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City of Seattle
Gregory J. Nickels, Mayor
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NEWS ADVISORY
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| SUBJECT: New 2009 revenue forecast down $29.5 million
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FOR IMMEDIATE RELEASE:
4/6/2009 12:00:00 PM |
FOR MORE INFORMATION CONTACT:
Alex Fryer (206) 684-8358
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New 2009 revenue forecast down $29.5 million
Revised estimate represents 3.7% drop
from last year’s forecast
SEATTLE - A new revenue forecast for the city of Seattle reflects the nation’s worsening economy, projecting $29.5 million less revenue in the city’s general fund for 2009, compared to last year’s forecast.
“We have anticipated that revenues would be down and this latest forecast confirms the size of the problem. As we make difficult budget cuts, I will continue to put a priority on maintaining funding for public safety and direct human services,” said Mayor Greg Nickels.
The latest forecast revises estimates made in November 2008, adjusting for what has become a major recession nationwide and a severe regional downturn. Led by a decline in revenue from sales taxes and business and occupation taxes, the revised forecast for 2009 represents a 3.7 percent drop.
This month, the mayor will consult with City Councilmembers on cuts that can be implemented beginning in May to bring the 2009 budget into balance. In anticipation of the lower revenue forecast, in February the mayor directed city departments to identify potential 2009 general fund reductions of up to 3 percent. Nickels also ordered the freezing or rolling back to 2008 levels the salaries of more than 100 senior city executives, and that four executive offices institute furloughs for their employees.
When the Council adopted the 2009 budget last fall, it also endorsed the 2010 budget (the second year of the biennium). The mayor will present a proposed 2010 budget to the Council in September. Today’s revenue forecast estimates that in 2010, general fund revenue will be $41 million less than previously forecast. As a result, the mayor is starting the 2010 budget process earlier than usual to identify further reductions.
In addition to a drop in general fund revenue, the forecast for Real Estate Excise Tax (REET) is down $11 million for 2009. A substantial slowdown in commercial and residential real estate sales will require the city to delay REET-funded capital projects.
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Office of the Mayor
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