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Spokane County reports stronger-than-expected sales-tax receipts while warning of a looming budget gap
Summary
County budget staff told commissioners that April sales-tax collections and year-to-date retail gains have improved revenue projections, but rising medical and liability costs and a widening gap between revenue and expenditures mean commissioners must consider revenue options and cuts before the budget is finalized.
Presenter (S6) told the Spokane County Board of County Commissioners on May 4 that April sales-tax collections came in at about $6 million — "the highest we've ever had" for April — and that year-to-date collections were about $2 million higher than the same period last year. "Sales tax is doing phenomenal," the presenter said, highlighting retail trade (up about 7.3%) and a 14% rise in the "other miscellaneous retailers" category, which includes many online purchases.
County staff said the average sales-tax growth rate used in forecasts is roughly 4%, with a rolling growth figure near 5.3%. At the same time, staff warned the board that overall revenue growth across all sources is projected at about 1.2% while expenditure growth could run near 6.3% over the forecast window, producing a multi-year shortfall in illustrative scenarios. "Roughly three quarters of our budget is law and justice," a staff member (S1) said, noting that…
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