Budget forces Atlanta to cut employee hours

Atlanta Mayor Shirley Franklin said Wednesday the city will have its employees cut their hours — and pay — by 10 percent each week to help weather an expected budget shortfall of $50 million to $60 million. The pay and hour cuts affect 4,600 city employees.

She also said the city will have to cut back some services, dip into its reserves and make other personnel moves.

Franklin also announced an immediate hiring freeze. She said most city employees will soon be asked to work 36 hours a week,

Franklin said she and her staff haven’t decided what service cuts they will make.

Franklin said the economic crisis gripping the nation has caused sales and property tax receipts to plummet and that building and licensing permit revenues are down.

And if current economic conditions continue, she told the City Council’s Finance/Executive committee, “This will not be the last time you see me before the end of the fiscal year.”

The mayor said the city needs a “federal rescue plan” in addition what it is doing.

Franklin said the city’s expenses are not over budget. She said the city’s aviation department, which manages Hartsfield-Jackson International Airport, is “holding up”, but its Watershed Management Department is also facing a projected budget shortfall of at least $50 million. The mayor said Watershed Management officials are working on a plan to meet the gap.

The city earlier this year laid off 372 employees, eliminated about 900 jobs, cut some services and raised fees to fill a $140 million budget gap.