City of Longview cuts 13 positions to fill $8 million 2025 budget gap

Budget crisis has been brewing for years; it finally forces officials' hands

This stor has been updated to include a change in how the city collects Business and Occupation taxes.

The city of Longview is cutting 13 positions to help address a projected $8 million deficit in next year’s budget, according to a city press release issued late Thursday afternoon.

“This decision was not taken lightly,” Jim Duscha, interim City Manager, said in a prepared statement. “We understand the effect this has on our team and our community, and we deeply regret the necessity of these reductions.

“These changes do not reflect on the performance or dedication of our staff, who have shown unwavering commitment to serving Longview.”

The press release did not specify where the cuts will occur, nor did it say how or whether services connected those positions will continue. However, at least two positions were cut from the Longview Library staff and at least one was made in the Parks and Recreation Department.

All departments had been asked to cut spending by 10 percent.

“The proposed budgets for the next two years have been balanced without requiring further reductions,” added Duscha. “We are confident in our ability to continue providing the services that our community relies on while we work to strengthen Longview’s financial foundation.”

The Longview City Council earlier this month increased the city’s Business & Occupation and utility taxes to also fill the budget gap. Those two tax hikes will raise just short of $3 million next year, the city estimates.

At the same time, the council exempted business that gross less than $100,000 in sales from the B&O tax. The trigger point has been $20,000, and the change means that 663 city business will no longer need to pay that tax.

Longview joins many other cities across the state in a budget crisis. There are three main causes:

1. COVID-era inflation has driven up costs for everything from pipes to employee pay.

2. The 2001 annual limit on property tax collections — one of three major sources of city revenue — caused by Tim Eyman backed Initiative 747 has caused revenues to steadily fall behind rising costs. (A proposal to increase the limit died in the Legislature earlier this year.)

3. In at least Longview’s case, the Legislature's decision to downgrade some drug offenses to misdemeanors have driven up the city’s costs for jailing offenders.

The crisis has been brewing for years. The city projects that its reserves would be down to almost nothing by 2029 without cuts, tax hikes or a combination of the two.

It is not clear whether — and how much — the costs associated with the March firing of former City Manager Kris Swanson are contributing to the city’s short-term financial troubles.

The City is committed to supporting the affected employees during this transition, providing access to resources such as the Employee Assistance Program (EAP) and encouraging open communication within departments, Duscha said.

“Our priority now is to support our team members and reassure our community that we are focused on moving forward with resilience,” Duscha said. “We recognize that this is a challenging time, but we are committed to building a stronger Longview.”

Look for a followup on this story Friday or over the weekend.