Spokane finds itself grappling with a severe financial shortfall, currently owing two months of unpaid jail bills totaling a staggering $1.3 million to the county, a direct consequence of city officials diverting $6 million from the state’s criminal justice sales tax specifically earmarked for homelessness programs. This fiscal dilemma casts a critical spotlight on municipal budget management and the challenging choices faced by local governments in balancing public safety with social welfare initiatives, threatening vital city services.
City leaders contend that their Jail Funding costs are escalating disproportionately when compared to Spokane County’s expenditures, even as the primary fund designated for these charges now stands nearly depleted. This assertion comes despite county taxpayers already bearing the financial burden for approximately 2,500 felony offenders apprehended within city limits, suggesting a more complex narrative behind the rising expenses than initially presented by city officials.
The genesis of this Fiscal Crisis can be traced through mayoral administrations. Former Mayor Nadine Woodward’s tenure, beginning in 2020, inherited a robust Criminal Justice Assistance Fund (CJA) with roughly $12 million. However, by the time Mayor Lisa Brown assumed office in 2024, only about $2 million remained, leading directly to the city’s current cash-strapped situation and its inability to cover crucial obligations for jail services.
The significant depletion of the CJA fund stems largely from legislative changes approved in 2021, which permitted local governments to repurpose criminal justice tax revenue for Homelessness Programs and behavioral health initiatives, as well as to supplant existing funding. This authorization subsequently led to substantial transfers, including millions directed towards homelessness programs and other city departments, illustrating a strategic shift in the allocation of Public Funds.
In 2022 and particularly in 2023, under the previous administration, major one-time transfers from the CJA fund included considerable amounts for Homelessness Programs, police department contracts, and interpreter services. These diversions, highlighted by then-mayoral candidate Lisa Brown, underscored a pattern of “depleting the city’s account” and “spending beyond the city’s means,” effectively using one-time funds to address compounding budget deficits.
Even the current administration, led by Mayor Brown, has continued to draw from the CJA fund for various expenses in 2024 and projected into 2025, further exacerbating its precarious state. While the city anticipates stabilizing the CJA fund through the general fund, this solution presents its own challenges, as the general fund itself faces a projected deficit of approximately $13.4 million for the upcoming year, deepening the overall Spokane Budget woes.
A key aspect of the ongoing dispute involves the billing methodology for inmate days and the responsibility for felony versus misdemeanor charges. The county currently bears the cost for felony inmates, even if arrested by City Government police. However, discussions are underway to modify contracts, pushing cities to become responsible for their actual portion of costs on a per-individual misdemeanor charge basis, potentially shifting a greater financial burden onto Spokane.
Despite the immediate cash crunch and the accumulating Jail Funding bills, city officials have indicated a plan to utilize newly received tax revenue to make payments in the coming days, offering a short-term reprieve for the CJA fund. Nevertheless, the long-term sustainability of the fund remains a significant concern, emphasizing the pressing need for a comprehensive and enduring strategy to address Spokane’s ongoing Fiscal Crisis and ensure the responsible management of its Public Funds.
