Budget Guiding Principles
• Maintain solvency
• Prioritize spending on investments with long-term, sustainable community and
economic benefits
• Commitment to continuity of POS workforce
• Focus investments in achieving excellence in aviation and maritime gateways
• Prioritize programs and projects that generate revenue
• Continue to assess short- and long-term effects of COVID-19 on Port industries
and markets
• Maintain a long-term strategic view of capital improvements
• Continued commitment to equity and diversity
• Continued commitment to environment and sustainability, prioritizing spending
on mitigating direct Port impacts for 2020-21
1
2020 Operating Budget Reductions - by Division
2
(in thousands)
Payroll
(Operating)
Payroll to
Capital
Total
Payroll
Reduction*
Non-
Payroll
Reduction
Total O&M
Reduction**
(a)
(b) (c)=(a)+(b) (d)
(e)=(a)+(d)
Aviation 2,109
795 2,904 18,271 20,380
Maritime 126 - 126 1,808 1,934
EDD - - - 3,106 3,106
Central Services 1,697 2,006 3,703 8,313 10,010
TOTAL 3,932 2,801 6,733 31,498 35,430
Note:
* Total Payroll Reduction includes another $7.4M net reduction for the 3% vacancy factor.
** Total O&M Reduction includes $741K allocated to the NWSA.
2020 Operating Budget Reductions – by Account
3
2020 2020
2019 Approved Revised Cost Reductions
Expenses by Category (in $000) Actual Budget Budget $ %
Salaries & Benefits 138,000 152,684 148,694 3,990 2.6%
Wage & Benefits 121,000 135,368 135,426 (58) 0.0%
Payroll to Capital Projects 29,570 37,410 34,609 2,801 7.5%
Outside Services 108,000 126,827 112,155 14,673 11.6%
Utilities 25,855 29,066 28,521 545 1.9%
Equipment Expense 11,343 9,158 10,066 (908) -9.9%
Supplies & Stock 11,909 9,989 7,963 2,026 20.3%
Travel & Other Employee Expense 5,462 7,029 3,752 3,277 46.6%
Third Party Mgmt Op Exp 13,329 12,699 8,494 4,205 33.1%
B&O Taxes 4,856 5,007 3,949 1,058 21.1%
Other Expenses 38,581 24,199 18,316 5,883 24.3%
Charges to Capital Projects (56,000) (70,296) (68,233) (2,063) 2.9%
TOTAL 451,000 479,142 443,712 35,430 7.4%
2020 CIP Deferrals Summary
4
(in thousands)
2020 CIP
Deferrals
Aviation 23,902
Maritime & EDD
12,300
Central Services 4,422
TOTAL 40,624
Workforce Development Programs Summary
5
Workforce Development Program (in $000)
2019
Actual
2020
Cost
Re ductio
n
Revised
Budget
2020
YTD
Spe nding
Maritime Secondary Education - - 100 -
100 -
Youth Maritime Initiative/Transportation/Bus Charters 252 102 152 50 102 50
Engagement and Strategic Plan - - 200 100 100 -
Airport Career Pathways Implementation 251 43 101 - 101 10
Career Advancement Center (formerly Fair Work Center) - - 300 - 300 -
Construction Trades - Regional Partnership Services, Pre-App 710 548 650 - 650 114
Airport Employment Center/Employment Cont. Pool 910 819 979 - 979 252
Workforce Dev. General Services/Other expenses 88 17 97 66 31 -
Salary & Benefits, & Worker's Compensation 298 205 540 - 540 146
K-12 Career Connected Learning 401 13 - - - 31
Events/Other 10 25 - - - 5
TOTAL 2,920 1,771 3,119 216 2,903 608
Diversity in Contracting Programs Summary
6
Diversity in Contracting Programs (in $000)
2019
Budget
2019
Actual
2020
Budget
2020 Cost
Reduction
Revised
Budget
2020 YTD
Spending
Construction Incubator/Contracting Resource Center 60
29 50 10 40 -
Mentor Protégé - - 80 80 - -
Marketing/Communications/Design Services 5 - 10 10 - -
Port Gen 75 49 50 40 10 -
Tabor 100 (Hub/A&E)
- - - (30) 30 -
Linda Kennedy (CPS Technical Writing) - - - (13) 13 4
WMBE Best Practice & Implementation 50 - - - - -
Miscellaneous expenses
18 - 6 - 6 11
TOTAL 208 78 196 97 100 16
2020 Enhancements Recommendation
Uncertainty and Affordability:
• Overriding principle is caution given continued uncertainty around our key lines of business.
• Continue with 2020 capital improvements but revisit longer-term projects as part of 2021 budget.
• Continue existing programs and target short-term additional investments in tourism and workforce development
based on priority needs, financial capability
• Continue discussion on longer-range stimulus efforts.
Two-phase approach:
Phase #1:
• $1.5 million for Workforce Development
• $1.5 million for Tourism
• Funded through the Port tax levy.
• If possible, utilize existing contracts to accelerate implementation
Phase #2: Re-evaluate expenditures in fall budget process and consider revisions based on outcome with workforce
and tourism programs
Community Programs Enhancements
8
Program ($000)
2020 Budget
2020 Cost
Re duction
2020 Revised
Budge t
2020 YTD
Spe nding
Enhanced
2020
Total
Airport Community Ecology (ACE) Fund 522 - 522
47 - 522
Duwamish Valley Community Equity Program 292
- 292 9 - 292
South King County (SKC) Fund 1,500 - 1,500 - - 1,500
EDD Partnership Grants
960 - 960 (27) - 960
Tourism Program 1,536 194 1,342
256 1,500 2,842
Workforce Development 3,119 216 2,903 608 1,500 4,403
TOTAL 7,930 410 7,520 892 3,000 10,520