Slog

News & Arts

The Stranger Suggests

Critics' Best Bets
Music Arts & Food


Line Out

Music & the City
at Night

Thursday, March 11, 2010

Mayor McGinn: Looming Budget Issues "Serious" Not "Dire"

Posted by on Thu, Mar 11, 2010 at 6:07 PM

As Dominic mentioned earlier, Mayor Mike McGinn held a press conference this afternoon to formally announce a deficit in the city's general fund of at least $10 million for 2010, and a deficit of at least $50 million for 2011 (not including the $70-million-dollar shortfall Seattle City Light is projecting for 2010).

"We don't have the revenues we had in the past," McGinn says, "we have to reexamine how we handle the budget... it's pretty unprecedented."

McGinn stressed that the city isn't facing a "one fund" problem, every department—from the Department of Planning and Development to Seattle Public Utilities—is generating less revenue. Basically, the city has lacked long-term budget planning for years, and has no standardized financial policy for its departments. On top of that, real-estate excise tax revenues are down 68 percent, and SDOT and Parks and Recreation are facing shortfalls, and the city—the nation—is facing the worst economic recession since the Great Depression.

Basically, our finances are fucked—but McGinn reiterated they aren't as fucked as the county and state budgets (I'm paraphrasing). Tools used in the past, such as the city's Rainy Day Fund (which currently holds less than $10 million) won't fix the situation. So what's the plan of action?

To address both long and short term problems, McGinn is reorganizing management by creating a new City Budget Office (CBO), headed by Beth Goldberg, and a Finance and Administrative Services Department, directed by Fred Podesta. Glen Lee is taking over as the city's finance director. McGinn wants a complete financial assessment of all city funds by the end of April. From there, the CBO will prepare long-term financial plans while the mayor's office notifies departments of mid-year and 2011 reduction levels, which, the mayor stressed, will minimize layoffs as much as possible.

With regard to Seattle City Light, the mayor plans on refinancing outstanding debts, setting up a Revenue Stabalization Account (RSA) as insurance against future revenue shortfalls, selling surplus properties, and setting future rates to meet projected capital needs. The mayor is also considering a temporary surcharge to fund the RSA.

"It's a fairly gloomy picture of where we stand, financially," said the mayor, adding, when pressed, that "specific cuts aren't the focus of today's briefing. We just wanted to get everything on the table."

"Dire" isn't the word to describe the city's predicament, the mayor said. "Serious" is the word. Look for "serious" cuts coming at the end of April.

 

Comments (6) RSS

Oldest First Unregistered On Registered On Add a comment
mrbombit 1
When is the townhall?
Posted by mrbombit on March 11, 2010 at 6:58 PM
2
How 'bout firing those 200 useless middle managers after all?
Posted by Sean P. on March 11, 2010 at 7:57 PM
3

the number one problem facing seattle

Need more

Hot Men
Hot Women

Number one problem!!
Posted by Chief Sealth on March 11, 2010 at 8:20 PM
4
",,,, creating a new City Budget Office"

good boy.

the cure for whatever is ailing us is a new government agency....
Posted by Guvmint- Too Much Is Never Enough.... on March 12, 2010 at 3:00 AM
Rotten666 5
Yes, creating a new agency will surely fix the problem.

Oh man they're gonna hit the library again. Fuck. Fuck. Fuck. Meanwhile the state is too chickenshit to make deep cuts so instead we will have an even bigger budget shortfall in two years. I'm no teabagger, but what the fuck is going on in Olympia?
Posted by Rotten666 on March 12, 2010 at 8:45 AM
Will in Seattle 6
Nothing that becoming our own County or State wouldn't fix.

Then we could stop subsidizing all those welfare counties.
Posted by Will in Seattle http://www.facebook.com/WillSeattle on March 12, 2010 at 10:56 AM

Add a comment

Advertisement
 

All contents © Index Newspapers, LLC
1535 11th Ave (Third Floor), Seattle, WA 98122
Contact Info | Privacy Policy | Terms of Use | Takedown Policy