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City of Seattle
Gregory J. Nickels, Mayor
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NEWS ADVISORY
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| SUBJECT: Nickels Releases 2005-2006 Proposed Budget
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FOR IMMEDIATE RELEASE:
9/27/2004 2:00:00 PM |
FOR MORE INFORMATION CONTACT:
Office of the Mayor (206) 684-4000
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Nickels Releases 2005-2006 Proposed Budget
”Our approach is working. Our city is better off than it was three years ago.”
Seattle – Focusing on Seattle’s improving economy and progress on his four priorities, Mayor Greg Nickels today unveiled his 2005-2006 proposed budget that preserves uniform staffing in the police and fire departments; increases direct services for the hungry and the needy; maintains citywide library hours; and increases investments in neighborhoods.
“We faced tough times as a community and got through the worst of it – together,” Mayor Nickels said. “Our approach is working. Our city is better off than it was three years ago. The budget I propose today builds on our success and maintains the priorities of my administration.”
Those priorities are:
- Get Seattle moving;
- Keep our neighborhoods safe;
- Create jobs and opportunity for all; and
- Build strong families and healthy communities.
Nickels praised the City Council for its efforts to help him get city spending under control while acting to seize opportunities. “Together, we cut overhead, balanced the books and made many hard decisions. I thank the Council for its efforts.”
In his budget message, the mayor announced increased funding for arterial paving in spite of Initiative 776 and court decisions decreasing the city’s transportation revenue; a new community development and jobs initiative for southeast Seattle; a program by the Seattle Police and other agencies to shutdown open-air drug markets downtown and in other neighborhoods; early, focused investments for children; and a call for the community to fight to eliminate homelessness within 10 years.
Nickels highlighted some advances made on the transportation front.
“We’re seeing significant progress on many of our most immediate needs to get Seattle moving,” Nickels said. “Light Rail is under construction. Potholes are being filled, we’ve made street and bridge repairs. I’m proposing an additional $5 million to keep the Alaskan Way Viaduct and Seawall project moving. I am increasing funding for arterial paving and bridge repair. We’ll also fund work to improve freight mobility and fix the Mercer Mess.”
While Nickels is encouraged with work to get Seattle moving, he is discouraged at the long-term outlook for street maintenance, noting Seattle and other Washington cities face a long-term crisis in transportation funding.
“Revenues for fixing our roads and bridges have been in rapid decline since 1995,” Nickels said. “We’ve seen a 66 percent decrease in real dollars due to Tim Eyman’s Initiative 776, Supreme Court decisions, and loss of gas tax revenues. That means we’ve gone from $35 million a year in dedicated revenue to fix our roads and bridges to
$12 million – a fraction of what we need. Our number one priority in the next session will be to get the state legislature to step up to the needs of our local streets and bridges.”
The mayor noted efforts to expand economic opportunities are producing results -- 500 new jobs in South Lake Union, as well as new help for small businesses in the Rainier Valley, Pioneer Square and Broadway.
In addition, Nickels’ proposed budget lays out a path to slash City Light’s long-term debt, stabilize electric rates and ensure Seattle’s energy independence.
On economic development, Nickels noted it’s time to put a spotlight on Southeast Seattle. “Residents of the Rainier Valley have consistently asked for more jobs, improved housing choices, better schools, and safer streets,” Nickels said. “It’s time to make their vision a reality. Let’s maximize and build on the hundreds of millions of dollars that will be invested in southeast Seattle due to light rail construction. Let’s encourage investors who are looking for opportunities. We’ve got a message for the people of southeast Seattle. The wait is over. Doing more for the people of southeast Seattle starts now.”
Nickels’ proposed budget also includes new investments for job training, healthcare, housing, helping small businesses and critical new facilities, including $1 million to help Seattle’s growing Asian Pacific immigrant and refugee population.
Nickels noted Seattle is a safer place than it was just three years ago. “Our new Major Crimes Task Force is making a dent in auto thefts. Since November, they’ve caught 155 criminals,” the mayor said. “Violent crime is down. In fact, we have one of the lowest violent crime rates of any major city in the nation. But we must do more.”
Nickels called for a new focus on a persistent problem in parts of downtown and other neighborhoods. “Let’s put an end to open-air drug markets that serve as a breeding ground for violence and threats to our community,” Nickels said. He announced a four-point strategy to shut down these drug markets:
- Expand citywide an effective program used in the west precinct. City police and state correction officers work as a team to identify frequent offenders and get them off our streets.
