Councilmember Teresa Mosqueda (Position 8, Citywide), as Chair of the Finance and Housing Committee, and her Council Colleagues will receive an updated revenue forecast tomorrow, April 20, 2021, during her committee, showing Seattle’s revenues are recovering as the local economy continues to improve and maintain modest growth.
An early presentation released by the City’s Budget Office (CBO) highlights an additional $40.4 million in expected revenue in 2021, and shows improving local economic conditions as Seattle consumers are spending again and employment numbers rebound. The CBO’s office also recommended caution, however, as there is still uncertainty in the construction sector and professions where many employees are still working from home.
“This improved economic forecast is welcome news as our City looks to support residents and workers who are and have been facing trauma through the COVID-19 pandemic while looking towards long term goals such as housing, homelessness and economic resilience. It means we can begin, in combination with Seattle’s JumpStart progressive revenue and federal CARES Act and ARPA funds, to holistically consider investments in recovery and revitalization, such as direct financial assistance to struggling families and creating more affordable housing and childcare options, while looking to rebuild our City’s rainy day funds,” said Mosqueda. “While this revenue forecast shows improvement, we must remain cautious and thoughtful in how we invest those federal dollars to aid in Seattle’s long term recovery and economic resiliency.”
The presentation by the City Budget Office shows sales tax revenue is slowly recovering, and the labor market recovery picked up speed during the first two months of 2021. This means the city can expect an additional $5.7 million in business and occupation taxes, $4.6 million in sales taxes and $17.5 million in real estate excise taxes, among other increases.
The full CBO presentation will take place during Tuesday’s Finance and Housing Committee at 9:30 a.m. Viewers can watch the presentation and committee discussion live on Seattle Channel.
As the Finance and Housing Chair, and the Council’s Budget Chair, Mosqueda will continue to engage with the City Budget Office throughout the year to learn about how our area is recovering from last year’s pandemic-fueled recession. The next economic forecast is due in August.