DeKalb gearing up for 2012 budget struggles

By April Hunt

The Atlanta Journal-Constitution

DeKalb County officials are bracing for  another drop in revenues next year and have asked the chief executive officer to prepare a lean 2012 budget that eliminates all positions that have been vacant since Sept. 15 and eliminates a pension plan for new county hires.

Commissioners said they hope these moves and others ensure no tax rate increase will be needed next year on the heels of a record 26 percent property tax rate increase in July.

Commissioners on Tuesday approved a list of budget priorities that, among other things, asks CEO Burrell Ellis to  produce a proposed 2012 county budget that switches to new workers to a defined contribution retirement plan, similar to a 401K for private-sector workers, instead of a pension that guarantees a set retirement payment.

The list also calls for Ellis to name three departments where outsourcing can be at least studied if not implemented.

“We have talked about this for years, but we really need more detail if we are going to effectively manage our finances,” said Commissioner Lee May, who heads the commission’s budget committee.

Ellis must present his 2012 budget proposal to the commission by Dec. 15, for a vote early next year. The county’s unique structure calls for the CEO to create a budget, though only the commission can approve spending.

Richard Stogner represented Ellis as county chief operating officer during a summer retreat to discuss the priority list. He said the administration will work to deliver on the requests. “We will do everything we can and hope we can work together,” Stogner said.

Cooperation would be a culture shift after the CEO’s office and commission have battled for at least two years over the budget and spending. Dwindling revenue from the down economy increased tensions, especially after DeKalb ended the last three years with no money in its reserves.

Early indications are that property values in DeKalb will drop 5 percent next year. They plunged 13 percent this year, more than triple original projections of a 4 percent dip. A drop in property values means less tax income for the county.

“We think there is still a little bit of a drop coming, but not much,” county Finance Director Joel Gottlieb said.

Nearly any decline will lead to either more service cuts or the threat of higher taxes. Earlier declines in property tax collections led commissioners to approve a 26 percent tax rate increase in July.

The commission also wants a list of all full-time positions countywide so that they can re-authorize them on a yearly basis. Under the current budgeting system, commissioners only approve positions that are being added or eliminated.

But Ellis may not be the only one who makes changes. Commissioner Kathie Gannon called for the commission to identify its priority services and operations, so that cuts can be made quickly and with purpose.

“We have come a very long way over the years in clarifying our budget priorities,” Gannon said. “Still, this is only the beginning.”