Seattle’s COVID aid cash to concentrate on direct assist, housing

“This proposal will fuel Seattle’s recovery by giving priority to the economic recovery of our businesses, revitalizing our neighborhoods and increasing housing and shelter for the needy,” Durkan said in prepared remarks.

Seattle’s proposal comes days after King County Council approved $ 367 million in federal dollars, which is part of the county’s larger $ 631 million COVID aid package.

A little over a year ago, Seattle faced a gaping gap in its budget as COVID-related shutdowns dried up the local economy. But the state aid, combined with a new payroll tax for large corporations, has reversed the city’s fate. The result is an agenda that aims to go further than fixing what the coronavirus broke and realigning how the city addresses some of its longest running challenges.

“It responds to both the moment of crisis and the urgent need for direct cash injection for small businesses and workers and our most vulnerable,” said Councilor Teresa Mosqueda, Chair of the Council’s Committee on Budgets. “But I think it also prepares us for a fairer economy…. It was kind of a short-term and long-term wish that we put into this proposal. “

Seattle will receive $ 300 million from the U.S. bailout bill signed by President Joe Biden earlier this year. About $ 232 million of that dollar is flexible while the rest is more tied to specific priorities, such as: B. Rent Assistance and Seniors Assistance.

The council and mayor will consider nearly half of that dollar as of June – $ 116 million in flexible dollars plus $ 12.2 million allocated by the federal government for homelessness – with the second half during budget discussions to be split in autumn for 2022.

The city’s priorities for dollars reflect the challenges posed by COVID as well as the issues the city faced prior to the pandemic. These include housing and housing support, small business recovery, “neighborhood activation”, job placement, expansion of city services and direct cash support to residents.

Most of the pie would go towards housing and homelessness as service providers acknowledge the desire to avoid a return to the overcrowded housing model.

“Our region’s homelessness crisis has been compounded by the economic, health and social impact of the pandemic,” Durkan said.

With nearly $ 50 million in new spending this year, the city can expand temporary housing assistance for 185 households, pay for nearly 500 residential vouchers through the Seattle Housing Authority, expand lots for 25 RVs, and permanently build or purchase another 300 affordable homes in the next two years.

Mosqueda says now is an excellent time for the city to buy buildings as some businesses, particularly those in the hospitality industry, may not return. “You don’t want dilapidated buildings when you have a housing crisis and homelessness,” she said. “We have to buy these buildings, just like the county is doing, and convert them into either apartments or accommodation.”

Another major investment the city plans to make is in direct cash aid to low-income residents – approximately $ 25 million. Seattle doesn’t have a long history of distributing checks, but has previously served immigrants and refugees who did not qualify for other forms of government assistance.

Under the plan, the city would also spend $ 22 million on so-called “community recovery” – support for small businesses, grants for specific neighborhoods, and funding for nonprofit arts and cultural organizations.

Temporary cash injections like the federal government’s run risk creating funding cliffs when those temporary dollars disappear. Mosqueda said Seattle is trying to avoid this by investing heavily in capital purchases, such as old hotels that serve as shelters.

The city is also heavily dependent on its new “JumpStart” corporate income tax, which is expected to raise approximately $ 200 million a year. However, this tax is being challenged in court; the first oral arguments are scheduled for friday.

King County Council passed the seventh round of emergency COVID dollars earlier this week – a $ 631 million package that includes $ 367 million of U.S. federal rescue plans.

The mayor and city council hope that the first round of spending will be approved in mid-June. They will go into the second round later this summer.