SEATTLE—April 22, 2003—The Seattle Housing Authority Board of Commissioners confirmed at its April 21 meeting that the housing authority's budget for the next fiscal year will have to balance, in spite of $3.4 million in federal cutbacks. The board did not specify at its meeting where SHA's budget cuts will be made.

Board chair Jennifer Potter said, "The target of $2.5 million in reductions in the public housing budget will stay the same. However, we have asked the staff work with our unions to consider alternative proposals for reducing the budget."

The staff will be asked to present a revised strategy to reduce the public housing budget at the June 16 Board meeting and at that time the Board will vote on the proposal.

At the same time, Executive Harry Thomas stressed that there was no way to avoid major layoffs at the housing authority. "By the time the budget is approved in June, we will have to decide how expenses will be cut. We still believe that our original strategy has merit, but we are willing to consider other alternatives. No matter where we cut, we are likely to see a loss of services to residents."

This is the second time in the last two years that the housing authority has found it necessary to lay off staff. Two years ago, cuts were made in management staff for the most part, and direct services to residents were not affected.

In addition to the inevitable layoffs, the agency is considering a variety of other actions. Senior management staff has volunteered to forego cost of living and merit increases and take up to a week of unpaid leave, resulting in a savings of over $20,000.

Other actions for consideration include restrictions on cost of living adjustments and merit increases agency-wide, requiring one or more days of unpaid leave for all staff, reducing hours of service at some offices, and other voluntary staff cutbacks.

Some of the originally planned layoffs--those that involve consolidation of divisions or other reorganizations--will go forward as planned.

"We have greatly appreciated hearing from residents and other stakeholders on these issues, and we continue to welcome their comments and suggestions," said Thomas. "We will hold an additional public hearing on the budget on June 10 from 5 to 7 p.m. in the Community Room at Center Park, located at 2121 26th Avenue South. In the meantime, we will continue working with the unions to achieve the needed budget cuts."