The economic news is downright gloomy: King County is looking at a large budget shortfall. So is the state. And we all know the federal government has been borrowing to meet its obligations at home and abroad.

Energy prices are up; housing prices are down. As energy prices cycle through the economy, food and commodity prices are on the rise, and real wages are eroding.

For those of us living in Seattle, the situation is not quite as dismal as elsewhere. But you may be sure that the Emerald City won't escape unscathed, even though the city still has economic sectors that are holding their own. Tourism continues to buoy the local economy; construction, although slowing, provides a boost, and foreign trade - partly because the dollar is low by comparison with other currencies - has remained stable.

At City Hall we've been proceeding with caution. The mayor recently released a list of cuts from the 2008 budget and a second list of projects he wants put on hold until the economy improves.

The budget freezes do not require City Council approval, but council action is needed to delay capital projects. While it is unfortunate to have to forego or delay projects, it is prudent to slow spending in order to avoid steep cutbacks in 2009 and 2010.

The reality of cuts has cast shadows over the coming budget process. Drawing up a budget for a city the size of Seattle is an almost year-long activity and the City Council has been putting its work on a fast-paced schedule in order to concentrate full attention on drawing up a 2009 budget and a proposed 2010 budget.

Council members passed a budget resolution in June, outlining council priorities. The top six are public safety, human services and housing, transportation, pedestrian safety, environmental stewardship and neighborhood planning.

There has been considerable outreach to local communities and to city newcomers to solicit feedback on priorities. Starting with a Citizens Budget Workshop in February, the council's Budget Committee has held four meetings, each in a different city sector, to solicit input from citizens on how the city should prioritize its spending.

We asked: What matters most? We heard dozens of answers: from those who long for sidewalks to those who want to make sure hours aren't cut at library branches.

The quest for citizen input in the budget process is far from over. There are two public hearings at City Hall set to begin at 5:30 p.m. Wednesday, Oct. 8, and Monday, Oct. 27.

Citizens can get information about the budget at the Seattle.gov Web site. They are encouraged to send emails to the budget portal, to email individual council members, to call or write.

This year the council will make available online the budget "green sheets." Those are the documents that reflect specific additions or deletions that are being considered by the council. Reviewing those sheets will help citizens gain an insight into the shape of the budget. The goal is to provide as much transparency as possible in the few short weeks when council members concentrate on the next year's budget.

In a tough year government cannot fulfill every request. However, what counts is being able to stick to the priorities citizens and lawmakers agree upon.

Here's my pledge to you: We will strive to spend each dollar responsibly; we will use the city's budget as a tool to help make our priorities into realities, and we will work toward an open, fair and transparent process. Together we can make this work.

Jean Godden is chair of the Seattle City Council's Budget Committee.