Homeless shelters, schools, farmers markets and hot dog carts could soon see costs raised by as much as 300 percent if the King County Department of Public Health implements a plan designed to chip away at the county’s $92 million budget deficit.

With a massive budget deficit looming, every county department has been asked to make cuts, and the health department is considering cutting 50-to-100 percent subsidies given to school cafeterias, soup kitchens and mobile food vendors, in order to make a “full cost recovery” on all permits.

The cost increase hasn’t yet been finalized, but a preliminary proposal by the health department estimates that schools could end up paying $495 per school kitchen, a hefty increase from the current permit cost, which ranges from $252 to $348.

Not all off the Seattle school district’s 92 schools have kitchens—and the district is shifting towards a more centralized meal preparation system for elementary and middle schools—but if even 40 of Seattle’s schools still maintained permitted kitchens, it could cost the district an additional $10,000 a year. According to health department documents, school districts have apparently voiced concern that the fee increase could raise the cost of lunches and effect how many kids end up eating meals at school.

Under the plan, mobile vendors, like hot dog and coffee carts, could be forced to pay a $218 fee—all of which is currently subsidized—while food vendors at farmers markets, like Rolling Fire Pizza, would see slight increases around $30-$40.

Vendors are concerned that the county's plan could end up eating away at their sometimes thin profit margins, but the county’s plan could potentially be even more devastating to homeless feeding programs.

Under the health department’s proposal, shelters like the Union Gospel Mission and ROOTS could see 300 percent increases in their permit costs, depending on their program’s size.

“If we’re paying $395 a year [for our permit], it jumps to $825 in 2010,” says Ron Metcalf, operations director for the Bread of Life meal program. “If you want to continue to feed the homeless, you have to pay the fee, but we don’t charge, so it’s not like we can charge two dollars instead of one to make up the difference."

In the midst of a recession, non-profits have seen a decrease in donations but at the same time have also seen a growing need for feeding programs “We already have a hardship,” Metcalf says, “and now we’re going to have a bigger one.”

Metcalf’s concern is, naturally, also being voiced by other shelter programs around the city. “I don’t think [the fee increase] is a particularly wise thing,” says ROOTS operations director Matt Fox. “It’s going to discourage new startups and need is up all over the place.”

ROOTS serves breakfast and dinner to 25 people at its University District shelter every night and as many as 150 people on Friday nights. Because of their high-volume meal program, ROOTS is bracing for a possible 300 percent increase in its permit costs. “It’s triple what the fee is now,” Fox says. “It’s money we’ll find, but it is kind of a burden. I think feeding people in Seattle is something worth subsidizing.”

According to King County Department of Health spokeswoman Hilary Karasz, the policy change is still being analyzed and the health department hasn’t figured out how much impact the subsidy reduction would have on the county’s $92 budget deficit.

“We’re trying to find legitimate and reasonable ways to bridge the [budget] gap,” Karasz says. “There’s been quite a lot of work to work with stakeholders. We know it’s going to make an impact on people and nobody wants that.” But, Karasz says, “The bottom line is, we have been directed to do full cost recovery.”

Karasz would not comment on whether the permit cost increase might create a greater number of unregulated "outlaw" feeding programs like Food Not Bombs, an unlicensed meal service for the homeless in Occidental Park, which has faced harassment from Parks Department employees and police.

The King County Board of Health is expected to vote on the fee change proposal in July.