Parks Tacoma $8M budget shortfall prompts layoffs, program cuts
Oct 6, 2025, 5:30 PM
A Tacoma Park sign is posted outside a park in the City of Tacoma. (Photo courtesy of KIRO 7)
(Photo courtesy of KIRO 7)
Several Parks Tacoma employees were laid off last week as the department faces an $8 million budget shortfall.
Of Parks Tacoma’s 464 employees, 14 workers were laid off on Sept. 29, with 10 employees accepting a voluntary separation program, and 25 vacant positions were closed, Parks Tacoma announced.
“As with most public agencies, the biggest line item in the Parks Tacoma budget relates to staffing because we are focused on service. Those costs typically compound over the years, so difficult decisions about reducing staff had to be part of the solution to put us on a sustainable path,” the agency stated.
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Parks Tacoma cites low revenue, high expenses
The budget shortfall traced back to underperforming revenue and expenses that were higher than anticipated.
Lower-than-expected revenue factors included lower property taxes, grants, lease payments, and contracts. Parks Tacoma’s higher-than-expected costs included technology systems, security, and insurance costs related to liability, property, and employee health and dental benefits.
At the end of 2024, the Parks Tacoma budget was $7 million more than expected for the fiscal year. In an effort to close the gap, Parks Tacoma withdrew finances from its reserves.
In accordance with district policy, 5% of overall general fund expenditures should be held in reserves. In 2023, 22% was held in reserves, with plans to spend $4 million on operational expenses, which would bring the reserves to 11%.
Parks Tacoma claimed higher expenses and lower revenue caused the department to “dip deeper” into its reserve funds, putting Parks Tacoma on an unsustainable path.
Amendments will be worked on to alter the previously approved 2025-26 biennial budget. The Park Board will conduct its review of the budget in October and November to find a long-term approach.
A Parks Tacoma spokesperson told KING 5 that programs operated by the department’s general fund could be eliminated or receive adjustments to program fees.
A program fee change for pickleball has already taken effect as Parks Tacoma increased the cost to play within its facilities. Monthly passes to play pickleball have increased from $7 to $25, and annual passes have risen from $65 to $200. Drop-in fees have also increased from $3 to $10.
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