Fresh Loaf

Mayor Shirley Franklin called a press conference today to discuss city finances, then, as soon as it began, told reporters, “There won’t be any big news here.”

Great. And I stopped watching a video of kittens riding a Roomba for this?

As it was, the mayor and Atlanta Chief Financial Officer Jim “I Don’t Need This Job” Glass discussed a range of topics in the service of, as Shirley said, “fiscal transparency.” Here’s a short list:

• The Fulton County Tax Assessors’ office is running late in sending out tax bills this year because of an unprecedented deluge of property appraisal appeals. The later the process lags, the later the city gets its tax revenue, which raises the danger of a short-term shortfall.
• The city is seeking a crazy half-billion dollars in federal stimulus funds. So far, a more reasonable $42 million has been approved. Among the city’s wish-list items is $13 million to install 400 CCTV cameras on public streets across the city in an effort to combat crime. While public video surveillance is commonplace in the UK, Americans typically don’t take kindly to being watched in that manner.
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The Nelson A. Rockefeller Institute of Government recently looked at states’ revenue streams and discovered, whoa, hey, this appears to be the worst year on record.

State tax collections during the first quarter 2009 showed the sharpest decline on record, dropping 11.7 percent overall, according to an Institute report released July 17… Early figures for the second quarter reveal continued worsening of fiscal conditions for states.

According to the report (PDF), Georgia leads the pack when it comes to declines in sales-tax revenue.

Forty of 45 states with broad-based sales taxes had declines, and eleven states had double-digit declines. Iowa had the largest increase at 18.5 percent which is attributable to legislated tax increases. Georgia led the states with the largest decline at 16.3 percent followed by Nevada at 16.0 percent.

The institute predicts more budget shortfalls and financial hardships for states. Last Tuesday, Gov. Sonny Perdue told agency heads to trim their budgets once more to help fill a $900 million shortfall. Some teachers face three furlough days.

Not the best way to start the upcoming school year, but you work with what you’ve got.

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In an effort to balance a budget battered by the dismal economy and restricted by the state goverment, the MARTA board decided today that straphangers will face a higher fare, see parking fees in paid lots increase $1, and lose some bus routes. The 25-cent fare increase, from $1.75 to $2, is the first since 2001 and is scheduled to take effect in October.

Thanks to some money management, the AJC’s Ariel Hart reports, trains will not have to stop at 1 a.m. as MARTA had originally proposed.

State lawmakers who failed to grasp the role MARTA plays in the economy might want to also pay attention to this next graph — or read the 3,000 comments the transit agency says it received during the public input period:

Events organizers wrote MARTA a letter last week asking it to reconsider the rail service cutback. The chief operating officer of the Chick-fil-A Bowl addressed the board before its vote Monday to reiterate the message and let them know the negative impact it would have on events.

So next session, if you lawmakers don’t pass a bill allowing MARTA more control over its finances, well then no football tickets for you!

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Even with the Atlanta Regional Commission’s $25 million lifeline, MARTA must still make cost-cutting measures — and revenue-boosting decision — to balance its budget. Proposed measures include a fare hike, parking fee increases and changes to bus and train routes and schedules.

The transit agency’s board is expected to vote on those measures today at 1:30 p.m. Prior to the vote, MARTA board members will weigh public comments and citizen concerns received last week and during the official comment period.

The AJC’s Ariel Hart reports that the service cuts will not be immediately implemented. More on what the MARTA board decides later today.

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Lock up your wives and daughters, mates! Walter Jones of Morris News Service and the Dalton Daily Citizen report that the Georgia General Assembly might have to return to the Gold Dome for a special session. The reason? The budget.

From Jones:

The length and depth of the current recession has prompted round after round of cutbacks in state spending, and now legislators are talking about the need for a special session to address it.

Tax collections were down in May, putting the decline at 10 percent for the 11 months of the fiscal year to date.

Economists say the recovery in the overall economy could begin in the fall, but state revenues lag, primarily because consumers continue to hold on to their money until they personally feel an improvement, say through a pay raise, bonus or promotion. The last recession resulted in depressed state revenues for about two years after the economy officially recovered.

