400 county jobs could fall victim to $93 million shortfall
Cuts outlined in Sims' budget proposal
More than 250 King County employees could find out Tuesday they won't have a job starting next year, and a long list of county-sponsored programs might also be cut soon because of ongoing budget woes.
The cuts were outlined in County Executive Ron Sims' 2009 general fund budget proposal, a contentious plan presented to the County Council on Monday in response to a $93 million budget deficit.
Sims, who said repeatedly Monday that his plan stems from "unconventional wisdom," wants to temporarily put $10.5 million worth of health and human services in a "lifeboat" until the end of June. In the meantime, he plans to lobby the Legislature for additional funding to support the dozens of services that would otherwise have to be cut.
As criticism of Sims' much-speculated-about plan started to fly Monday, the county executive was called on to defend the plan -- and, in turn, Sims called on "the entire government" to start acting like adults.
"We focused on solutions, not hot air, not blame, not rhetoric -- on solving problems," he said.
He said the county would eliminate as many 400 jobs this coming year, and expects that as many as 255 county workers will find out Tuesday that they will be laid off. Additional layoffs could happen halfway through 2009.
The so-called lifeboat is one of the more controversial aspects of Sims' proposal, which calls for $60 million in permanent cuts. Those permanent reductions would primarily affect the county's public safety and justice departments, resulting in changes to -- among a long list of other things -- some drug and property crimes being prosecuted as misdemeanors.
"Business has to change, our priorities have to change, our belts have to get tighter" said King County Prosecutor Dan Satterberg. "The lower priority cases, we have to deal with in a more efficient, cheaper way."
For the first six months, the lifeboat programs would be funded with the county's reserve funds. The county would seek help from the Legislature to sustain services such as a winter homeless shelter, the medical examiner's public health lab and a reduction in communicable disease investigations.
Critics pointed out that state lawmakers will face a potential $2.3 billion deficit this year, so money will be hard to come by there. And none criticized Sims' proposal more staunchly than the King County Council's budget committee chairman, Larry Phillips.
"I don't think you can set a budget for 2009 counting on a hope and a dream," said Phillips, who said the county executive failed to plan ahead and is instead prolonging the county's agony. Phillips is widely expected to challenge Sims for the executive job next year.
Sims countered, saying that his $4.9 billion overall budget is balanced and that he would not send the council "an incompetent document."
Sims said: "Why would you tell people you don't need help? That's pretty incredible to me. That's a huge step backward."
The council plans to have its version of the budget drafted by Thanksgiving. Phillips said he expects that council members will have to "start from scratch."
But though he and Sims disagree in their approach to designating funds, they agree when it comes to the need for a reduction in the county's labor force. While Phillips wouldn't name a number Monday, he said he agrees that that as many as 400 positions might have to be cut.
Sims plans to notify employees Tuesday who will be laid off. Though he said 400 positions have been identified, it wasn't clear how many of those cuts would result in actual losses of jobs and how many are already vacant.
He said meetings were taking place Monday afternoon to determine those details. The cuts would take effect Jan. 1.
Phillips said it is Sims' prerogative if he wants to notify employees of their impending termination, but stressed that the council would not have a budget drafted until late next month.
Last week, Sims said he would be cutting a "substantial number" of positions within the county, a prelude to the gravity of his budget proposal Monday.
In a memo last week to county employees, Sims announced that the budget had a $15 million gap to reconcile, making layoffs and wage freezes necessary.
Sims plans to reduce costs by limiting cost-of-living increases, something that would require renegotiations with unions.
Other county officials are skeptical that the process would be successful, but Sims said Monday he is "quite confident as to the outcome."
The county's deficit prediction, pegged at just $45 million in March, snowballed throughout this year. Last spring, estimates came in at about $60 million. A few weeks ago, the number was reported to be closer to $90 million.
Sims has blamed the county's deficit -- called unprecedented by many -- on a perfect storm of economic conditions. He said about $54 million of the deficit can be tied in some way to the slumping economy.
The plummeting stock market decreased county revenue from investments at the same time that sales tax revenue fell.
Cities have recently annexed a number of business districts that produce sales tax, and state law prohibits the county from increasing property tax by more than 1 percent per year without voter approval.
Sims said union-negotiated pay raises for county employees have made matters worse.
Others familiar with the situation say increased spending on new positions and higher pay have greatly contributed to the shortfall.
Sims predicted Monday a $40 million shortfall in 2010, and $60 million in 2011.
KING COUNTY BUDGET
King County Executive Ron Sims proposed Monday a $4.9 billion overall budget for 2009. It proposes $644 million for the general fund, which covers most of the day-to-day operations of county government. That compares with a $659 million general fund budget for 2008. Among the highlights of the budget:
Sims has eliminated almost $1.5 million from his own office by moving from the Columbia Center to the nearby Chinook Building -- which is owned by the county -- and by cutting four staff positions.
Labels: King County, layoffs, Washington
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