Atlanta City Council balks at mayor
Atlanta property owners will be spared a $40 million tax increase proposed last spring by Mayor Shirley Franklin.
The city council decided to scrap the controversial tax hike Friday, even though it will mean more spending cuts in a tight 2009 budget.
Council members voted unanimously to restore $19.8 million to Franklin's $583.9 million budget for the fiscal year that begins on Tuesday, including $15.3 million of the tax increase the mayor had recommended. The rest of the tax hike will become unnecessary because of increased revenues the city will realize from increased property assessments.
To make up for that $19.8 million in restored funding, the council approved an equal amount in spending cuts, including a 2.5-percent reduction in the city's general fund that will save $14.6 million.
After passing a huge four-year rate increase for Atlanta water-sewer customers last week, including a 27.5-percent jump effective July 1, council members were reluctant to approve higher property taxes.
"That's about the most we can ask citizens to pay extra this year," Councilman Ceasar (CQ) Mitchell said, referring to the water-sewer increase.
Barbara Payne, executive director of the Fulton County Taxpayers Foundation, praised the council for standing up to Franklin on the budget.
The foundation waged petition and letter-writing campaigns in recent weeks opposing any additional taxes.
"They got handed a monstrosity of a budget," Payne said cash advance loans. "The fact that they've worked in favor of the taxpayers is amazing."
After Friday's vote, Franklin announced that the additional spending cuts would force her to impose another round of employee layoffs. A huge wave of layoffs already hit the city work force early last month.
"To balance the budget on the backs of employees is irresponsible, when (the council was) offered an alternative of a modest tax increase in an effort to preserve gains in public safety and to maintain core services," the mayor said in a prepared statement. "It is an unwise business decision and represents one of the worst public policy decisions I have seen in my 20-year professional career."
To address Franklin's concerns about layoffs, the council approved an 11th-hour amendment Friday giving her the flexibility to make the cuts within the general fund rather than assigning them equally across city agencies.
"This council does not want to adversely impact departments that have already been cut," Mitchell said.