Q: How big is Everett’s 2027 budget shortfall and what could the city do about it?

A: Everett finance staff project a $14 million general fund deficit for the 2027 budget — larger than the $12.6 million gap that forced 31 layoffs in 2024. Mayor Cassie Franklin has named four levers under active discussion: regionalizing fire services, regionalizing library services, another property tax levy lid lift, and annexation of unincorporated areas like Mariner. Three of the four would require voter approval, which in Everett has a mixed record — voters rejected the last levy lid lift in 2024.

Everett’s $14 Million Budget Gap Is Back — and Regionalizing Fire and Libraries Is on the Table

Everett’s budget math gets harder in 2027. Finance staff are projecting a $14 million general fund shortfall — a wider gap than the $12.6 million deficit in 2024 that led to 31 layoffs and a ballot measure voters turned down. Mayor Cassie Franklin has named the levers the city is weighing to close it: regionalizing fire services, regionalizing library services, going back to the ballot for a property tax levy lid lift, and annexation. Three of those four require voter approval.

“We cannot cut our way to a sustainable future,” Franklin said during her March 6 keynote address, pointing to the need for “economic growth and new pathways to long-term, sustainable revenue.” What follows is what each of those paths would actually mean for residents — and how Everett got here.

How Everett Ended Up With a Structural Deficit

The basic cause is a gap between how fast Everett’s costs rise and how fast Washington state allows the city to raise property tax revenue. Under Initiative 747, approved by voters in 2001, cities can increase their regular property tax levy by only 1 percent per year without going back to the ballot. The cost of delivering police, fire, parks, libraries and streets rises faster than that — in most years, closer to the rate of inflation or the rate of wage growth for public employees.

The compounding effect is slow but relentless. Each year the revenue line grows by about 1 percent plus new construction, while the expense line grows by 3 to 5 percent. Over a decade, the lines drift apart. Everett’s 2026 budget, approved unanimously by the City Council on November 19, 2025 at $613 million, papered over that gap by pausing some pension contributions and spending one-time funds to avoid layoffs. Those are not repeatable moves.

That is how the 2027 projection reached $14 million.

Lever One: Regionalizing Fire Services

“Regional fire” is policy shorthand for a Regional Fire Authority, or RFA — a separate government entity, authorized under Washington’s Chapter 52.26 RCW, that provides fire and EMS services across multiple cities and unincorporated areas and is funded by its own voter-approved property tax and benefit charges instead of through participating cities’ general funds. Cities in the state have increasingly moved toward RFAs over the past decade because the structure moves fire costs off general-fund budgets that are squeezed by the 1 percent cap.

For Everett, an RFA would likely mean joining or forming a multi-jurisdictional fire authority serving parts of south Snohomish County. Residents would still get fire service from what would functionally look like the same department — but would see a separate line on their property tax bill for the RFA, and the city’s general fund would no longer carry the fire department’s cost.

Creating or joining an RFA requires voter approval in each participating jurisdiction. It does not usually raise total household taxes on day one, because the new RFA levy is offset by a reduction in the city levy. Over time, however, RFAs have flexibility to raise their own levies that cities don’t have.

Lever Two: Regionalizing Library Services

Everett currently operates the Everett Public Library as a city department, with branches downtown and in Evergreen. Most of the surrounding area — including the Mariner neighborhood Everett is studying for annexation — is served by Sno-Isle Libraries, a regional library district that covers most of Snohomish and Island counties and is funded by its own voter-approved property tax.

Regionalizing would mean dissolving the city’s library operation and annexing Everett into the Sno-Isle district. Residents would continue to have libraries. The city would no longer budget for them. The cost would shift to a separate Sno-Isle property tax, which is also subject to the 1 percent cap but sits on a cleaner structural footing because it isn’t competing with police, fire, streets and parks for the same pool of money.

As with fire regionalization, the move requires voter approval. And as with fire, it usually means a roughly neutral change on day one for residents’ total tax bill, because the city’s portion of the property tax would drop as the Sno-Isle portion is added.

Lever Three: Another Levy Lid Lift Attempt

Under state law, cities can ask voters to temporarily or permanently raise the property tax levy above the 1 percent cap. This is called a levy lid lift. Everett tried this in April 2024, asking voters to raise the city’s regular property tax levy rate from $1.52 per $1,000 of assessed value to $2.19 per $1,000 — a jump of roughly $336 per year for the average homeowner. Voters rejected it decisively.

