SEATTLE—March 17, 2003—The Seattle Housing Authority has outlined a budget strategy for its 2004 fiscal year that will balance federal budget cuts with major restructuring initiatives involving job losses for more than 40 employees.

The federal appropriations bill, which was enacted in mid-February, will result in a ten percent decrease in funding for public housing, amounting to $1.3 million. Additional federal cutbacks mean that the housing authority must trim its 2004 budget by $3.4 million.

According to Executive Director Harry Thomas, "We must make major changes in how we operate in order to balance our budget in the face of such drastic cuts."

One major change in operations would discontinue the use of live-in managers in public housing high rise buildings across the city. Job duties now performed by these employees would be taken over by added daytime building managers and building custodians. This would cut about 40 live-in managers and replace them with 14 custodial and building manager positions. Back-up managers would continue to be available in the buildings overnight and on weekends.

"This change will hamper our ability to provide the highest level service to our residents, but we believe we can make it work without compromising safety or security," said Thomas. Elimination of the live-in manager positions will save the housing authority approximately $1 million.

The housing authority will also feel the effects in this budget year of Congressional actions taken last year, when the Drug Elimination Grant program was discontinued. This program has provided $1.5 million to contract with outside agencies for resident service programs to prevent drug activity. These contracts have funded after school youth tutoring, recreation programs and community policing teams. A total of $1 million for these contract services will be eliminated from the FY2004 budget.

According to Thomas, "We do not believe that these budget cuts are likely to be re-instated in the near future. We are attempting, therefore, to position our agency to become as efficient as possible in order to withstand this downward trend."

Other agency restructuring will refine the process for accepting housing applications, and will include making it possible for preliminary applications to be submitted on-line. Agency managers will forego cost of living adjustments and will ask union employees to do the same.

The Seattle Housing Authority Board of Commissioners will hold a public hearing on this budget strategy at 6:30 p.m. on Monday, March 31 in the community room at Center Park, at 2121 26th Avenue South. The commission will then take action on the proposed strategy on April 21. Based on this strategy, the agency budget will be drafted. An additional public hearing will be held in June, before final adoption of the 2004 budget. The agency’s 2004 fiscal Year begins October 1, 2003.

Summary of budget reduction actions

Please note: The figures shown below are estimates, and are subject to change as SHA's budgeting process continues.