Seattle calculates Tim Eyman's I-1033 budget impact at $150M in 2015

If state voters pass Tim Eyman's Initiative 1033 on Nov. 3, the city of Seattle would have $150 million less in 2015 than it would if the initiative fails, 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 budget.

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

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

Initiative 1033 would limit revenue increases for state, county and city governments to the rate of inflation and population growth. Revenue 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, county and city general funds into property-tax relief from 2011 to 2015.

The City Council was told Monday that there would be little change in the city budget for 2010, but then the deficit would begin to grow. If 1033 passes, within the next 15 years property-tax collections for the city's general fund would drop to zero, according to the city budget office.

If it's enacted, the Legislature could change the initiative two years later with a majority vote. To change it sooner, lawmakers would need a two-thirds vote.

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

The initiative's foes range 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 TV.

Staff reporter Andrew Garber contributed to this report.

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