The 2000 King County Budget is built using the following assumptions:

Salaries. Adjustments to salary and wage levels are reserved centrally in the Current Expense Fund and in other funds in salary and wage contingency accounts. These reserves will provide funding for COLA and merit increases. For most County employees the COLA increase is 90% of the September to September consumer price index (CPI). The 2000 COLA was set at 2.52%. The contingencies also include reserves for merit and longevity increases, implementation of the Classification and Compensation Study and other salary adjustments. The increases are distributed to Current Expense budgets via a COLA ordinance passed during the year.

Medical Benefits. Expenditures for providing medical/dental benefits to employees are expected to increase about 17% in 2000 over 1999 levels.

Savings Incentive Program and Current Expense Underexpenditure. The treatment of the required underexpenditures in the Current Expense Fund agency budgets and Financial Plan has changed from previous years. Historically, the CX Financial Plan has assumed a 1% underexpenditure rate. Beginning in 1997, the CX Financial Plan assumed a 1.5% underexpenditure rate which was increased to a 1.75% rate in 1998 and 1999. Departments are expected to manage their appropriations to achieve the underexpenditure. For 2000, the underexpenditure rate has remained the same, at 1.75%. However, 1% of that required underexpenditure has been reduced from each CX operating and CX transfer budget to more directly budget for assumed underexpenditure levels. A remaining central contra of .75% is being held in the CX Financial Plan, for a total assumption of 1.75%. In addition to the Savings Incentive Program, which returns 50% of budgeted savings to departments achieving greater than the 1.75% requirement, the Council has earmarked an equal amount to a Current Expense Opportunity account within the CX Fund.

Major Maintenance Reserve Fund. The 2000 Budget includes the transfer of $4.5 million of revenues designated for the Sales Tax Reserve subfund to the Major Maintenance Reserve Fund and in support of the other CIP programs. The County’s financial policies allow for expenditure from the Sales Tax Reserve Fund when the fund balance exceeds $15 million. This balance was achieved in 1994.

Updated: June 28, 2000