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December 8, 2010 in City
City vehicle tab tax in limbo
Street maintenance money shifted to rainy day fund
The Spokane City Council is balking on plans to impose a new $20 tax on vehicles this year, and in a surprise move shifted money away from road plowing and repairs to be spent instead rewarding departments whose labor unions made requested wage and benefit concessions.
The council voted in October to give itself the authority to create the local tab tax, but it has since deferred a decision.
In a profanity-laced tirade on Tuesday, Council President Joe Shogan scolded City Council members who are reluctant to approve the tab tax.
“We just spent a whole year on nothing. We created something that’s gutless, has no substance and we just went through a drill,” Shogan said in a council budget meeting. “… I took all heat for creating this bastard and you guys are going, ‘We don’t need it. We don’t want it. We don’t have the guts to pass it.’ ”
The decision to create a tab tax has been complicated by union negotiations. Although a tab tax would have to be used on streets, officials have said other taxes currently used on streets could be diverted from the street maintenance budget to save jobs in departments with unions that make concessions. So far only firefighters have made requested concessions – though the Spokane Police Guild is voting this week on a similar agreement.
With a vote still possible, some council members argue that a tab tax shouldn’t be approved unless the city can prove it will improve streets. Councilwoman Amber Waldref said she’s torn between a desire to use the tax boost to improve streets and a desire not to reward city street employees, who didn’t meet Mayor Mary Verner’s request for concessions.
In a surprise vote on Monday, the Spokane City Council voted 4-3 to shift $1.5 million in street maintenance money to the city’s rainy day fund, where it could be used to support departments with unions that made requested concessions.
City administrators said they weren’t briefed on the concept, which was proposed by Councilman Steve Corker, before the council decision and were uncertain how the cut would affect existing street service. However, they said further layoffs of street employees, who patch potholes and plow snow among other duties, can’t be ruled out. Even before the money was moved, the street department was slated to lose 14 jobs next year.
Councilman Richard Rush said approving a tab tax to pay for streets after diverting money from streets could cause a public backlash.
“I think last night killed it in my book,” Rush said.
Two council members say a tab tax shouldn’t be considered in a sluggish economy.
“You can’t tax yourself out of a recession,” said Councilwoman Nancy McLaughlin.
Fire union concessions will save the city about $700,000 next year and even more in following years. But to save all the jobs called for in the agreement, the city needs closer to $1.4 million. A similar situation will occur in the Police Department if a tentative deal with the Spokane Police Guild is approved by members this week.
The union that represents Street Department workers – Local 270 of the American Federation of State, County and Municipal Employees – hasn’t made the concessions asked for by Verner. Council members said they wouldn’t have targeted the street budget had the union cut a deal.
McLaughlin said she is “disappointed” that Local 270 had not made concessions.
“The concept is we have to be as fair as possible to not reward those who are not coming to the plate,” McLaughlin said.
About half the city’s work force is represented by Local 270, but most of its workers are in utility departments, which are not facing layoffs. The street department is an exception.
City Budget Director Tim Dunivant said that because of reserves, the decision to move $1.5 million out of the street budget would require additional street department cuts in 2011 of around $800,000.
Joe Cavanaugh, president of Local 270, said the only warning he had about the decision before Monday’s vote was a message left by Corker on his voice mail. He said he would wait to offer an opinion until he had a chance to talk to the union’s membership.
Cavanaugh said the city didn’t meet with his group about concessions until November because they were finishing agreements to create cheaper medical plans that the union agreed to last year. Cavanaugh said concessions talks ended on Nov. 18.
“We did not feel they were interested in considering our proposals, which we felt were equally valid,” Cavanaugh said.
Verner has asked all unions to give up their 2011 raises and to pay for next year’s increased cost of providing medical benefits above 4 percent.
Waldref questioned why money should be taken strictly from streets when other unions also haven’t reached agreements.
“If it’s a strategy to engage union participation, it’s coming too late,” Waldref said.
Dunivant said even without diverting the street money, there probably would have been enough in the rainy day fund to cover the extra needed for fire and police concessions in 2011, but it would have used up most of what remains.
Supporters of Corker’s proposal said they didn’t want to use all of the city’s remaining rainy day fund and that the street department was the most logical place to find the money.
Corker noted that the council could refund the street maintenance budget with the tab tax or by diverting income from red light cameras – which currently can’t be used on basic street maintenance. There aren’t similar options for police, fire or other departments.
But Rush said it is foolish to cut streets when the city already is struggling to properly maintain them.
MAC faces angry crowd 
madscientist on December 08 at 7:04 a.m.
