City Faces Much Smaller 2009 Budget

By Odette Yousef

Atlanta, GA – Just a few weeks ago, Atlanta Mayor Shirley Franklin announced that the city faces a projected deficit of $70 million in 2008. Today, Franklin warned that the worst may be yet to come.

Atlanta is beginning to reflect the nation's slowing economy. City revenues in 2008 are projected to be less than they were last year.

That's a problem, because as officials begin thinking about the 2009 budget, it must be less than this year's revenues. Meanwhile, the costs for fuel and healthcare are rising significantly. Franklin says this presents an impossible challenge, namely:

FRANKLIN: How do you perform the same services with less money, and revenue trending down?

Franklin says she doesn't have the answer to that yet:

FRANKLIN: What you are hearing legitimately from the council, and from the public and from the department heads is Oh my golly! This terrible!' Well, now you're hearing it from me, too.

In addition to a hiring freeze, Franklin says the city is looking at all department budgets to see what can be cut.