City of Tacoma Presents Updated Financial Forecast as Next Step in ‘Roadmap to Recovery’ to Navigate National Economic Pressures
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~ In a recent presentation, the City of Tacoma's Finance Department revealed an updated financial forecast for the 2027-2028 Biennial Budget. This forecast comes on the heels of the City's "Roadmap to Recovery" initiative, a proactive and multi-year strategy aimed at protecting core services, balancing the budget, and securing Tacoma's long-term fiscal health.

According to the financial forecast, there is a projected $40 million structural gap in the General Fund for the upcoming biennium. This gap is primarily driven by compounding macroeconomic pressures, with the City's expenditures growing at a rate of 4.8%, nearly double that of its revenues which are only growing at 2.9%. The City is facing challenges such as fuel price volatility and rising costs for building materials and contracted services. Additionally, broad operational inflation, including a 41% increase in employee healthcare costs between 2021 and 2025 due to national market trends, has also contributed to this gap.

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Despite these challenges, the City remains committed to sound fiscal management and has developed a multi-biennium strategy to stabilize spending through structural realignments. This approach aims to keep Tacoma on solid financial footing through 2030 and avoid short-term solutions that may be reactive in nature. As part of this strategy, essential public safety and infrastructure services will be prioritized.

Recognizing that its employees are essential partners in delivering high-quality public services, the City is engaging in open and transparent conversations with its 31 bargaining units to find sustainable operational solutions. The planning process for the 2027-2028 Biennial Budget is designed to be highly collaborative, with opportunities for community input through surveys and interactive online resources like the Balancing Act Tool.

The City encourages community members to share their priorities as they play a crucial role in driving the recovery process. More information on the Roadmap to Recovery initiative and opportunities for community engagement in the budget planning process can be found at tacoma.gov/roadmaptorecovery.

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