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SUMMARY
Executive Constantine released his one-year $511 million mid-biennial budget proposal today, which makes modifications to the County’s 2023-2024 budget that was adopted last fall. The proposal eliminates positions and makes other reductions to address the shortfall in the county’s General Fund. Without action by the legislature, much more serious cuts will be necessary next year, including eliminating nearly all remaining General Fund support for human services and closing Public Health clinics serving vulnerable residents.
STORY
In his transmittal of the proposed second omnibus supplemental budget of the 2023-2024 biennium today, King County Executive Dow Constantine outlined the dramatic fiscal situation the county will face next year without quick action by the legislature. If state law isn’t changed to remove arbitrary caps on property tax revenue and/or to provide counties with new, progressive revenue sources, the County’s legal system, human services contracts, government administration like Elections, and Public Health clinics will face drastic cuts in 2025. The $511 million budget proposal continues investments in many areas, but critical projects delivered by the general fund, which relies heavily on property taxes, face reductions now and are in further jeopardy next year.
The budget does utilize one-time funding for new projects like funding from a settlement with opioid distributors. But rising inflation and increased costs have strained the county’s general fund to a breaking point. While the budget eliminates around 60 vacant general fund positions and makes other reductions to save a total of $12.6 million, further reductions will be necessary next year without action by the legislature.
“As I shared earlier this year, we face a major shortfall in our general fund, which powers some of the county’s most critical work, and that deficit is caused entirely by the state legislature. Over the past 14 years, we have sought every efficiency, implemented strong budget controls, and earned top bond ratings, but none of that can make up for the effect of revenues being held far below the rate of inflation and population growth, year after year," said Executive Constantine. “Without immediate action from Olympia, we will be forced to cut even more deeply next year, including layoffs and the closure of the few remaining ‘optional’ general fund services - particularly public health clinics. It’s an unnecessary and untenable situation - one of Olympia's making, and which only Olympia can solve.”
While most of King County’s funding sources are healthy, the general fund, which relies on property taxes, faces a shortfall caused by a state-imposed cap on revenue increases. The general fund pays for a variety of programs, including elections staff, initiatives to keep people out of the criminal legal system, and more. These programs do not rely on dedicated funding streams, like Best Starts for Kids, the Crisis Care Center levy, or other voter-approved programs.
The legislature passed the 1% cap on property tax increases in 2007, and since then inflation and costs have risen dramatically, which means the funding source can’t keep up with the cost of doing business. Without the state removing the cap, King County’s general fund will have an unsolvable $50 million shortfall next year. For services likely to face cuts in 2025, department leaders are now starting the process of working with partners and staff to determine potential impacts for public services like health care clinics and other human services investments likely to face cuts in next year’s budget.
“This budget takes advantage of every tool and resource we have, but we don’t have any tricks up our sleeve left in the general fund,” said Dwight Dively, director of King County’s Office of Performance, Strategy, and Budget. “Without swift action by the legislature to remove the cap, or provide other progressive revenue sources, next year we’ll be making the most difficult cuts imaginable, all because of the legislature’s inaction.”
The second omnibus supplemental appropriations ordinance also makes investments in other areas with better financial conditions to keep King County moving forward, including:
- Investing $109 million from the voter-approved Conservation Futures levy and Parks levy to acquire more than 3,200 acres of land.
- Providing $1.7 million for a new Park Ranger Program to create a positive public safety presence in parks and provide culturally relevant education and support for visitors.
- Making a $600,000 investment in permanent funding to maintain a Conservation Corps crew previously funded by one-time federal funding to provide garbage removal and other cleanup services in unincorporated areas like Skyway, Vashon, and North Highline.
- Maintaining our commitment to criminal legal system diversion programs by shifting $1.5 million in funding from the adult Community Diversion Program to the juvenile Restorative Community Pathways program to better meet the demand for diversion services.
- Adding $7.6 million in obligatory General Fund investments for items that are mandated by the State or required to reduce risk, such as equipment for the King County Sheriff’s Office and funding for Elections.
Next steps
The Executive’s budget proposal was transmitted to the King County Council today and is expected to be heard in the Budget and Fiscal Management Committee. A budget covering spending in 2025 is expected to be introduced in September 2024.
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