Tacoma Manager Proposed Budget Cuts and New Taxes
The city faces a $40 million structural deficit for the 2027-2028 biennial budget period.
Updated on Oct. 7, 2026 in Remote Work
Live Poll
Should your city prioritize maintaining specialized community response programs even during budget deficits?
Tacoma City Manager Hyun Kim has proposed a $5.3 billion biennial budget to address a $40 million structural deficit. The proposal includes the elimination of two alternative response programs and potential layoffs for 35 city employees.
Why it matters
The city is working to balance its finances as projections show expenses rising by 4.4% compared to a 3% growth in revenue. These measures aim to close the funding gap while maintaining essential city services.
The proposed 2027-2028 budget includes a new 10% tax on paid commercial parking and adjusted business license fees, projected to generate $2.25 million and $6.2 million respectively. These changes apply to businesses earning over $5 million annually.
The players
Hyun Kim
He serves as the City Manager of Tacoma and is responsible for proposing the municipal budget to the City Council.
Tacoma City Council
This is the legislative body tasked with reviewing and finalizing the biennial budget for the city.
Tacoma Police Department
This agency faces the loss of its Community Service Officer program under the new fiscal proposal.
Tacoma Fire Department
This department is slated to lose its HOPE team as part of the effort to reduce city spending.
The details
The budget proposal calls for cutting the Tacoma Police Department Community Service Officer program and the Tacoma Fire Department HOPE team, though the Homeless Engagement and Alternatives Liaison team will remain. The plan relies on these expenditure cuts and new tax revenues to achieve a balanced budget.
Timeline
April 2026: City officials announced a hiring and promotion freeze.
October 6, 2026: The City Council held a study session to review the budget proposal.
November 17, 2026: The City Council is expected to finalize the budget.
Market Landscape
This budget proposal follows a broader trend of municipal fiscal tightening, mirroring the city's decision to implement a hiring and promotion freeze earlier in 2026. These measures reflect a shift toward structural austerity to compensate for significant expenditure growth.
Residents and business owners may face increased costs due to the proposed 10% tax on commercial parking and tiered changes to business license fees. These adjustments are intended to stabilize city finances but will directly impact the operating expenses of local businesses.
The takeaway
The city is prioritizing structural deficit reduction over maintaining all specialized alternative response teams. Taxpayers and business owners should monitor the final budget approval on November 17 to understand the full scope of these fiscal changes.
What happens next
The Tacoma City Council is scheduled to conduct a final vote on the budget proposal by November 17, 2026.
Further reading
For more on how local policy impacts the workforce, visit the Remote Work section.
Source note: This article includes information reported by Tacoma News Tribune.
Live Poll
Should your city prioritize maintaining specialized community response programs even during budget deficits?