- Bring back the “Stay Out of Drug Area” (SODA) program, which uses the authority of the courts to keep convicted drug dealers from returning to known drug areas.
- Give police officers a new tool to get the job done. A new program called NARCSTAT will bring together data from many different sources. From this data, police will know where illegal drugs are being sold, who’s selling them, and what techniques shut down the drug markets.
- Do more to help those who struggle with addiction. Seattle will work with service providers, the police, prosecutors, defenders and the courts to move people from the streets into treatment.
In addition to crime prevention, Nickels announced Seattle is delivering on the promise made to voters a year ago to refurbish or replace aging fire stations throughout the city and to build its firefighters a training center in Seattle.
One of Nickels’ highest priorities is supporting Seattle’s children. “With the passage of the Families & Education Levy, Seattle voters supported my commitment to give every child in every family a chance for success in our schools,” Nickels said. “Next year, we’ll invest $31 million in services to help all of Seattle’s children succeed in school, be healthy and lead successful lives.”
The mayor’s Children’s Budget will help the Seattle Public Schools close the achievement gap among poor and minority children. Levy dollars, as well as the city’s General Fund, will support early learning for low-income 4-year-olds and engage young teenagers in positive after school activities.
“We will insist on accountability,” Nickels said. We will focus on getting results.”
Nickels’ proposed budget also increases funding levels for direct human services from 2004 to 2005, investing $2.3 million for a new hygiene center, day center, and shelter for homeless people to be sited near the new Fire Station 10. “Despite these efforts, at times it seems like we are bailing water in the midst of an ocean of need,” Nickels said. “A new approach is needed. We as a community and a nation need to stop managing homelessness and start ending it.”
He called for the community to fight to eliminate homelessness within 10 years, promising Seattle will do its part and will take the fight to the other Washington and Olympia. “We’re going to fight policies that treat people like refuse,” Nickels said. “Human beings who need help should not be cut loose and dumped on the streets of any city in America.”
The mayor’s proposed budget continues efforts to make Seattle’s neighborhoods better, stronger and more vibrant.“In the next two years, we will invest $159 million in 190 neighborhood projects throughout Seattle,” Nickels said. “We are keeping the promises made to Seattle’s neighborhoods. New and expanded libraries, as well as community centers, and other parks facilities will be funded.”
Nickels’ proposed budget makes no cuts to the Neighborhood Matching Fund, preserving it at $3.2 million.
The mayor’s budget proposal increases funding of the arts and cultural affairs by restoring admissions tax revenues. He restores $250,000 in 2005 and $500,000 in 2006 in funding for arts grants.
Seattle’s economy shows signs of recovery. Signs include a 2004-2006 forecast projecting stronger-than-inflation growth for the first time since 2000, as well as a 2004 forecasted increase in retail sales tax revenue, following three years of decline. With the economy improving, Seattle faced one more round of reductions in 2005 close a gap estimated at $25 million. This gap represents difference between the 2005 General Fund revenue forecast and the amount needed to sustain existing programs and cover new costs.
Nickels has proposed a sustainable budget for 2005-2006. The proposed General Fund budget – which pays for services typically associated with city government, such as police, fire, parks and libraries – for 2005 is $679 million and $693 million for 2006. The 2004 adopted General Fund budget was $666 million. The total Proposed Budget (including utilities) for both 2005 and 2006 is $2.8 billion. The 2004 total adopted budget was $2.6 billion.
The 2005-2006 Proposed Budget preserves high-priority direct services by relying on a mix of strategies, including making administrative cuts, eliminating or reducing lines of business, charging the full cost of services, and changing service contracting methods. The mayor cut 191 positions.
The City Council will spend October and November reviewing the mayor’s proposed budget and capital improvement program (CIP). The budget and CIP must be adopted no later than Dec. 1. State law requires Seattle adopt a balanced budget. Since taking office, Nickels has closed a $100-million budget gap while protecting basic services.
For more information, visit the mayor’s web site at www.seattle.gov/mayor. Get the mayor's inside view on initiatives to promote transportation, public safety, economic opportunity and healthy communities by signing up for The Nickels Newsletter at www.seattle.gov/mayor/newsletter_signup.htm.
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