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City of Seattle
Seattle City Council
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NEWS ADVISORY
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| SUBJECT: City's Budget Crisis Is Not Over, Warns McIver
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FOR IMMEDIATE RELEASE:
1/27/2004 2:17:00 PM |
FOR MORE INFORMATION CONTACT:
Eric Parsons (206) 684-8800
Nancy Roberts (206) 684-8146
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CITY'S BUDGET CRISIS IS NOT OVER, MCIVER WARNS
New Council budget chair sees possibility of more cuts, more responsible spending ahead
SEATTLE - Despite the optimistic tones of the president's State of the Union Address and some economic forecasters, the economy has not recovered. For the City of Seattle, which has seen nearly $90 million cut from its budget the past two years, this means another year of possibly lower revenues and further cuts to services and jobs.
As the new chair of the Seattle City Council's Finance & Budget Committee, Councilmember Richard J. McIver is taking a cautious approach to evaluating the City's fiscal health.
"The City's revenue stream is not what it was during our boom years, and may never get back to that level because of legislated tax revenue reductions and ill-conceived Tim Eyman initiatives that have catered to and been passed by voters," McIver said. "As we look ahead to the next two years the City cannot just consider what services we can provide, but we must realistically look at what services we may not be able to provide. It's not fun, and it's not popular, but it's pragmatic, and this approach can set more reasonable expectations for what City government can do in the near future."
Illustrating McIver's cautious fiscal approach is the immediate task of balancing the 2004 City budget. When the Council wrote the budget last fall it temporarily filled a $4.2 million gap with emergency funds, which the Council and Mayor must address before April. The budget gap was created by a state Supreme Court decision that ruled City Light could not bill ratepayers for the cost of operating street lights.
"We have an immediate budget crisis where more than $4 million in services or jobs may be cut," said McIver. "As we close that gap we must be mindful that the court has not yet ruled on whether the City might have to refund past street light costs to our ratepayers, and what kind of time schedule such a repayment might take. In no way are we on sound financial footing yet."
After the 2004 budget gap is addressed, McIver's committee will turn its attention to writing a 2005-2006 budget before the end of the year. Additionally, the committee will deliberate and make recommendations on all issues relating to the financial management and policies of the City and its agents, including the biennial operating and capital budgets, levies, taxes, revenue, audits, Community Development Block Grant and Section 108 loans, and judgments and claims against the City; administration of the City, including but not limited to personnel issues and other issues related to salary rates, hours and conditions of employment; oversight of the City's public works construction projects except as otherwise specified; and related economic development policies.
Joining McIver on the Finance & Budget Committee are vice-chair Richard Conlin, member Nick Licata and alternate member Jan Drago. The committee will meet on the first and third Wednesdays of the month at 9:30 a.m. in Council Chambers. When writing the City budget, the committee will meet more frequently and will hold public hearings on the Mayor's and the Council's budget proposals. All committee meetings are cablecast live on Seattle Channel 21/28 and Webcast live at www.cityofseattle.net/council
McIver, the second-longest serving member of the City Council, also serves as vice-chair of the Council's Government Affairs & Labor Committee and as a member of the Housing, Human Services & Health Committee. In addition, McIver represents the Seattle City Council on the Puget Sound Regional Council (PSRC) Executive Committee and has been elected president of the PSRC. Along with the Mayor, McIver is Seattle's representative to both the Sound Transit Board of Directors and the Sound Transit Finance Committee. He also is a Council representative to the Metro-King County Regional Water Quality Committee.
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City Council
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