Like American households everywhere, government entities are facing their own budget woes. Also like American households, some government leaders deal with it like adults, while others expect a bailout. Just look at the contrasting plans of Gov. Sonny Perdue and Atlanta Mayor Shirley Franklin during the past several months.

Back in the summer, Georgia revenues dipped well below the forecast. Governor Perdue acted with immediacy and transparency. Everyone paying attention to the news knew the state was in a budget crisis. There was the reminder that during more prosperous times, the state savings account had built up significantly, but that, alone, it wouldn’t be sufficient to solve the problem. State legislators were requested to downsize or eliminate special projects in their districts. More importantly, department directors across the board were asked to submit downsized budgets at various levels – from 4 to 10 percent reductions – and report the expected consequences on service levels provided. The idea was everyone coming together to eliminate waste, tighten up efficiency, and minimize pain to the customer. Most department heads came through with reasonably painless cuts.

Now, for the city of Atlanta
Even in the best times, the city couldn’t afford to repair its ailing infrastructure, keep enough policemen on the streets, or even pay its bills on time. They’ve operated in the red for ages. But Mayor Franklin was willing to spend $850,000 to hire a financial consulting firm to lead the city out of the wilderness. Atlanta’s last CFO made $202,000 last year, but resigned abruptly – but not before giving Atlanta a grade of “F” for financial management, even though she had been on the job since 2004. Atlanta has had a fiscal management crisis long before the budget crisis hit. And rather than trying for across the board, low-pain budget cuts, Mayor Franklin threatens massive layoffs of vital services – mainly police officers and firemen, just as the highest home fire month approached.

Could it be that Franklin thinks the deeper the crisis she can get Atlanta into, the more her new friend in Washington, DC will come to her aid? At the recent US Mayors Conference, Franklin & Co. reeled out a wish list for billions of federal dollars. Ironically, $20,000,000 was set aside for hiring police officers. Other projects ranged from $18 million for five miles of Beltline Trail and spurs to $500 million for Atlanta Airport Terminal improvements to $1.5 million for tree canopy protection – invasive removal. Are we talking about kudzu?

On the other hand, Governor Perdue has taken some heat for accepting the strategy of borrowing low interest money to build roads and bridges while construction and real estate is relatively inexpensive. If this is done in a reasonable way – i.e. mainly in metro Atlanta where the traffic problems have us at the top of the “Worst Places to Commute” list – it might make sense. Most of us fiscal conservatives have a natural aversion to debt, and few of us need an explanation of the need for roads and bridges and the wisdom of building and repairing them now.

It seems as though the state and its capital city are facing similar problems, but two very different philosophies are at work: reason and responsibility versus immaturity and alarmism.

Merry Christmas and a happy, prosperous New Year from your AFP Georgia staff!

Watch for our annual AFP-GA Day at the Capitol-- date TBA soon!