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Das Boot — coming soon to a street near you

Are you sitting on a bunch of unpaid parking tickets? Do you hate being a meter-feeder? Have you gotten used to being able to park illegally with virtual impunity?

Well, soon it’s gonna suck to be you.

For more than a year now, there’s been almost no parking enforcement in Atlanta. There were only three meter maids patrolling the entire city.

How did that happen? As has become typical with Atlanta, it seems to have been a case of bad timing, poor planning and bureaucratic fumbling.

Last spring, when city officials realized thay were looking at a serious budget shortfall, they decided to privatize parking enforcement as a way to trim payroll. So, in May, during the first round of city layoffs, Mayor Franklin sacked the staff of meter-readers.

Soon after, however, new Public Works Commissioner Joe Basista broke it to the administration that the city couldn’t afford to replace its existing coin-operated meters with new-fangled multi-space meters that accept credit cards, as had been planned. Next, someone realized that the request for proposals that had been drawn up to solicit bids from contractors was flawed and needed to be rewritten. Apparently, each of these setbacks took months to iron out.

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Straphangers and transit wonks can breathe easy, as Gov. Sonny Perdue today finalized a $25 million agreement between the Atlanta Regional Commission and MARTA that will help the transit agency avoid drastic service cuts.

Perdue’s action today was largely just red tape. As governor, Perdue must approve all projects paid for by federal stimulus dollars. The Georgia Regional Transportation Authority approved the ARC and MARTA’s agreement on Wednesday. Perdue had hinted he would do the same.

In exchange for funding to keep its trains and buses running, MARTA will spend $25 million on transit-related projects. ARC stepped up to help the cash-strapped transit agency after the Georgia General Assembly failed to pass a bill that would have allowed MARTA more control of its funding.

Perdue today also approved $121 million worth of other stimulus projects, including streetscape improvements in downtown Atlanta, park improvements in DeKalb County, and oodles of roads.

Screenshots of those are after the jump.

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Georgia saw another tough month in May, collecting 14 percent less than the same time last year, Gov. Sonny Perdue’s office says. Revenue collections from sales taxes, income taxes and other BIG GOVMINT CAPITALISM-KILLIN’ TACTICS are down 10 percent for the year. (To see a PDF of the tax collection figures, click here.)

At least we’re not alone, right? The New York Times, writing on a recent report about how states are faring during the hard-hit economy, says:

Thirty-one states said estimates about personal income taxes had been overly optimistic, and 25 said that all three major tax categories — sales taxes, personal income taxes and corporate taxes — were not keeping up with projections.

Even gloomy-Gus states that saw the recession coming and low-balled their tax estimates had little room for celebration, the report said. “The handful of states that have weathered the economic decline reasonably well are starting to report adverse revenue developments,” it said. “The news is alarming.”

A few states have seen rises in some taxes and drops in others. No one’s been whacked as hard as New York, however — its revenues are off nearly 50 percent compared to last fiscal year.

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Even with the Atlanta Regional Commission’s $25 million lifeline, MARTA’s still nearly $110 million in the red. Yesterday, the transit agency released its budget proposal, which includes several changes it’s mulling to cut costs. Here’s a quick rundown:

MARTA riders could potentially see:

• 25 cent fare increase

• $1 parking fee increases in seven paid lots

• Bus route modification or eliminations

• Ending MARTA train service at midnight

• Longer wait times between trains

MARTA employees could potentially see:

• Annual merit increases eliminated

• Increase in employees’ contributions to health benefit plans

• 10 furlough days

If you want the specific details transit agency’s cash situation, download MARTA’s 2010 budget proposal (PDF).

MARTA will hold public hearings to solicit citizen input about the proposed changes. Those dates and locations are pasted after the jump.

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In other words, nothing was accomplished.

Last night, Scott Henry and I embedded ourselves in the Gold Dome, risking life and limb to chronicle the final night of the legislative session. Thanks to the House press box’s Internet service acting screwy, we weren’t able to offer you minute-by-minute updates on the shenanigans.

That might’ve been a good thing. If you’re a fan of transit and getting around, you would’ve been disappointed with the news.

