Seattle budget: nearly $43 million shortfall

Seattle Budget Director Dwight Dively announced today that the city will have to fill a nearly $43 million hole in its operating budget this year, and expects to face another $41 million shortfall in 2010.

The forecast is the first look at how Seattle is weathering the economic downturn. The city brought in $13 million less than expected in the last two months of 2008 and $29.5 million less for 2009.

The city has already made some moves toward saving money this year. Mayor Greg Nickels announced a series of cuts — including furloughs for some employees and pay freezes for top executives — about three weeks ago. But those will save only about $800,000.

Nickels also asked departments to come up with cuts of between 1.5 and 3 percent. Those won't be enough, Dively said, but the city doesn't plan to ask departments for additional cuts this year.

"We will almost certainly be accessing those reserve accounts," he said. The city has a rainy day fund of about $30 million.

The city's general fund is $912.5 million this year.

Emily Heffter: 206-464-8246 or eheffter@seattletimes.com