On November 21, the Seattle City Council approved a budget for 2025 by an 8-1 margin, eliminating a $250 million deficit in the City’s $2 billion general fund without new taxes.
Councilmember Cathy Moore introduced legislation this month to create a 2% capital gains tax on investment-sale profits above $262,000 a year. The capital gains tax failed on a 6-3 vote but it could receive additional consideration in 2025.
A shift of $287 million in JumpStart tax revenue from affordable housing programs to the general fund enabled the Council to close the deficit while adding spending on public safety. Previous Councils did similar reallocations of JumpStart revenues since its creation in 2021. Despite the shift of JumpStart revenues, the 2025 budget includes a record $340 million in spending on affordable housing, thanks for voter approval of the housing levy in 2023. The Council also authorized limited cuts to jobs and programs.
