Lacey to cut $2.1 million

By Christian Hill | The Olympian • Published March 06, 2009

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LACEY – The city will cut $2.1 million out of this year's budget as projected revenues fall because of the economic crisis.

Officials will reduce spending by laying off or not hiring seasonal and temporary workers, leaving positions vacant or delaying hiring, and reducing services that finance director Blaine Martin said won't be too noticeable to the public.

"At this point in time, we're not looking at staff reductions," he said. "If we come back, it's fair to say that's where we're going to be looking."

The council approved the plan during a work session Thursday night.

In preparing the budget, City Manager Greg Cuoio said the city held the line on spending and used conservative revenue projections.

Even so, those projections proved to be too optimistic in the face of the economic slowdown and uncertainty that has gripped the state and nation. The city has seen substantial declines in revenue from sales and business and occupation taxes and permit fees during the first two months of the year.

The reduction represents a cut of 5 percent to 6 percent to affected departments and capital funds.

"The way things are going, this may be the first of two or three cuts," Cuoio said.

Among the reductions, the city will:

• Reduce money available for travel, overtime and hiring consultants.

• Slash funding for an after-school program and sports and other events in the parks and recreation department.

• Disband the police department's version of the SWAT team, a decision that has angered the police officers' union and may result in a unfair labor practices complaint.

• Produce and mail its newsletter to city residents twice a year instead of quarterly.

• Cut $100,000 to buy new street trees.

• End "Just Hire One," a summer youth employment program.

• Reduce $150,000 in funding used to pave aging neighborhood streets during the summer. An additional $850,000 still is budgeted for the annual summer program.

The City Council rejected a proposal to eliminate lifeguards at Long Lake Park, which is a popular swimming spot during the summer. It also spared from the budget ax $25,000 in grant funding for a dog park.

Staff members plan to return to the City Council in June to report if another round of budget cuts is needed.

Lacey isn't alone in its economic challenges. The state is grappling with an $8 billion budget shortfall, and Thurston County recently announced it will need to trim $5.7 million this year because of declining revenue.