Any new levy lift attempt would have to contend with that result. Options the city could consider include a smaller ask, a shorter duration, or a package that pairs a lift with specific spending commitments residents can see — similar to public safety levies other Washington cities have passed after stand-alone general-purpose lifts failed.

Lever Four: Annexation

Everett approved $200,000 on April 8 to study annexing parts of its urban growth area — with the Mariner neighborhood, home to about 21,000 residents, as the top priority. Annexation adds property tax base, brings in state-issued sales tax credits available to cities annexing more than 10,000 residents at once, and — the whole point — expands the denominator the city can spread fixed costs across.

It is not free revenue. Annexed residents get city services, which cost money to provide. Everett explored a much larger annexation in 2008 and walked away, citing those costs. The $200,000 study is designed to tell the current council whether the math works in 2026 that did not work in 2008 — a different era for city finance, regional transit, and the state’s sales tax credit program.

What Residents Would and Wouldn’t See

Three of the four levers — regional fire, regional library, levy lift — would require voter approval. The fourth — annexation — would very likely require a vote too, depending on the method. In all four, the dollar impact on a typical household is not straightforward. Regionalizing fire or libraries rearranges which line item on a property tax bill funds them without usually raising the total immediately. A levy lift directly raises the total. Annexation would raise the total for newly annexed residents, not for people already inside city limits.

What residents are likely to see first is a budget process. Mayor Franklin is expected to deliver her 2027 preliminary budget proposal to the City Council in the early fall, following the typical Everett budget calendar. Between now and then, the city will refine cost projections, receive the annexation study, and engage with the fire district and Sno-Isle Libraries on regionalization conversations. Any ballot measure the city wants on the November 2026 general election would need to be finalized by early August.

What’s Already Being Done

The 2026 budget uses one-time funds and pension pauses to hold staffing flat through this year. That buys time but not a solution. The Council has also approved the annexation study and a Casino Road subarea plan, both on April 8. Beyond that, the city has pointed to broader economic momentum — continued housing construction, new business licenses, the Boeing 737 North Line opening at Paine Field, and the Millwright District and Waterfront Place developments — as long-term revenue drivers. None of those arrive in time to close the 2027 gap on their own.

The decisions to watch are, in order: the annexation study’s findings, the fall 2026 budget proposal, whether the city places a regional fire or library question on the November 2026 ballot, and whether a new levy lid lift returns to voters in 2026 or 2027. Each decision narrows the set of remaining options. Taken together, they will reshape how Everett pays for its basic services for the next decade.

Frequently Asked Questions

How large is Everett’s 2027 projected budget deficit?

City finance staff project a $14 million general fund shortfall for 2027. That compares to a $12.6 million deficit in 2024 that resulted in 31 layoffs.

What is a Regional Fire Authority?

A Regional Fire Authority, or RFA, is a separate Washington government entity authorized under Chapter 52.26 RCW. It provides fire and emergency medical services across multiple jurisdictions and is funded by its own voter-approved property tax and benefit charges rather than through participating cities’ general funds.

Would a regional fire or library authority raise my property taxes?

Not usually on day one. The new RFA or library district levy is typically offset by a reduction in the city’s general levy. Over time, however, these districts have more flexibility to raise their own levies than cities do under state law.

Why didn’t the 2024 Everett levy lid lift pass?

Voters rejected it, with the measure falling well short of approval. The proposal would have raised Everett’s property tax levy from $1.52 per $1,000 of assessed value to $2.19 per $1,000 — about $336 per year more for the average homeowner.

Is regionalizing libraries the same as closing them?

No. Under regionalization, Everett’s libraries would continue operating but would be run by the Sno-Isle Libraries district, which already serves most of Snohomish County. Residents would continue to have library service. The change is on the funding and governance side.

When will Everett decide which of these levers to use?

Mayor Franklin is expected to present a preliminary 2027 budget proposal to the City Council in the fall of 2026. Any ballot measures for the November 2026 general election would need to be finalized by early August. The annexation study is expected to conclude in late 2026 or early 2027.

How does the 1 percent property tax cap work?

Under Initiative 747, which voters approved in 2001, most Washington cities can only raise their regular property tax levy by 1 percent per year without going to voters. Costs for public services generally rise faster than that, which is the root cause of Everett’s structural deficit.

Do annexation, regionalization, and levy lifts cancel each other out?

No — each addresses a different piece of the budget. Regionalization moves costs off the general fund. Annexation grows the tax base. A levy lift raises the rate on the existing base. Policymakers often pursue combinations of these tools together rather than choosing one.