Thanks to a steep drop in sales tax revenue, Seattle’s new fiscal forecast is bad and getting worse, with a $29.5 million decline in revenue now projected for 2009, on top of the $13.3 million actual revenue decrease in 2008. And that’s good compared to 2010, where a “squishy” forecast now projects another $41 million drop in revenue.
As a result, the Council and the Mayor need to cut $43 million in expenses between now and the end of the 2009 fiscal year, plus God knows how much in 2010. It won’t be easy. But I suppose, it could be worse.
$43 million amounts to roughly 4.7% of the city’s annual $912 million budget, and I’m guessing a big chunk of that gap will be filled by drawing down the city’s $30 million rainy day fund. But while I don’t envy the folks who will be asked to make these cuts, it’s a walk in a slightly underfunded park compared to the crisis facing the state:
While the city’s budget troubles are serious, Dively said they are not as bad as the situation state lawmakers face in trying to backfill a $9 billion deficit to a $35 billion two-year spending plan with cuts and possible tax increases. That’s because sales tax alone amounts to more than 50 percent of the state’s general fund revenue.
“While you’ll see that we have a significant budget challenge, it’s nothing what like the state has. The state’s is far worse than what we’re talking about here,” Dively said.
By comparison, sales tax revenues account for only about 20% of the city’s general fund, but shhh… let’s not talk about the state’s structural revenue imbalance, as it interfere’s with the popular meme that the budget crisis is largely the result of out-of-control spending.
Wingnut Nirvana. We’re finally here.
How about a City of Seattle income tax Goldstein? You’re so for the State one. Kinda nice, as either way you and most of the tens of regular posters here cannot seem to hold employment let alone have an income to tax in the first place.
On another note, I haven’t been here in awhile; is that senile dumbshit fucker Roger Wabbit still alive, or has he done the world a favor and starting pushing up daisies? Crusty old bastard always was good for a laugh….(to laugh “at” that is).
re 2: How about more union busting so people can afford even less of the cheap crap made in China?
For the likes of you, A+B = communism.
OK,
This time I will join the right side.
Seattle subsidizes a lot of things that .. well … are luxuries. (Of course this does include things that I want.)
subsidies to prosports teams
subsidies to museums
the SLUT
zoo tickets for out-of-towners
the downtown library
construction subsidies in SLU
OTOH .. I hope they do not cut cops and firemen, potholes, etc.
“Dively said they are not as bad as the situation state lawmakers face in trying to backfill a $9 billion deficit
Governer Gregoire said “there is no deficit”.
@2 I just got home from my physical at the vet and he says you’re SOL.
@5 There’s no deficit. Washington has never had a budget deficit, and doesn’t have one now.
Why doesn’t Nichols just do it the Obama – Gregoire way? Spend an additional $43 million and then raise taxes to cover. Then businesses will just move out of the city (or state) and next year the city will have a 143 million shortfall. How about just borrowing the money so that our children can pay for the shortfall. If it makes sense for “The One” than why not for the “Dumb Shit Mayor”
I pay no sales taxes because I don’t buy anything. I don’t buy anything because I don’t work. Why should I work for these fucking cheap labor conservatives? Over the last 30 years, the U.S. economy has made large productivity gains, but the capitalists took it all and workers got nothing. Real wages are no higher today than in 1970. A few years ago, capital got 40% of GDP, but do you think the capitalists were satisfied with that? Nooooo … now capital gets over 50% and labor gets less than 50%. Why should I work for free? Fuck the cheap labor conservatives! Fuck Republicans! If you don’t pay me, I don’t work, and then I don’t buy, and then you don’t have any business and YOU go broke! That’s how it works. If you cheap labor conservatives continue busting unions and knocking down wages and outsourcing jobs, there won’t be any consumers, there’ll be no economy, and your businesses won’t be worth a wad of used toilet paper.
@8 What businesses? After 8 years of Wingnut Wack-O-Nomics, there’s no businesses left. China has all our jobs and money now.
Mr Rabbit
What the hell are you talking about? You are a fucking retired state government worker (attorney) No one in their right mind would hire you!
Last post I have seen about R.R. he was a dog show Judge.
@6
Roger Rabbit spews:
“I just got home from my physical at the vet. ”
Poor Mr. Rabbit today he thinks he’s the dog not judge. This is what Liberalism will do for you!
Seattle Jew–
I knew you had it in you…the ability to discern between NEEDS and WANTS…LUXURIES and NECESSITIES.
See, it isn’t that difficult.
It’s what needs to be done with the Higher Ed Budget, State Budget, Kounty Budget and City Budget.
