Dear Councilmembers,
The Race and Social Equity Task Force (RSET) is a coalition of leaders from the Central District, Southeast Seattle, and the Chinatown-International District, who represent neighborhoods historically redlined and at high-displacement risk. Started in 2016, RSET was instrumental in the establishment of the City’s Equitable Development Initiative (EDI), continues to provide community leadership in EDI’s implementation, and drives community-led Equitable Development Projects in our respective neighborhoods. In this light, we call for the continued investment in EDI through the Payroll Expense tax and Short-term Rentals tax.
The Mayor’s released budget increased funding for EDI to a total of $28.2 million of which $26.6 million for grants and program implementation ($21.43 million Payroll Tax and 5.13 million Short-Term Rental Tax for 2025) and an RFP using 2024 funds will be released in mid-October. We welcome the increased funding for EDI, but are concerned that EDI has not been allocated the appropriate amount consistent with the Payroll Expense Tax (PET) Spending Plan.
Therefore, we urge the Council to stay true to the Payroll Expense Tax (PET) Spending Plan and allocate the amount EDI should be receiving according to the plan. The PET spending plan allocated 9% of PET revenue to EDI. Under the spending plan, EDI should be allocated $38.7 million of the $430 million projected PET Revenue for 2025 (not accounting for the unspent 2024 and 2023 PET balance). In total, between PET and Short Term Lodging Revenue, the total appropriation would be $43.8 million. We understand the General Fund faces a deficit. Backfilling must not come at the expense of our communities who urgently need the funding to begin and complete their critical equitable development projects and stem the tide of displacement. The PET Spending Plan should remain intact for years to come, which was designed to ensure long-term investment in anti-displacement and equitable development initiatives. Council is responsible for exploring other progressive revenue options, in a state with a very regressive tax code, for additional revenue to address the general fund deficit.
The Equitable Development Initiative has become and is a nationally-recognized, established community-driven program that is strongly positioned and at the ready to address the displacement crisis facing our communities. It carries out the City’s commitment to addressing the harms of past racial inequities, advancing innovative anti-displacement solutions, and serving as a leader among the nation, by addressing the wealth gap through integrated and accountable capacity building. Thus, it would be short-sighted, a dangerous precedent to undermine the City’s own commitment, if the City were to raid the funds as a deficit countermeasure. The EDI funds are an investment that needs protection and growth. We will follow up with your staff to request a meeting to discuss this further and will be requesting the same of City Council.
Thank you,
- African Community Housing & Development
- Africatown
- Black Community Impact Alliance
- Black Dot
- Friends of Little Saigon
- HomeSight
- Multicultural Community Coalition
- People’s Economy Lab
- Puget Sound Sage
- Rainier Beach Action Coalition
- Seattle Chinatown International District Preservation and Development Authority
- Wing Luke Museum of the Asian Pacific American Experience