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SUBJECTS › FINANCE › Coping with Critical Revenue Shortfalls
Updated 10/09

Coping with Critical Revenue Shortfalls

Contents

About Current Revenue Shortfalls

Current budgets have been prepared and adopted during a time of unprecedented economic uncertainty. The real estate and the financial sectors are under tremendous strain, inflation is unpredictable, and unemployment is on the rise. As a result, local jurisdictions are seeing a slowdown in revenues, particularly in economy-dependent revenues such as sales taxes and real estate excise taxes. The economic forecast also anticipates an increase in the delinquency rate in the payment of property taxes, which are a major source of funding for local governments.  

This page is in response to the question, what are Washington local governments doing to cover the revenue shortfalls? Information sources for the "Notes from Washington Jurisdictions," include 2009 budgets, news releases, web pages, and documents received by MRSC.  If you have information to contribute, please send to Lynne De Merritt, Senior Research Consultant, or Lynn Nordby, Public Policy and Management Consultant.

News Services and Surveys

Notes from Washington Jurisdictions

Jurisdictions Listed by County
Adams | Asotin | Benton | Chelan | Clallam | Clark | Columbia | Cowlitz | Douglas | Ferry | Franklin |  Garfield | Grant | Grays Harbor | Island | Jefferson | King | Kitsap | Kittitas | Klickitat | Lewis | Lincoln | Mason | Okanogan | Pacific | Pend Oreille | Pierce | San Juan | Skagit | Skamania | Snohomish | Spokane | Stevens | Thurston | Wahkiakum | Walla Walla | Whatcom | Whitman | Yakima
Benton County
Kennewick
City council passed the 2009/2010 biennial budget that included some new revenues in the form of storm water fees and utility taxes and also had seven staff cuts, including the planning director and a police captain. WCMA News ( 659 KB), December 2008. The revenues generated from utility tax increased will be dedicated to pay for the City’s on-going obligation to pay the medical costs for LEOFF 1 employees (mostly retired police and fire employees of the City). Additional cuts have been made to all  discretionary budget categories. Budget Message ( 6.88 MB)
Clallam County

Port Angeles

 Proposal to form metropolitan park district to keep the William H. Shore Memorial Pool open (Resolution 02-09 ( 202 KB). Budget savings: transferring street functions to the Stormwater Utility, reducing the vehicle replacement program, reducing support of human service programs,  increase in water and wastewater, solidwaste, and medic 1 utility (Ordinance No. 3351( 251 KB)) fees, add parking tax (Ordinance No. 3353 ( 337 KB)),  reduction of personnel by 3.2 FTE  Budget Message
Clark County
  • County to Cut Spending by $6 Million, Raise Fees to Balance Budget, News Release 6-17-09
  • Board of Clark County Commissioners adopts 2009/2010 budget - The current budget calls for eliminating almost 150 positions, including some that are vacant. Staffing adjustments will begin immediately, to determine the number of people who will be laid off by January. The budget also freezes salaries for management employees and elected officials in 2009. General Fund Departments under the Board took 12 percent cuts,  Law and Justice and other elected officials took cuts of  four percent of their budgets.  Board passed a resolution to use part of the county’s road fund for Sheriff’s patrols.
  • New hours are set to take effect on Monday, October 27, 2008 at building permit centers operated by the Clark County Community Development Department, due to reduced staffing related to the sharp downturn in construction and development.
Camas
  • Staffing levels and vacancies continue to be reviewed for long-term need. Staffing levels are modestly reduced; and this is mainly done through attrition, reorganization, and consolidation of duties. The overall staffing ratio proposed in the 2009 budget is 10.5 per 1,000 population. The street overlay/maintenance program was deleted from the budget.  Mayor's Message 2009 Camas Budget ( 229 KB)
  • City newsletter, City Vision mailing cut from 6 to 4 issues. Parks and Recreation will make the switch to an on-line quarterly class schedule this spring. City Vision 1/09 
Ridgefield
 Reduction in overall operating budget by 10% from 2008.  Reduction of staffing level from 36 to 31 full-time equivalents. Reduction in community outreach programs.  For details see City Manager's Message in Ridgefield 2009 Budget ( 683 KB).
Vancouver
Cowlitz County Proposed reduction in  32 FTE  (see chart in Budget Message). 2009 budget balanced using approximately $2.4 million dollars of reserves.  Amended Budget Message ( 78 KB), 12-16-08.
Longview
  • The International Association of Fire Fighters (IAFF) Local 828 agreed to freeze wages for two years in an effort to help the city bridge its $1.5 million budget gap.   In March, members of the Employees Bargaining Association, American Federation of State, County and Municipal Employees AFL-CIO Local 1242-CL, and the International Association of Fire Fighters Local 3375 - Chief Officers Association agreed to take nine unpaid days off this year, which amounts to a 3 percent pay cut. Daily Olympian, April 23, 2009
  • Memo to All City Employees re State of the City Finances (), March 9, 2009 -  No new merit step increases will be awarded for the remainder of the 2009/10 biennium, no COLA adjustments  for 2010,  furloughs and reduction in staff, consideration of alternative work plans/schedules.
  • Council passed recommendation ( 21 KB) asking salary commission to forgo 2009 salary increases for council

