The Association of Washington Cities (AWC) held its annual Legislative Committee Meeting at the Doubletree Hotel in SeaTac Tuesday morning. Gov. Christine Gregoire’s legislative director, offering the governor’s perspective on the 2011 Legislative Session, presented not just a gloomy picture, but a dismal one.

The 2011-12 proposed Seattle budget, hammered out after many hours of discussion and negotiation, is now essentially ready for passage. This year’s budget definitely isn’t pretty, but it is humane. It is in keeping with Seattle values and it does keep city resources intact and ready to meet the next challenge.

In short, the federation wanted to know: how will the council close the $67 million – and growing – budget shortfall?

Seattle’s 2011-12 Budget belongs to all the people of Seattle and the people are beginning to tell us what they think about the mayor’s proposals for balancing the budget in this most difficult of recession Years.

This year’s “dear mayor,” sent on Friday the Thirteenth, acknowledged a host of challenges the city is facing. The local economy remains weak and recovery appears to be slower and weaker than anticipated. Furthermore, it is clear the city cannot count on receiving help from the state in this dark hour.

The board of the Seattle City Employees Retirement System (SCERS) last week received its regular evaluation of the retirement system’s finance from the actuaries, Milliman, Inc. The news was disconcerting, but not unexpected.

It felt very right yesterday to stand down on the Duwamish with civic leaders, urging Commerce Secretary Gary Locke to reopen its site selection process for the Marine Operations Center — Pacific.

Yesterday I went on a walking tour with Vancouver, Washington’s assistant city manager Eric Holmes. And forgive me if I report in cliché: It was a mind-blowing experience.

Topic A at the 2010 Association of Washington Cities conference, underway this week in Vancouver, WA, is how to handle city finances in lean times. What do cities do when resources are cut drastically, year after year.

Things haven’t been good for cities in this economic down turn. The state long has ignored their plight, mandating programs without giving them resources to comply. And, in tough times, the state has grabbed scarce resources that would have gone to the cities, intent on using the proceeds to solve its own fiscal problems.