MYNORTHWEST POLITICS

Seattle Mayor Katie Wilson considering 5–10% budget cuts across city departments

Feb 27, 2026, 8:18 AM | Updated: 2:53 pm

Katie Wilson Seattle budget Starbucks starlink term homelessness prevention...

Seattle Mayor Katie Wilson gives the annual State of the City address at the Langston Hughes Performing Arts Institute on Feb. 17, 2026. (Photo courtesy of the Seattle Channel)

(Photo courtesy of the Seattle Channel)

Seattle Mayor Katie Wilson is eyeing possible budget cuts across most city departments.

A memo sent out earlier this week, obtained by The Seattle Times, stated that Wilson’s office is asking for proposals to cut between 5-10%.

The cuts aren’t guaranteed, but they signal the city is looking beyond new taxes to close budget gaps.

“The intention is not to make across-the-board cuts,” the memo read, according to The Seattle Times. “This is about identifying options.”

Seattle has struggled financially since 2020. The city extended pandemic-era programs while labor costs rose and sales and property tax revenues fell. That’s left the city with annual shortfalls, often surpassing $100 million.

The City of Seattle faces an approximate $140 million deficit in 2027. That deficit could grow to more than $300 million by 2029, legislative staffers told The Center Square.

According to Seattle’s City Budget Office Director, Aly Pennucci, “all options are on the table” when it comes to cutting programs and services.

Wilson also continues to push for more taxes targeting the city’s wealthy population and corporations.

It’s not uncommon for Seattle mayors to request budget cuts to city departments. Former Seattle Mayor Bruce Harrell asked departments to plan for reductions to avoid layoffs or significant program cuts.

In 2024, Harrell claimed the city saved approximately $128 million, but financial analysts forecast that Seattle will face a $240 million drop in revenue over the next two years.

In November 2025, Harrell signed the City of Seattle’s 2026 budget into law, totaling $8.9 billion in appropriations overall. The council passed this budget unanimously. 

In the last 10 years, Seattle’s population has grown from 686,800 to 816,000 (an increase of 19%), while inflation has driven up costs by 44%.

MyNorthwest has reached out to Wilson for comment.

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