1. Next week, Seattle’s budget office will release its budget forecast for next year, which will tell city budget writers exactly how much of a shortfall the city faces in 2023. On Monday, the city’s Economic and Revenue Forecast Council, which includes city council members and representatives from the mayor’s office, got a look at the revenue side of that equation, which, like the cost of doing city business, is strongly influenced by the economy, inflation, and interest rates set by the Federal Reserve.
The big picture: In 2022, the city would face a shortfall of nearly $18 million if not for late payments from the JumpStart payroll tax, assessed on very large local companies with highly paid workers. Those payments should have come in last year but didn’t for a variety of reasons, including the fact that some firms apparently didn’t know they had to pay the tax but “fessed up,” in the words of Office of Economic and Revenue Forecasts director Ben Noble, and paid this year.
Because JumpStart revenues were still going to the general fund in 2021 to address the impacts of the pandemic, the money went into the general fund this year. Next year, though, that won’t be the case—and the office expects other city funding sources, such as taxes, grants, and court fines, to be lower than they predicted back in April.
Overall, the forecast office predicts the city will bring in about $1.5 billion in general-fund revenues next year—down $217 million from the current forecast for 2022.
The decline in revenues can’t all be chalked up to parking ticket refunds. Other factors include lower than anticipated revenues from business and occupation taxes, FEMA reimbursement for COVID expenditures, and a decline in use for some utilities, including telephone service (on the decline for years) and water (Seattle had a rainy spring). The city also expects payroll taxes to decline in the future, as tech companies’ stock value decreases and jobs shift away from Seattle to the Eastside
2. In a presentation to the Seattle Pedestrian Advisory Board about Sound Transit’s frequent escalator and elevator outages on Wednesday Sound Transit’s vertical conveyance deputy director, John Carini, argued that user error, rather than anything Sound Transit could control, is to blame for the majority of escalator failure. Carini also talked at length about what the light-rail agency is doing to keep riders informed about why outages are happening, and noted that the agency relies mostly on the public, rather than internal systems, to let it know when its equipment is down.
After showing a slide depicting a new sign that read, “This unit is out of service due to vandalism,” Carini said, “what a lot of people don’t understand is, mechanical failures account for about 38 percent of our total outages”; the rest fall into categories like “misuse” (32 percent) and “environmental” (15 percent), which includes debris people drop that gets caught in the equipment.
Overall, Carini said, Sound Transit is actually exceeding its targets for elevators and escalators in service—if you exclude the downtown light rail tunnel, which Sound Transit took over in January 2021. That’s a huge “if”—as anyone who has taken light rail to or from downtown is well aware, the escalators in every downtown tunnel station are often out of service; currently, according to Sound Transit’s performance tracker, one in three tunnel escalators is down.
The presentation did come with some good news for frustrated light rail riders: Sound Transit is currently setting up a schedule for replacing the downtown elevators and escalators, although with the exception of the International District station, where construction is supposed to start in 2024 the schedules are “TBD.”
In the meantime, Sound Transit will keep working to repair the broken-down equipment, and finally upgrading its elevators and escalators with equipment to ping the agency when they break down, rather than relying on security guards and the general public to let them know things aren’t working. That upgrade, too, is in a “pilot” stage; it will be 2024 or later before Sound Transit stops relying on what Carini called “the human factor” to keep them up to date on equipment failures.