Channel 26 Budget Shortfall announcement by Mayor Franklin, David Edwards, Policy Advisor, and Janice Davis, CFO

Mayor Franklin discuss the proposed reason for the budget shortfall as a slowing economy, impacts that every one feels such as a 37% hike in Gasoline prices, building material sales down 5%, unemployment at a rate of 4.8%. Mayor Franklin announced that 75% of the budget is personnel related cost, and the city needs to fully understand what options are needed for the 2008/2009 budget. She introduced David Edwards, the City's Policy Advisor and Janice Davis the CFO to explain more concerning the Budget Downfalls.

David Edwards spoke about the different projects the Mayor improved on from 2002 to the present, such as, HR, Procurement, and Customer Service. Edward's also spoke on the Service Delivery infrastructures and how improvements were needed in services such as Public Safety, Building Permits, and Equipment Life cycles in 2002. David Edwards noted that building Permits were now obtainable faster, more police and fire personnel were hired, city pot holes were fixed and Green Space was initiated in the City of Atlanta.

(For more on Green Space, visit channel 26 videos on demand Green Space Project)

Janice Davis indicated revenue for the City of Atlanta was down ½ percent than the previous year, taxes were flat, even thought Sales Tax was up by 3.9%. Davis mentioned the increase in fuel and commodities, as well, increase cost such as Gas, healthcare expense, and the pension fund impacted the budget. Davis explains that 96% of recurring revenue was used for the pension funds approximately totaling 125 million, and E911 systems. There has been a freeze in positions and reduced expenditures she announced, however; an increase in funds appropriately occurred with the 598 million revenue earned last year that inpact the budget.

For more information, visit Channel 26 Budget Shortfall link above.