Veto returns DeKalb budget squabbles

Ellis explained his veto by citing the county's charter that allows the CEO to have oversight of the staff. “The organizational act does not give the board the authority to commandeer support staff and put them under control of the commission.” He made the veto late Friday, but it didn't become public until just before the commission's regular meeting Tuesday morning.

Officially, Ellis’ move simply takes $197,759 – the salary of those three auditors – from the commission budget line and returns it to the finance department.

But it also revived long-standing tensions between the CEO and board over financial control. Unlike other metro Atlanta counties, DeKalb's commission does not make all budget decisions but works from a proposed spending plan from the CEO.

That set-up has created squabbles over where to cut spending and what to prioritize. That, combined with rosy projections on money last year created a $36 million shortfall that was plugged with a 26 percent tax hike last summer.

The commission’s decision to move the auditors to its staff was part of an effort to exercise more budgetary review, hoping to avoid such problems in the future.

Commissioner Lee May, the chairman of the commission’s finance committee, said that review was critical after Ellis’ final budget recommendation showed a $10 million overage in medical insurance claims. A surprise budget surplus will cover the expense.

Administration officials blamed the problem on outside actuaries’ bad projections of claims. Finance documents, prepared at the request of commissioners, show the administration projected claims correctly but collected nearly $10 million less than projected in payroll deductions.

“When you have a $10 million error, it’s clearly essential that we have an auditing function at the county commission,” May said.

Because of that sentiment, May said that an internal auditor position, one clearly defined several years ago as in charge of independent review of county spending and departments, will be filled by June.

Commissioner Jeff Rader has long pushed for the board to fill that job, which reports to the commission. He said he supported the veto, only because he thinks that the main auditor job should be filled before any of the support staff could be in place. He is eager for the main job to be filled.

“I don’t buy the argument we’re not allowed to staff the internal auditor,” Rader said of one reason Ellis cited in his veto. “But you can’t hire these three auditors first without someone to direct them.”

That still may happen, though. May said he plans to introduce a budget amendment that reverses the CEO’s budget and again takes the auditors for the commission staff. The commission is also expected to unite if Ellis vetoes May’s budget amendment as well. May said he is confident he will have the necessary five votes to override any future veto.

That is necessary because the commission did not attempt an override Tuesday and must do so the first meeting following a veto.

The commission did take action in a largely symbolic way, voting 4-2 to reject a resolution to raise the county’s hotel-motel tax three percent, up to 8 percent.

That vote carries limited weight, since the state Legislature must enact a law allowing the increase. The House and Senate have passed the measure, though the Senate adjusted the rate down to 7 percent. Despite the commission vote, the two chambers are expected to work out a final bill before session ends.