2027 – 2028 Biennial Budget Development

Financial Forecast Frequently Asked Questions

What is the City’s budget process?

The City develops its budget through a process that includes financial forecasting, community engagement, departmental planning, and City Council review. Every two-year (biennial) budget goes through stages: baseline analysis, development of proposals, public discussion, final adoption, and ongoing adjustments.

When is the 2027–2028 Proposed Budget being developed?

Work on the 2027–2028 Proposed Budget takes place throughout 2026. A balanced proposed budget will be presented by the City Manager in accordance with City Council priorities in early October 2026, with City Council reviewing, discussing, amending, and adopting the final budget by the end of the year. Budget adoption typically happens in November.

How does the budget calendar work?

• Ongoing: Community engagement
• Spring: Early year forecasting 
• Spring – Summer: Staff development of a proposed budget  
• Fall: Department work sessions and proposed budget presentation  
• November: Council adoption
• Late Fall – Winter: Final budget published 

What is the Roadmap to Recovery?

The Roadmap to Recovery is the City Manager’s long-term plan to build a more financially resilient Tacoma. It includes short-term work in 2026 to stabilize operations and longer-term strategies through 2030 to improve city services and financial stability. For more information, visit tacoma.gov/roadmaptorecovery. 

How does the budget connect to the Roadmap to Recovery?

The 2027–2028 Proposed Budget is one of the first major steps in a multi–biennium recovery plan. Decisions made now set the foundation for long-term improvements in City services and financial sustainability. 

What are the City’s economic conditions right now?

The economy shows both strengths and challenges. Advantages include steady employment, population growth, credit rating improvements, and investment activity. Challenges include inflation, consumer uncertainty, higher fuel costs, and local pressures such as growth-related service demands and construction slowdowns.

What is the General Fund and why is it important?

The General Fund is the City’s main operating fund and pays for many core services such as public safety and libraries. It is also the most flexible fund in the City. While dollars from many other funds can only be spent on specific purposes, General Fund dollars can be allocated to any City program or service.

What is a “structural gap”?

A structural gap occurs when ongoing expenses grow faster than ongoing revenues. For 2027–2028, the City forecasts a $40 million gap in the baseline budget, with the gap increasing over time if no action is taken. The baseline budget consists of expected revenues and expenses, but does not include any proposed budget adjustments.

What is driving expenses upward?

Key cost drivers include wage increases, rapidly rising healthcare costs, inflation in goods and services, and increased demands on internal services.

How are revenues performing?

Overall revenue growth is slower than expense growth.

• Sales tax is sensitive to economic conditions.
• Property tax growth is legally limited to 1% per year, plus certain exceptions such as new construction.
• Business and utility taxes face downward or uncertain trends.

How can residents participate in the budget process?

Community engagement is a key part of budget development. Residents can:

• Use the Balancing Act Tool (launching July) to explore budget tradeoffs.
• Review updated budget information available on this page. 
• Read results of the community survey (publishing June 2026).
• Participate in City events and targeted online engagement opportunities. List of opportunities with dates and times still to come.  

What happens next?

Through summer/fall 2026, the City will review department proposals, refine forecasts, and incorporate community and Council input. A balanced proposed budget will be delivered to Council in October 2026.