Seattle’s progressive tax revenue is DOUBLE what’s initially projected – what does it mean?

Since the progressive tax was first passed in 2020, revenue from JumpStart has been solely dedicated to funding critical community services with a long-term spending plan on affordable housing, climate resilience and equitable development programs. JumpStart has become the single largest source of funding for affordable housing in Seattle, accounting for $240 million of the Office of Housing budget between 2022 and 2023. It is also the only funding source for community environmental justice programs, and has become a major funding source in nearly 35 community-led projects intended to root families in place and fight displacement in a city with an ever-skyrocketing cost of living.

JumpStart is a progressive tax on big businesses, specifically those with at least $8 million in annual payroll. It was initially projected to make $227 million by 2024, but as we near the end of the year, it is poised to make $440 million.

Every budget season Mayor Harrell has attempted to take money made from the JumpStart revenue to rebalance the city budget. This incoming budget cycle Harrell plans to change the legislation altogether, changing JumpStart’s spending restriction so the City can use it to backfill the city’s general fund. With this, Harrell also plans to increase the budget of the Seattle Police Department by $60 million.

A drastic increase of this revenue means that the disparity between rich and poor in Seattle is greater than ever before. What is needed is not more policing or encampment sweeps, but a doubling down on investments towards social safety nets, equitable community-driven projects and climate resilience programs to make sure no one is left behind in the name of “progress”.

Puget Sound Sage, along with a broad coalition of progressive organizations, are advocating to stop this proposed legislation. Stay tuned for more updates on JumpStart during this budget season!