Reaction to City Council proposed subsidy cuts mixed

YAKIMA, Wash. -- Plans to cut the subsidies that a variety of groups gets from the city of Yakima drew mixed reviews Tuesday night during a packed meeting at City Hall.

Some of the groups were OK with it. Others were not.

"We know the economy is bad right now," said Nestor Hernandez, president of the Hispanic Chamber of Commerce, who did not object to a 50 percent cut of the $5,900 subsidy the group now gets from the city.

But Dan Kelleher of the Committee for Downtown Yakima asked the City Council to reconsider a $10,000 cut from this year's $50,000 subsidy.

"It will have a noticeable adverse effect on our service level," he warned the council, referring to street and sidewalk maintenance.

With about 80 people in attendance, Tuesday's meeting represented one of the most vocal reactions to cuts being proposed to compensate for a projected shortfall of more than $4 million in the city's 2010 budget. Plans to eliminate 24 positions didn't generate nearly the same outcry when they were announced earlier.

The discussions Tuesday night centered on $100,000 in subsidies ranging from $50,000 that now goes to Community for Downtown Yakima to $1,000 for the Sunfair Parade to $5,500 used to support the annual fireworks display at the State Fair Park.

Most of the groups were previously notified that they'd be getting 50 percent of their subsidies cut. Not everyone's budget, such as CDY, was cut by half. At least one group, the Yakima Clean Air Authority, actually got an increase.

The subsidies are a pittance compared to measures the city took to close a projected shortfall of more than $4 million in the city's 2010 general fund budget.

Those measures include slashing 24 jobs from the payroll and releasing $1.4 million in reserves. Most of the job cuts come from attrition, but at least three layoffs are expected. They are the city's first layoffs in 27 years.

As it stands now, the 2010 proposed budget of $59.6 million represents a 4 percent reduction over the current budget.

However, the latest revenue projections show the city needs to make another $200,000 in cuts. That's after the proposed subsidy cuts of 50 percent.

Earlier in the day, council members talked about eliminating the subsidies for some groups altogether, including the Yakima Symphony ($5,000), Allied Arts ($5,333) and RSVP ($3,000).

Whether the council needs to do that remains to be seen. City officials identified more than $275,000 in possible savings that don't include further cuts in subsidies.

However, council members and city staff have also proposed reinstating several cuts, such as services provided by an arson dog and contracting with the Humane Society for an animal control officer.

Council members are scheduled to finalize budget cuts on Dec. 1 and adopt a new budget on Dec. 8.