The path to the approval of a 2011 budget for DeKalb County took another detour Monday as three of the seven commissioners agreed that they can’t sign off on a proposed 26 percent hike in the tax rate.
The budget committee’s refusal to sign off on a 4.35 mill increase to the tax rate, without offering a counter-proposal, sets up a showdown during Tuesday’s full commission meeting. The key question: Will property owners see a tax hike this summer or watch as their county lays off workers and cuts services to make up a $40 million shortfall?
“Frankly, I believe that this government can be run with less money than we are currently doing,” said Commissioner Lee May, who heads the committee. “If there is a successful vote to raise taxes, it will be in spite of what has been proposed.”
Besides disagreements with Chief Executive Burrell Ellis over a need for layoffs, a sticking point for some commissioners is the county’s weak reserve account, or savings. DeKalb ended last year with no reserves, prompting credit agencies to lower its bond rating this year.
Without restoring the fund, and the credit rating, the county will pay more to borrow on projects such as the $1.35 billion upgrade to its water and sewer system.
Ellis made a rare appearance in committee to defend his proposal. He noted he has cut $107 million since taking office in 2009 and said any more reductions would lead to service-level reductions that he did not support.
“We have cut more than any other large government in metro Atlanta, but we still have a budget gap,” Ellis said. “We don’t lightly propose a millage increase, but we have to fund critical operations.”
That Ellis’ $529 million budget proposal includes no layoffs of the 7,300 full-time workers was among key complaints the budget committee raised Monday.
Others included the lack of a long-term forecast to ensure there won’t be a need for more tax hikes next year and the restoration of departments and jobs that the commission ordered be cut earlier this year.
The tug of war goes directly to the power struggle that makes DeKalb unique, even as other metro counties weigh their own tax hikes.
In DeKalb, the commission can approve only a general budget. It is up to the CEO to run daily operations and handle hiring and firing based on the overall money available.
Residents have blamed both sides for the current chaos, showing up in force to demand that the county cut workers rather than increase taxes.
The 4.35 mill increase translates into $93 more a year for the average home in the county that has lost value but adds up to $451 a year on homes where values have remained the same.
The budget committee, which includes Commissioners Elaine Boyer and Sharon Barnes Sutton, appeared ready to reject such tax hikes with their questions Monday.
But the three will need a fourth vote to reject Ellis’ proposal outright. As is, they could end up in the minority when the votes are cast Tuesday.
Commissioners Kathie Gannon, Larry Johnson and Jeff Rader -- all of whom attended Monday's committee meeting -- said they didn’t know how they would vote on the budget yet.
“I’m still looking at everything,” Gannon said, poring over papers after the committee meeting. “I’m going to be working on it all night long.”
What’s next
The DeKalb County Commission meets at 9 a.m. Tuesday at the Maloof Auditorium, 1300 Commerce Drive, Decatur. The board is scheduled to vote on the budget after a 10 a.m. public hearing on the plan. The vote probably won't come until the afternoon.
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