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May 13, 2010 in City
No sugarcoating Spokane’s ‘dismal’ budget
Verner’s outline includes ‘ugly’ job cuts, but no tax increases
Verner
(Full-size photo)
Spokane Mayor Mary Verner on Wednesday outlined a grim budget proposal for 2011 that would eliminate 18.5 police jobs and nine firefighter positions and make city services available just four days a week.
“I’m going to ask you to brace yourselves,” Verner told City Council members. “This is a pretty dismal budget we are going to propose.”
Verner said current revenue projections of $165 million are about $10 million short of expected costs. That follows a year when city leaders had to make cuts to make up for a $7 million shortfall.
As it stands, the proposal would cut 44 positions, two of which were grant funded. But that doesn’t mean 44 people would lose their jobs. Some open jobs would remain dark and others would come from retirements, she said.
“At this point, I can’t guarantee everyone will have a job who wants one,” she said. “Obviously, it is very ugly. But if we had to execute the budget today, that’s how we would execute it.”
The mayor’s 2011 spending proposal, which won’t be finalized until November, avoids tax increases. But it does call for the council to approve using $2 million from its rainy day fund and presumes that Spokane County commissioners would agree to speed up the West Plains annexation, which would provide another $2.5 million for the budget.
In addition, Verner said she would ask the city’s employee bargaining units to open their contracts and authorize a 4 percent increase in what they pay for their health benefits, which would save the city $1 million. She pointed out that the unions have no legal obligation to do so.
She delivered the news to the unions in a meeting just before the City Council briefing. The only two unions not represented in that meeting were the Spokane Police Guild, which opens negotiations next year, and the Police Lieutenants and Captains Association.
Most union representatives “have expressed a willingness to discuss” the health benefit increase, Verner said. With no increase, “the number of employees who get laid off gets bigger. There is a real incentive to work with us.”
Verner said if any of the proposals falls through, the revenue would have to be made up through either more job cuts or tax increases.
One of the proposals would have city employees switch to a four-day workweek with 10-hour shifts. Citywide, the change would only save $50,000.
“For $50,000, we didn’t want to diminish our services. But $50,000 means a job, and we are at that point,” she said.
City Administrator Ted Danek said the city has done surveys in the past that showed some residents would be willing to forgo having city offices open five days a week if those services are available either before or after normal work hours.
The plan also calls for freezing the pay of senior city leaders, a $500,000 reduction for the Spokane Public Library – which was the largest statistical cut of any department – and getting rid of one of two street crews that fix potholes.
City Council President Joe Shogan asked Verner if she had a contingency plan if county leaders don’t agree to speed the process to annex land in the West Plains.
“The departments have been alerted to come up with a contingency plan” for more cuts if the annexation deal does not come through, she said.
Tim Dunivant, the city’s budget director, said 40 percent of the shortfall came from lower tax revenues. For example, the utility tax revenues were much lower this year because of a warmer winter.
Verner said the city has received 62 permits for new homes so far this year, which is second lowest to the record low set in 2009.
“I’m told that the new housing starts haven’t been this bad since World War II,” she said. “People are losing their jobs. … it is really hard all over.”
Closing Geiger: Wise or worrisome? 
Ed Byrnes on May 13 at 1:13 a.m.
The dramatic cuts to the city library system are unacceptable.
City Hall employs people who are supposed to strengthen the economic development of our city. We should furlough a few of these people who have not performed adequately by any measure, and are not likely to in the near future, before we deny our children the reading and learning opportunities afforded to them by our city library system. When the economy improves it will be a more opportune time to expand our city economic development office.
Reading for kids or jobs for bureaucrats?
Ron_the_Cop on May 13 at 1:18 a.m.
There’s an earlier URL for this article with a previous comment thread:
http://www.spokesman.com/stories/2010/may/12/verner-proposes-cutting-41-city-jobs-2011/
oneanddone on May 13 at 4:20 a.m.
I’m for businesses paying their share. I don’t think they do. Most of the pain is being suffered by everyday people while local businesses are getting countless tax breaks and paying workers $8/hr. That being said, spending money on the library while laying off cops and firemen is an idiotic philosophy. People like ebyrnes have skewed priorities.
liarsinnews on May 13 at 6:27 a.m.
