Nov 17, 2008 Atlanta, (GA.) Washington Philadelphia Mayor Michael Nutter traveled to Washington on Friday with a letter from his city, Atlanta and Phoenix asking the federal government to use a portion of the $700 billion financial bailout plan to help large U.S. cities with pension costs, infrastructure investment and cash-flow problems stemming from the global financial crisis.
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Blaming the shortfall on the nations economic crisis, Franklin said the city needs a federal rescue plan in addition to its cuts to balance the budget. In a letter Tuesday to U.S. Rep. Charles Rangel (D-N.Y.), chairman of the House Ways and Means Committee, she asked for federal investment in Atlantas - and other cities - infrastructure, public safety, and programs for job training and placement.
The future prosperity of this country is tied directly to our ability to provide basic services and quality infrastructure to our citizens, Franklin wrote. We are at serious risk in failing in that most basic public responsibility. And if current economic conditions continue, she told the City Councils Finance/Executive committee, This will not be the last time you see me before the end of the fiscal year. Although Franklin and her staff said they have not made decisions about how they will make the service cuts, some union leaders said the changes will erode morale and threaten public safety.
This is a dangerous time for our firefighters, Atlanta fire Lt. Jim Daws, president of the International Association of Fire Fighters, Local 134, told reporters. The city is putting them in a dangerous position. Atlanta police Sgt. Scott Kreher, president of the International Brotherhood of Police Officers, Local 623, said some officers may get discouraged by the cuts and leave the force.
The citizens of Atlanta should be screaming at the top of their lungs, he said. But Franklin, pointing to data showing crime in Atlanta is down in most major categories this year, said Atlantans are going to have a safe city. Councilman Ceasar Mitchell proposed furloughs earlier this year. City leaders did not approve the idea. We are in a deep, wide recession. We are going to provide the best services we can with the resources we have, the mayor said.
Franklin and her staff based the projected shortfall on data showing revenues below projections for the first three months of the current budget year, which began July 1. Sales taxes, which represent about 20 percent of the citys revenue, are down by 3 percent. Building permit and licensing permit revenues are down 60 percent and 50 percent respectively.
Franklin said the citys expenses are 2 percent below budget. She said the citys Aviation Department, which manages Hartsfield-Jackson International Airport, is holding up, but its Watershed Management Department is facing a projected budget shortfall of at least $50 million. City officials say the shortfall is caused largely by dropoffs in usage revenues and rising debt costs, and the mayor said Watershed Management officials are working on a plan to meet the gap.
Some city residents wondered Wednesday whether the cuts were being made too hastily. Paul Zucca of Grant Park noted the city last week hired a new chief financial officer and consultants to create a long-term plan to improve the citys Finance Department. I would feel more comfortable when the chief financial officer has more numbers, said Zucca, who served on a committee that recently came up with salary recommendations for the mayor, City Council and Atlanta Board of Education. Councilman Kwanza Hall, vice chairman of the councils finance committee, countered that the city had to move quickly. I appreciate [Franklins staff] doing it now instead of waiting until later, he said.
The city earlier this year laid off 372 employees, eliminated about 900 jobs, cut some services and raised fees to fill a $140 million budget gap for the current fiscal year. Atlanta had a $41 million budget deficit for the fiscal year that ended June 30. Nutter delivered the letter to Treasury Secretary Henry Paulson. The letter is signed by Nutter, Atlanta Mayor Shirley Franklin and Phoenix Mayor Phil Gordon. NATE PERKINS LIVE!
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