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Seattle announces hiring freeze as budget gap balloons to $229 million

(The Center Square) – Seattle Mayor Bruce Harrell is instituting a partial hiring freeze due to the looming budget gap that is now projected at over $229 million.

Harrell’s office and the Seattle City Budget Office informed department directors and finance managers that a partial hiring freeze is being instituted, citing “significant financial gap forecasted in 2025.”

According to an email sent to The Center Square by Jamie Housen, the mayor’s director of communications, the city’s fiscal challenges are more significant than were previously known when the 2024 budget was adopted.

The city previously estimated that expenses would grow by $547 million from 2022 to 2026, outpacing increases in revenue and leading to a projected $221 million budget deficit in 2025.

The new estimate is requiring the city to take immediate action to lessen the impact of increasing costs. However, Housen noted that not all departments will be subject to the hiring freeze.

First responders, such as police officers, fire fighters, and the Community Assisted Response and Engagement department staff are excluded. Other employees that provide essential public services and employees backfilling for those using the city’s Paid Parental Leave or Paid Family Care Leave are exempt as well.

Any vacant positions for which an offer was extended before Jan. 19, 2024 are exempt from the hiring freeze as well, according to Housen.

The city is conducting an analysis of its spending, as well as other strategies to improve efficiencies while prioritizing the needs of residents to address the forecasted budget gap. The Seattle Mayor’s Office will work in collaboration with the Seattle City Council to implement these new strategies to address the $229 million budget gap.

“Mayor Harrell remains committed to thoughtfully considering all factors, including the potential for new or adjusted revenue sources, to help the city reach a sustainable fiscal trajectory,” Housen said to The Center Square in an email.

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