Olympia proposal would trim 22 jobs

Reduction could occur Dec. 31 as city reels from sales-tax drop

By Matt Batcheldor | The Olympian • Published October 08, 2008

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City Manager Steve Hall on Tuesday proposed cutting 21 full-time city positions and one part-time position by the end of the year to deal with a steep drop in tax revenues as the city prepares to adopt a budget for 2009.

Hall said that nine or 10 people could lose their jobs; the rest of the reductions would come from attrition, retirements or transfers. He said it's possible that no city employees will lose their jobs, but not likely.

Hall said he's "confident we won't be doing mass layoffs." The city has about 600 employees.

Finance Director Jane Kirkemo said all affected employees have been notified. Employees will be able to apply for other essential open positions the city plans to fill, she said; there are eight such vacancies now.

"It's just a very difficult budget," she said. "It's a very difficult time. It's hard on employees. It's hard on managers and supervisors."

The job losses are among a collection of proposed cuts for the 2009 budget, which the council just began working on. Hall emphasized that this is just the beginning of the process. Final cuts won't be made until the budget is passed, which must happen by the end of the year. Layoffs would occur Dec. 31, Kirkemo said.

Olympia has faced double-digit declines in tax revenues as the economy has suffered. The city relies heavily on sales tax, and people are not buying as much in uncertain economic times. The city expects sales-tax revenues next year will be down 12.3 percent, or nearly $2 million, compared with 2008. Kirkemo said overall revenue is expected to be down 1.1 percent, the first time in 25 years that the next year's revenue is expected to be less than the current year's. More positions could be cut. Kirkemo stressed that the proposal to cut the positions assumes that the city will divert $1.1 million in utility tax revenue out from the capital projects budget to the operating budget.

That would involve cutting transportation and park projects.

If the council doesn't do that, the city could be forced to cut an additional 22.5 positions, she said.

Hall also is proposing cutting more than $100,000 in funding to several social-service agencies — the Dispute Resolution Center, the Olympia Early Learning Center, the Youth Partnership Program and Community Youth Services. The Human Services Review Council also would have its funding cut from $195,000 to $170,000.

That's on top of budget cuts already made this year. Kirkemo said the city isn't filling employee vacancies unless absolutely necessary and is cutting back on consultant services. And with the economy in decline, Kirkemo wouldn't rule out more cuts next year.

But she hopes the hit to staff can be contained for 2009 with the current round of cuts.

She said customers will be more likely to hear a voice mail than reach an actual person if they call the city next year.

"Will the public notice?" Kirkemo said. "Yes."

Mayor Doug Mah said at Tuesday's City Council meeting that the council shouldn't get bogged down in looking at the situation in terms of numbers of full-time employees, but rather what work those people accomplish.

"I want us to be focused on outcomes and not so much about the output," he said.

"I want us to be bold and to be creative."