Spokane Valley staff warn of 2026 budget pressures after state data glitch and new police contract costs

Summary

City staff told the Spokane Valley City Council at its winter workshop that a Department of Licensing data error cut Transportation Benefit District revenue estimates by roughly $1 million and that newly negotiated collective bargaining costs for deputies will raise local police expenses over the next three years, creating a tighter 2026 budget.

Spokane Valley City Council members spent the winter workshop on a wide-ranging briefing about the 2026 budget, with staff warning that a state data error and recently settled law-enforcement pay increases will tighten available revenue and likely require choices on service levels and new revenue options.

City Manager John Holman reminded the council of its six adopted budget priorities — led by increasing public-safety response and prioritizing infrastructure maintenance — and said staff were seeking direction as they prepare the first draft of the 2026 budget for a June workshop. "Your number one budget priority was to increase public safety response to ensure everyone feels safe in Spokane Valley," Holman said.

Why it matters: Spokane Valley relies heavily on sales tax and a new Transportation Benefit District (TBD) vehicle-license fee to fund street maintenance and to free up general fund dollars for public safety. Staff told the council that both revenue and cost drivers are moving in the wrong direction for 2026, and that reserves and one-time balances used in 2024–25 will not be a sustainable long-term solution.

Transportation Benefit District shortfall

Eric (staff member) told the council that the state Department of Licensing (DOL) provided incorrect vehicle-count estimates used to model TBD license-fee revenue. "I'm gonna be the spoiler here.…

Spokane Valley staff warn of 2026 budget pressures after state data glitch and new police contract costs

Summary

Subscribe to keep reading