Upward revision Seattle forecast shows slight improvement amid ongoing economic volatility

Seattle's 2026 budget forecast shows an upward revision of $14. 6 million, offering cautious optimism as the city faces ongoing economic volatility. This adjustment is part of the city's efforts to finalize Mayor Bruce Harrell's budget plan, which relies heavily on business and sales tax revenue. A key proposal on the November ballot seeks to cut the B&O tax for small businesses while increasing taxes on corporations like Amazon and Starbucks, potentially generating $81 million in new revenue. Council President Sara Nelson urged caution, emphasizing the need to protect essential services amid uncertainties from tariffs and federal funding cuts.

The budget plan allocates 50% of spending to public safety, with overall police expenditures exceeding $490 million annually. Transportation and education spending will receive stable increases, while arts and culture allocations will decrease. The Seattle City Council continues budget discussions, with a final vote on the package set for November 21st. This budget reflects the city's ongoing challenges in funding social services amid economic fluctuations.