Profanity? Real professional. Time for you to go Joe, far far away from here. I applaud the other members for canceling this tax proposal.
Spokane_Citizen on December 08 at 7:21 a.m.
This is hilarious….the council thinks it’s punishing 270’s street department members by laying off even more street workers, when really all they’ll be doing is hurting the citizens’ already miserable street and snow removal conditions for 2011. And all of this is being meted out against the most poorly paid of city workers, while trumpeting an agreement with the fire department union that saves a tiny amount on their already massive salaries and benefits. I’m sure the police department agreement is of a similar nature…all fluff and good feelings, but no real savings.
But then why would Snyder, Rush, and Waldref care? They know we should all be dodging potholes and snow drifts on our bicycles…..
I get it. Maybe they’re punishing us for owning and depending upon cars for transportation.
misjustice on December 08 at 7:33 a.m.
Seems as if the City Council endorses the “Shifty Dangerous” form of accounting; moving money around to various departments to make it look as if they are doing something to get the budget in line.
Instead, citizens get convoluted complicated concessions without a clear explanation of how much money is actually saved, we need bottom line cut-to-the-chase type of numbers. We get a Council that has voted itself the power to “shift” money around, and then uses that power in a thinly veiled attempt to punish other city workers. Geez….
avocet on December 08 at 8:30 a.m.
Shogan is a bully. Listen to his “profanity laced tirade” here:
http://www.spokesman.com/audio/2010/dec/07/shogantabtax/
Ever watch the council meetings on Monday nights? The way he bullies the council and the public is beyond unprofessional and unacceptable. Why is this tolerated??
liarsinnews on December 08 at 8:46 a.m.
A shell game at best. And Shogan`s remark, speaking on behalf of the Lilac City, is out of bounds.
Spokane_Citizen on December 08 at 9:23 a.m.
The difficulty for the citizens, when they try to keep track of the city budget numbers flying around in newspaper articles with snippets of administration and council ‘quotes’, it is absolutely impossible to make rational sense of any claims by the city regarding purported bargaining unit savings, expenses, or revenues. I’ve tried to (and believe me, I have a much better understanding of how the city budget actually works than most people) and have found it impossible. And they like it that way.
Spokane_Citizen on December 08 at 9:28 a.m.
Avocet, short of a recall election, elected officials at all levels are not subject to the behavioral strictures that govern most employer/employee interactions. Even indictments and convictions do not automatically result in removal from an elected office.
Coffee on December 08 at 9:30 a.m.
Having well maintained roads will save more lives and bring in more business into Spokane, than having an over paid police force.
Lay off the cops and hire more street workers.
Spokane_Citizen on December 08 at 9:58 a.m.
You all might be interested to hear that San Jose’s citizens overwhelming voted (just last month) for an end to binding arbitration for public safety bargaining groups. This vote overturned a 30 year practice (and legal obligation) that disputes between the city of San Jose be resolved by outside binding arbitration….and as you might well guess…that arbitration led to astronomical public safety wage and benefit costs.
Finally, the citizens of San Jose had enough….like most of California’s cities (as well as the state for that matter) they’re flat broke because of being held hostage by the PS bargaining groups.
A Spokane City binding arbitration vote wouldn’t mean anything because state law, of course, supersedes any city’s ordinance, but might it be time for an initiative based vote by Washington state citizens regarding binding arbitration? If you want to combat this onerous situation, that would be the way to handle it….take to to take away the PS bargaining unit’s very powerful and effective threat to take every dispute to binding arbitration.
Spokane_Citizen on December 08 at 10:02 a.m.
Arguments in the official ballot pamphlet in favor of Measure V said:
“Each year, San Jose taxpayers foot the bill for an average of over $180,000 for each police officer and firefighter. Increases in pay and benefits dictated by outside arbitrators have driven up these skyrocketing costs, as have contracts negotiated under the threat of binding arbitration. Payments for retirement benefits have tripled over the last ten years, even as budget cuts have forced us to reduce our workforce by 20%.
The 2009-2010 Santa Clara County Grand Jury’s report “Cities Must Rein In Unsustainable Employee Costs,” concluded the arbitration process in San Jose “has resulted in wage and benefit decisions that have been greater than the growth in basic revenues sources.”[3]
In 2007, an outside arbitrator granted a pension increase to firefighters, many of whom now enjoy six-figure pensions. That decision created a projected unfunded liability of $30 million, borne wholly by San Jose taxpayers.”
Spokane_Citizen on December 08 at 10:04 a.m.
Yeah Dick….I bet you spotted my grammer mistakes in the post before last! Oh well. I’ll try harder.
