Gwinnett trims spending, but deficit looms

By David Wickert

The Atlanta Journal-Constitution

The Gwinnett County Commission approved a 2011 budget Tuesday that cuts funding for libraries and social services but still doesn’t balance spending with declining revenue.

The county will cut library spending by $2.8 million -- or 15 percent -- under the new budget. It will cut subsidies for some social service agencies in half and plans to eliminate them altogether next year.

Advocates say important services will be reduced or eliminated.

“There will be a reduction in service, but in which areas and to what degree is yet to be determined,” said Nancy Stanbery-Kellam, executive director of the Gwinnett County Public Library.

Commissioners say more cuts are coming. Despite those approved Tuesday, the county’s $448.6 million general fund budget begins the year $18 million in the hole.

Commissioner Shirley Lasseter called it the most difficult budget in at least half a century. She said Tuesday’s budget action is “the first in a series of decisions that will determine the shape and future of Gwinnett County for decades to come.”

Gwinnett and other local governments are struggling as the sluggish economy takes a toll on revenue. Property tax receipts -- a top revenue source for local governments and schools -- have declined as real estate values have plummeted.

In December 2009 Gwinnett commissioners approved a 21 percent property tax rate increase, saying the move was needed to protect public safety, libraries and parks. But the tax increase wasn’t enough to offset declining real estate values; 2011 property tax receipts are expected to be below 2009 levels.

The new budget does not include another property tax increase. To offset declining revenue, it trims total operating expenses by 3.2 percent to $977.5 million. Total capital spending will decline about 39 percent to $337.2 million.

The county will cut subsidies for several social service agencies that provide mental health, medical and other services. Among them: the Department of Family and Children Services, and tri-county mental health and indigent medical services.

One agency got a reprieve: Commissioners voted Tuesday to restore $27,537 in funding to the Gwinnett Coalition for Health and Human Services, which provides a helpline for people in crisis and fielded about 25,000 calls in 2010.

Ellen Gerstein, the coalition’s executive director, said she was happy the commission decided not to cut her program. But she worries about others that will see cuts. “They do good work,” she said.

New Commissioner John Heard proposed restoring funding for the other social service agencies as well. But his motion died for lack of a second.

The cuts approved Tuesday are the latest in a series of spending reductions for Gwinnett. In 2009 the commission eliminated nearly 300 jobs, delayed construction projects and cut other costs.

“People keep saying, tighten your belt,” Lasseter said. “Lord knows we have.”

“I think finally people are realizing that we’re in a cost-cutting environment,” Commissioner Mike Beaudreau said.

Heard cast the lone vote against the proposed budget. He called the decision to approve a budget with an $18 million deficit “a promise and a prayer.”