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Port of Seattle
2026 Budget Development Briefing
July 8, 2025
Item Number: 11a supp
Meeting Date: July 8, 2025
Agenda
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Environmental Scan
2026 Budget Principles &
Strategies
2026 Budget Approach and
Process
2026 Key Budget Dates
Environmental Scan
• Unprecedented political and economic uncertainty
• Effects of trade, immigration and other policy actions
• Post pandemic growth moderating
• Multiple years of rapid expense growth
• Risk of federal funding reductions and reduced operating revenues
• Cuts in federal climate change programs and funding
• Impact of increased inflation due to tariffs on operating, capital and
environmental costs
• Rapid technological advances including Artificial Intelligence and
growing sophistication of cyber threats
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Actions Now Determine Future Success
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2026 Budget Guiding Principles
• Take an extremely conservative approach to budgeting due to
economic and political uncertainties and need to build capital
• Safeguard the efficient operation of mission critical business functions
to maintain regional economic activity
• Assess geopolitical, political and regulatory risks on an ongoing basis
• Identify, protect and enhance operating and capital investments
focused on asset preservation and long-term growth and revenue
production
• Focus on retaining key talent and developing staff through training and
upskilling
• Prioritize implementation of current programs and initiatives
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2026 Budget Strategies
• Develop a very conservative budget and create contingency and
scenario planning to address revenue risks
• Focus on increasing Net Operating Income by limiting expense
growth
• Limit new FTEs and outside services
• Assess affordability of capital plans considering increased inflation
and revenue risks
• Strengthen the focus on sustainability, adaptability and resiliency
in spending and business plans
• Monitor early warning indicators that may trigger budget
recalibration and take actions as necessary
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2026 Budget Approach
• Support a culture of resilient budgeting with a multi-year mindset
• Support staff and provide for reasonable increases in payroll and
benefits
• No plan on reduction of current workforce
• Limit new FTE growth
o Review positions that are vacant and unfilled for a year
o Consider repurpose some existing positions
• Limited growth on non-payroll operating expenses
• New FTEs and initiatives will be rigorous evaluated
o Focus on prioritizing and absorbing within existing budget
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2026 Budget Process Overview
Environmental Assessment
• Assess business environment and needs
• Update operating and capital forecasts
• Conduct SWOT analysis
Budget Preparation
• Develop budget assumptions and drivers
• Identify key financial metrics and budget targets
• Issue budget calendar and departmental guidelines
• Prepare operating and capital budgets in accordance with principles and guidelines
Budget Reviews and Approvals
• Conduct internal department and division budget reviews
• Publish the preliminary budget document to the public
• Commission review and approval of budgets/capital plans
Final Steps
• File the Statutory Budget with King county
• Publish the final budget document to the public
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2026 Budget Calendar
(Commission Items in Blue)
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5/09 – 2026 Budget Planning Discussion with ELT
6/17– Commission Retreat – Part I
7/03 – 2026 Budget Guidelines available
7/22 – 2026 Budget Process and Schedule Commission Briefing
7/XX – Commission Budget Retreat –Part II??
8/01 – Central Services Department new budget requests due to F&B; Commission Priorities due to ED
8/13 – 08/22: Executive review of Central Services Department Budgets/New Requests
9/08 – Executive review of combined Central Services Budget
9/10 – Executive review of Maritime and EDD Operating & Capital Budgets
9/11 – Executive review of Aviation Operating & Capital Budgets
9/12 – 2026 North Harbor Budget to the NWSA
9/23 – Central Services Budget and Port wide Budget Overview Commission briefing
2026 Budget Calendar
(Commission Items in Blue)
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10/10 – POS/NWSA ILA Service Directives due to the NWSA
10/14 – Operating Divisions Commission Budget Study Session
10/21 – 2026 Preliminary Budget Document available to Commission
10/23 – 2026 Preliminary Budget Document available to the public
10/24 – NWSA Budget study session with Managing Members
10/28 – Tax Levy & Draft Plan of Finance Commission briefing
11/04 – NWSA Budget adoption by Managing Members
11/11 – Introduction of preliminary 2026 Budget and public hearing
11/18 – Adoption of 2026 Budget
11/28 – File the 2026 Statutory Budget with King county
12/05 – Publish the 2026 Final Budget to the public
