Cuts in a Down Economy

As the national and local economies face economic disarray, important city revenues are declining. This economic turmoil looms over cities as they plan for 2009. Many cities will  cut staff positions and reduce service levels. For example:

• Kennewick reduced its staff by seven FTE. The city also increased stormwater utility  fees and utility taxes to pay for LEOFF 1 medical cost obligations.
• Port Angeles cut five FTE in police administration, parks and general government, and another nine FTE will be cut with the planned pool closure by the end of March 2009.
• Gig Harbor eliminated five positions including a community services officer that was cut to part time. The 2009 budget is 28 percent less than the 2008 budget.
• Olympia’s preliminary budget plans to cut more than 21 positions, which will reduce services in virtually every department. The capital budget will also decrease by nearly $1 million.

This mirrors cities’ actions nationwide. A fall 2008 International Public Management Association for Human Resources survey indicates more than half of public agencies are no longer hiring for vacant positions and one-quarter expect to layoff employees in the next year.

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