Olympia budget plan cuts 22 jobs

By Matt Batcheldor | The Olympian • Published November 07, 2008

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OLYMPIA – City Manager Steve Hall rolled out a proposed $98.7 million budget for 2009 this week that cuts 22 positions and funding for social services and customer service.

Finance Director Jane Kirkemo told the council in a special budget meeting Tuesday that residents will notice the cuts.

Among them:

• Victim assistance services, helping victims prosecute their cases.

• Operators who assist people who call the city.

• A reduction of two building-inspector positions.

"We have some big decisions ahead of us," Mayor Doug Mah said.

The public will have a chance to comment before the budget is expected to pass Dec. 16. Individual council members likely will keep some of the items they favor from hitting the chopping block. But that means the city must cut somewhere else, or raise taxes and fees.

Blame the faltering economy. Overall revenue is expected to fall 1.1 percent, the first time in 25 years that revenue is projected to be less than the year before, Kirkemo has said.

Blame declining sales tax revenue; it makes up a big chunk of the budget, and fewer people are buying things.

Next year's sales-tax revenue will drop 12.3 percent, or nearly $2 million, compared with 2008, the city estimates.

Nearly every department in the city will be hit by the cuts; 21 full-time positions and one part-time position would be cut. Hit hardest is the Community Planning and Development department, which will lose seven positions.

Director Keith Stahley said that fewer people are applying for residential permits, meaning employees are less busy, and fewer are necessary.

The city issued 68 permits for residential dwelling units from January through October, down from an average of 175 issued normally during that period.

Four and a half positions would be cut from the parks budget. That means less maintenance of picnic shelters, fewer community events such as Percival Play Day and eliminating the mass mailing of the parks brochure.

Drivers and bicyclists will notice a difference, too. Street sweepers no longer would work at night to clear roads and bike lanes.

Outside agencies also would lose their city funding in the budget — the Dispute Resolution Center, Olympia Early Learning Center, Youth Partnership Program and Community Youth Services.

Cuts aren't the only option. The city could raise taxes or fees in several areas without voter approval. Among the options:

• The Business and Occupational Tax could be raised from one-tenth of 1 percent to two-tenths of 1 percent. That would net $2.5 million per year, the city estimates.

• The public utility tax, which people pay on utilities, could be raised. The city could get $678,500 per year.

• Gambling taxes on punch boards, pull tabs and card games could be raised. It's unclear how much revenue that would generate.

Or the city could ask voters to raise their property tax next year, which could raise as much as $8 million.

Mah warned that "all indications" show the budget problems will last longer than just next year. Councilman Joe Hyer said next year's budget should just be considered an interim step to address the city's economic situation.

Hall said the city's capital projects budget might not have to be cut by shifting money from some revenue sources that have materialized. That would spare projects like school field renovations that would be cut in the budget proposal.