June 5, 2008
Sims says King County must tighten belt, innovate and reduce costs, then seek solutions in Olympia
King County Executive Ron Sims today vowed the county will do all it can to prioritize programs, innovate, find efficiencies and reduce costs as he laid out the steps he is taking to deal with the projected $68 million 2009 budget deficit. Sims called on the region's leaders to join him in finding permanent solutions to the growing budget crisis in King County and counties statewide.
Sims has briefed Governor Christine Gregoire, and legislative leaders on King County's financial challenges and the need for state help to solve them. A state study released in December 2007 concluded that all counties are fiscally distressed. State law caps growth in property taxes to one percent per year regardless of the growth in inflation or increased need for services. Cities have a variety of taxes in which to pay for services but counties are limited to property tax and sales taxes.
"Protecting people's safety and health are core services of government; we cannot do our fundamental duty if we must cut prosecutors, police, courts and health and human services every year in order to balance the county's budget," said Executive Sims. "King County is not alone among counties unable to provide basic services people need and want.
"I am pleased the governor and legislative leaders share our concern about public safety and public health, and are open to suggestions on how to end the disparity between cities and counties on their ability to pay for services, many of them mandated by the state," Sims said. "But first we must show them we have done all we can to innovate, prioritize and reduce costs."
Executive Sims plans to work with the criminal justice, public health and social services communities, labor unions, the Washington Association of Counties and other counties to develop a menu of options for the 2009 Legislature to consider.
The state study issued by the state Department of Community Trade and Economic Development includes multiple recommendations the Legislature might take including giving counties the ability to be self-sustaining financially in order that all citizens have equal access to services.
"The revenue base for counties has become more and more restricted and inflexible over the last decade, significantly contributing to fiscal distress and jeopardizing access to basic public health and human services, public safety and criminal and civil justice services provided by counties as "agents of the state," stated Eric Johnson, Executive Director of the Washington Association of Counties (WSAC).
Sims pointed out that 223,000 people live in urban unincorporated areas of King County, making it the second largest city in the state, behind the City of Seattle. Yet, the county does not have the financial tools to provide the urban services needed. The urban areas cost King County $21 million more than they generate in taxes. King County will continue its Annexation Initiative which has resulted in 35,000 people being annexed into four cities. See attachments for more information.
Sims stressed that even if the next session of the Legislature results in new revenue producing tools, King County must pass a balanced budget for 2009. He said all county departments are looking for new efficiencies and developing business plans that reflect an across the board 8.65 percent budget cut.
King County cut $137 million from its budget between 2002 and 2005 with a variety of measures including reducing the number of departments from 14 to seven, lowering salaries by $5.1 million through negotiations with labor unions, reducing employee benefits and shifting $40 million in criminal justice costs out of the general fund through reductions or new revenues