Mayor Greg Nickels proposed a 2010 proposed budget that relies on layoffs, a furlough by city workers, dipping into the city's rainy day fund and a City Light rail increase to fill the city's budget hole, while also pushing four priorities he established when he took office: public safety, transportation, strong families and healthy communities, and jobs and opportunities for all.
A Nickels press release noted that despite the recession, Nickels’ budget adds new patrol officers, continues work on fixing the Mercer Corridor, and spends more on human services than all other cities in Washington combined.
“The good news is that Seattle has not and will not suffer draconian cuts to basic services,” said Nickels in his annual budget speech in Council Chambers. “We are strong despite the storm. And I promise you: Seattle will lead the nation to a cleaner, more progressive, more prosperous future.”
Coming in the midst of the race to see who'll replace him, Nickels' budget takes some of the ideas pointed to by the candidates off the table, as they try to explain how they'd deal not only with this year's budget but next year.
Mike McGinn had proposed cutting political appointees, while Joe Mallahan had proposed cutting contractors and dipping into the Rainy Day Fund.
Nickels' budget would use $25.4 million from the Rainy Day Fund, leaving about $5 million for the future.
The proposed budget eliminates approximately 310 positions citywide, and reduces the number of city vehicles. Last month, members of 14 Coalition of City Unions agreed to 10-day unpaid furloughs for 2010, saving an estimated $6.5 million from the General Fund.
Publicola, the political news site, reports "those positions include 38 'executive, management, and supervisory positions,' according to the mayor’s budget highlights, as well as 16 strategic advisors."
Some other highlights from the mayor's release:
The latest revenue forecasts project a $72 million revenue shortfall in the general fund’s 2009-2010 biennial budget, the result of lower revenue, particularly sales and business taxes. To balance the budget, Nickels proposed cuts of roughly 4.4 percent from the endorsed 2010 budget, or about $41 million.
Nickels’ budget does not raise taxes. In fact, Nickels and two councilmembers proposed repealing the employee hours tax, now pending before Council. Nickels also approved legislation to raise the B&O tax threshold to $100,000 starting in 2010.
The proposed budget assumes an 8.8 percent City Light rate increase on Jan. 1, 2010, which is included in legislation being submitted to Council. The rate increase is driven by lower wholesale energy sales, increasing costs (such as federal licensing), and general inflation. To reduce the size of the increase, Nickels eliminated 68 full-time equivalent City Light positions.
If adopted, City Light’s rates would still be lower than in 2002, when Nickels took office. And City Light has dramatically improved its financial situation since the West Coast power crisis in 2000 and 2001.
Links to the 2010 proposed budget, 2010-2015 proposed capital improvement program and other budget-related materials are available at mayor.seattle.gov
