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Pending union contracts and retroactive pay are major unknowns in Spokane’s budget
Summary
Staff told council that several bargaining units have contracts ending in 2024–26 and that retroactive payments and new agreements could materially affect the general fund, which is heavily personnel‑driven.
Presenters said the city is engaged in negotiations with multiple bargaining units and that outcomes will be a major financial determinant for the general fund because personnel composes the majority of expenditures. Staff listed that some local contracts ended in 2024–25 and that police and other contracts run through the end of 2026; retroactive payments will carry fiscal consequences once settled.
A presenter said, "The outcome of these negotiations will be massive for us financially," and added staff aim to keep expense growth within historical revenue growth (~3%) but acknowledged that prior contracts and pandemic‑era pressures constrained options. Council members pressed for earlier definition of potential revenue options and for earlier conversations about possible revenue changes so budget choices are not delayed until the adoption date.
