Spokane finance staff warn of widening budget gap; 6-year forecast projects roughly $52 million shortfall in 2031

Spokane budget analysts told the City Council study session that the city faces a fast‑growing structural deficit driven by slow revenue growth and escalating personnel costs. Jacob Miller, a budget analyst, presented the 6‑year general fund forecast and said, “the 2031 annual deficit is forecasted to be over 50,000,000. Around 52 exactly.” The forecast also shows a cumulative shortfall of more than $200 million over the projection window. City staff warned reserves and unappropriated fund balance could be exhausted by the end of 2027 if current trends continue. The forecast frames the problem as a combination of weak sales tax growth, limited property tax capacity and rising compensation and benefits. Jake (Jacob) Miller told the council the forecast assumes no property tax levy lift beyond state limits and no new city sales taxes; it also assumes the city will revert utility tax rates back down in 2027 as previously planned. Sales tax projections used by staff are…