Fulton budget proposal trims spending, avoids big tax hike

Fulton County proposed a scaled-back 2009 budget Friday that trims positions and programs, cuts spending and avoids a tax hike for most county residents, except those in unincorporated south Fulton.

The document released late Friday calls for $634.9 million general fund spending and revenues. Spending next year would be down $36.6 million from the $671.5 million Fulton County expects to spend by years end.

County Manager Zachary Williams said he was proud to be able to craft a budget proposal in the current slumping economy that didn’t call for wholesale cuts. He said he was trying to position Fulton for at least two difficult years ahead.

“No one is saying the economy is getting any better,” Williams said. “We have to be prepared for that.”

The budget proposal would eliminate 73 full-time permanent positions and 29 temporary positions, most of which are unfilled, to save $5 million. The county will continue with about 4,500 workers.

The budget proposal covering the 2009 calendar year metes out some cuts to virtually every department, from the sheriff ($4.5 million) to Grady Hospital ($3.5 million) to the arts council ($438,413).

Employees do not get raises. However, health care benefits were maintained at the current level with the county paying 80 percent. Williams called that “cost avoidance” for employees.

The budget proposal calls for $634.9 million in both recurring revenues and expenses.

However it also has a unique twist with $34 million in one-time revenues offset by $31 million in one-time spending. Most of the revenue — about $21 million — is expected to come from properties now under appeal after Fulton revalued all commercial properties earlier this year. The remaining nearly $13 million would appear if the legislature restores the state homestead tax credit Gov. Sonny Perdue cut earlier this year.

The budget proposal calls for using the $34 million to begin to create a capital expenditures fund and to improve the county’s savings, which have been depleted over the past two years.

Williams said a tax hike was unavoidable in unincorporated south Fulton, where the county provides municipal services like fire, police, planning and parks. The $42.4 million budget proposal calls for 1.75 mills in new taxes to generate $5.7 million. That would amount to about a $110 increase on a home appraised at $200,000 with a homestead exemption.

The county had been running a $10 million gap between expenses and revenues this year. The rest of the gap is to be covered by service cuts and some of the same one-time money used in the general fund.

The budget proposal begins a 60-day process that often results in substantial changes.

Commissioners will pore over the document in a series of meetings through December and January before adopting a final plan through a vote by all seven commissioners. The board eventually will approve spending individually for each department. And, commissioners will have plenty of time to add back programs deleted or propose new cuts of their own.