City of Seattle's insurance, labor costs skyrocket
Mayor of Seattle, Mike McGinn, faces a tough situation in the coming weeks as he attempts to balance a $60 million dollar budget deficit. The mayor has ordered a review to be completed by April, but most already know that one of the largest drains on city money are the salaries and benefits of 11,000 city employees. The number of Seattle municipal workers has barely increased over the last 8 years, but the cost of keeping them on has skyrocketed, with payroll expenses up 40%, and health and dental benefits up 50%. In 2002, the city spent just over $60 million to employ its workers; in 2009, it spent almost $120 million, a 94% increase. The city and its employees have already agreed to a plan to share the cost of benefits if they increase over a certain percentage per year. However, now the city looks to the federal government to do something to stem the quickly rising costs of health care. The city is also examining redundancies, but many city worker labor contract are difficult, if not impossible, to change. A call for 200 layoffs has also been shot down, and the mayor has seemingly abandoned that idea.
See "City of Seattle's insurance, labor costs skyrocket", Chris Grygiel, Seattle Post Intelligencer, March 16, 2010