November 28, 2000

Budgets: City moving ahead but County stalls

As the Seattle City Council glided toward approval of its 2001-2002 budget Monday, the battle over the King County budget showed no signs of easing.

The City Council unanimously approved a $2.4 billion 2001 spending plan that calls for a 4.1 percent hike in property taxes to cover inflation costs for employees' wages and benefits. The budget also allocates modest increases for homeless and transportation programs that are top priorities among council members.

At the county level, executive Ron Sims and Budget Committee chair Rob McKenna continued their sparring over what Sims considers a budget shortfall. Sims has vowed to veto last week's budget, but on Monday McKenna said Sims is using a "Wizard of Oz strategy" in his calculations of where the proposed budget falls short.

"He's manufactured a crisis where there is none," said McKenna.

The city budget sets aside $8.4 million in the event that property tax Initiative 722 is upheld in court. That initiative would force the council to reduce its property tax increase to 2 percent -- an outcome that council members predict is unlikely.

The city budget calls for $4.1 million in homelessness programs, including rental assistance, transitional housing construction, expanded shelter opportunities and the city's new Safe Harbors program. Other expenditures will include $1 million for new sidewalks in 2001 and 2002, as well as $1.4 million for street paving -- both contingent on I-722 being overturned.

To pay for the city's Combined Customer Services System -- the new computer system for utilities billing -- the city had to find $13 million in cuts. The system has gone over budget, from $26.4 million to $39 million. The cuts were made by deferring capital improvement projects such as sewer line rehabilitation and seismic upgrades on the city's pipeline system.

While council member Peter Steinbrueck said that spending on homeless programs is critical because "we are living in times of extraordinary prosperity," Budget Committee chair Jan Drago cautioned that revenues from business and operating taxes and sales taxes in the next biennium will not see the same gains as in recent years.

"There is increasing concern that this economy will not continue," said Drago. She said the 2001-02 budgets reflect modest increases in personnel, to avoid "painful decisions" that come with staff cuts during fiscally lean years.

Council member Heidi Wills, who lobbied strongly for additional transportation dollars, said many residents in recent months had requested more money be spent on updating signals, new sidewalks, paving and improvements to bicycle trails.

"This budget goes a long ways toward fulfilling the needs the public told us they want to see supported," said Wills. "The public is interested in increased services -- from affordable housing to meeting a backlog of transportation needs."

Wills noted that the city's six-month budget process went smoothly, compared to the divisive budget process underway at the county. "There's a great distinction between the city and county," she said.

Sims said last week's County Council approved budget "seriously jeopardizes Medic One and other services" by underfunding emergency medical service providers by $1.1 million.

McKenna attributed the alleged shortfall to a "disagreement over calculation methodology," and said Sims is "getting bad advice from staff."

Nevertheless, Sims has vowed to veto the proposed budget by week's end.