City budget office: Seattle would take big hit under I-1033

If state voters pass Tim Eyman's Initiative 1033 next month, the city of Seattle will have $150 million less to spend in its general fund by 2015, according to the city's budget office.

Assuming the city budget would be about $1 billion that year, that means a 12 to 15 percent decrease in the amount of money available for the city budget.

The numbers were given to the Seattle City Council this morning by the city budget office and its staff.

"We will be budgeting by ballot," said City Councilman Tom Rasmussen.

Initiative 1033 would limit revenue increases for state, city and county governments to the rate of inflation and population growth. Additional money above the limit would be used to reduce property taxes.

The governor's budget office projects the measure would divert more than $8 billion from state, city and county general funds into property-tax relief from 2011 to 2015.

The city council was told today that there would be little change in the city budget for 2010, but then the deficit would begin to grow.

The options, the council was told, are to either increase revenue through ballot measures — voter-approved increases would be exempt from I-1033 — or to reduce services.

A broad coalition has formed to fight the initiative, from the Seattle Chamber of Commerce to nurses and teachers. The No on 1033 campaign has raised more than $2.6 million and has started running ads on television.

Seattle Times staff reporter Andrew Garber contributed to this report.

Susan Gilmore: 206-464-2054 or sgilmore@seattletimes.com