Spokane: Brown Administration Announces Two New Cost-Saving Measures
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~ Spokane Mayor Lisa Brown announced on Wednesday that the city is taking further steps to eliminate its structural budget deficit. The measures, proposed by Mayor Brown and agreed upon by the Managerial and Professional (M&P) Association leadership, include a voluntary retirement incentive for eligible city employees and a six-month freeze on cost-of-living adjustments for Cabinet members.

Under the proposed retirement incentive, employees who meet specific criteria will receive a lump sum contribution into an HRA/VEBA account. The amount of the contribution will vary based on an employee's years of service with the city, with a maximum of $20,000 for those with 20 or more years of service. This incentive can be used to continue medical and dental coverage under COBRA, pay for private coverage premiums, or cover other allowable expenses under the HRA/VEBA plan.

To take advantage of this opportunity, employees must apply by 5 p.m. on October 11, 2024 and separate from the city no later than December 3, 2024. The proposal will need to be approved by the City Council before it can be implemented.

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In addition to the retirement incentive, Mayor Brown has also implemented a six-month freeze on cost-of-living adjustments for Cabinet members in order to further reduce costs. These measures are part of a larger effort by the Brown Administration to address the city's budget deficit.

Other cost-saving measures that have already been put in place include a voluntary retirement incentive for eligible Spokane Police officers, renegotiated IT contracts, elimination of the Reprographics Department, elimination of vacant positions deemed unnecessary, mandatory furlough days for Cabinet members, and updated revenue forecasts based on actuals from 2024.

Thanks to these efforts, Mayor Brown has already reduced the structural deficit from $25 million to $14 million as of September 1. She expressed her commitment to responsible financial management and her determination to bring the city's budget back into balance.

"When I took office, I made a promise to our residents to manage the City of Spokane's finances responsibly," Mayor Brown stated. "Today's updated projection is a testament to that promise. Through careful planning and tough decisions, we have made significant progress in reducing our budget deficit and we will continue our work to fully get back on track."

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