UPDATED: 6:29 p.m. May 29, 2008

Atlanta city services could stop if budget isn't passed


The Atlanta Journal-Constitution
Published on: 05/29/08

Atlanta risks violating state law — and not being able to offer some vital city services — if it doesn't adopt a budget by its June 30 deadline.

Some City Council members say it's quite possible the budget won't be passed on time, considering the sweeping changes they're considering to Mayor Shirley Franklin's $583.9 million spending plan. A major sticking point: The mayor wants to raise property taxes to help offset a $140 million shortfall, and some council members are looking for ways to avoid that politically unpopular step.

Atlanta fiscal crisis:

Franklin says the city's general services, such as police protection and trash pick up, would suffer if she and the council cannot agree on a budget before the new fiscal year starts July 1.

"I am not aware of any options I have as mayor to continue operating the city without an adopted budget by midnight June 30," Franklin said.

She also warned it could hurt the city's finances.

"Each council member and I have a fundamental responsibility as elected officials to adopt a balanced budget under the state law. ...I don't think any of us want to put the city's bond rating at risk because we didn't balance the budget," Franklin said.

The budget is scheduled to be adopted at the council's next meeting on Monday, but several council members on the finance/executive committee say that's unlikely.

Councilwoman Felicia Moore thinks the mayor will reject some changes she and other council members are considering, which makes Moore suspect the budget may not be adopted by June 30.

Councilman Howard Shook said he is "guardedly optimistic" a budget will be adopted on time.

"Our goal is to wrap this up by the end of June," said Shook, chairman of the council's finance/executive committee.

City officials say they can't remember a budget not being adopted on time.

Several council members have oppose Franklin's plan to raise property taxes to collect $40 million to help offset the shortfall. The mayor has called the tax increase "modest" and said she refuses to support the option her staff considered — laying off 265 police officers, 90 firefighters and closing six fire stations.

Some council members say they're trying to come up with ways to avert a tax increase. But they're not willing to discuss options, saying they're still researching their ideas.

Neither city nor state laws specify what penalties Atlanta could incur if it doesn't adopt a budget on time.

Moore said the finance department has been asked to craft another budget without some changes proposed by Franklin, such as merging the solicitor's office into the law department. She said council members will have to decide what cuts are necessary to balanced the budget.

"That's where the rubber is going to meet the road," Moore, a member of the council's finance/executive committee, said in an interview. "We'll have to put our money where our mouth is."

The 15-member council has few opportunities to approve a budget. After Monday, they're scheduled to meet just once more next month, on June 16. Shook said the council will likely hold a special meeting at some point in June to adopt a budget.

Despite the few scheduled meetings, and many ideas being floated to change Franklin's budget, council members say the effort is necessary.

"I do think we need to take a shot at it," said Councilman H. Lamar Willis.

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