Despite piss-poor travel times and a mountain of studies that show the state needs more cash to build roads, bridges and transit, the General Assembly — for the second straight year — failed to pass a transportation funding bill. The Metro Chamber’s Sam Williams pointed the blame at the state’s “lack of leadership.”

The bill that would’ve allowed MARTA to have control over the one-cent sales tax in Atlanta, Fulton County and DeKalb County — its main source of funding — to fund daily operations? Failed. MARTA officials, who looked like they were at a wake after they heard the news, said drastic cuts to bus and train service were on the way. Veteran lobbyists called the move “irresponsible.”

Yet the lawmakers still had something to smile about, and as is the tradition, tossed shredded paper in the air as Speaker Glenn Richardson and Lt. Gov. Casey Cagle gaveled the legislative session to a close at midnight. CL shutterbug Joeff Davis noted it earlier — lawmakers made a mess that someone else will now have to clean up.

We’re gonna let this one soak in and pore over what passed and what failed. More to come later.

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Jim Galloway reports that MARTA officials recently distributed a memo to state lawmakers outlining the transit agency’s dire situation. Even with cost-cutting measures and fare and parking increases, the memo says, MARTA still runs the risk of drastically cutting service.

That could include shutting down entire rail lines. (The system’s rail spine basically consists of an east-west and north-south line.) Galloway says a decision about those potential cuts could come at MARTA’s next board meeting on March 30.

MARTA is lobbying for the state to ease restrictions over the one-cent sales tax levied in Atlanta, Fulton and DeKalb Counties that provides much of the transit agency’s funding. Under current law, MARTA — considered by mobility mavens as the transit “spine” of the metro region — can only use 50 percent of the generated revenue on operating costs. It bears mentioning, once again, that MARTA is the largest transit agency in the United States that does not receive operating assistance from the state.

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The AJC’s James Salzer reports:

State agencies can expect more furloughs and possibly layoffs into the upcoming fiscal year, legislative leaders said Monday.

House members will work this week to wrap up work on the spending plan for the year that starts July 1. The budget, which is expected to pass the Georgia House on Thursday, will continue major cutbacks for state agencies.

Lawmakers vowed that the budget would not contain the usual millions of dollars for local community assistance grants, commonly called “pork” at the Capitol.

“It would be irresponsible of us to put local assistance grants in when we’re asking people to make all these cuts,” said House Appropriations Chairman Ben Harbin (R-Evans). “In this kind of economic climate, it’s just not a high priority.”

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The state Senate yesterday passed two bills that could give MARTA more choices about its funding — as well as an opportunity to earn some extra cash.

The first, Senate Bill 120, would allow the transit agency to decide how it uses the one-cent sales tax it collects in Atlanta and Fulton and DeKalb Counties. (Currently, that sales tax — which accounts for more than half MARTA’s funding — must be split evenly on capital projects and operating costs.)

Senate Bill 89 would allow the food and drinks to be consumed at transit stations. If passed, the measure would allow MARTA to contract with vendors who could sell items at stations. Riders would still be prohibited from eating or drinking on MARTA buses and trains. You can still bring a gun on the train, though.

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Over at City Hall, the second-quarter revenue figures are in – and, surprise, they’re grim. The notorious police furloughs (remember them?) that began about a month ago were part of an effort by the Franklin administration to slash spending by $40 million. But, according to the latest projections, the city may need to cut another $40 million to avoid a year-end deficit.

If this situation sounds dire, you bet your ass it is. Franklin herself was scheduled to deliver the bad news to the Council Finance Committee, but for reasons unexplained, she left the unpleasant task to COO Greg Giornelli.

To bring you up to speed: The city began its fiscal year on July 1 with a $570 million budget. By the end of the first quarter, revenues were already running $14 million lower than anticipated – which meant the city was looking at a $55 million budget shortfall, providing the downward trend held steady. So the mayor announced city-wide furloughs and closed City Hall on Fridays to save money.

What we learned today, however, is that the downward trend hasn’t held steady – it’s gotten worse.

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By now you’ve surely seen the comments state Rep. Calvin Hill, R-ThisThatAndTheOther, made yesterday about how ENRAGED he was that taxpayer dollars were paying the salaries of Georgia State University profs considered scholars in the fields of oral sex, queer theory and male prostitution.

