DOT has $839 million deficit

The state auditor's office found an $839 million deficit at the state Department of Transportation and "material weaknesses" in DOT accounting, an auditor told the DOT board Wednesday. John Thornton, director of the auditor's state governments division, said he believed the problems are significant but fixable, and DOT might have the deficit cleared by month's end. The audit covered the period to March 31 and is still in progress.

DOT officials have said that transportation accounting is complicated, requiring shifting money from one pot to another multiple times over the life of a road project, but that no project is authorized unless there are dollars in the bank. Thornton said he believed "there was a miscalculation of how much money" the department had on hand.

Thornton said some issues stemmed from the governor's Fast Forward program to accelerate 18 years of projects into six years, which required new finance mechanisms and types of borrowing and may have stressed operations.

ATLANTA: Council to vote on water rate hike

Atlanta City Council members face a vote today to either approve a massive water/sewer rate hike or derail the city's $4 billion pipe overhaul and trash its credit rating. Utility managers warned during a work session Wednesday that any cut to the planned 27.5 percent rate increase for this year would force Atlanta into default on hundreds of millions of dollars in outstanding bonds. Even if the council were to slash or delay spending, it wouldn't have any impact on the rate request because most of the money pays for debt that's already issued or in process, officials said. The council plans to vote today on the rate at a specially called meeting at City Hall. The department has proposed four rate increases beginning with 27.5 percent later this year. They'd also like three consecutive 12.5 percent hikes which would push the average bill from $84 to $143 a month.

Five charged in real estate scheme

Five metro Atlanta residents, including an Internal Revenue Service employee, are to return to court later this month on charges they allegedly organized a real estate scheme in which they defrauded the government of tens of thousands of dollars in sales using inflated appraisals at the Blue Sky condominiums on Memorial Drive. Appearing in federal court Thursday for an initial hearing were Dossey Richardson of Atlanta, the alleged scheme's ring leader; Lovie Hobbs of Lithonia, an IRS worker; Montra McKenzie of Atlanta; Cyrus Davis of Atlanta; and Michelle Davila of Atlanta.

Three plead guilty in smuggling deal

Two former employees of the Transportation Security Administration and a former Delta Air Lines employee assigned to Atlanta's airport pleaded guilty Wednesday in federal court to involvement in a drug-smuggling operation. Leslie Adgar, 42, the former Delta employee, and Jon Patton, 44, a former TSA worker, pleaded guilty to conspiring to distribute cocaine and heroin. The other ex-TSA worker, Andre Mays, 24, pleaded guilty to entering a secure airport area in violation of screening requirements. Adgar and Patton face at least 10 years in prison, and Patton, up to a year in prison, when they are sentenced Sept. 17.

FULTON COUNTY

New tax rate to recoup '09 gaps

Fulton County approved a property tax rate on Wednesday that will generate an extra $90 million but will allow county commissioners to say they didn't increase taxes. The board voted 4-1, with Emma Darnell and Robb Pitts not voting and Lynne Riley objecting, to set the millage rate for 2008 at the same level as 2007. The county stands to get a huge windfall in tax collections because of a revaluation of business properties. The nearly two-year, $4.4 million project raised the median appraisal by 41 percent. The county has been swamped with appeals by business owners. The money Fulton will collect this fall will help offset an anticipated crisis in its 2009 budget, which begins Jan. 1. Officials had estimated a $70 million gap between revenue and expenses.

COBB COUNTY

Murder suspect crashes after chase

A murder suspect led Cobb County police on a high-speed chase through the county Wednesday before crashing into a patrol car in the Cumberland-Galleria area. The man is a suspect in Tuesday night's shooting of 17-year-old Joel Ray Andresen, police said. The teenager's body was found in the parking lot of Powers Ferry Church of Christ, at 835 Powers Ferry Road, about 9:30 p.m. The suspect and a female passenger were being questioned by police. Police did not release their names.

DECATUR

Teachers return from China trip

Six Decatur educators on a visit to Chengdu, China, returned Tuesday evening after more than two weeks abroad. The trip to Sichuan Normal University Attached Experimental School in Chengdu came in the wake of a May 12 earthquake that devastated Sichuan province and killed tens of thousands. The 3,000 students from the school escaped injury. You can see and read more on the teachers' trip at their blog, acopp.edublogs.org.

DEKALB COUNTY

Consulate assured case is under probe

DeKalb County police Chief Terrell Bolton assured the Guatemalan consulate Wednesday that he is working hard to solve the case of a slain day laborer. "He was very eager to show me he was going to find out things exactly the way they happened," Guatemalan Consul General of Atlanta Beatriz Illescas said. DeKalb sheriff's Deputy Derrick Yancey told police he shot Guatemalan day laborer Marcial Cax-Puluc because Cax-Puluc shot his wife during a robbery attempt June 9. Linda Yancey was also a Sheriff's Department employee. Yancey said he picked up the laborer that morning to do work around his Stone Mountain house. The roommates of the slain immigrant say they doubt the deputy's version, and that Cax-Puluc was timid and didn't own a gun.

MORROW

Boy, 7, drowns in apartment pool

A 7-year-old New Orleans boy drowned Tuesday night in a Morrow apartment complex pool where he was visiting his grandfather, authorities said. The victim was identified as Kenny Brown, according GBI spokesman John Bankhead. Clayton County police Officer Sonja Sanchez said the boy was at the pool at Regal Point Apartments with his grandfather, Brock Aaron, 42, who was watching Kenny and three other children, a 1-year-old and two 3-year-olds. When the other youngsters got cold, Aaron said he got them out of the pool to dress them, leaving Kenny in the water, police said.

—- D.L. Bennett, Chandler Brown, Ariel Hart, Kathy Jefcoats, Mary Lou Pickel, Yolanda Rodriguez, Kristina Torres, Associated Press