Most metro governments have budget shortfalls

As personal spending tightens and property values fall, local governments are feeling the pinch, too, in reduced revenues and higher prices. Here’s how the largest local governments in metro Atlanta say the economic downtown is effecting their current budgets, and how they’re responding.

City of Atlanta

• Budget: $570 million
• Fiscal year: July 1-June 30
• Projected shortfall: $50 million to $60 million
• Revenues: Money from sales taxes, business licenses, building permits and other fees are down nearly 13 percent so far this fiscal year.
• How they’re managing: 10 percent pay cuts for 4,600 city workers through furloughs; a hiring freeze; spending $12 million from reserves.

Clayton County

• Budget: $169 million
• Fiscal year: July 1-June 30
• Projected shortfall: The county is still undergoing its audit and does not have final numbers available.
• Revenues: The county projects $4.2 million in reduced tax revenue from sales and property taxes. Plus, the county spent $3.8 million in unbudgeted lawsuit expenses, and county reserves dropped from $42 million in June 2007 to $20 million in October 2008.
• How they’re managing: An across-the-board hiring freeze is under consideration. Also, the county has begun furloughs for health department employees. Clayton’s 122 county health employees will lose one day of pay each month, accounting for a projected savings of $196,000 by the end of the fiscal year.

Cobb County

• Budget: $756 million
• Fiscal year: Oct. 1-Sept. 30
• Projected shortfall: County officials do not project a shortfall now.
• Revenues: Officials say commercial permit fees, developers’ fees and other revenue sources are down from last year; property tax receipts are not yet in.
• How they’re managing: A personnel freeze; department heads are being asked to look for additional savings.

DeKalb County

• Budget: $636 million.
• Fiscal year: Jan. 1 - Dec. 31.
• Projected shortfall: About $20 million.
• Revenues: Sales taxes are $5 million below the amount projected a year ago and the state is withholding $16 million promised for homeowner tax relief.
• How they’re managing: DeKalb is drawing $9 million more from reserves than anticipated a year ago and will likely make up the rest of the difference by spending less than projected.

Fulton County

• Budget: $627 million
• Fiscal year: Jan. 1-Dec. 31
• Projected shortfall: $26 million
• Revenues: Sales taxes down approximately 8 percent; other revenues down 16 percent.
• How they’re managing: Instituting a hiring freeze, restricting non-essential expenditures and tightening overall spending at mid-year.

Gwinnett County

• Budget: $455 million
• Fiscal year: Jan. 1-Dec. 31
• Projected shortfall: $26 million
• Revenues: During the first half of the year, revenues were off by about $9 million. Driven mostly by higher energy and chemical costs, expenses were up by $22 million.
• How they’re managing: Hiring freeze for most positions other than public safety; fuel conservation efforts; shorter work weeks in some offices. Most of the shortfall will be covered by estimated $26 million withdrawal from the county’s reserve fund. A cost-cutting program under way to identify $35 million in savings for future budgets.

— Information compiled by staff writers D.L. Bennett, Megan Matteucci, Kent A. Miles, Mike Pearson, Eric Stirgus, Ty Tagami