 

Franklin County Furlow of 1 day a month for nonunion employees was approveda s a step toward reducing a forecast $680,000 budget deficit Tri Cities Herald, June 16, 2009
Grays Harbor County

Aberdeen

Employee concessions will allow the city to save $469,892. Most employees are rolling back their salaries to  2008, agreed to take eight or nine days off without pay (usually the second or third Friday of the month), agreed to lose their deferred comp match and some even saw their medical premiums go up.  City Applauds Staff Concessions, Aberdeen Daily World, March 26, 2009

Effective April 1, 2009, the City of Aberdeen will have eight scheduled closure days due to budget reductions: April 10, May 15,June 12, July 10, August 14, September 11, October 16, November 20 Aberdeen Web 


Island County

As Commissioners struggled in the final days of budget amendment discussions in pursuit of an additional $2 million in savings during 2009, the county decided to suspend printing and mailing the voters pamplet saving $20,000.  It will be replaced by an online version. Island County News Brief 5-29-09 

Proposed budget cuts: 15 employees will be laid off, effective March 1, and 10 other unfilled positions will remain unfilled as the county tries to bridge a nearly $2 million budget gap.  The amount to be cut comprises roughly 10 percent of the general fund, the part of the county budget that pays for basic government services such as police protection, parks, public health, and other departments.  South Whidbey Record, November 10, 2008

North Whidbey Fire and Rescue
Workshop held for the purpose of discussing possible cut backs in light of a second levy failure: cutting vehicles, eliminating one duty officer, reduction in number of volunteers to 80 with 5 trainees, change in method of response to some calls using only paid on-call officers only, rehab vehicles instead of purchasing new ones, eliminate improvement projects.  Whidbey News Times, December 16. 2008
Jefferson County

Port Townsend

 Passed levy lid lift in fall 2008 to support library operations; reallocated  monies previously allocated to the library from the general tax levy to other areas in the city budget that have been under funded.  Status quo is being maintained, some consolidations, and some positions not filled. Manager's Preliminary Budget Message ( 248 KB)
King County
Kirkland
  • Proposed Utility Tax on November Ballot, Kirkland City Update, 2nd Quarter 2009 - Page also includes list of Internal and External Service  Reduction Impacts to Date
  • 2009-2010 Budget Page - Discusses Reductions
  • Lawns in city parks will not be watered and will be allowed to go dormant in the summer. Lifeguard hours at city beaches will be  reduced by 25 percent. Seasonal maintenance of the medians and  city hall grounds will be reduced.  City hall reception desk and passport acceptance  hours will be reduced. Program that provides funding for small capital  projects in neighborhoods will be put on hold for one year and scaled back by 75 percent in 2010.  The council approved: the use of banked property tax, a 3% increase in utility taxes on water, sewer and garbage services, the restructuring of the business license fee to charge a base fee plus a per-full time employee fee, a 1.5% increase on private utilities (electric, gas, telephone and cable service).  City Update 12/08 (1.38 MB) and See Blueprint for Balanced Budget on  2009-2010 Budget (scroll down page)

