Fulton County unveiled a tentative 2010 budget Monday that slashes spending nearly $150 million and could eliminate more than 500 jobs. There’s no property tax increase proposed — yet.
However, property tax hikes could emerge as an alternative as the board looks at the effects of 20 to 25 percent direct service cuts on various departments.
For example, the county court system spends about $220 million a year and could be cut as much as $53 million. This proposal would eliminate drug court and family court and close offices in north and south Fulton.
Fulton gets about $35 million from each mill of taxes. At that rate, the county would need about 4 mills to avoid any cuts. The county also saves about $800,000 a day from any furlough day forced on employees.
“The good news is we are starting from reality,” said Commissioner Lynne Riley, “instead of some inflated vision of the county’s position. In a down economy, no one can afford more taxes. They shouldn’t be asked.”
Riley has complained for several years that the county was overspending and should have been making cuts rather than spending its reserve.
Fulton once had about $140 million in cash in the bank, but it was depleted over the past three years.
“The right sizing of Fulton County. I imagine [this] will generate quite a bit of conversation,” Riley said.
The $517.6 million spending plan proposed for 2010 compares with a $665.8 million budget this year. That’s a $148.2 million decrease for a county that cut some $70 million in spending last year.
The budget proposal lays out what nearly $150 million in direct service cuts might mean.
Under another scenario, the county recommends departments be pared back about $86 million. The other savings proposed would come from refinancing bonds, 10 furlough days and other means. That option would still likely mean at least 300 county employees would be let go.
Zachary Williams, county manager, said late Monday that specifics would be worked out after the board agrees which direction to take. Decisions, he said, would be based on services Fulton is mandated to perform, then commission priorities.
County officials attributed the need to cut to the deep recession, which has ravaged revenues while increasing demand for services.
For example, the proposal builds in a 14.5 percent decline in property tax collections based on residential values falling 10 percent and a 20 percent slide in commercial properties. Finance officials also built in an 88 percent collection rate, which is about 10 percent less than the county collects during better times.
Fulton’s calendar-year budget cycle means the county will be first having a conversation that’s certain to spread to other counties, cities and school boards as they prepare and debate 2010 budgets, due later and likely to be similarly painful.
The budget will be formally introduced Wednesday. Commissioners begin looking at the budget on Thursday morning when the board gathers for its initial work session. Williams hopes to get direction from the board at that meeting on which alternative to fully develop.
The budget proposal released Monday was drafted by Chairman John Eaves with the help of Williams and finance director Patrick O’Connor. It’s by no means a final document. In Fulton, it’s not uncommon for the board of commissioners to make substantial revisions before adopting a final plan in late January.
The budget proposal includes a massive binder with charts and tables showing service reductions by program depending on how much spending commissioners decide to cut.
The numbers are equally grim for residents of unincorporated areas of south Fulton who pay more for municipal services such as police, fire, planning and parks.
The 2009 budget called for a 3-mill tax increase for that fund.
The 2010 proposal goes the other way. Eaves includes nearly $11 million in cuts and total spending of about $37 million. The plan would cut recreation center hours, close two fire stations and slow emergency response times.
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