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April 14, 2011 in City
City of Spokane short $6.6 million in ’12
Projected deficit about half it faced this year
For the fourth straight year, Spokane leaders are forecasting a multimillion-dollar shortfall in the next annual budget.
The city predicts a $6.6 million gap between expected revenues and expenses in the city’s 2012 general fund budget, Budget Director Tim Dunivant said in a briefing Wednesday to the Spokane City Council. The general fund pays for fire, police, parks, library and other services funded mostly by tax collections.
While unwelcome news at City Hall, the gap is about half the size of the deficit the city faced with the 2011 budget.
Administrators for months had speculated that the gap would be in the millions. Wednesday’s number, though preliminary, was the first time a precise figure was released publicly. Officials blame the gap, in part, on continuing large increases in health care benefits and the sluggish economy.
Spokane Mayor Mary Verner said she will present a plan to deal with the deficit in the coming weeks after meeting with department leaders. She said her plan may include across-the-board cuts, targeted cuts or a combination. She did not say at Wednesday’s meeting if she would propose a tax increase, though during a debate about library funding in February, she suggested that she would propose a tax increase.
“What we really are working on right now is what is the approach going to be given that we’ve played every card in our deck already,” Verner told the council Wednesday. “We have three major union contracts in negotiations right now. We’ve already eliminated positions and left positions unfilled and cut to the bone.”
Verner has used a combination of union concessions, a utility tax increase, layoffs and an increase in business license fees to balance previous budgets. She also has used the city’s rainy-day fund, which once had $5 million, to cushion the impact from shortfalls, but that fund is expected to be nearly emptied by the end of 2011.
Earlier this year, the Spokane Public Library Board of Trustees asked the City Council to consider placing a property tax request on the ballot to prevent closure of branches next year. Verner opposed the plan, arguing that if the city moves forward with a property tax increase (called a levy lid lift), it should be used to assist other city departments as well as libraries.
City Councilwoman Nancy McLaughlin said Wednesday that she might be willing to let voters decide on a property tax proposal, depending how it’s packaged. But she said she doubts voters would approve a new tax if it doesn’t improve service.
“A levy lid lift to maintain status quo would be a hard sell to the voters,” McLaughlin said.
MAC faces angry crowd 
madscientist on April 14 at 7:00 a.m.
Stop wasting money “washing the streets”. I have seen several trucks earlier this spring watering the streets, then that night it rained. Why is this necessary?
greyhound2 on April 14 at 7:38 a.m.
If the City of Spokane is broke, they could look to Spokane County for a bailout. If the County is broke, they could look to the State for a bailout. If the State is broke, they could look to the Feds for a bailout. If the Feds are broke, they could look to China for a bailout.
rob_brewer on April 14 at 7:59 a.m.
madscientist: washing the streets is necessary for winter debris removal. Leaving the sand that was deposited on the streets through the course of making streets safe to drive on would result in poor air quality in the spring. I’m sure there are other reasons, but that is one of the primary ones. Probably some compliance with laws related to air quality and ecology.
bez233 on April 14 at 8:23 a.m.
Good point greyhound2
These so called “shortages” are becoming a very bad habit. Those who are supposedly responsible for the budget need to ether take care of it or get FIRED! I do not know of any business that would allow the continual squandering of funds without consequences.
For every tax hike that is imposed, wage decreases need to be implemented for those who think that taxes need be jacked up.
The sad irony is that “they” could jack taxes 100% and “they” would still be broke the following year.
ZagChuck on April 14 at 8:26 a.m.
There is a void in leadership at City Hall that must be addressed. Not a year goes by without this story. Even in times of economic boom, we would see this story, because our “leaders” can’t seem to get government to live within its’ means. Now, in times of economic downturn, we are over-extended.
It’s our own fault though, for returning the same “leaders” time and again to the same positions, and expecting them to perform duties in a manner they have clearly shown they are unable or unwilling to perform.
Their “solution” will be the same as it has always been; to cut things most visible and necessary, in an effort to “convince” the voters a tax increase is the only real solution. This is not a solution though, it is merely a perpetuation of the failed past that lead us here.
west on April 14 at 8:30 a.m.
