Seattle's economy is facing some stormy weather, and City Hall might need more than just an umbrella. With budget deficits looming and some creative financial juggling, the city's financial forecast is looking a bit...foggy.
Here are Five Fast Facts on Seattle's Budget Challenges:
- 🌧️ Budget Blues - The city council is adopting a “pessimistic” view of projections to help avoid falling into a recession. That’s probably wise, with an $80+ million deficit on the horizon for at least the next couple years.
- 📈 Open The Floodgates - The Washington State legislature is working on a bill to allow cities and counties to increase their property taxes. If it passes, buckle up for higher property tax and rental bills! ‘Cause that’s what everyone wanted, right?
- 💸 JumpStart Tax Detour - One big curveball is the JumpStart payroll tax. It was intended to rake in cash from profitable tech giants...except that those tech giants moved a lot of their jobs elsewhere to avoid the tax! Can we say oops? Also, who didn’t see this coming??
- 🐌 Glacial Growth - Seattle-area job growth was less than 1% last year, partly due to a big drop in construction jobs. This is even less than the meager 1.3% national growth rate. It seems the market for big office buildings isn’t exactly popping after those tech giants moved away.
- 🤦 Did Anyone Else Notice This? - There is one sector of Seattle’s economic growth that did really well last year: government jobs. Of course, when you consider that government actually sucks money out of the pockets of normal folks rather than produces goods or services that boost the economy...well, it’s the kind of bright spot that also blinds you.
🔥Bottom line: Seattle's financial strategy seems to involve a mix of hope, duct tape, and borrowed funds. While some initiatives are getting a boost, others are left in the rain. City Hall might need to invest in a crystal ball—or at least a better calculator—to navigate the stormy economic seas ahead. One might say the forecast is cloudy with a chance of confusion.
What do you think about this?
Let us know by connecting with us on Facebook and Instagram! Also, remember to share this newsletter with your friends & coworkers!
BTW, If you’ve read this far and haven’t yet signed up for the weekly Paycheckology newsletter, CLICK HERE!
