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City of Bellingham addresses 2026 budget, announces impending layoffs and potential sales tax

City of Bellingham addresses 2026 budget, announces impending layoffs and potential sales tax

Photo: Saga Communications/Dave Walker


BELLINGHAM, WA (MyBellinghamNow.com) – The City of Bellingham has announced impending layoffs as it begins to form its budget for next year.

Mayor Kim Lund and administrative staff introduced the preliminary 2026 budget to the city council at its meeting last night.

The Mayor Lund says the city’s Finance Department is forecasting a $10 million deficit in the General Fund.

In order to address that deficit, Lund says the city plans to eliminate 40 positions, most of which are already vacant, but still amounting to 12 layoffs.

Nearly every city department will also see a reduced budget in 2026.

The proposed budget assumes the city council will adopt a new one-tenth of one percent sales tax, which would raise nearly $4 million for public safety services in 2026.

Lund noted that, contrary to some public misconceptions, the tax revenue would not be used to the expand city’s police force.

“There is not one additional commissioned police officer that we’re proposing adding to what the existing levels are,” Lund said during the council’s Committee of the Whole meeting. “It really is a combination of our frontline public safety professionals; it is holding the line on our alternative responses and other support systems.”

Lund said in a memo to the city council that the budget cuts will result in reduced library hours, parks maintenance, and walk-in services.

The city council will host a public hearing on the proposed budget at its meeting next Monday at 7 p.m.

You can find more information on the budget on the City of Bellingham website. 

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