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Spokane officials warn of tightening budget, large uncertainties ahead
Summary
City presenters told the Spokane City Council that rising costs and uncertain state revenue forecasts mean a tighter outlook for the 2027–28 biennial budget; officials flagged inflation, higher interest rates, union bargaining and medical claims as key pressures.
Council President opened a study session on the city’s finances and turned the briefing over to the mayor and staff, who framed the outlook as precarious. "It's not very good news," the mayor said up front, warning that most indicators are moving in an unfavorable direction as the city heads into budget season.
Jake Miller and staff walked council through macroeconomic indicators and the state forecast, noting a recent CPI of 3.5% (down from 4.2%) and a Federal funds rate around 3.63. Miller said the Economic and Revenue Forecast Council’s most recent projection shows a very wide range of possible state revenue outcomes, and the team is preparing conservative scenarios to reflect that uncertainty.
Presenters displayed three revenue scenarios—optimistic, expected, and pessimistic—and an expense forecast that is particularly sensitive to labor costs and retroactive pay. The pessimistic expense scenario assumes continuation of higher, COVID‑era contract growth that presenters described as unsustainable without a change in cost drivers.
The administration outlined the near‑term budget schedule: draft CIP by the end of August, a preliminary budget delivered Oct. 5, and a proposed 2027–28 operating budget to council by Nov. 2, with final adoption historically timed in mid‑November to early December.