Kent

 Kent Employees Pitch in to Save Colleagues’ Jobs, Kent News Release, 30-24-09 -  The Teamsters and AFSCME (American Federation of State, County & Municipal Employees) Unions voted to take five and six furlough days respectively through the end of the year. Both Fire and Police Unions voted to give up a deferred compensation contribution through the end of the year. Additionally, non-represented staff voted to take five furlough days. Unpaid furlough days will be taken at an employee’s discretion rather than on designated days, thereby maintaining the City’s standard hours of operation. All of the employee groups voted to save jobs, and in doing so, saved $1.3 million  
Lake Forest Park
  • The City of Lake Forest Park Faces Continued Deteriorating Financial News, News Release April 28, 2009 - List of items cut from budget  and additional proposals.
  • Passed Transportation Benefit District.  Suggested property tax lift, reduce the reserve for cash flow from 12 percent to 10 percent, increase building permit fees; non-represented employees will pay a  higher share for dependent health coverage and reduced Cost of Living  Adjustment (COLA);  Restructure benefits for employees  to have savings options.

Renton

 Non-Represented Employees to Take Furloughs, Forego Deferred Compensation, News Release 3-10-09 - The employees will take three days off without pay, and forego 1.3% of their deferred compensation. The city’s collective bargaining units also continue to have discussions with their membership to determine whether they can also commit to pay/benefit cuts to save about 2% in the city’s overall payroll costs during fiscal year 2009 to avoid layoffs.
SeaTac
 SeaTac Ordinance No. 09-010 ( 222 KB)- Provides temporary time extension of approval of building permits, short palts, and long subdivisions, 6-09 

Seattle

Seattle Public  Library closure Monday, Aug. 31 through Sunday, Sept. 6 due to citywide budget cuts.

Mayor Orders Roll Back and Freeze of City Executive Salaries, News Release 3-13-09 Department directors and executives, including the mayor, will forgo the 2009 cost-ofliving adjustment of 4.5 percent, and their salaries will be frozen at 2008 levels. Four executive offices will begin furloughs for employees whose salaries are not frozen. With the exception of clerical employees, workers in the Mayor’s Office, Finance Department, Office of Policy Management and Office of Intergovernmental Relations will take seven days without pay in 2009  

 Kitsap County

County is implementing anti-recessionary expenditure reductions by temporarily changing the operational hours of the Administration Building to be open from 8:00 a.m. until 5:00 p.m., Monday through Thursday and closed on Fridays effective May 4, 2009.

A hiring freeze was implement in August 2008 and a spending freeze on specific expenditure accounts was instituted in September 2008.  Efficiency measures were identified  that supported efforts to reduce expenses: an Anti-Idling and Fuel Conservation Policy (Resolution 172-2008); County Vehicle Take Home Policy (Resolution 173-2008); limitations on travel and training;  and a plan was developed to increase energy use efficiencies and reduce consumption of energy services.  Board of County Commissioners authorized several cost reduction measures: delay in technology initiatives; delay in the software replacement; reduction in overtime and extra help; reduction in travel, per diem, and training; reduction in outside agency funding; reduction in rates or transfers from internal service fund Fun; use of reserves (limited to an amount whereby the fund compliance with reserve policy of 7.5% of revenue).  See Memorandum ( 460 KB) from Shawn A. Gabriel, Director, Administrative Services, November 19, 2008, re 2009 Kitsap County Preliminary Budget.

