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August 3, 2010 in City
City contemplates pink slips for 120
More than 120 city employees could face pink slips at the end of the year unless city unions agree to concessions or the City Council increases taxes, officials warned Tuesday.
Two months after proposing a budget with more than 40 layoffs, Spokane Mayor Mary Verner told the Spokane City Council in budgeting strategy session that faltering sales taxes and other factors could result in a 9 percent across-the-board cut to fill a possible $12 million hole.
“You can’t make $12 million in cuts without cutting something that’s very popular, that’s very loved by our citizens,” Verner told the council. “We are taking our tasks very, very seriously.”
In May, Verner had forecast a 3 percent across-the-board cut that was dependent in part on persuading county leaders to move forward the city’s annexation of the West Plains to Jan. 1. But those negotiations have not advanced, and the city no longer is counting on the $2.5 million in taxes that would be raised from early annexation.
Verner said she does not plan to ask voters to raise property taxes beyond the city’s usual 1 percent increase. She also has ruled out asking for a fire bond this year to pay for new fire equipment.
“I just don’t think the voters have an appetite for new taxes,” she said.
However, Verner said she supports the implementation of a vehicle tab fee of $20 that can be imposed by the City Council without a public vote.
A $20 tab fee would be charged on more than 100,000 cars and raise more than $2 million, officials said. The money would have to be spent on street maintenance, but that won’t necessarily improve roads. That’s because council members said most of the current money used for streets would be shifted elsewhere to fill budget gaps.
A tab fee “is appropriate because it’s revenue taken from people who use the streets to pay for maintaining the streets,” Verner said. “We’d be able to stay at the same level,” she said. “Otherwise are our street maintenance is going to have to decline.”
Council members also are considering a tax on paid-parking lots, such as the spaces operated downtown by Diamond Parking Service.
Councilman Richard Rush said the tax would be used to generate money to improve the downtown and wouldn’t necessarily provide much short-term budget relief. He said improvements made with the money could stimulate economic development that could help the budget in the long-term.
Rush suggested a tax of $75 a year on each space, but only in paid surface lots as a way to encourage construction of parking garages.
“My point is not just raise money, my point is to dedicate this to downtown infrastructure,” he said.
When council members were asked if they wanted to keep the parking tax as an option, all but McLaughlin raised their hands, a tally that was the same when members were asked about the tab fee. Councilman Jon Snyder was absent.
Council members debated whether cuts should be an equal percentage in all departments or if the burden should be placed mostly on departments other than police and fire.
Only council members Richard Rush and Nancy McLaughlin raised their hands when asked who preferred an across-the-board strategy.
McLaughlin said state bargaining law makes it difficult to win concessions from fire and police unions – forcing other workers to take the burden of cuts. She said morale would suffer if other some workers face a higher burden even after showing a willingness to concede.
“I’m not willing to protect police and fire if they aren’t willing to come to the table,” she said. “The real world out there has had to deal with a recession.”
But some council members said playing hardball with public safety unions is a losing battle and that services like the libraries will most likely have to accept higher percentage cuts.
Last year, the city’s fire union agreed to change their health plan, but made no wage concessions. Instead, the city created an early-retirement program to persuade higher paid veterans to leave. The police union agreed to forgo a pay increase in 2010. But members were given 52 hours a year more in vacation and a 4 percent raise in 2011.
Spokane Police Guild President Ernie Wuthrich said he doubts the police union would open up its contract this year since the city and union just inked its two-year deal at the end of 2009.
“We negotiated in good faith, and so did they,” Wuthrich said. “They know we have to come to the table next year.”
But Joe Cavanaugh, who leads the city’s largest union, Local 270, said even though most of the union’s membership has a contract that doesn’t expire until 2012, the group will work with administrators to save jobs.
“We’re more than willing to sit down and discuss any number of ways to decrease the general fund expenditures,” said Cavanaugh, who noted that any concessions would have to be voted on by 270’s membership.
Some council members argued that it may be easier to win concessions from unions if the council is willing to increase taxes or fees.
Council President Joe Shogan said the city should aim for budget cuts, tax or fee increases and union concessions.
