City manager orders discretionary spending freeze, restricts travel and hiring approvals

City Manager Jay Berney announced a discretionary spending freeze affecting city departments, effective June 1, and asked department directors to limit spending to necessary safety and priority work.

Berney told the Olympia City Council he had “implemented a restriction on out of state travel unless required for certifications and we have implemented a soft hiring freeze which means all positions must be approved by me before an offer of employment is made.”

The move applies to discretionary budgetary items, with exceptions for safety equipment and funds required to advance council priorities. Berney said he will continue to monitor sales tax and other indicators and would work with the council to adjust direction if revenue conditions improve.

The city manager framed the steps as temporary and fiscally prudent. “I believe this is a responsible decision at this moment in time,” he said. He also noted the measures will be part of ongoing budget conversations leading into preparations for the 2026 budget and will be discussed further at the council’s midyear retreat.

Council members acknowledged the announcement in the meeting’s opening discussion. No formal vote or ordinance accompanied the announcement; the spending restrictions were presented as administrative direction from the city manager and will be implemented through department-level controls and future budget work.

City staff and the council indicated they expect to revisit the measures if city revenue indicators change.

The announcement came during a regular council meeting; Berney said department directors had been involved in developing the approach and thanked them for their support and input.