Seattle Mayor Bruce Harrell released his payroll expense tax (PET) report for 2024 on Tuesday and its projections came up nearly $50 million short.

“Today’s announcement that PET revenues collected in 2024 were $47 million lower than projected requires action to ensure our budget remains balanced,” Harrell explained in a statement.

Harrell said that his 2025 budget proposal was based on the projections from the independent Office of Economic and Revenue Forecasts. But since they got it wrong, the mayor said for the 2026 budget, “my office will consider all options, including additional revenue sources and appropriate expense reductions, to ensure we are making the priority investments and funding the essential services that matter to our residents.”