An enigmatic scribe at Pecanne Log reminds us of the hardships GSU has endured to become a group-sex friendly learning institution:

Georgia State has lagged behind other colleges in the state for decades in terms of student life due to its designation as a commuter school. The most flourishing and attractive part of any higher education institution’s campus life is, of course, its orgies. GSU has spent the last ten years playing an expensive catch-up in order to also be labeled an orgy-friendly research institution.

She goes on to carefully detail just how much the university has accomplished — occupying the Sodom and Gomorrah-esque Olympic Village, building group study rooms with viewing windows, etc. You can see why these women won our Best Local Blogger award, people!

Take note, Rep. Hill: This is bigger than budget shortfalls! Try and rob us of our oral sex experts and the erotic legacy GSU has struggled to build and you will see a protest on the statehouse steps unlike any you’ve ever seen before!

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The Georgia Association of Rail Passengers has called for Gov. Sonny Perdue to restore funding for the Atlanta-Griffin commuter rail line that’s been earmarked for federal dollars and which the governor said he’d support during last year’s gas shortage. U.S. Rep. David Scott, D-Ga., has already scolded Perdue for not funding the line.

Passenger rail advocates are calling on the Georgia General Assembly to approve $15 million in funding for Atlanta-Griffin commuter rail line, despite Governor Sonny Perdue’s failure to include the money in his budget.

“It’s extremely unfortunate that the Governor went back on his promise to fund the Atlanta-Griffin line,” said Steve Vogel, president of the Georgia Association of Railroad Passengers (GARP).  “It also was a big mistake.”

The federal government has $87 million set aside for the rail project, but it’s been stalled for years by state government inaction.  The Georgia Department of Transportation has asked for $15 million to get the project moving again.

Rest of the release is after the jump.
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Projected MARTA budget shortfall for the current fiscal year, in millions of dollars: 60

MARTA operating expenses for FY09, in millions of dollars: 396

Percentage increase in total MARTA ridership from August 2007 to August 2008: 11.5

Number of years since rail service began in 1979 that MARTA has seen a higher ridership increase: 2

Total annual operating funding MARTA receives from state of Georgia, in dollars: 0

Number of other major metropolitan areas whose public transit agency receives no state funding: 0

Total annual operating funding MARTA receives from the federal government, in millions of dollars: 42

Potential liability faced by MARTA due to lease-back deal with now-collapsed insurer AIG, in millions of dollars: 391

Maximum percentage of revenue from local 1-cent sales tax that MARTA is allowed to spend on system operations: 50

Percentage of MARTA operating costs covered by sales tax revenue: 52

Estimated percentage by which U.S. consumer spending will drop in 2009: 1

Number of years since the U.S. had a bigger slump in consumer spending: 67

Sources: MARTA, ajc.com, Bloomberg

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About two weeks ago, Atlanta Mayor Shirley Franklin announced city-wide employee furloughs to cut spending.

Today, she dropped the other shoe.

This morning, Franklin laid out her plan to slash another $14 million from the budget; the casualties include 23 recreation centers, the annual Atlanta Jazz Fest and a total of 222 more city jobs.

We’re not talking here about eliminating unfilled positions — nearly all of those were wiped out in previous rounds of cuts. These are actual city employees.

As the Mayor put it: “We are cutting into what we believe is the bone.”

Here’s where the bulk of the layoffs are falling:

• 58 employees from Public Works, mostly in trash and yard waste collection
• 25 employees from Planning, predominantly in building permits
• 107 recreation center employees

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BAILOUT: President Bush, looking concerned, nervous but still slightly amused, tells the nation that the “entire economy is in danger.”

PALIN: CNN’s Campbell Brown issued a rant to the McCain campaign Tuesday, calling for it to stop sheltering its VP candidate and treating her “like she is a delicate flower that will wilt at any moment,” in response to the campaign barring reporters from asking her questions at a U.N. appearance. Palin was then turned loose to Katie Couric Wednesday, and it did not go well.

