Council approves 2024 carry-forwards and reduces jump-start transfer to balance revised forecasts

The Select Budget Committee approved two linked budget measures: Council Bill 121029, which authorizes the 2024 carry-forward appropriations for projects and grants that were committed but unspent, and Council Bill 121042, which reduces the 2025 transfer from the jump-start payroll expense-tax fund to the general fund to address a projected shortfall.

Why it matters: The carry-forward ordinance moves previously appropriated but unspent dollars into 2025 to allow projects and contracts to be completed. The companion transfer ordinance reduces the amount moved from the payroll-expense-tax ("jump-start") fund to the general fund so the jump-start fund remains solvent after an April downturn in revenue forecasts.

Key items approved: The committee approved a package of automatic and legislative carry-forwards totaling roughly $169 million across city funds, the largest portions of which were capital and housing-related approvals in the payroll expense tax fund (about $104 million requested in the package, with $61 million for multifamily housing projects). Other notable allocations included: - Equitable Development Initiative awards across funds (combined carry-forward request ~$52 million across funds); - Human Services and childcare facility development carries; and - Seattle Center, parks and transportation project carry-forwards and adjustments.

Budget balancing: The Office of Economic and Revenue Forecasts (OERF) told the committee that the April forecast reduced projected receipts for the jump-start payroll expense-tax fund by about $81 million across the biennium; the carry-forward package would have left that fund roughly $32 million short if transfers were not adjusted. Council Bill 121042 reduces the jump-start-to-general-fund transfer by about $32 million in 2025 to keep the fund in balance; committee members noted the change shifts short-term pressure onto the general fund and emphasized further monitoring as the August forecast becomes available.

Votes: Both ordinances were recommended to full council. In committee roll calls the measures passed with majorities (carry-forward passed with committee majority; the companion transfer measure passed on the committee floor). Committee members stressed that the August revenue forecast will determine whether further adjustments are needed in the fall budget process.

Context: Committee members said the carry-forward process is routine but complicated this year by a downgraded revenue forecast that requires recalibration of interfund transfers. Central staff and the budget office urged that the August forecast and the mayor’s transmittal of the 2026 proposed budget are the appropriate next steps to confirm long-term fund stability.