downtown revitalization, and hosting the FIFA World Cup 2026. Overall, the budget aims to address current financial challenges while positioning the city for future growth and stability.

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