The Atlanta City Council is confronting significant challenges as it navigates a $20 million budget deficit, with potential layoffs looming on the horizon. Howard Shook, a council member and chair of the council’s finance committee, emphasized that a closer examination of the budget cuts—ranging from 5% to 10%—is necessary to fully understand their impact on city operations.
“Just on the face of it, you’re not seeing where the 5% cuts were, the 7.5% cuts were, the 10% cuts were,” Shook stated to The Atlanta Journal-Constitution. “To learn that, we’re just going to have to go through the process. Only by undergoing the process will we be able to see what if any filled or vacant positions have been cut.”
The administration is actively seeking to mitigate the $33 million deficit, which was initially about 3% of last year’s general fund budget, through layoffs and a 5% cut in spending across various departments. As a result, officials disclosed that this deficit has already been halved.
Atlanta Chief Financial Officer Mohamed Balla clarified in a statement that the city did not resort to across-the-board layoffs. Instead, various departments have taken this opportunity to reorganize services as the city transitioned back to in-person operations, preparing for the next fiscal year.
According to Balla, the introduction of a Vacancy Review Board has enabled the administration to take advantage of natural attrition by refilling only critical positions.
In a noteworthy proposal, the mayor seeks to establish a $975 million general fund, which represents a 14% increase over the current fiscal year’s $853 million budget. The total proposed operating budget for 2026 is projected to reach $3 billion.
The upcoming budgeting process will require department heads to testify before council members regarding their budgets, as they aim to finalize the budget in June after making necessary adjustments. Public safety expenses have been cited as a major factor contributing to the budget deficit, particularly due to unexpected overruns in the Atlanta Police Department’s spending stemming from reduced attrition and increased overtime costs.
The Dickens administration has identified public safety, affordable housing, and infrastructure as top priorities for investment in the upcoming fiscal year. Additionally, there are promises to develop a plan to reduce property taxes for city residents.
However, the budget proposal reveals cuts in only two areas: the City Council and the Department of Atlanta Information Management, totaling over $1 million. This finding surprised many council members, who had expected a more drastic spending breakdown.
Councilmember Matt Westmoreland remarked, “This is a record-high budget that comes weeks after City Council saw a request that departments show what operating next fiscal year would look like with various percentages of cuts. I look forward to hearing more… about the story behind these large numbers.”
The uncertainty surrounding federal funding and economic concerns, exacerbated by the previous Trump administration’s tariffs, has contributed to a cautious approach towards the budget. Council President Doug Shipman stated that about 49% of the city’s budget is influenced by external factors, including shifts in federal funding relevant to housing and public safety.
“There are a lot of changes to federal funding, some of which are hitting Atlanta—from the housing perspective, public safety perspective,” Shipman noted.
Some city departments, including the Department of Corrections, Department of Procurement, and the Department of Grants and Community Development, are expected to see substantial budget increases, ranging from 37% to 72%. In contrast, the Atlanta Police Department and the Department of Law are projected to receive about a 20% increase.
Policy analysts are also awaiting a more detailed breakdown of the proposed budget, with some expressing astonishment at the 14% increase in the general fund. Kyle Kessler from the Civic Center for Innovation stated, “I was not expecting a 14% increase in the general fund, given that departments were asked to submit their 5%, 7%, 10% reductions.”
Balla emphasized that the budget proposal calls for departments to enhance their operational efficiency while maximizing resource use and strictly adhering to approved budgets. The upcoming budget hearings are set to begin on Tuesday.
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