KING COUNTY, Wash. -- The county's budget woes became personal on Tuesday when managers began handing out pink slips to workers who will lose their jobs on Jan. 1.

There was speculation that 400 employees would get layoff notices, but that number proved to be too high.

The actual number of layoff notice recipients: 125.5. Another 111 were warned their jobs could disappear next July. And there are 163 vacant positions that won't be refilled.

Ron Sims told the county council the budget is hurting with a $90 million deficit.

But, on Tuesday, it was the people who were hurting. Pink slips were delivered, and one -on-one meetings with the bosses were held.

David Reyes is area manager for the health department, the hardest hit agency. Reyes, with a heavy heart, started delivering the bad news in Bothell and continued in North Seattle. Seventy health department workers are being cut now. Another 69 could be cut loose next July.

"It's not just laying off people. It's people's lives and it's the impact they have on services and the communities we serve," he said.

The sheriff's office got news that was a little better than expected. They'd been warned about a $10-million cut, but the actual cut was $7 million. The office has made appropriate cuts, as has the prosecutor's office.

But the big question is whether all the labor unions will go along with a 3-percent cost of living increase, rather than the expected six.

The headlines have been about cuts and jobs, but in the budget presented by King County Executive Ron Sims, there's something else.

Sims has appealed to unions to agree to a smaller cost of living increase than planned; namely a 3-percent bump instead of 6. Without compliance, more cuts lie ahead. One union leader said Sims' proposal has not been well-received.

"That is his warning, and we need to consider that. But we also have to take direction from the members we represent," said Dustin Frederick, co-chair of the County Labor Coalition.

Frederick said he doesn't believe union members will voluntarily give up the extra 3 percent.

"At this time, that is exactly what they are telling us," he said.

The sheriff's office has already cut back. A spokesman said if workers refuse to accept a lower COLA it could lead to 11 more layoffs and a further reduction in service. The prosecutor said his office would also be hard hit.