You don`t have to even read the whole story to catch Mayor Mary Verner in a LIE!! Re,”2011 spending proposal avoids tax increases” . I shouldn`t have to explain it but the number one source of tax revenue for the city of Spokane is the city utility tax. Its a percentage of the gross bill from both public and private. In plain English, i.e. if water rates goes up city taxes goes up (now 25% tax) or Avista (6.38% tax) or Comcast (over 12% city tax) or any other services that are taxed, in each instance your city utility tax automatically increases. Verner is a liar.
lewis8457 on May 13 at 7:34 a.m.
Our local businesses are taking it in the shorts. Washington does not make it easy on small business. Educate yourself before you make a comment that alienates a lot of hard working folks that may loose everything they have worked for, at no fault of their own.
Spokane does not need 100 grand a year cops this isn’t LA.
Spokane does not need 300+ 100 grand year fire men they put out a average of 70 fires a year, and Spokane has no high rises.
This is just a smoke screen they take away from safety and education knowing the average person wants those and if pushed into a corner will vote for more tax to keep them. Why don’t they loose the 46 grand a year secretaries that do nothing but take coffee and tobacco breaks.
biker on May 13 at 8:37 a.m.
Fire and law enforcement pay is out of control and staffing levels, at least when applied to county and city fire departments locally seem way overdone given the “real” calls they need to respond to. The spiraling wage and benefit increases coupled with the hype of being overworked must be stopped. Not for just a year or two, but seriously reversed. Trust me, there is a line a mile long of qualified, trustworthy individuals who would jump at the chance of doing those jobs at a fraction of current salaries. Let’s get off the “hero” bandwagon for a bit and seriously evaluate the needs and job responsibilities associated with these civil service positions.
de3 on May 13 at 8:40 a.m.
Looking through the County tax assessors web site SCOUT data, we see that the contractors and developers doing projects up behind us have not paid any property taxes since 2007.
Sure, those taxes are accruing penalties and interest, but no payment of taxes means layoffs now.
Question is - why, Ralph Baker, are taxes just for us little people while the big developers get away with not paying them?
Coffee on May 13 at 8:51 a.m.
It would be far better to lay off someone else than the workers that fill the pot holes.
horse_feathers on May 13 at 9:05 a.m.
Right off the top of my head I could see Jim Nicks, Detective Ferguson, Detective Burbridge, Rocky Trepeddi, Karl Thompson and the five officers who helped him murder Otto.
FLUSH NOW for a good start.
spokanada on May 13 at 10:18 a.m.
Oneanddone, if we can educate our kids and give them a shot at a future it might lead to a lower crime rate. I agree that the library can probably afford to shed some of its budget without streamling services but it provides a needed service for Spokane.
Dazzeetrader11 on May 13 at 10:51 a.m.
Verner is presntly buy 2 buildings for over $10 million…both inadequate. She is simply not transparent…and she’s witholding the true financial situation. She’s done nothing. Nothing!…except add debt.
She will never get re-elected. She cannot protect without more police being funded.
We need a strong Mayor..not this. A competent Mayor who tells the truth might be good too.
johnclarke on May 13 at 1:20 p.m.
2010 Budget
Fire - $29,595,955
Of that number 43 Fire Lieutenants (yes that’s Forty-Three) costing
$ 4,007,572
Police $40,394,829
2 police Majors = $288,239
Assistant Police Chief - $155,807
Spokane Household median income - $32,273
Per Capita income - $18,451
Thanks to everyone that voted for that EMS levy, obviously the Fire Department is underfunded and could use another 7 million on top of that 30.
misjustice on May 13 at 6:58 p.m.
If the Mayor’s proposed purchase of the buildings noted by Lazee Dazee Trader was not ‘public’, and known, then I would agree with her/him that the Mayor was not ‘transparent’; but knowing what the City’s plans are removes that argument.
Most of what Lazee Dazee Trader posts would be true; if it were.
Thanks to Boy George and the ‘Great Recession’ our state faces less returns of Federal tax revenues; and even Republican’t states (which removes Lazee Dazee’s argument that only Democratic entities are experiencing this down trend) are facing similar revenue deficits, leaving municipal entities, such as ours, with difficult budgetary decisions.
