City budget shortfall will mean deep cuts

Seattle Mayor Greg Nickels vowed Thursday not to cut spending on human services or public safety to fill a projected $72.5 million shortfall in the 2009-2010 budget.

"Outside of that, the rest of the general fund is really on the table," said Deputy Mayor Tim Ceis.

The latest revenue forecast, presented to the Seattle City Council on Thursday, shows the city's budget worse off than previously expected.

The mayor will make his budget proposal to the Seattle City Council on Sept. 25.

The city has about $30 million in a rainy-day fund and is already working on an agreement with 20 of the city's unions to ask 6,700 employees to take 10 unpaid days off next year. Union members vote this week and next on that deal, which would cut the number of layoffs the city would make and save about $8 million in 2010.

Seattle is not alone in facing a budget shortfall. Cities all over the country are facing financial trouble. According to a survey by the National League of Cities, 84 percent of the 319 cities it surveyed in 2008 were facing financial difficulties. Washington state and King County have both made massive cuts this year to their budgets.

The city's fiscal picture is grim even though it made a long list of midyear cuts in April. To deal with lower-than-expected tax revenue in 2009, the city is closing libraries Aug. 31 through Sept. 6. (the libraries will be closed Sept. 7 for Labor Day) and cutting fire-station seismic upgrades, trash cans in some parks and spending in other departments.

Things have worsened in the past few months. The city is reporting the lowest taxable retail sales since 1987 and declining business and occupation tax revenues.

The Seattle City Council sent a letter last week outlining its budget priorities for 2010. Among them was to save some of the rainy-day money, leaving a "modest financial cushion" for future shortfalls.

Seattle City Councilmember Sally Clark said spending the city's savings is more "politically expedient" than making cuts to programs, but wouldn't fix the problem.

"It won't be fun, and I imagine the mayor finds himself in an interesting position right now in figuring out how to balance this budget," she said.

Given the results of this week's primary, it looks unlikely that Nickels will advance to the general election in November. If Nickels is a lame duck, Clark said, the cuts may be even more difficult.

"You have to think that the current mayor has to be thinking about, what do I want my legacy to be? What do I want to leave behind?" she said.

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