There are plenty of “Luxuries” SJ.
We need to weed them out…identify them and see where we are at after excluding them
If there is any more left after weeding out all the DISCRETIONARY aka LUXURIES…prioritize them and add them back in.
In the meantime, once the Luxuries are weeded out, how about some grown-ups looking carefully whether the service is necessary, what level of service we need to provide and how to cost effectively provide it.
It’s pretty simple…except when you have an entrenched Bureaucracy telling you nothing is a Luxury.
So Goldy–
Please explain to us why the City of Seattle AND King Kounty shouldn’t also have an income tax??
How is your rationale for the State Income Tax any different at a City or Kounty level??
13. The Truth spews:
@6
Roger Rabbit spews:
“I just got home from my physical at the vet. ”
‘Poor Mr. Rabbit today he thinks he’s the dog not judge. This is what Liberalism will do for you!’
Funny. First he says he was a rodent..I mean rabbit.., then it was an attorney, then it was a judge. Of course, all posted here is totally subjective, and I’m sure he was never any of those three. Click your heels together Rodent and admit that even your 30 years as a janitor at the courthouse counts as honorable employment. At least you worked, which is more than many posters here can claim. I have no problem with that. What’s next? Race-car driver? Astronaut? Good fucking grief!
@15- has something to do with state law and authorities granted to cities and counties.
Wow, not one real wingnut post on the real issue- the volatility versus the stability of various tax structures. See, our state relies on sales tax for about 49% plus of their income. And that is one of the main reasons for the big swing in revenues at the state level.
But its easier to just call people names I guess.
See, over the last 12-15 years, our share of revenues for the state and local government when adjusted for inflation and increases in population has actually dropped at the state level. I think that is the point made by the post. We also have one of the two or three most regressive tax systems in the country.
Class warfare was waged by the Reagan revolution and only one side fought it and it is now over and won by the rich, the crass, and the selfish. That is an undeniable fact by every measure of tax fairness. But hey, just call people names instead of responding to the facts.
And I will add, I am no fan of our city government. I am sick of certain budget items of a popular note with a cosntituency being moved out of general funds and put to a vote of the people in our city, rather than making tough decisions. That is too often the Seattle way.
But not one of you responded to the point of the post. No surprise there.
And while I am at it, let me note that I fight with government lawyers constantly, and yet I would be the first to say that some of the finest and most dedicated people I know in life are working in the legal field for the state and federal government, and many talented 20-30 year lawyers are doing so for far less money than entry level schmucks just out of law school who are working for private firms dedicating themselves to screwing the people and the common good on behalf of corporate interests. See, many of the public servants believe in a concept foreign to you- the common good.
These comments are pathetic. As someone said last night, get some intelligent trolls. If they can be found.
@16 You can believe whatever you want. I could care less. 100% of what you believe is bullshit anyway, so if it makes you happy to think I was a janitor, go right ahead! The relevant fact is that I don’t have to work. Like Cynical, I sit on my fat ass all day getting tax breaks for flipping stock, while you sit in bumper-to-bumper commuter traffic and then push a broom in some shithole while getting yelled at by some asshole. Are you jealous yet? I certainly hope so! Suck on it! If you’d had any smarts, you would have gotten a gummint job with health care and pension benefits, like I did! Not too hard to figure out which one of us is the smart one and which is the dumb one.
@18 They’ve got a wedgie from the fact one puny rabbit is still alive. This bothers them to no end! They can’t think about anything else.
@18 (continued) “These comments are pathetic. As someone said last night, get some intelligent trolls. If they can be found.”
Unfortunately, America’s domestic fascist movement isn’t capable of producing better trolls than these, and they’re what we’re stuck with.
@9
It’s your duty to pay taxes and work. So said LOSER BOY!
The Government needs everyone to help dig out this mess they go us into.
@19
I quit my job at 54 years old in 2001, Big deal.
I never looked back. Unlike you I don’t need too.
Hope Mrs R. knows who you are.
I live very comfortably to bad I recently lost my wife However it came as a God sent.
I’ll tell you guys one thing do not hesitate to buy those flowers yeah,they really mean a lot to them it took me 45 years to realize flowers means more than a high fluting dinner.
I’m done pissing.
Seattle needs an income tax!!!!! Come on Goldy – If is good enough for the state than it should be good enough for Seattle
@24
Sure, lets tax wingnuts at 99% and seize their property if they won’t pay!
Why don’t the Democratics pony up and give more. They supported Gregoire. Put your money where your vote was…Open the wallet and give more to your guvnur.