MCCAIN: Suspends his campaign to focus on the economy, and asks Obama to postpone Friday’s debate if a bailout deal isn’t reached by then. Obama declines, saying “It is going to be part of the president’s job to deal with more than one thing at once.”

GAS PANIC: Still going on, and people are still fighting at gas stations.

MERGE PROTECTOR: Northwest Airlines’ shareholders this morning approved merging with Delta, whose shareholders will also vote today. Antitrust approval still awaits.

EURO TRIP: Gov. Perdue’s upcoming trip to Spain is expected to cost taxpayers $100,000 at a time when Georgia faces a nearly $1.6 billion budget shortfall and has asked state agencies, including the governor’s office, to cut back.

SHOOTING THE BREEZE: The Gainesville Times reports that relocated city slickers often are shocked this time of year by their neighbors outside, guns a-blazin’, because much of unincorporated Georgia allows residents to shoot guns on their own property.

UGA VS. ‘BAMA: Officials warn that Athens may be flooded with counterfeit tickets Saturday, as average real-ticket prices are more than $300.

TERROR LEVEL RED HOT: The New Englandish region (touché, Jimbo) isn’t establishing a good track record with bomb recognition. First there was the 2007 Aqua Teen Hunger Force scare in Boston; now the Philadelphia Phillies blew up some hot dogs before losing to the Braves Wednesday night.

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SARAH PALIN: The NY Times examines her governing style, which includes hiring several high school friends to high-paying state jobs for which they had no relevant experience.

BEAR MARKET TO FLEA MARKET: The Lehman Brothers investment bank announces it will file for bankruptcy, and despite the possibly market-soothing buyout of Merrill Lynch by Bank of America, the Dow drops 300 points.

FALCONS: Can’t overcome early deficit to the Bucs despite a near-comeback in the fourth quarter.

LAWYER MILLOY: The Falcons’ star safety was arrested on charges of DUI and speeding early this morning. No word yet on whether he will represent himself.

GALVESTON: Rendered a wasteland by Ike, with packs of stray dogs and loose steer wandering the sewage-strewn streets. Hurricane hold-outs now want off the island after lack of power and water has made it almost uninhabitable.

CUTBACKS: State lawmakers, judiciary and the governor’s office say they’ll cut back on their budgets in addition to upcoming state budget cuts made necessary by the colossal statewide shortfall.

QUORUM: The revamped Clayton school board can now move forward with official business after reaching a quorum by recruiting two former candidates for board seats.

DOG CALLS 911: To report owner’s seizure.

LANIER: Not filling back up anytime soon.

LINGERING: Linger Longer Communities says it’s making progress on plans for its Jekyll Island redevelopment, but navigating the environmental laws and public input may be bogging down the process.

UGA: Drops to No. 3 despite staying undefeated, but still has four top-10 teams on its schedule, all SEC foes.

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Despite warnings of decreased public services and reassurances that its shuttering wouldn’t affect response times, the Atlanta City Council today voted 11-3 to override Mayor Shirley Franklin’s veto of their plan to re-open Fire Station No. 7 in Southwest Atlanta.

The council’s plan involves sluicing $1.12 million from various municipal departments to pay for the historic station’s operating and maintenance costs.

The legislation now heads back to the mayor’s desk, where she will douse it in gasoline and set it ablaze.

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TED KENNEDY: Helps kick off the Democratic National Convention with a rousing speech, despite his terminal brain cancer.

GUSTAV: Hurricane gains strength in advance of hitting Haiti. Tropical Storm Fay’s remnants continue to soak Atlanta today; the storm destroyed only about 8 percent of coastal Georgia’s sea turtle nests, though, which was less than feared.

FRED CRANE: The actor who played a beau to Scarlett O’Hara and spoke Gone With the Wind’s first line has died at the age of 90.

HOT MANTA: The Georgia Aquarium brings in a manta ray rescued from fishing nets in the Indian Ocean.

RUSTLE: A raccoon that’s been terrorizing a judge and others at the Richard B. Russell Federal Building downtown has been captured.

WONDER WAAL: Emory primate researcher Frans de Waal has demonstrated that generosity is rewarding to capuchin monkeys, who prefer “prosocial” behavior over pure self interest.

