City Hall
City Budget Outlook Is ... Surprisingly Positive
City budget officials presented an overview of the city's budget situation in 2011, and the outlook for 2012, this morning, and---in marked contrast to previous years, and to the gloomy budget news at the state level---the news is mostly positive.
Overall, general-fund tax revenues (from property taxes, sales tax, B&O taxes, and utility taxes), in 2011 were 0.6 percent higher than originally forecast. Between unanticipated revenues and "underspends," the city ended 2011 with about $12 million more than anticipated. About half of that will go into the city's emergency rainy day fund, bringing the size of the fund (which supplements the city budget during economic emergencies) to about $19 million.
A few revenue sources (from real-estate excise taxes and from the relatively new commercial parking tax) were down slightly ---about $215,000, or less than half of one percent, thanks largely to a 4.2 percent shortfall in commercial parking taxes, which the city's budget office attributes to "accounting issues." (We have a call out to city budget director Beth Goldberg for an explanation of the parking-tax accounting anomalies). Revenues from sales and real estate excise taxes---among the taxes most volatile and subject to decline in a bad economy---were up the most, at 1.2 percent, and 3.5 percent higher than projections, respectively.
Forecasts for the Puget Sound region project 2.5 percent job growth for 2012, and growth in personal income of 5.4 percent. In contrast, job growth between 2000 and 2010 was essentially flat.
However, the city's forecast notes that under the latest proposed state budget (the legislature, of course, is going into special session to write a budget after the Republican coup earlier this month), the city stands to lose several million dollars a year---$2.5 million from criminal justice revenue sharing, $0.6 million from beer taxes, and $3 million from liquor taxes.
The city's next revenue forecast is due in April.
Overall, general-fund tax revenues (from property taxes, sales tax, B&O taxes, and utility taxes), in 2011 were 0.6 percent higher than originally forecast. Between unanticipated revenues and "underspends," the city ended 2011 with about $12 million more than anticipated. About half of that will go into the city's emergency rainy day fund, bringing the size of the fund (which supplements the city budget during economic emergencies) to about $19 million.
A few revenue sources (from real-estate excise taxes and from the relatively new commercial parking tax) were down slightly ---about $215,000, or less than half of one percent, thanks largely to a 4.2 percent shortfall in commercial parking taxes, which the city's budget office attributes to "accounting issues." (We have a call out to city budget director Beth Goldberg for an explanation of the parking-tax accounting anomalies). Revenues from sales and real estate excise taxes---among the taxes most volatile and subject to decline in a bad economy---were up the most, at 1.2 percent, and 3.5 percent higher than projections, respectively.
Forecasts for the Puget Sound region project 2.5 percent job growth for 2012, and growth in personal income of 5.4 percent. In contrast, job growth between 2000 and 2010 was essentially flat.
However, the city's forecast notes that under the latest proposed state budget (the legislature, of course, is going into special session to write a budget after the Republican coup earlier this month), the city stands to lose several million dollars a year---$2.5 million from criminal justice revenue sharing, $0.6 million from beer taxes, and $3 million from liquor taxes.
The city's next revenue forecast is due in April.