Albert on December 08 at 10:07 a.m.
Civility? Mutual respect for your colleagues? There can be no excuse of any kind for this demonstration of vulgarity and profanity - especially from an elected representative. Needless to say, Mr. Shogun does not represent me as a voting citizen of Spokane. I’m ashamed of his character.
Mr. Corker was the biggest disaster to hit the council and we allowed him to make yet another comeback. Why? He is beyond corrupt and again needs to be tossed out of office.
I’m “required” to pay $20. to support corrupted unionism? I have a very big conscience problem with this pending levy of moral perversion.
supersport50 on December 08 at 11:02 a.m.
I am from California and citizen_spokane is right on the money about Californians revolting against union control. However, it is too late to save California. The last elections have confirmed this state will remain a blue state with dire consequences for its future. Where California was once truly the Golden State it is now a welfare state controlled by liberals who hold the levers of power.
As a conservative I can no longer tolerate the taxes and general cost of living let alone the liberal bent of the state.
And it is my intention to retire in the Spokane area in the near future.
A warning to all those who live in the Spokane area is fight against the unions and the liberals who back them or your communities will end up like those in California.
Just to let my fellow conservatives in Spokane know, I’m not alone in my move out of California and move to the Spokane area. I know of many decent, hardworking California conservatives moving to that area. I’m sure we will be welcomed to the conservative fold up there.
MrNatural on December 08 at 11:36 a.m.
We need a slogan
For old Joe Shogan
That illustrates his mood
His uncouth manner
Deserves a banner
Boorish, Foul, and Rude
Joe derides folks
With disparaging jokes
And subjugates his peers
With epithets
And no regrets
And disapproving sneers
Old Joe’s a grouch
Who needs the couch
To analyze his crass
Or otherwise
He’ll soon realize
A swift kick in the ***
Rock60 on December 08 at 11:57 a.m.
How are these concessions when you are returning the money? This is plum stupid. Typical union crapola.
Spokane_Citizen on December 08 at 12:23 p.m.
Rock60….this discussion is about ‘concessions’ to agreements already in the bargaining units existing contracts. Concessions are not the same as refunds. Money spent is money gone. That horse is already long gone out of the barn. Future spending is the only thing that could be modified if the unions decide to forgo a wage or benefit the city has already contractually agreed to provide under a ratified contract.
I won’t, however, argue that the concession details we’ve yet seen amount to any great savings, if that’s what you mean.
lewis8457 on December 08 at 12:31 p.m.
why do we have to reward a union to do the right thing? while private sector suffers we reward the already high paid unions members for caring?
I think we need to sell all the stuff the cops don’t use anymore, like SWAT equipment, the two armored cars they have, all the rubber bullets, bean bags, and tasers, since they only shoot center mass they don’t need glock.45’s they could do the same job with something far less expensive. Like a .22. Also why use such expensive bullets?
If the patrol guys can do SWAT and patrol why do we need all this extra equipment and man power? All the cops that come on here say they never use the other stuff because it doesn’t take out the threat.
I think before we need to put out more money they could find a few million dollars worth of stuff they really don’t need.
Cut the city council members back down to 15 grand each, they doubled their salary a few years ago and i have not seen any increase in their performance. In fact if you want to see a clown show go to a city council meeting.
keep the roads crummy that is what makes Spokane what it is. Instead lay off 40 more traffic cops, the potholes slow me down a lot more then the fear of getting a ticket.
misjustice on December 08 at 4:50 p.m.
Great ditty, Mr. Natural; the Bard of the SR Blogs!
; )
strictlyme on December 08 at 10:46 p.m.
It’s a very good time to NOT be a city employee right now…in any community. Hard times are being felt by all and I know it is not a fun place to be as noble as many are in their jobs. For those city employees that feel that they are stuck in their jobs, there is life after working for the city and the transition to many other lines of work in the private, non-profit, and other public sector markets can readily be successful…just take the fork in the road when you get there as Yogi Berra once said.
misjustice on December 09 at 8:46 a.m.
We paid a $20 city fee & another $20 county fee for each of our vehicles when we lived in KC, MO. This was 30 years ago! The fees were used for roads, signals, etc.
Get with the times people. If it will give us better snow removal & take care of the craters left after freezing and thawing of the roads, then I’m all for it……..but the money needs to stay in the road department.
Coffee on December 09 at 5:21 p.m.
Gramma…..
You would be 100% right except for one thing for every $20 tab fee collected they plan on taking $20 out of the city road repair budget and putting it in the general fund. So when all is said and done the city will not have any more money to spend on road repair, but you will be paying more tax.