Shortfall of $19 million expected in city budget

Seattle Mayor Greg Nickels expects a budget shortfall of nearly $19 million in the city's 2009-2010 budget, the result of lower-than-expected revenues from sales taxes and business and occupation taxes.

He will present options on how to cut spending Friday. The cuts would come on top of spending reductions he proposed in September, which included the elimination of some administrative jobs.

"They still project growth in city general-fund revenue but revised figures are more conservative and therefore more prudent," he said at a news conference Wednesday.

The 2009 general fund would be $912 million, down $8 million; the 2010 general fund would be $941 million, down $11 million; and the 2008 general found would be $925 million, down $1 million.

The general fund is the part of the city budget that pays for services such as police, fire and parks.

Nickels' city budget proposal is $3.9 billion for 2009 and $4 billion for 2010.

The City Council expects to approve a budget by mid-November.

Nickels said he and the council will work collaboratively on cuts, and both Council President Richard Conlin and Councilmember Jean Godden, budget chairwoman, spoke at his news conference.

The mayor said he does not expect to tap the city's $31 million rainy-day fund.

Although he did not provide specific details on where he would propose cuts, Nickels said he remains committed to his initiative to prevent youth violence and to preserving services such as police and fire, help for people in need, and maintaining parks and community-center services.

Director of Finance Dwight Dively said the city lowered the sales-tax forecast because it expects construction projects that had been permitted for 2009 to be delayed.

He also said consumer spending on durable goods, such as furniture, is expected to fall.

Revenues from the business and occupation tax are expected to grow, but at a slower rate than previously expected.

"It's quite clear there are tough decisions ahead," Godden said. "Our goal will be to ensure that every office is providing effective services."

Conlin said that even though officials will have to make cuts, overall, "Seattle remains in good shape fiscally because of the fact that we have been frugal during the good times."

Sharon Pian Chan: 206-464-2958 or schan@seattletimes.com