Coronavirus: Issaquah Proposes Cuts With $10M In Lost Revenue

ISSAQUAH, WA — Issaquah Mayor Mary Lou Pauly announced the first phase of planned budget cuts this week as city leaders work to offset the economic damage of the coronavirus crisis in Washington.

"The COVID-19 pandemic has created a crisis in our community, with dramatic effect on our residents, businesses and social service providers," Pauly said. "These impacts are of a magnitude not seen by many in our lifetimes."

Issaquah, like other cities across the state, expects to see a significant drop in revenue generated from sales and business taxes, due to Gov. Jay Inslee's extended "Stay Home, Stay Healthy" order and widespread business closures. City estimates project Issaquah's general budget will take a hit in the range of $10 million.

"We need to reduce our services to match our expected revenue levels, and that means taking a hard look at the community and City Council priorities — and only delivering those very basic priority services," Pauly said.

The first phase of cuts is projected to save close to $5 million and will include city staff reductions:

• 22 positions will be vacated through layoffs and retirements.
• Hiring will be frozen for an additional 15 vacant positions.
• Two positions will be reclassified.
• All non-represented positions will be given a 10-day furlough.
• The city's senior leadership team will see salaries reduced by 7 percent.
• Certain positions will also see a reduction in benefits.

Several other changes will affect city-run programs at the community center, Julius Boehm Pool, the senior center and Pickering Barn. Tibbetts Creek Manor will be closed.

City officials said further budget reductions may include pay cuts for union positions and other alterations to other city funds.

Residents can read more about Issaquah's budget plans here.