Mayor Franklin told the City Council and Local News agencies at the Financial Executive meeting today the City of Atlanta projected budget crisis’s is 50-60 Million in shortfall of the FY09 budget. Mayor Franklin along with COO Greg Giornelli explained what has caused the city to enforce Furloughs for all General Fund Employees beginning December 1, 2008 and a immediate hiring freeze for the City of Atlanta Government.

Mayor Franklin addressed a letter dated November 12, 2008 to all affected employees indicating this is a dramatic and unpopular decision in the midst of a serious economic downturn to begin Furloughs. At the City Council Financial Executive meeting today Mayor Franklin stated the furloughs would save approximately 24 million, which is 10% of the salaries divided by 12 for a monthly savings of 2 million. Mayor Franklin stated the shortfalls for this quarter is between 13-18 million, which the city had to withdraw 12 million from their reserve fund. Employees would not be expected to work more than 36 hours a week, 4 hour furloughs each week, for a total of 8 hours furlough per pay period.

PACE is expected to schedule an immediate appointment with COO Greg Giornelli for more details. Mr. Giornelli explained today that the city did not divulge this information to the legislative staff until 2 hours prior to the meeting at City Hall today. PACE will question how the furloughs will be scheduled, and more information about the length of the expected furloughs. Mayor Franklin stated the Furloughs are expected to last 7 months to a year or atleast until June 2009.

The decision to have a hiring freeze go into effect immediately also means that any positions that becomes vacant will not be filled. Employees leaving the city’s employment creating vacancies will not be replaced. Mayor Franklin showed several news articles from other city governments in other states like New York, stating the headlines read corporations such as, IBM, Ford, and Version quoting “PENSIONS OR JOBS.” The Mayor explained home sales are down 9%, Building Permits were down 20%, and sales were down 40% in the city of Atlanta as she asked the audience to please use Atlanta Merchants.

The exception to the furloughs and hiring freeze are the Aviation and Watershed departments because they do not fall under the General Fund Budget stated Mayor Franklin; however, each section has placed their own budget restraints and she believe the Watershed Department has a hiring freeze also.

Councilmen Maddox asked the Mayor if she has solicited ideas from the work force on ways to cut spending. Maddox stated employees have good ideas because they work in these areas. Mayor Franklin’s answer was not clear as to this question. Councilmen Shook addressed the Overtime (OT) for employees and if the furloughs would have any effect on OT. Mayor Franklin stated the overtime budget is already set; and no employees will be expected to exceed the OT budget funds the city already has in place.

Major Franklin wrote a letter to Chairmen Charles B. Rangel, Chairman of the Committee on Ways & Means in the U.S. House of Representatives in Washington D.C. on Monday November 10^th to request financial support for the City of Atlanta.

Councilman Howard Shook asked if a response has been received, the Mayor explained she just sent the letter on Monday of this week. She also stated she address a copy of the Letter to the entire U.S. House of Representatives and would give a copy of the letter to the City Council and other dignitaries.

Greg Giornelli also stated the major cause of this decision today was the economy going in a downward trend and it is only expected to get worse, while using a metaphor to explain, he stated cuts in the Public Safety department will occur.

PACE asked the City Council and Mayors office earlier this year when RIF’s  actions were occurring,  if the city would consider Furloughs instead of Riffs. PACE does not agree with the decision now for furloughs, especially with the holidays upon us; however no position has been cut thanks to Union Representation. Withot Union presences we believe RIF could have occured instead of Furloughs. Union Membership is extremely important, all non-union personnel need to sign up now; negotiating power comes with large numbers. The Employee Free Choice Act is sure to be passed with the help of our next President. Union representation would help negotiate and lobby against the lost of pension funds in the future, and positions, Join the PACE Union Now!