SPOKANE, Wash. — Spokane Mayor Lisa Brown announced two measures that the city says will help reduce the City's structural budget deficit.
The City said Brown is proposing a voluntary retirement incentive for city employees who meet certain criteria.
This would give a lump sum incentive contribution into an HRA/VEBA account for the following employees:
- $10,000 for employees with at least 10 but less than 15 years of service
- $15,000 for employees with at least 15 but less than 20 years of service
- $20,000 (maximum) for employees with 20 years or more of service
The city said employees would use the funds to contribute to their medical and dental plans under COBRA, pay for premiums for private medical or dental coverage or pay for other allowable expenses in the HRA/VEBA plan.
If City Council approves the plan, eligible employees would need to apply by 5 p.m. on Friday, October 11. The city also said approved employees have to separate from the city no later than Tuesday, December 3.
Brown also announced a six-month freeze of the 2025 Cost of Living Adjustments (COLAs) for cabinet members.
The city said the COLAs do not need to be approved by City Council, but the voluntary retirement incentive does need to be approved.
The city already has the following measures to help with efforts to reduce the budget:
- Voluntary retirement incentive for eligible Spokane Police officers
- Renegotiated IT contracts
- Elimination of the Reprographics Department
- Elimination of vacant positions deemed no longer needed
- Mandatory Cabinet furlough days
- Updated revenue forecasts based on actuals of 2024
The city said the structural deficit has been reduced from $25 million to $14 million as of September 1. The $25 million is in the city's general fund that helps fund most services like public safety and parks.
