Spokane library warns of 2027 shortfall, says levy increase likely to avoid service cuts

Andrew Chance, director of Spokane Public Library, told the City Council on Tuesday that the system faces a structural funding shortfall that could force cuts to hours, locations and staff if new revenue is not secured.

"Less investment in the library is less investment in the community," Chance said, arguing that the library now functions as a citywide platform for education, workforce readiness and digital access. He told council members library visits exceed 1,000,000 and said they are "close to 1.3 million" annually.

Nicole, the library's finance director, reviewed the library's revenue history and projections, saying the system's levy — currently 7¢ per $1,000 of assessed value — helped stabilize operations after a 2014 payroll crisis. "Our total purchasing power loss over that period of time is $22,000,000," she said, and the levy has provided about $21,000,000 since inception.

Nicole and Chance said citywide budget pressures, rising interfund charges and inflation have left the general-fund contribution flat while operating costs have risen. Nicole said the library absorbed $7.7 million in cost increases between 2024 and 2027 driven by no general-fund inflation adjustment (~$3.9M), new city charges (~$2.0M) and safety costs (~$1.8M). She added that a recent state auditor finding led to a clawback of investment earnings that absorbed roughly 23% of this year's $500,000 in additional support from the city.

Facing that gap, staff told council they are preparing to ask voters next year for a larger levy lid lift. "We're currently at 7," Nicole said of the levy cents per $1,000; she said the library is looking at an ask "likely 30¢, probably more," depending on the city's general-fund outlook and public appetite. Chance warned, "If we do not see an increase for 2027, you are going to see service reductions. There will be staff layoffs likely."

Council members pressed staff on specifics. Officials said peer comparisons show Spokane operates eight locations on a smaller budget than some cities: Chance cited Salt Lake City's $33 million annual operations budget versus Spokane's approximately $14–15 million (staff noted the figures were annual and drawn from 2025 peer data). Council members also asked which branches see the most use; Chance said meeting-room use is high at Hilliard and circulation strong at South Hill and Shadle.

Staff presented alternatives to a large levy ask but cautioned most are longer-term or challenging: forming a municipal library district would require state law changes and multi-city coordination and is not a near-term fix; embedding a funding formula in the city charter could improve predictability but would require a charter process. Staff and board members highlighted creative partnerships (for example, housing projects with Thrive International) and shared infrastructure that stretch limited dollars but do not replace core operating revenue.

Library board members and several council members emphasized the library's broad community role, from after-school programs to digital access and climate-resiliency hub functions. Board members urged collaboration with council on outreach and on a levy timeline that would allow public education; staff said an April ballot timing next year would give time for community engagement and, if necessary, allow a revised ask later in the year.

No formal action or vote was taken at the meeting. Staff said they will continue consultations with council, develop a public engagement plan and return with more detailed levy scenarios and a recommended timeline.

The council adjourned after the discussion.