“I don’t think we can sit here and raise revenue and say, ‘Well, everything’s hunky-dory.’ It’s not true,” Shogan said. “I also don’t think the unions are going to be as inclined to make concessions if don’t see some sort of action by the council on the revenue side.”
Some union leaders said if they are asked to make sacrifices, they would look favorably at attempts to increase revenue to plug a portion of the gap.
“Actions by all parties are appreciated by the others,” Cavanaugh said.
MAC faces angry crowd 
deacon46 on August 03 at 8:24 p.m.
Time the Police and Fireman lived in the real world. Cut them like any other employee. A few less donuts and some exercise would not hurt either. Save on the healthcare tab.
aeguy on August 03 at 8:51 p.m.
William I am going out on a limb here and am going to say you are one uneducated fool. How about the next time someone tries to break into your house, or rapes a loved one or perhaps your mother’s house catches on fire, refreain from picking up the phone and dialing 911.
lewis8457 on August 03 at 8:58 p.m.
City has spent over 11 million on property purchases in the last 8 months.
They have lots of money this is just another attempt to raise property taxes.
I agree with William there isn’t a cop in this STATE that is worth 100 grand a year plus benefits.
aeguy on August 03 at 9:02 p.m.
Lewis are you speaking about the single highest paid Police official in the state? I have never met a cop pulling in 6 figures a month, call me crazy but my little brother and cousin have never seen over half of what you claim cops get paid.
de3 on August 03 at 9:04 p.m.
Spokane has street maintenance? I never noticed :-)
zelda on August 03 at 9:19 p.m.
120 is X percent of how many? It’s hard to assess the magnitude of cutting 120 city jobs unless we know the proportion. I realize that the cuts won’t be evenly distributed across departments, but still, it would help to know how many employees the city has now vs. 10 years ago. Sadly, services like libraries are going to bear the brunt of this.
monkeyman on August 03 at 9:24 p.m.
“The police union agreed to forgo a pay increase in 2010. But members were given 52 hours a year more in vacation and a 4 percent raise in 2011.”
…effectively ~6% raise in this economy?
@ aeguy on August 03 at 8:51 p.m.
“William I am going out on a limb here and am going to say you are one uneducated fool…. refreain from picking up the phone and dialing 911.”
I can say the same about you without going out on a limb…if the police and firemen are part of the community, shouldn’t they be happy to help and pitch in by taking a small pay cut for themselves?
monkeyman on August 03 at 9:28 p.m.
@Zelda Krup on August 03 at 9:19 p.m.
“120 is X percent of how many?”
I was wondering about the same. If the 9% required cuts mentioned equate to 120, then it would make it a total workforce of about 1330.
aeguy on August 03 at 9:47 p.m.
monkeyman- If you don’t mind, could you tell us all what you do for a living? After reading your comment I am drawing the conclusion that you are safely writing this from your desk in your home that is protected day in and day out by these brave women and men in uniform. Police officers and Firefighters put their life on the line on a daily basis, they shouldn’t have to take a pay cut.
In case you are wondering- I am writing this from Iraq, in the safety of my living quarters knowing that my fellow comrades are keeping me safe.
Sleep well and thank a police officer for your safekeeping.
monkeyman on August 03 at 9:58 p.m.
To: aeguy on August 03 at 9:47 p.m.
I guess when there is no good basis for an honest debate, one can fall back on words like bravery, sacrifice and courage.
If the people you are defending are so above the average Joe perhaps they can help their lower fellow humans for free…? Or do they first want to be paid in gold?
spokanada on August 03 at 10:01 p.m.
Lewis, good point about the property purchases. I new someone would remember about those projects.
aeguy on August 03 at 10:07 p.m.
Nobody said police officers and firefiighters were above the “average joe”, infact these are “average joes” doing a not-so-average job. I enjoy that you break down my posts by words and pull from context rather than taking in the whole point of the arguement. It is easier to debate a few words rather than a whole concept on the issue. Please get real.
zelda on August 03 at 10:31 p.m.
