Eventually I see federal funding coming in some form or fashion. But, before that happens there will be legislative battles to be fought between the Republican-controlled Senate and the Democratically controlled House of Representatives. Therefore, the timing for any federal funding relief will be delayed by weeks, if not months.
Seattle Mayor Durkan's Message
This week, the City Budget Office released their latest economic forecasts and revenue projections for Seattle. Although there is still much uncertainty about the total economic impact of this pandemic, what we know for certain that the effect on our workers, small businesses, non-profits and artists will be felt deeply for months and years to come. It will be tough, but just as Seattle has overcome challenges in the past, we will overcome this too.
Before this pandemic, a mere eight weeks ago, Seattle had three percent unemployment and one of the most booming economies in the country. The new forecasts show a new devastating reality that will continue in the following weeks and months: significant job loss, high unemployment and significant impacts to the City budget including a potential $300 million reduction in revenue for 2020. This is approximately a 20% loss in our general fund for this year alone.
Understanding that our sales tax and business taxes would face significant impacts, I asked City departments in March to put a hold on or cut non-essential and non-COVID19 related hiring, travel, spending, and contracts. While this will create significant savings, the City must work to rebalance our budget while also provide additional resources for the crisis response to the most vulnerable in our community. The truth of the matter is, we have some tough decisions ahead of us. Those decisions will be made thoughtfully, and we will continue to prioritize the needs of those who need support the most.
To help our businesses, workers, and most vulnerable at scale, the City’s efforts alone won’t be enough. An important part of both assistance and recovery is resources from the State and federal government, and I will continue to do everything possible to get the region the resources we need to get through this pandemic and to rebuild a strong, equitable City.
As we think about the 2020 budget, the City’s continued crisis response to COVID19, preparing to re-open, and long-term recovery, my team is focused on three priorities: decreasing the community spread for COVID-19, creating plans to reopen that prioritize worker and community safety, and short term assistance and long term economic recovery for our workers and businesses.
My office and I will continue to focus on actions that get workers, families, and small business the relief they need. This week alone, we opened the doors of our libraries to increase the number of hygiene locations available to those experiencing homelessness, put a cap on the fees delivery app companies charge so more money can go directly to small businesses, and transmitted a plan to City Council to put $14 million towards rental assistance, small businesses and meals.
As always, remember to stay home and stay healthy. And, if you need to leave your house, be smart about it by keeping six feet from other people and wearing a mask.