All of which, Lazee Dazee thinks we should forget; it’s not ‘fair’ to continue to blame the Cheney Administration for the suffering that our citizens are enduring, even though the suffering was caused by her own Boy George, et al. She’d rather blame the Democratic Party…than those that actually caused the harm; which is typical of her line of ‘reasoning’.
For additional information on how the City of Spokane ended up in the budgetary predicament that it is in, click on the link following this paragraph…
“The weak economy continues to cause great fiscal distress among states. New budget gaps have opened up in many states for the current fiscal year (July 1 marked the start of 2010 for most states). The budget gaps for this year and next year combined are estimated to total more than $350 billion.”
http://www.cbpp.org/cms/index.cfm?fa=view&id=1283
west on May 13 at 8:01 p.m.
Yup..get them property taxes up $50 a month and utility taxes up 10 percent and sales tax up 1/2 percent and city will be rolling in money for the fire and police salaries…they are under paid at least 30 percent compared to Seattle, Portland. Rookies should get $50,000 to start and in 5 years 80-90 thousand and 10 years $100k each..thats for the grunts only….too hell with the Spokane taxpayers making $20,000 a year per individual. This is the UNION preamble for fire and police….stealing from Spokane’s poor to feed themselves!
Ron_the_Cop on May 13 at 10:11 p.m.
de3
Regarding County Assessor Ralph Baker you may find award winning investigative reporter Larry Shook’s latest reporting on what former Sheriff Bamonte has found out re other favorable/preferential assessments by his office:
America’s Most Dangerous Cop
http://larryshook.com/2010/05/12/america%E2%80%99s-most-dangerous-cop/
Sheriff Bamonte tried to make a formal criminal complaint by Chief Kirkpatrick rejected the complaint “returned to sender.”
Dazzeetrader11 on May 14 at 2:03 a.m.
Ms Size 10…. 5 ft 0 in Msj ( I should have known) should be looking up the Gardner Building. $5.5 million…and the new ( well she wouldn’t know anyway), with police and fireman cuts and library reduction ( $500K) funding….is one hint how Mayor’s managing money these days AND what her priorities are. Short people have no reason to….que Randy Newman….http://www.youtube.com/watch?v=1NvgLkuEtkA
If the CIty would quit spending like there’s no tomorrow, then the “blond joke” Msj would be correct. Alas though…both purchases are true…call her office msj. …but so are the underfunding of the service jobs and the library fund. Couple this to the well known shortfalls of millions, I wonder if the Mayor can figure it out. Thus far she hasn’t. Is there any sign she might glimpse reality in the future? Nope…she’d better hope she gets that cushy BIA job in DC so she can escape before the pitchforks are in hot pursuit.
Maybe someone in Spokane might be catching onto her schtick soon?
tami on May 15 at 7:36 p.m.
Well, such educated comments as those preceding are just sad in a city as large as Spokane. Think about it folks…your taxes and your city services go hand in hand; if the economy suffers, so do you and everyone else, especiallly city and county employees; for years the city has been cutting jobs and replacing full time people with part time people; temporary help; and grant funded positions. The same thing has been going on in privately held businesses. It is also a well known fact that the spokane union DOES NOT and never has, stood up to any pressure from the VP’s; What I find interesting, is that the Mayor’s office and officers of the city have NEVER voluntarily LOWERED their own salaries, or cut their jobs to half or three-quarter time; or even VOLUNTEERED for their positions and responsibilities. Considering how many perks they are also awarded, why is this? Is it merely ok to cut a job for someone who may be the sole wage earner of their family? If you took the Mayor’s salary and cut it in half, that would still be a job at a good pay scale for this city. Shame on you all! Suck it up and sacrifice like you are going to make your employees sacrifice if they are laid off. Just try it…you might like it as much as they do!
Dazzeetrader11 on May 17 at 8:58 p.m.
Tami makes some good observations. One prinicple Verner and the Obama types haven’t figure out yet is that one doesn’t go on a huge spending spree when the economy is lousy. Nsj…find one spot where the Mayor and her lib friends told everyone they were buying buildings…just one! If the Dr hadn’t outed them, you stil wouldn’t know.
Get braced…more’s coming…she has a new dept for property and building acquisitions…done through Dept budgets so it doesn’t hit her bottom line. It’s a hidden way of expansion. Wait till you see the utilities billing go up. She’s a tax and spend fool…now she’s trying to spend on the tax bill she’s a afraid to show the public.