CLAYTON WITH BATED BREATH: SACS is expected to announce this week whether it will strip Clayton schools of their accreditation, since the Sept. 1 deadline falls on Labor Day.

STATE PARKS: Could be closed due to the statewide budget crisis.

QUILTERS NEVER WIN: The Gee’s Bend quilters from Alabama have resolved their lawsuit against an Atlanta art dealer whom they had accused of cheating them out of earnings.

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And isn’t it ironic? A little too ironic, don’cha think?

Earlier this month, Gov. Sonny Perdue announced that state revenues were in the toilet, budget estimates were projecting a $1.6 billion ( yes, that’s a “B”) shortfall and that he was considering raising most people’s property taxes.

Hmm. This reminds us of an earlier situation involving a large government entity. We just can’t quite put our finger on it…

Oh, yeah – It’s Atlanta! Remember when CL broke the news back in January about the city budget crisis and the media shit-storm that followed?

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THIS TIME IT’S PERSONNEL: City Council unanimously passes an ordinance requiring the mayor to get its approval before making additions or reductions to the city’s personnel, the latest in an ongoing melodrama between the council and mayor.

DEER IN HEADLINES: A six-legged deer found in Rome, Ga., is understandably popular.

BUSH: Went down to Georgia.

CHILDRESS: Hawks’ restricted free agent is considering an offer to play in Greece.

RIGHT TO AIR ARMS? U.S. House Homeland Security Committee chairman doesn’t think we should have guns at the airport.

ROCK DRUMMERS: Require at least as much physical endurance as soccer players, according to a recent British study that used Blondie drummer Clem Burke as its test subject.

LOOKS GOOD ON PAPER: Researchers and companies like Xerox are backing away from utopian visions of a paperless society that became popular in the late 20th century, using the phrase “paper-less” instead to focus on the more pragmatic, but less glamorous, goal of simply not wasting as much paper as we do now.

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If you hadn’t noticed, the Atlanta budget crisis has resulted in some raw nerves and strained relations down at City Hall. The process has gone something like this: Mayor Shirley Franklin announces budget cuts. The City Council criticizes her cuts, but asks her to make some more. Franklin makes more cuts. The Council criticizes the new cuts. And so on.

On Friday, Council President Lisa Borders released a formal response to the Mayor’s announcement of $21.6 million in cuts, which include closing a fire station and laying off several dozen firefighters:

I am disappointed that additional personnel are being laid off by the Mayor as a way of achieving the City Council’s mandated 2.5 percent cut in the General Fund budget. Instead of reducing costs by eliminating jobs first, we should be more innovative in the way we do business and deliver services to residents.

A few hours later, Franklin sent this e-mail response directly to Borders:

You will have your chance as Mayor should you be successful in your election.

Snap! And minutes later, Franklin added:

The Council added costs to the budget and then gave me the authority to make the cuts after refusing to do so themselves. The Council and Chairman [Howard] Shook punted with your concurrence and instigation. I made the decisions for cuts the Council didn’t. I’m OK with that because that’s what Mayors have done all over America for years.

The ball’s in Border’s court:

I have great respect for you and the job you have done as Mayor of our beloved city. But let’s be clear: the Council is a 15-armed octopus and to suggest that I could “instigate” a unanimous vote – especially on something as complicated and critical as this monumental budget gap – is a stretch, to put it mildly. I certainly don’t have to tell someone with your experience that disagreements over policy choices are part of a healthy, natural tension between our branches of government.

Now, we should point out that we abbreviated the discourse slightly. Both Franklin and Borders acknowledged that the city is better off when the Mayor and Council work together and they expressed a desire to do so in the future.

But while it’s easy to imagine those two women settling their differences cordially and professionally, there are several members of the Council – C.T. Martin, for starters – who make collaboration between the administration and the Council all but impossible. Which means we’re probably stuck with the current back-and-forth.

Unfortunately, we’re probably not in the home stretch. Later this week, Atlanta officials expect to learn from Fulton County how much the city will be able to collect in property taxes in coming months. Because of assessment appeals, the figure could be much lower than the one the Council used when it approved the city budget last month. If so, there could be more budget cuts – and more bickering – in the city’s future.

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