Franklin still figuring out how to cover shortfall

Atlanta Mayor Shirley Franklin told City Council members Monday she has not decided how her staff will cover at least $13 million of a projected budget shortfall of at least $50 million.

The mayor reiterated comments she made in an e-mail to the council last week that she is considering “budget reductions and service cuts” to cover the remaining $37 million of the shortfall.

“We’re trying to make this as painless as possible on everyone,” Franklin told the council’s Finance/Executive Committee.

The mayor did not say when she’ll announce her plans.

Franklin, who rarely appears before council committees, made an impromptu visit Monday to address the council’s questions about the city’s finances and rumors about how she plans to fill the budget gap.

The mayor earlier this month announced a series of cuts — including a hiring freeze for most city agencies — and plans to take $12 million from the city’s reserves to help cover the anticipated shortfall. However, the cuts and additional money do not cover the entire shortfall, which is expected to be at least $13 million more.

Franklin says the shortfall is largely a result of the national economic crisis, resulting in declining sales tax revenue, licensing fees and other permits at City Hall.

The mayor earlier this month announced four-hour-a-week furloughs for about 4,600 city workers that will result in a 10 percent pay cut. Franklin said she also will take the pay cut. The furloughs begin Dec. 1.

Saying they want to play their part to help weather the budget problems, finance committee members reviewed a plan in which council members will contribute a combined $200,000 from their own city accounts and transfer it to the city’s general expense fund. The money would be used to offset the costs to cut work hours and pay of the council’s staff and its aides.

Before Franklin’s visit, council members grilled the leaders of two city departments that want to hire 46 employees.

The city’s aviation and watershed management department commissioners defended their plans, saying the workers are essential. Neither department is part of the city’s general fund budget, so their budgets are not part of the shortfall.

But the watershed management department faces its own, separate $50 million shortfall. Watershed Management Commissioner Rob Hunter said he hopes to present council members with a plan to cover the department’s budget shortfall “within the next couple of weeks.” He blamed the shortfall on declining revenues, reduced water use and increased debt costs.

Hunter proposed hiring 27 additional workers, estimating the cost at $211,000 of the department’s $400 million budget. He said the department is eliminating eight positions at the same time. The council is scheduled to vote on whether to approve the hiring at its meeting next Monday.

Airport officials also defended their proposal to add 19 new employees. “These are mission-critical positions for us,” said Nedra Farrar-Luten, the aviation department’s human resources and organizational development director.