In late November, the Municipal League released its report on King County’s fiscal crisis. The study concluded that major changes in the County’s responsibilities and focus must occur to address critical regional issues. The report notes that despite deep budget cuts in recent years, there are insufficient revenues available to fund King County’s General Fund. For example, over $50 million in cuts to the General Fund budget (approximately 10% of that budget) have been required to balance the 2003 County budget. Additional cuts of $20–$25 million are anticipated for each of the next three years.

“King County is squeezed by the 1% limitation on property tax growth, the increasing rate of annexations and incorporations, increased justice system and labor costs, and state and federal mandates,” noted David Tarshes, who co-chaired the study committee.

In addition to providing countywide services, King County also provides local services to unincorporated King County. In 2003, about $42 million of the money spent to provide local government services was supplied by revenues generated by the County in its countywide government role.

In approving the report, the Municipal League Board of Trustees recommended that:

• King County should divest itself of its role as a local service provider in order to fulfill its role as provider of county services.
• All land within the urban growth boundary should be incorporated or annexed to the city or cities within each area’s sphere of influence through collaboration between King County, existing cities and citizens. Rural unincorporated communities should be organized into townships or other entities for the purpose of local service delivery, to include local land use decision-making consistent with the Countywide Planning Policies and the Growth Management Act. King County should be more aggressive in encouraging and enabling unincorporated residents to find alternatives to King County for local service provision.
• King County and the other members of the Washington State Association of Counties should continue to seek, and the Legislature should authorize, additional revenue sources to equitably fund county services.
• As additional revenue opportunities are explored, the County must also continue to cut costs.

The report was sponsored by the League’s King County Study Committee, co-chaired by attorney David Tarshes of Davis Wright Tremaine and Rita Brogan, CEO of PRR, Inc., who worked with a group of citizens over the last year to develop the study’s findings and recommendations.

A full copy of the Municipal League’s new report, Shortchanged: King County’s Fiscal Crisis, can be found here.