In a recent government meeting, city officials discussed significant budgetary measures taken in response to a projected deficit. Early in 2024, the mayor implemented a hiring freeze, which allowed the city to save approximately $19 million by not filling most vacant positions. However, exceptions were made for critical roles, ensuring essential services remained operational.

Additionally, the city collaborated with labor partners to utilize an unallocated health care fund balance, often referred to as a \"health care holiday,\" which contributed to further savings for the general fund. The meeting highlighted a positive turn in the August revenue forecast, which provided a modest boost to the general fund and a more substantial increase for the payroll expense tax fund.

Despite these measures, officials acknowledged the necessity of programmatic spending reductions, which included layoffs. The average reduction across city departments was reported to be around 5%, amounting to approximately $80 million in cuts from a starting budget of $1.6 billion.

Council members emphasized the importance of preparing for potential budget impacts from an upcoming levy vote, urging proactive discussions to ensure readiness for various scenarios. The Seattle Department of Transportation (SDOT) is expected to present a readiness report soon, detailing plans for implementing the levy should it pass.

Overall, the meeting underscored the city's ongoing efforts to navigate financial challenges while maintaining essential services and preparing for future fiscal responsibilities.