Spokane County Commission votes against property tax increase despite $20 million projected deficit

With economic uncertainties abound, property owners may be relieved to learn Spokane County leaders won’t collect more for county operations next year.

The Spokane County Commission voted unanimously Monday against a 1% increase in taxes that support the county’s general fund, road work and conservation efforts. The decision means a savings year over year for property owners, thanks to $1.4 billion in new economic development this year, said Jeff McMorris, senior director of finance and administration for the county.

“There’s more properties to share that total,” McMorris said.

Spokane County is expected to collect $67.1 million in property taxes for most operations in 2025. The vote against the increase will mean an annual savings of $2.20 for the owner of a $425,000 home, the 2024 average appraised value.

The savings increase for that average homeowner with the board’s decision not to raise rates for its road fund and Conservation Futures fund, which this year are expected to pull in $30.3 million and $2.5 million, respectively. That same homeowner will save an additional $5.30, and 7 cents, as a result of the levies staying the same. The county road tax is only collected outside cities.

“I think it’s a wonderful thing that we’re going to be able to pass on some sort of savings here,” Commissioner Josh Kerns said. “I, quite frankly, wish it could be more. I’m sorry it’s not.”

If the 1% increase was taken across the board, it would have generated an additional $671,000 for the general fund, $25,000 for Conservation Futures and $303,000 for the road fund. 

The commissioners cited a desire not to deepen the financial anxieties many are facing . That anxiety is shared among local government officials who’ve seen sales tax collections stagnate the past two years.

Spokane County’s bookkeepers identified a projected $20 million budget shortfall earlier this year, and in seeking to close that gap ahead of 2026, the commissioners asked all department leaders to cut expenses by roughly 7%.

Electing not to take the increase amid budget woes shows the diligent work of the commissioners and county staff over the past few months to balance the budget “with very minimal potential layoffs and cuts to services,” Commissioner Amber Waldref said.

Each of the commissioners took a moment to thank those behind the scenes who helped balance the budget, and made the savings for the taxpayer possible.

“It is truly because of you, identifying efficiencies and looking at your departments in new ways, that is making this happen, that we have a balanced budget at this point,” Commission Chair Mary Kuney said.

There are still troubled waters ahead. Waldref said she still has some concerns about what the budget will look like ahead of 2027, with county staff currently estimating a $17 million shortfall despite the cuts this year. Her peers echoed her concerns.

“It’s still a pretty daunting hole next year, or anticipated hole, and when we look at the fact that our county budget is over 70% public safety departments, I’m concerned as well for the out years,” said County Commissioner Chris Jordan. “Especially when I would expect that the demands in those areas are likely going to continue to grow.”

City and county governments in Washington can raise the amount they collect in property taxes by up to 1% a year without a vote of the people.

However, lawmakers included an exception that allows a local government to raise taxes more than 1% in a given year, if it has refrained from adding a whole percentage point in previous years. The leftover is accumulated and referred to as “banked capacity.”

The board added to their banked capacity for all three levies by not taking an increase this year, and could elect to use some of that banked capacity for 2027.

“I think we will likely see all choices needing to be on the table next year,” Jordan said.

Commissioner Al French said Washington residents already are having to contend with additional and new taxes at the state level included in a package passed by the Washington Legislature in the 2025 session.

“You’ll actually see a slight decrease in what you’re paying in terms of property tax, and for me, that’s the big issue. When I’ve got households that are suffering, the county should try and do all it can to minimize that impact.

At the same time, requirements and responsibilities for county governments are evolving, often due to legislation or state Supreme Court decisions, French said. The latter enacted new caseload standards for public defenders that will require additional staff and funding to fill those positions.

He hopes that next session, state lawmakers carve out more “opportunities for economic relief.”

To Kerns, Monday’s vote shows the dichotomy between the county and a state government that passed a multibillion tax package.

“I think this is very telling – sort of the tale of two jurisdictions,” Kerns said. “When you look at that, you know, we made hard decisions, we worked together, we worked with our departments and our other elected officials.”