Pandemic could leave $210M to $300M hole in Seattle budget
SEATTLE (AP) — New projections show the coronavirus pandemic may cause Seattle to collect $210 million to $300 million less than expected in tax revenue this year, Mayor Jenny Durkan announced Tuesday.
The city’s general fund, which pays for basic services such as parks and police, could be down by as much as $186 million, while other revenue sources that pay for other services could fall by as much as $114 million, The Seattle Times reported. The resulting $300 million shortfall would mean a 18% reduction in expected revenue.
The projections are based on”rapid recovery” and “slow recovery” economic forecasts that indicate the Seattle area could shed 65,000 to 170,000 jobs this year, according to a presentation by the city’s budget office.
The city’s budget relies greatly on property taxes, sales taxes and business taxes. Sales and businesses taxes are expected to plunge this year, as are real estate taxes.
https://www.msn.com/en-us/money/news/pandemic-could-leave-dollar210m-to-dollar300m-hole-in-seattle-budget/ar-BB130rgz
