Letter To All Employees Regarding The City's Budget.

June 17, 2002

Subject: Budget update

To All City Employees:

With all the troubling news about the city's budget, I know that many of you are concerned about the impact on you, your job and your families. It's important that you hear directly from me.

As most of you know, the economic picture for the City's 2003-2004 biennial budget is grim. Seattle is facing an estimated $50 - 60 million General Fund budget shortfall. A May 2002 City of Seattle economic analysis concluded that the Puget Sound region's current recession is the worst seen in 20 years. The decline in revenue compares to what we saw during the severe 1981-82 recession, with similar drops in employment. With different factors affecting the local economy than in years past, we're facing more uncertainty today about how and when we'll come out of the recession. As a result, we must get City finances under control and I'm determined that we cut costs. To that end, we'll cut overhead first and direct services last.

Earlier this year, I instructed nearly every City department to cut its budget by at least 9 percent. Departments are working hard to comply with this request. Budget cuts of this magnitude will mean that position cuts and layoffs are certain, but we will do everything we can to save as many jobs as possible. Developing this budget proposal is a most unpleasant and disheartening task. I truly value City employees - you are the key to serving Seattle's residents. While we cannot avoid the inevitable, I can assure you I will consider these proposals with the utmost degree of fairness and will make decisions in the best interests of our residents, our departments and City government as a whole.

Departments are required to submit their 2003-2004 budget proposals to the Department of Finance by July 1. I will spend the months of July and August reviewing these proposals and making my 2003-2004 budget decisions.

In late July, I will inform department heads which of their budget reductions are likely to be included in my proposed budget. At that point, departments will have an initial conversation with employees who, as a result of a given department's reduction strategy, are under consideration to be laid off. However, some decisions about what I will include in my proposed budget will not occur until late August or early September. Thus, there is likely to be another round of employee notifications at that time.

The bottom line is employees who are at risk of layoff will be advised of their status before I submit my proposed budget to the City Council on September 23.

It is important to remember that until the City Council adopts the final budget in late November, these represent proposals, not final choices.

Each department's Human Resources Unit, the City's Employee Assistance Program, and the City's Personnel Department are all gearing up to provide assistance to the at-risk employees across the City.

In the meantime, please remember I understand this is a time of great uncertainty for employees. While we cannot avoid job loss, you have my personal pledge we'll do everything in our power to provide assistance to those of you at-risk of losing your jobs.

Thank you for all your hard work.

Sincerely,


GREG NICKELS
Mayor of Seattle