Bainbridge
Bremerton
Kitsap County Health District

Kitsap Regional Library

 Salary and cost-of-living adjustment freeze, increase in employees' insurance co-pays. KRL Budget Cuts 'Close to the Bone, Bainbridge Review, February 2, 2009 
Kitsap Transit
 Service cuts: elimination of Sunday service, cut back in other routes; closure of Port Orchard office.
Mason County  
Shelton
 Video presentation on Cuts in other City Services - Overview of finances, cuts that have been made. Staff cuts, consolidation and reorganization of services, proposal to annex to Timberland Library by 2010 or eliminate library services
Mason County Transit
Expense reductions for travel, advertising, supplies along with delay in capital improvement projects, and a fare increase effective January 1, 2009.
Pierce County

Council Approves Further Budget Cuts, Front Page News, June 16, 2009

Since the Pierce County Council approved $8 million in reductions to the 2009 budget in March, there is now an additional $8 million shortfall due mainly to unexpectedly low sales-tax revenue. Further savings could come from 1 percent reductions to all county departments ($2.5 million) and pension and other savings ($2.5 million), leaving $3 million still unaccounted for. Furloughs and other options are being studied as a way to achieve the necessary savings while still protecting the county’s core services and retaining a high-quality workforce.

The county is seeking an 8 million dollar budget cut: 1%  in the Sheriff's office, 1.5% in criminal justice, and the remaining department are to cut 3%.  A supplemental budget will be addressed in February.  Pierce County News (PCN) 1/28/05

Bonney Lake

Bonney Lake Ordinance No. 1331 ( 240 KB) - Establishing temporary benefit policies and/or exceptions to benefit policies due to the current recession and accompanying reductions in city revenues, passed 9/8/09.

Reserves (ending fund balance) were used to balance the 2009-2010 biennial budget. The city is neither hiring nor laying-off.  In the building division where revenues and permit activity are down 50%.  Building inspectors are being cross-trained as construction inspectors to take up the slack and reduce dependence on contracted infrastructure inspection. We also are assigning building inspectors code enforcement officer duties. WCMA News ( 659 KB) December, 2008

