Budget deficit in Atlanta

The Atlanta Journal-Constitution (1/30, Stirgus) reported that Atlanta "faces an estimated $70-million budget deficit." To close the gap, the city would freeze hiring for "non-essential positions," cut spending by 50 percent for such things as travel, and ask "city administrators to look for other cost savings." In addition, the mayor Franklin indicated that "she wants to amend the city charter to create a new reserve fund."

The budget shortfall was due to "the unsteady national economy" as well as "some errors in the budget for the current fiscal year." City financial officials have tended to "under budgeting" fuel and utility costs, which have risen across the country. For the first three months of Atlanta's current budget year, revenue was down 27 percent while spending was up 9 percent compared with the same time period a year earlier.