Unions are all demanding huge cola’s, pay raises, pension enhances, (police and fire, they gave..a little….and want it all back plus next years contracts. So get them utility taxes and property taxes up another 50 percent and problem solved….property taxes in Spokane are super low compared to rest of state…
deacon46 on April 14 at 8:48 a.m.
No more union concessions !!! They need to feel the pain ! It is Actually time to bust these feather bedding types ! And lets contract out more services !
johnclarke on April 14 at 9:57 a.m.
Let’s sell STA !
Oh, let’s not get started on the unions, I don’t need another lecture on how we NEED duplicate EMS and 12 fire captains.
DickAdams on April 14 at 10:06 a.m.
Verner, is out to lunch. Her lip service regarding the concessions from the unions reminds me of the proverbial trade giving away a horse and receiving a rabbit. Verner is totally incompetent. Verner continues to listen to her financial guru, Gavin Cooley, a carry over from the first strong mayor, and architect of the agreement to pay off the River Park Square parking garage. Seems to me, the taxpayers have their heads in the sand when it comes to where the money comes from to pay off the owners of the Spokesman Review, who were given a parking garage, and that it will take until 2030 to pay the family off. My observation about the city budget shows me we have elected councilpersons that have no business making decisions they know nothing about. Their too busy traveling to other cities wasting our money. Spokane needs leadership and currently have a ship of fools running around like a blind dog in a meat market.
Dazzeetrader11 on April 14 at 10:15 a.m.
Verner’s low balling the number. There is a shortfall of another $12 million projected. She ‘s covering the number to be re-elected. Don’t you believe that number!. It’s leaving out debt and shortfall she knows she has. Shogan’s already let the cat out of the bag.
Spokane needs a new mayor. Not many people will step forward but boy oh boy does Spokane need a new mayor and council. Moreso the Mayor. Remember the rule of thumb with Verner…..what she doesn’t tell you if more important than what she’ll say. A bit dishonest….a bit!!!???
She creates big debt, tries to hide it and then she keeps going back to the taxpayers to bail her out. Corrupt as anything you’ll see. She needs to go get a job with the tribe again. She’s never had anything but a government supported job. Is this sounding familiar? All these mini Obamas that never have managed in the private sector..just can’t manage money.
johnclarke on April 14 at 10:17 a.m.
Run Dick, I’ll vote for you. Oh, never mind I live in the County anyway.
liberal_in_right_wing_land on April 14 at 10:18 a.m.
Yep, those damn unions are the downfall of this country. Damn those evil unions trying to make keep workers rights and keep peoples work place safe.
If people really think the unions are bankrupting this city, state and country then you are a stupid idiot and need to get a flippin’ clue to whats really going on in this country and stop believing everything you hear from Fox News and talk radio.
johnclarke on April 14 at 10:36 a.m.
Liberal, I agree with you that unions are NOT the downfall of this country (we all know it’s republicans) but I do think little ‘ol Spokane could tighten it’s belt in the public safety arena. We (that’s me and you amigo) pay a TON of money in this area.
Also, I would like tenure in my job please. I’m not a teacher but I don’t ever want to get fired no matter how good I am at my job. Sound cool ?
ZagChuck on April 14 at 10:47 a.m.
JohnClarke,
That’s probably cool with liberal, but only if you join one of the unions that poors tons of money into the democrats political machine. And you have to promise to campaign for democrat candidates… Do you promise to do that, too?
Dazzeetrader11 on April 14 at 10:50 a.m.
A deal’s already been struck with the unions. Pretending to act tough on them is a cover. Soon you’ll all see the County is finally acting responsibly. Verner should follow their decisions.
Make no mistake though, the shortfall is much larger than Verner will admit. Hey.it‘s election time for her! What would you expect???
johnclarke on April 14 at 10:50 a.m.
Hell no ! I’m an independent. :)
I’m sorry, but fiscal responsibility includes unions too. Odd how that Wisconsin fellow exempted police and fire unions eh ?
Dazzeetrader11 on April 14 at 10:56 a.m.
What’s so “odd” about it Clarkie? They DO have the guns you know. Fire unions will be touched in all this. Same thing Verner’s doing.
ZagChuck on April 14 at 11:00 a.m.