Buckley
The City is looking at running the city based on a 10-hour 4- day work week (with the exception of police, fire and sewer which must operated 24/7).  Even though most of the City will be closed one day a week, by going to a 10 hour day, City offices will be open 2 hours longer 4 days a week making it easier for citizens that work outside of the City to do business with the City. One position at City Hall will be cut from 40 hours per week to 20 hours per week. Seasonal employees will not have as many hours next summer. Shuffling staff and positions, lowering the temperature in City buildings and centralizing the purchasing of supplies between departments all help close the gap.  Mayor's Message 2009 Final Budget
Gig Harbor
  • Discontinuance of Passport Service - This decision was based on the unprecedented growth in demand for passport services and the city's inability to provide the service, while still allowing city staff to complete their core municipal job duties (City Web)
  • Several positions will be reduced from full-time to part-time, and several other positions are being eliminated. Only two out of almost 100 employees will be laid off.  WCMA News ( 659 KB) December, 2008
Lakewood
2009 general fund budget has a reduction of 13 positions.  Due to hiring freeze over the last 5-6 months, most but not all of the positions are vacant. WCMA News ( 659 KB) December 2008
Sumner
 The city's first biennial budget is using one-time savings and some excess reserves in order to fill about ½ the $2.3 million gap. The other half is being filled by leaving positions vacant, a layoff of one manager, spending reductions, some fee increases, and reductions in hours and programs. WCMA News  ( 659 KB) December, 2008
University Place
 Resolution No. 610 ( 33KB) gives the city manager authority to grant five extra merit days to non-represented employees in lieu of a COLA for 2009.  
Tacoma Metropolitan Park District
 If our budget projections are realized, we will finish the next biennium with a General Fund reserve balance that is at the 5% minimum policy requirement. Longer term, service delivery will be significantly impacted if revenue trends do not change. For the 2009-2010 biennium, Metro Parks Tacoma will emphasize several key initiatives, including:  conduct feasibility studies and test ways to enhance revenue. Implement the new City of Tacoma Interlocal Agreement, and working jointly to find a replacement funding mechanism. Develop and update various business plans to maximize resources and increase efficiencies in service delivery, including internal support services.  Adjust park maintenance peak/non-peak season and modify park and facility level of service frequencies to meet needs while recognizing fiscal constraints. Strategically assess and implement appropriate levels of core programming given fiscal constraints, maintain services where possible through brokering or contracting with outside entities and partners.
San Juan County Council Looks Toward 2010 Budget and Probable Levy Election - Additional budget cutbacks
Skagit County In Spring 2008, department heads and elected officials were asked to trim 10 percent of non-employee expenses.  One percent increase in property tax approved;  $700,000 of the road funds were shifted to the general fund. No COLA for elected officials and most department managers; 3% general wage adjustment for some non-represented employees.  Press Release 12-09-08 
Mount Vernon
 Eliminated 6 staff positions; 1.7 million eliminated from budget, 1.9 million taken from reserves to fill in budget gap.  Library closed on Sunday. 
Snohomish County
  • Approved budget reductions include a hiring freeze on most county positions and reducing the pay of non-union-represented and management-exempt employees by 4.25 percent through 11 furlough days. AFSCME is considering a similar reduction through a combination of furlough days and reduced work-week hours for union represented employees. Media Advisory – March 30, 2009 ( 18 KB)
  • Ordinance No. 09-007 ( 79 KB) - Department directed savings days and salary reductions, passed 2-19-09
Edmonds
  • Raise fees, consider TBD, allow gambling, consider regional fire services authority, raise utility taxes to 10%, raise CATV tax to 6%.  See Mayor's Budget Message ( 253 MB)
  • Emergency Medical Transport Fee, effective 1-01-09 - one of  Mayor's budget recommendations.
  • Transportation Benefit District created
  • Newsletter changed to online only ( 12 KB). Press Release 1-23-09
  • City staff take one furlough day per month. Furlough days started in April and are expected to save the City approximately $800,000 through 2009.
  • Summer vegetation control cut back.  Any help citizens can provide in taking care of their own frontages will be greatly appreciated. City News Letter, 7-09
Sultan
 City put proposition before voters in March 2008 to to annex SnoIsle Library or close city library January 1, 2009. See News Release 2-13-08 Voters passed measure to annex.
Snohomish
So far, it has managed to adjust the budget through the freezing of vacant positions, by eliminating part-time and non-permanent employees (seasonal maintenance and police cadet positions).  Travel, training, professional services and other miscellaneous expenses have been cut as far as possible without undermining operational effectiveness for essential services. However, layoffs of existing employees are probably inevitable if revenues slide further below  new revenue projections. WCMA News ( 659 KB) December 2008
Spokane County
Airway Heights
Increased property tax 1%, eliminated capital outlay expenditures for 2009, no annual transfer to the  Executive Reserve Fund, reduced budget for dust control, roadway repairs, and striping services.  For consideration: creating a TBD or increasing utility tax to be used for street repair and maintenance.  Utility tax increases 2009-2011 to fund construction and debt service on water reclamation facility.  Budget Message ( 1.94 KB), 2009 Airway Heights Budget
Spokane
 The city will cut nine jobs from its building department effective Feb. 15. The cuts will save about $500,000 per year. Seattle Daily Journal of Commerce 1/27/09
Thurston County

Reorganization plan implemented 3-01-09,  designed to reduce the number of departments led by appointed directors from 16 to eight in an effort to streamline service delivery and reduce costs. Press Release 2-11-09

Olympia
Timberland Regional Library
 Starting 10/08, all libraries in the Timberland Regional Library District are closed on Sundays as a cost-cutting move to reduce spending.
Walla Walla County
Walla Walla
Reduction library hours to 42 from 47 hours/week, cut 4 library staff; 3% water rate increase 2009, 2010; storm water 15% increase 2009; 10% 2010;  Preliminary Budget Message  ( 3.96 MB).
Whatcom County
Bellingham
Blaine
 The city clerk’s office lost half a position; the police dept. has a hold on a patrol office position, and the building and codes dept. lost one position.  Manager's Budget Message
Bellingham School District 501
 Budget Update 2009 - District-wide Budget Savings Plan: Questions and Answers, Updated 2-19-09
Yakima County
Grandview
During the summer, the city council voted to close the museum, close the swimming pool two weeks early, eliminate seasonal parks maintenance employees, eliminate employee training for the balance of 2008, and eliminate the animal control officer position. Those service cuts were carried over into 2009.  The council prioritized the twenty (20) programs and services in the general fund. It proved to be an extremely helpful and rational way to make tough budget decisions. WCMA News ( 659 KB), December 2008
 

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