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December 2, 2002

COUNTY CALLS ON STATE LEGISLATURE FOR TOOLS TO CLOSE $48 MILLION BUDGET GAP IN 2004 AND 2005

Just one week after successfully passing a balanced budget for 2003, the Metropolitan King County Council today called on state lawmakers to give the county the tools it needs to address the budget gap that still confronts the county in 2004 and 2005.  The Council unanimously adopted a state legislative agenda developed jointly with County Executive Ron Sims that seeks unspecified new revenue streams for preservation of basic county government services, transportation solutions, and stable funding for mental health, public health, and parks.

If the State is not able to expand support to adequately fund its mandates upon local government, then it must give us the revenue tools so we can do the job,” said Councilmember Dwight Pelz, chair of the Legislative Steering Committee. “We need a new way of funding county services. Let’s not get hung up now on the specifics. We will work with legislators to find those solutions.”

“We effectively managed the immediate crisis by adopting our budget for 2003, but that was last week,” said Councilmember Larry Phillips, chair of the Budget and Fiscal Management Committee. “Now we have to turn right around and close a structural gap of $24 million in 2004 and another $24 million in 2005. From 2002 to 2005 we will have cut $141 million in basic, vital services for the public. That’s intolerable, and clearly warrants new revenue options for our citizens.”

“As general governments, counties have the most limited set of tax options in the state,” said King County Executive Ron Sims. “We are bound by an antiquated tax structure that must be fixed if we are to avoid even more drastic cuts to health and safety programs.” He commended the council for working collaboratively with his office and vowed to go jointly with councilmembers to Olympia to seek revenue reforms.

County government is, by state law, dependent on property and sales taxes, unlike cities that have authority to levy utility and business and occupation taxes. Municipal annexations and incorporations have eroded the County’s sales tax base. The King County State Legislative Agenda adopted today does not specify any particular revenue source. It calls for an overall reform of the fiscal relationship between King County and Washington State and identifies five funding priorities:
  • Preservation of Basic County Government Services: Despite increased internal efficiencies and restructuring of the way King County does business with criminal justice, parks and cultural resources, the cost of providing basic county services is projected to exceed revenues by $48 million over 2004 and 2005. Criminal justice costs now consume 73 percent of the entire King County general fund budget. , and those costs continue to grow faster than the revenues to support them. Many of these costs are due to state-imposed or statutory responsibilities, and extraordinary criminal cases. The county legislative agenda calls for a long-term restoration of the state funding for criminal justice and public health programs that was lost in 2000 when the Legislature repealed the Motor Vehicle Excise Tax (MVET), following voter approval of Initiative 695. The agenda suggests the identification of new, long-term revenue sources, and opposes the imposition of unfunded or underfunded state mandates that shift state costs to counties.
  • Transportation Solutions and Regional Funding: King County supports state funding of its critical road and infrastructure network as well as additional options to auto travel. King County supports the Regional Transportation Investment District (RTID) process already underway, while recognizing that amendments to the RTID legislation may need to be made. Congestion in the Puget Sound region threatens the economy of not only King County but of the entire state.
  • Mental Health Funding: King County supports legislation revising the distribution of mental health funds to be based solely on prevalence and severity of mental illness. Mental health funding should be consistent with state law requiring services to priority populations and should also support expensive services to special needs populations—children, homeless, mentally ill offenders, and ethnic minorities.
  • Funding for King County’s mental health system was severely cut in the past two legislative sessions, resulting in significant reductions to critical services for at-risk and vulnerable populations. As passed in the 2001 legislative session, the state budget reduced King County Regional Support Network (RSN) funding by $40 million over six years (minus a local/federal match). Budget reductions made during the 2002 legislative session to RSN reserve funds and inpatient rates will cost King County an additional $10 million.
  • Stable Local Public Health Funding : The legislative agenda calls for a dedicated, long-term revenue stream for local public health. The health needs of the residents of King County must be addressed by adequate and sustained financial support for a continuum of activities that includes disease prevention and health promotion; ensuring a safe and effective food and water supply; and health care services for vulnerable and medically underserved populations.  Since the terrorist attacks of September 11th and the subsequent anthrax scares, the public is acutely aware of public health’s role in protecting them from the consequences of terrorism involving biological, chemical, or nuclear agents. These events have also dramatically demonstrated the extent to which the nation's public health infrastructure has been allowed to deteriorate. While governments at all levels have a leading role in preparing for and responding to the terrorist challenge, all aspects of our health care and public health system are critical to this effort.
  • Ongoing Funding for Maintenance and Operations of County Parks: King County supports increased funding for operations and maintenance of county parks. The availability of funds to acquire and develop parks system assets is not matched by an ability to operate and maintain those assets. As recommended by the Metropolitan Parks Task Force, King County is implementing a business plan to create a financially stable parks system that meets the needs of the public.

Read this legislation on the King County Council’s new LEGISEARCH system at mkcclegisearch.metrokc.gov and typing in “2002-0574


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