Speaker numbers apply only to this recording.
The Seattle City Council's Select Budget Committee convened on September 28, 2026, at 9:30 AM in the Council Chamber to hear department overview presentations on the Mayor's proposed 2027-2028 biennial budget. The Human Services Department (HSD) presented first during Session I, followed by the Seattle Department of Transportation (SDOT) and Office of Economic Development (OED) in Session II after a lunch recess. The meeting adjourned at 5:05 PM. Only written public comment was accepted; none were read into the record.
HSD Director Tanya Kim, Deputy Director Chris Klaeysen, and Budget Manager Amy Holland presented the department's proposed budget of $445.4 million for 2027 (a 5.8% increase over 2026). Key priorities were: delivering effective government, addressing homelessness, affordability, and community safety. Homelessness remains the largest investment area at 41% of the HSD budget. The proposed budget includes $184 million for addressing homelessness (6% increase), with $18.3 million for the Mayor's Shelter Accelerator Initiative to add 960 new beds (serving an estimated 1,750 people annually) and $6.5 million from the Housing Levy for homelessness prevention services. The budget also accounts for the return of $113 million in city-funded homelessness contracts from the King County Regional Homelessness Authority (KCRHA) to HSD, supported by 29 additional FTEs.
Fund Swaps & Fiscal Strategy: Councilmembers discussed several fund swaps to reduce general fund pressure, including $46.6 million from the JumpStart Fund for homelessness services, $329,000 from grant funds for Community Living Connections, and $393,000 shifting Utility Discount Program (UDP) administrative costs to utility ratepayers. CBO Director Aly Pennucci explained the strategy: using more restrictive fund sources first to preserve general fund flexibility. Councilmember Rivera noted that past proposals for fund swaps were met with resistance, but they are now seen as necessary.
Homelessness & Shelter Expansion: Deputy Director Klaeysen outlined new shelter openings (Bayside, Brighton, Belmont, Cloverleaf, Glassyard Commons) and plans for eight additional shelters in 2027. Councilmember Saka expressed concern about geographic equity, noting District 1 is overrepresented and asking for more sites north of the Ship Canal. Councilmember Kettle emphasized the need for a regional approach and a sobering center. Councilmember Rink highlighted the importance of non-congregate shelter and matched services for high-acuity clients. Chair Strauss pressed on throughput challenges and coordination with KCRHA's coordinated entry system, stating that bureaucratic inefficiencies must be resolved.
KCRHA Contract Transition: Councilmembers Rinck, Foster, and Kettle discussed the governance and administrative cost implications of transferring contracts back to HSD. HSD confirmed that administrative funding for KCRHA's new scope is pending a recommendation from Turning Point Strategic Advisors, and any city contribution will come from the $184 million homelessness budget. Councilmember Foster asked about federal COC funding risk; Pennucci replied that a federal reserve in Finance General has been set aside to backfill potential losses.
Unified Care Team (UCT): Councilmember Kettle and others inquired about the operational shift of UCT from the Mayor's Office to HSD. Director Kim and Deputy Director Klaeysen stated that the Mayor's Office continues to provide leadership, and the move empowers departments for continuity. A reduction of $352,000 (two vacant administrative positions) was described as right-sizing based on current service levels, not impacting field operations. Councilmember Rivera expressed concern that the reduction could hamper encampment response. Chair Strauss noted UCT momentum had stalled earlier in the year and pressed for iteration and improvements.
Community Violence Intervention (CVI) Contracts: HSD is transferring 11 CVI contracts ($5.1 million GF) and operational support ($1.2 million) to the CARE Department, as detailed in the Mayor's Gun Violence Plan. HSD will retain prevention contracts (school safety, youth programs). Councilmember Kettle supported the move, stating it aligns with CARE's public safety mission. Councilmember Lin asked about integration with jail-to-street and hospital-to-shelter transitions; HSD noted ongoing collaboration with CARE and Harborview.
Affordability & Food Access: The budget makes ongoing $4 million in one-time food funding (3M for food banks, 1M for meal providers) and expands the Utility Discount Program to serve ~31,000 additional households, with savings shifted from general fund to utility revenues. Councilmember Hollingsworth asked about consultation on food funding allocations; Director Kim responded that a competitive procurement process is planned and council will be consulted. Councilmember Rivera noted that shifting UDP costs to ratepayers adds burden.
Community Safety & Transgender Support: The proposed budget includes $500,000 ongoing for the Queer and Trans Stabilization Fund, building on a supplemental investment. Councilmember Rink and others supported this. Councilmember Kettle framed it as public safety.
Contract Oversight & Outcomes: Councilmember Rivera pressed on contract auditing and outcomes measurement following county audit findings. Director Kim detailed HSD's fiscal monitoring, desk reviews, risk assessments, and performance measures (quantity, quality, impact), and welcomed a formal audit.
Good morning. The September 28th, 2026 select budget committee meeting will come to order. I'm Dan Strauss, Chair of the Committee. It is 9 30 a.m. Will the clerk please call the roll? Councilmember Rink. Present. Councilmember Rivera. Present. Councilmember Saka. Here. Councilmember Foster. Here. Council President Hollingsworth. Present. Councilmember Warrus. Councilmember Kettle. Here. Councilmember Lynn. Here. Chair Strauss. Nine present. Thank you. We have three items on today's agenda. If there before we begin, if there's no objection, the agenda will be adopted. Hearing no objection, the agenda is adopted. Welcome back, folks. It is 9 31 a.m. I'm going to take a minute before we start the presentation. So a little departure from what I said on Friday afternoon. Just to do a little bit of housekeeping. Last week the ease did not really work very well, so we might just take a five to 15 minute break, or if folks need to leave the DIA, the rostrum at any time to take care of themselves. We're here for a really long time, so please take care of yourselves in that order. We also have snacks, so uh director Panucci and presenters, if you need a little bit of snacks, there's some in the green room there. Um and we will try to take an hour break today for lunch, but we're just gonna kind of take a vibe check as we're going. So if you need more time or less time, please do so. I'm not gonna bring up how much I'm timing myself. I am gonna continue timing myself. Don't need to make it a thing. Um I say that because it's important that you take the time and that you should feel comfortable taking as much time asking the questions that you need answers to. And if it's starting to take a little while, it's follow up on ChairPoint. With that, any questions for the good of the order. Seeing none, uh Phil, if you'd like to read the first item into the record, and then we'll just take it right away. Thank you. Agenda item one, human services department for briefing and discussion. Right over to you. Sorry, there was no nothing more there. I'm gonna facilitate. Sorry, last piece of uh business, which is it's important that we have we're able to just have conversations, and sometimes I need to step in to facilitate, so oftentimes I'm doing that with my eyes and body language and not just my words. So with that, Director Kim, I'm gonna turn it over to the committee table, run through the presentation until there's a good stopping point.