Dickens administration aims to wipe out $33M deficit before budget cycle begins

“Just on the face of it, you’re not seeing where the 5% cuts were, the 7.5% cuts were, the 10% cuts were,” said council member Howard Shook, who is chair of the council’s finance committee and leads the budgeting process.

“To learn that, we’re just going to have to go through the process,” he told The Atlanta Journal-Constitution. “And only by undergoing the process will we be able to see what if any filled or vacant positions have been cut.”

Officials in the mayor’s office confirmed to the AJC on Thursday the administration is aiming to reduce the entire deficit through layoffs and the already implemented 5% budget cuts across departments.

According to the mayor’s office, the original $33 million deficit — about 3% of last year’s general fund budget — has already been reduced by half.

“The City did not implement across-the-board layoffs,” Atlanta Chief Financial Officer Mohamed Balla said in a statement replying to AJC questions. “However, some departments took an opportunity to reorganize as we fully returned to in-person service delivery and continue to prepare for the upcoming fiscal year.”

Balla said the city’s use of a Vacancy Review Board for hiring requests has allowed the administration to benefit from natural attrition by backfilling only critical roles.

The mayor’s budget proposes a $975 million general fund, which would be 14% more than this fiscal year’s $853 million. The total proposed operating budget for 2026 reaches $3 billion.

The 642-page document is the first step in a tedious process that will feature every department head testifying to council members about their individual budgets. The council will then make adjustments to the mayor’s proposal and pass a final version of the budget in June.

Public safety spending was cited by the mayor’s office as the biggest contributor to the budget deficit. The Atlanta Police Department accounts for more than half the budget-busting spending thanks to an unexpected lack of attrition and overtime, officials have said.

The Dickens administration lists public safety, affordable housing and infrastructure as three key areas of big investment for the upcoming year, and said it promises a plan to reduce property taxes for residents.

But the proposal shows cuts to only two areas: City Council and the Department of Atlanta Information Management — totaling just over $1 million.

That came as a surprise to Atlanta’s legislators, who were anticipating a more bleak spending breakdown.

“This is a record-high budget that comes weeks after City Council saw a request that departments show what operating next fiscal year would look like with various percentages of cuts,” councilmember Matt Westmoreland told the AJC. “I look forward to hearing more ... about the story behind these large numbers.”

Uncertainty of federal funding — and economic concerns driven by Trump administration tariff — is also a reason for budgetary caution, said Atlanta City Council President Doug Shipman, who added that about 49% of the city’s budget is affected by outside factors.

“There are a lot of changes to federal funding, some of which are hitting Atlanta — from the housing perspective, public safety perspective," he said. “We also just have a lot of questions about overall economic conditions and potential recession.”

Other city departments — such as the Department of Corrections, Department of Procurement, and the Department of Grants and Community Development — see large increases, from 37% to 72%. The Atlanta Police Department, Department of Law and the Department of the Solicitor are proposed to get about 20% budget increases.

Policy experts are also waiting to get a more detailed breakdown of the spending proposal.

“I was not expecting a 14% increase in the general fund,” said Kyle Kessler with Civic Center for Innovation, which provides a detailed breakdown of the proposed budget. “Given that departments were asked to submit their 5%, 7%, 10% reductions.”

Balla, the city’s CFO, said in a letter to councilmembers the budget proposal is asking departments to do more with less.

“We require that all departments continue to focus on maintaining operational effectiveness, maximizing the use of existing resources, and adhering strictly to approved budgets,” he said.

Budget hearings start Tuesday.