Title
Briefing on Addressing Impacts to Staff During the 2025 Budget Balancing Process
Recommended Action
None; Receive a briefing on the City’s approach to addressing impacts to staff during the 2025 budget balancing process.
Report
Issue:
Whether to receive a briefing on the City’s approach to addressing impacts to staff during the 2025 budget balancing process.
Staff Contact:
Manny Bosser, Human Resources Director, 360.753.8309
Presenter(s):
Manny Bosser, Human Resources Director
Background and Analysis:
In 2024, the City identified a need to overcome an anticipated $7 million dollar budget deficit impacting the General Fund. The General Fund makes up approximately 52% of the City’s overall operating revenue and is primarily funded through sales tax, property taxes and Business & Occupation Tax. Over 71% of the City’s General Fund is used to pay for staff positions.
The City took significant steps to address the budget deficit through use of reserves, reorganization, delaying new hiring, reducing expenses and identifying greater efficiencies in the providing of programs and services; however, staff reductions were still needed to achieve a longer term and sustainably balanced budget.
By working collaboratively, City leadership took intentional steps to identify for elimination 27 staff positions across all City funds and departments. Most of the reductions were able to be identified through existing vacancies and anticipated retirements, reducing the impact to staff to the greatest extent possible. However, seven positions were identified as being ‘at risk,’ which means they were staffed and needing to be eliminated to support a balanced budget.
Knowing the impacts of the reductions would be stressful and very challenging, the City identified a variety of approaches to support staff through this time, and in particular provide resources and tailored support to staff whose positions were identified as ‘at risk.’
One of the most significantly impacted areas within the City was the Office of Performance & Innovation, including the Performance Management Analyst position, which had been providing project and liaison support to the Commission. At the December Social Justice & Equity Commission meeting, when updated on the staffing changes, Commissioners specifically inquired about the City’s use of an ‘equity lens’ in approaching the necessary staffing reductions. In response, the purpose of this agenda item is for Human Resources Director Manny Bosser to provide the Commission with an overview of the City’s approaches to addressing impacts to staff during the 2025 budgeting balancing process.
Climate Analysis:
Discussion of how the City approached impacts to staff during the 2025 budget balancing process does not have an impact on climate.
Equity Analysis:
The City of Olympia is committed to considering and mitigating impacts to currently and historically marginalized groups of employees during staff reductions. The equity lens used during the budget reduction process included, determining budget outcomes, conversations with key stakeholders, analyzing data, taking action with notice to staff, evaluating outcomes and reporting back to stakeholders.
Neighborhood/Community Interests (if known):
There’s broad community interest in the City’s budget, budgeting process and how the City engages in decision-making for how to achieve a balanced budget.
Options:
None; briefing and discussion only.
Financial Impact:
None
Attachments:
None