Newly-elected Mayor Mike McGinn recently announced that officials in Seattle will take several steps to try to close an expected budget deficit of at least $40 million in 2011. One of those steps will result in the loss of 200 city jobs.
Officials have implemented a senior-level personnel review, which will work toward the goal of cutting jobs. The review process, which will take place during Q1 of this year, will identify positions that can be eliminated or reclassified, focusing specifically on executive, manager and strategic adviser positions.
McGinn also signed four executive orders meant to reduce or limit city government spending, including:
- Eliminating salary increases during 2010 for executives, managers and strategic advisers instead of the previously proposed 2 percent increase. In addition, the number of furlough days offered to these employees will be reduced from 10 to seven.
- A hiring review requiring departments to obtain authorization before initiating any hiring process to fill open positions.
- A senior-level salary review requiring departments to obtain authorization for any salary offer made to an executive, manager or strategic adviser.
- A consulting contract review requiring departments to obtain authorization before awarding any new consulting contract or consulting contract amendment.
Despite these measures, officials have stated that it will be necessary to cut jobs, as employee payroll has grown beyond what can now be reasonably supported. The city is not left with many other options, as its "rainy day account" was already reduced from $30 million to $10 million during 2009, when it was facing a budget shortfall of $70 million.
During the last eight years, the number of senior-level employees working for the city has grown from 639 to 951, an increase of 49 percent. At the same time, the overall city workforce has only increased by 2 percent.
"Mayor McGinn recognizes the dedication of city employees, and that this process will be difficult," a city press release notes. "Fiscal reality requires that we begin the process of reducing costs in a deliberative and thoughtful manner, so that city government retains the capacity to serve Seattle residents and we avoid deeper and more disruptive cuts in the future."
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