What have been the results of the Six Sigma person that the city hired? I would have thought that the city could have LEANed its way out of the budget squeeze by now with all the efficiencies and cost savings achieved by rigorous application of statistical process control. As I recall, that person was hired at a salary of around $100K+.
Monkeyman — the budget cuts wouldn’t necessasarily be purely salaries + benefits would they? The 1330 number is a good placeholder until we know the actual figure. So maybe our dependable City Hall eporter Jonathan Brunt could supply that number when the story is updated. Thanks in advance…
joe doughtnut on August 03 at 10:35 p.m.
aeguy, For what its worth I think most of the armed services members aren’t compenstated enough when they’re in harms way.Contract government employees (I call them mercenaries) make 5 to 8 times more than average foot soldier.You deserve more, yet I believe you are serving our country for the ideas for which it stand for,not the almighty dollar. I would hope that police and fire would sacrifice apportionately with other employees during these difficult times.The clerical worker and garbage truck driver provide many essential services also to our city. Support to police offiers when they call in for information, public sanitation. It takes more than just police and fire employees to make a city run.
P. S. I appreciate your service to our country.
nitro71 on August 03 at 10:59 p.m.
Sorry but the police don’t protect you. They arrest suspects after crimes are commited. The only one protecting you is yourself. If your property gets stolen they don’t even investigate. Then there are the police that think speed limits don’t apply to them. If they cut the police they cut them. I think the city should show us exactly where the money goes. I bet there are some pet programs sucking up money. They use services like police and the library to scare voters into supporting tax increases. It’s time for the govt to live within it’s budget. Just like the rest of us.
aeguy on August 03 at 11:21 p.m.
For the most part I agree with you Joe, I do believe that head officials of local government should take the majority of the cuts, as in superintedents, chief of police, mayor’s clerks. My father has been a “garbageman” for twenty plus years and the pay difference between him and the guys behind the desk doing very little is of great signifigance. My wife is an elementary school teacher and as a first year teacher made less than 40K, and this is with a four year bachelor degree.
Thanks for your appreciation.
monkeyman on August 03 at 11:58 p.m.
“The City of Spokane has about 2,000 employees…”
http://www.spokanecity.org/government
–––
Mayor Explains Deteriorating Financial Conditions for 2010 & 2011 (8/3/2010)
http://www.spokanecity.org/services/articles/?ArticleID=2233
MarleneFeist on August 04 at 8:31 a.m.
The City does have a total of about 2,000 employees. However, the budget reductions we are discussing are for the General Fund portion of the budget only, not the utilities (sewer, water, garbage). The General Fund and departments that are dependent on the General Fund have about 1,300 full-time equivalent employees.
Some of the larger General Fund/General Fund-dependent departments are Police, Fire, Streets, Parks, and Libraries. The major General Fund revenues are sales, property, and utility taxes. Police and Fire make up more than 50 percent of the General Fund’s expenditures.
Thanks.
Marlene Feist
monkeyman on August 07 at 8:43 p.m.
@ Marlene Feist on August 04 at 8:31 a.m.
“…Police and Fire make up more than 50 percent of the General Fund’s expenditures.”
I would like to know what the exact number is.
(Also, the above commenter is Public Relations Officer at the Mayor’s office. I thought that might be relevant to this public forum.)
monkeyman on August 07 at 8:53 p.m.
Continuing from above: …so the shortage and the cuts are both in the General Fund?
http://www.spokanecity.org/government/budget:
“General Fund - A 2010 General Fund budget of $161.0 million, compared with a $155.5 million budget in 2009.”
If so, I assume that the 2011 forecast is just under $150M. How was the $5.5M upside from 2009 to 2010 was utilized? I suppose one can find these details if one takes time to dig them up…
Lefty on January 03 at 5:01 a.m.
Unions,,,,,,,hmm they were great in the 20’s to keep the kids out of coal mining and the US from becoming China. The unions will eventually be the downfall of most cities(and states) across the United States, tell me something? where does the union dues go? Does it go into a pensions plan that all of the members pay in to and receive their retirement from? Nope, not set up that way (that would be way to smart) the taxpayers will pay for their pensions (oh by the way,,it is transferable to the spouse after the person dies!!)