The Seattle City Council is raising questions about what to do with the larger-than-expected proceeds from the city’s sweetened beverage tax.
During a review of Seattle Mayor Jenny Durkan’s budget proposal, council members openly mused about the increased revenue projections and why the mayor’s proposal didn’t use the funds for the intended purposes.
The city now estimates the tax will raise $20.6 million in its first year. The tax, which imposes 1.75 cents per fluid ounce on sugary drinks, was previously expected to raise around $14.8 million.
Seattle Councilmember Debora Juarez noted the increased revenue did not account for increased spending on food banks.
“It'll be flat-lined like it was before, and that's a problem,” said Juarez, who joined with her colleagues to approve the measure last year.
Proponents believe the measure will decrease consumption and help raise money for healthy living programs and education. It also raised funds for food banks.
However, despite the increased projections, there is no increased spending on food banks, according to the documents presented to the council.
“It’s unconscionable,” said Juarez. “It’s like a switch and bait.”
Juarez criticized the proposal saying, “that is inconsistent, that is not who we are, and that is not reflective in the law.”
Other council members also expressed some concern and suggested there could be potential changes to the revenue spending plan.
Mayor Durkan’s office responded in a statement to KING 5:
“Mayor Durkan’s proposed budget plan reflects her commitment to focusing on essential services, addressing our affordability crisis, creating a more inclusive Seattle, and investing in a city of the future. That’s why her proposed budget invests in sustainability, food security, and expanding access to transit.
In developing her new budget plan for Seattle, Mayor Durkan evaluated all available revenue streams and efficiencies to ensure the City of Seattle is living within its means. The City Budget Office and the Mayor’s Office have not received proposed cuts from City Council that would make up for re-appropriating Sweetened Beverage Tax revenue.
Another piece for further background on the budget: The Mayor’s proposed budget both continues and expands funding for healthy food access and educational readiness for children and high school graduates, among other programs, consistent with the intended uses of the Sweetened Beverage Tax.”
The Seattle City Council will continue reviewing the budget this month and typically votes on a final budget around Thanksgiving.
