Motion 2020-17 Changes to 2020 Port budget Page 1 of 2
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MOTION 2020-17:
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A MOTION OF THE PORT OF SEATTLE COMMISSION
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supporting the Executive Directors recommendation to
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adjust the Commission-approved 2020 Port budget and
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to authorize the execution of $3,000,000 in new
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community benefit programs to spur regional economic
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recovery.
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PROPOSED
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JUNE 23, 2020
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INTRODUCTION
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The COVID-19 global pandemic is an unprecedented public health emergency that impacts the
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lives of everyone in the region and state. The Port of Seattle’s top priorities during this difficult
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time are keeping employees, tenants, concessionaires, contractors, workers, customers,
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travelers and residents safe, while simultaneously strengthening our critical aviation and
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maritime infrastructure to advance trade and commerce and to support jobs, small and diverse
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businesses, and environmental sustainability.
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Therefore, the Commission believes strongly that it is in the best interest of the Port and its
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financial sustainability to make adjustments to the 2020 Port budget, preserving resources to
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help the organization remain viable for the long-term. However, it is also essential that the Port
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continue to invest in key economic recovery programs, and so the Commission supports new
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dollars for key efforts to support the region’s residents. The Commission and the Executive
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Director will continue to evaluate and adjust this approach as new information becomes
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available.
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The Executive Director has the authority to reduce the budget of the Port of Seattle, the
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Commission is passing this motion to support the exercise of that authority.
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TEXT OF THE MOTION
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The Port of Seattle Commission hereby supports the Executive Director recommendations to
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reduce the Port of Seattle 2020 budget by approximately $70 million dollars, from both
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operating and capital budgets, to preserve funds for the uncertain future economic times
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ahead.
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Item Number: _8a_Motion_
Meeting Date: June 23, 2020
Motion 2020-17 Changes to 2020 Port budget Page 2 of 2
The Commission authorizes the Executive Director to execute $3,000,000 (three-million) in
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contracts support investment in workforce development and tourism. The authorizations shall
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include:
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• $1.5 million to support implementation of the May 26, 2020, Opportunity Motion
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workforce development programs.
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• $1.5 million to support tourism promotion that is vital to the Port’s economic
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sustainability and the region’s economic vitality.
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STATEMENT IN SUPPORT OF THE MOTION
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The COVID-19 global pandemic has been an unprecedented public health emergency that
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continues to impact the lives of every local resident, and is causing incalculable economic and
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human costs. The Port of Seattle has been deeply affected in almost every way, especially since
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the economic downturn has been particularly severe on travel, trade and tourism. We have
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heard painful stories from our tenants and partners, but the Port’s own budget has seen the
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loss of hundreds of millions of dollars in expected revenues. We are grateful for the federal
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support that Sea-Tac Airport has received to keep our operations funded in the near future.
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Tourism is an important driver of King County and Washington state’s economic vitality. Travel
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and tourism support 5.1 percent of all jobs in Washington. State and local taxes, generated by
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direct visitor spending, tallied nearly $2.4 billion in 2019. The Coronavirus epidemic has acutely
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damaged employment in Washington State’s travel sector. Through the end of April, job losses
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within the leisure and hospitality sector represented 42 percent of all job losses in the state.
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Since March 1, visitor spending in Washington has declined by $3.8 billion compared with last
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year’s figures. Supporting the revitalization of tourism throughout Washington State will
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support economic renewal and will positively impact the Port of Seattle’s gateways and
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financial future.
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Commissioners face a difficult task over the coming months and years, trying to be thoughtful
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stewards of the Port’s assets while also trying to help drive regional recovery efforts. It is a
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challenge to balance those two priorities, and the Commission is grateful to Executive Director
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Metruck and his leadership team who have already taken actions to achieve both:
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implementing short-term cost saving measures while moving forward on our major capital
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construction projects and offering economic relief to tenants across the Port. The Commission
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also acknowledges that the reason the Port has been able to weather the storm so well to this
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point is years of conservative budgeting and strategic financial management that built up
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significant reserves.
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In a time of huge shortfalls, money spent now is money that the Port will not have later. No one
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knows how long or how deep the current economic downturn will be, and so it is important to
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be prudent at the same time as entertaining bold ideas for helping our region rebound. Much of
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the Port’s capacity to make a major impact will be through the 2021 budget, which will be
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discussed in greater detail at future meetings.
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