It wasn’t odd, it was required by law. Just like in Washington State, their emergency services personnel are prohibited from walk-outs and strikes, due to the nature of their jobs. Collective bargaining is the tool they are provided with to compensate for that restriction. All of the other government union employees have the walk-out/strike option as a “negotiating” tool,
SpokaneLiberal on April 14 at 11:05 a.m.
Zagchuck - pantheon of misinformation. Teachers and some others in Wisconsin - prohibited from striking, just like public safety workers. So now they have no collective bargaining and no strike so no “negotiating tools”
ZagChuck on April 14 at 11:10 a.m.
Spokane Lib,
The law and language preventing teachers and others from striking is different, just as it is here in Washington. There’s a legal difference between being “restricted” and being “prohibited.” The union lawyers can explain it to you if you’d like…. You’ll recall teachers strike frequently here as well, though they are restricted from doing so.
johnclarke on April 14 at 11:20 a.m.
Well my point was those unions tend to vote Republican.
SpokaneLiberal on April 14 at 11:25 a.m.
Teachers in WI are prohibited from striking. Other public employees can only strike after particular circumstances are met with a final impass resolution being passed.
In WA all public employees are prohibited (not restricted) from striking. The courts have repeatedly ruled teacher strikes in Washington illegal under state law. The Marysville strike was illegal. So was the Auburn one.
These are the same laws that govern police and fire. Both unions gave up the same right to strike as is codified in law (I can’t help if the law isn’t enforced).
johnclarke on April 14 at 11:59 a.m.
Striking is not my issue, but whatever. I can pretty much guess who is going to cover this shortfall and “union” ain’t on the list.
Dazzeetrader11 on April 14 at 12:11 p.m.
This shortfall will lead to a deficit. Clarkie, she’ll get the money from hidden fund. It’s kida like when Gregoire didn’t know there was this huge deficit when she was running. Didn’t know????
Verner is nothing more than a clone of Gregoire. She spend to deficit and continues to spend.and spend in a very unwise manner. This shortfall is a lot more than $6 million.double it. She’s made no headway. NONE. She just doesn’t want the people to know that in an election year. It’ll show up after she’s re-elected….which Spokane should work against.
SpokyDaBear on April 14 at 12:52 p.m.
the jails are costing us too much money… stop arresting everyone for stupid things… so what if someone smokes pot… let them smoke it and quit prosecuting these potheads… let them be an idiot on their own dime not ours…
hunternomore on April 14 at 1:28 p.m.
I noticed the “water” trucks out in force today also and wondered why they pay for gravel, then pay for the water trucks to get the gravel out of the way. Colorado does a fabulous job of clearing their snow, they don’t use gravel, they don’t use water trucks and they are “fiscally conservative” so what’s up with Spokane?
decturkey on April 14 at 1:30 p.m.
So can I follow the same model as a citizen. I’m gonna plan out my budget for next year, expenses first. Gonna include a new Yacht, a nice 4 door Chevy Truck and heck a new home. That’ll cost me $2 million. My revenue coming in only equals $40k for the year though. Guess I’ll need to ask my boss for a raise.
So for the scenario above you would have to be the biggest retard in the world to think that scenario works and is the way to go. All us citizens have to live within our means. And if I end up getting a raise then that’s a bonus. But you figure out what the revenues coming in are and then you budget off of that. Not the other way around. I’m so tired of government. Pretty much all have their heads up their butts. And I even work in a government job. It’s so frustrating to see on a daily basis how funds are mismanaged all over the place. I’m just so low on the totem pole that I only have the ability to save on the purchases I do. It’s so freakin frustrating!!!
johnclarke on April 14 at 2:02 p.m.
Clearly, it ain’t Denver :)
TheRoyLarsen on April 15 at 3:33 p.m.
Spending more than you take in. Hmm. Let’s see. Yep, let’s blame organized labor. They would be the culprits.
FiscallyResponsible on April 20 at 3:17 p.m.
How about starting in the City Council office? All the council assistants just received 16% raises without an increase in hours or a change in duties. Absolutely ridiculous. Several years ago the city council did not have assistants. They then each got one with part time hours. Then last year they increased the number of hours. Now they have increased the pay. The city council positions are part time. Why is their administrative support working more hours than they are and more importantly, why are they getting a raise in the economic climate. Let’s cut other programs and areas, but not in their own office. Absurd.