Fulton's projected 2012 shortfall shrinks

By Johnny Edwards

The Atlanta Journal-Constitution

Fulton County still faces a sizable 2012 budget shortfall, finance managers reported this week, but not nearly as much as first projected.

Several county commissioners are questioning the latest math, however, and Finance Director Patrick O'Connor said the situation is still so critical that the commission should reconsider his recommendation for a countywide property tax rate hike, which it previously rejected.

"We're still in a very fiscal-stressed position," O'Connor said.

Earlier this week Budget Manager Hakeem Oshikoya told the commission that with revenues coming in higher than anticipated and expenditures totaling less, the projected 2012 deficit is now $22.1 million. The first shortfall estimate in March was $107.3 million.

The new calculations have the county keeping a 7 percent reserve fund, a decrease from the current level of 8.33 percent of expenses, which is the industry standard of one month's operating costs.

Several commissioners balked.

"I don't support that, and I'm not sure the board of commissioners would support that," Commissioner Liz Hausmann said.

With the reserve at 8.33 percent, the projected shortfall would be $30.3 million.

Commissioner William "Bill" Edwards said he has zero confidence in the Finance Department's numbers. Since the last set of projections, the expected deficit for the South Fulton Special Services District has increased to $7.2 million, a $4 million jump, he said.

This year, unincorporated south Fulton taxpayers in the district -- who pay an extra tax for city-type services such as police, fire and parks -- saw a "revenue neutral" tax rate increase to 8.969 mills, up by 0.810.

"I'll go along with a $5,000 mistake, but $4 million, I can't do that," Edwards said. "You give me the right figures, and we'll do what we need to do."