Mayoral candidate Mike McGinn issued a four-point plan today for managing the city's $72.5 million projected budget shortfall. His top priority is slashing 200 strategic advisers at City Hall, which he calls a return to pre-2001 levels, when Mayor Greg Nickels took office.

McGinn proposes cutting duplicative information-technology and human resources staff that are represented in central staff and again in agencies. He also suggests reforming the city's contracts for services. For instance, he argues, "In the age of internet, all contracts should be open for public bids."

In a small miracle, his proposal says nothing about a tunnel. Not a word.

His full proposal is after the jump.

As mayor, I will work to cut city administrative costs before reducing direct services to citizens.

By doing more with less, we can stretch tax dollars further. And as the economy and revenue collections recover, we can reinvest the savings in fully funding public safety, eliminating furloughs in the library system, and restoring human service programs.

The following are specific initiatives that I support to reduce the cost of government while providing greater openness and transparency.


1. Rollback the politicization of city government

The city has doubled the number of strategic advisors over the last decade. We can eliminate 200 of these political appointee positions by rolling back the number of strategic advisors to 2001 levels. Further savings can be achieved by reducing the number of executive and management positions across the government.

2. Consolidate duplicated functions
City departments are largely decentralized, yet the city also maintains large internal support agencies. The following are some examples of functions and responsibilities that need to be more clearly delineated.

Information Technology
We have nearly 200 employees in the IT department, yet major agencies also have their own IT staff.

Personnel
We have over 100 employees in the personnel department, yet major agencies also have their own payroll clerks and HR staffs. Further cost reductions can be made by transitioning to electronic payroll.

Public information / Community outreach
Public information officers and community outreach staff are funded in virtually every major department. By housing these functions in the Department of Neighborhoods, we can strengthen community involvement and reduce costs.

Further efficiencies
We should explore merging Seattle City Light and Seattle Public Utilities to reduce administrative overhead and operating costs. Other departmental consolidations should be pursued if they will yield real savings.

3. Reform contracting and procurement:
While the potential general fund savings are relatively small, the government as a whole spends far too much on contracted goods and services. The following steps, along with stronger overall fiscal management, will help reduce costs.

No-bid contracts
The city currently allows no-bid contracts up to $260,000. In the age of internet, all contracts should be open for public bids.

Contract amendments
Contract costs often soar due to contract amendments. Such amendments should be rare and strictly limited to the scope of the original contract.

Retire/Rehire
City employees should not be able to "retire" and then return to city work as higher-paid consultants/contractors. The current 12-month ban is insufficient. Efforts to increase the limit to 24-months are appropriate, but a simpler solution is to limit compensation to the level earned while working for the city, adjusted for inflation.

4. Independent forecasting
Key budget assumptions, including the revenue and inflation forecasts, should be determined by an independent economic office. This office should be jointly accountable to the executive and legislative branches.