Here is a list of answers to frequently asked questions about Vancouver's budget problems. It was prepared by city spokeswoman Loretta Callahan, who plans to post a longer version of the FAQs below and other information at http://www.cityofvancouver.us/horizons.
How much is the shortfall being forecast for the city of Vancouver in 2011-12?
Using a fiscally conservative outlook, the city is forecasting a $10 million deficit in 2011-12. The city has already reduced the coming deficit by $2.2 million with major restructuring of the organization, including streamlining and consolidating departments and facilities, and flattening management. During the next four months, the city will keep working to further reduce the deficit, including seeking union and employee groups' help in cutting health care costs by $1.1 million, the equivalent of 11-16 employees. The city is also pursuing a federal grant to provide funding for three years for up to 10 full-time police officer line positions that would otherwise be lost due to layoffs
Why did the city buy the former Columbian building at 415 W. Sixth St. when it will have to lay off people in December? How will the city pay for that building?
Actually, this is a very good time to purchase the building. It saves money. By buying this building and consolidating employees into one facility instead of continuing to pay rising rent on multiple sites, the city expects to reduce its ongoing operating costs by about $1 million in the 2011-12 biennium, and $1 million every year after that. Funding to buy the building comes from dedicated capital funds and existing dollars set aside for rent and maintenance, not from general operating funds for police, fire, street maintenance, parks and recreation, land-use planning and other services. Buying the building actually will put money back into the general budget on an ongoing basis and help support programs and people.
Why doesn't the city of Vancouver cut wages across the board by 5 percent to 10 percent to address the deficit?
The city cannot unilaterally reduce all employee wages. An estimated two-thirds of the city's employees are represented by unions. Those contracts are subject to negotiations. In addition, contracts for fire and police unions are also subject to interest arbitration. In interest arbitration, an independent arbitrator makes the decisions, and the city is legally obligated to pay the wages and benefits dictated by the arbitrator. It should be noted that there have been no cost-of-living increases for management, nonunion employees, and all but one union in 2009, several unions in 2010.
If the deficit has been a problem since 2001, why didn't the city do something before?
The city did. Each year, city leaders have been carefully addressing budget concerns, primarily through cuts but also with some increases in fees and taxes, such as on utilities. What changed was the deep recession, with its unforeseen dramatic economic impact.
Why does the city of Vancouver's preliminary budget include cuts in fire and police? Why not just cut other areas?
The city plan for 2011-2012 would cut 105 positions citywide to balance the budget. If no positions are cut from that public safety area, the city would have to eliminate 130 of the remaining 310 positions out of the city's general operating fund. That's more than a 40 percent cut in those remaining city staff.
Does the city's preliminary budget call for new taxes?
No. The city plan does not include any tax increases. The city manager is committed to balancing the 2011-12 budget using the city's existing means.