Atlanta looks at layoffs, cuts to new city budget as it faces $20M deficit

ATLANTA - Atlanta's finances are $20 million in the red, and city officials say layoffs and tough cuts may be on the way.

Mayor Andre Dickens plans to propose a new budget next week. 

What they're saying:

"It’s going to be a contraction from prior years," said Council member Howard Shook, Atlanta City Council Finance Committee Chairman. "We’re going to have to undergo the same belt-tightening that you’re seeing so many people in both the public and private sectors go through."

The new fiscal year begins July 1. The current fiscal year has sent the city into a deficit.

"Steps have been taken by the administration and finance department to try to skinny that down as much as possible as that fiscal year comes to an end," said Shook. "The administration I know is looking to reduce the workforce and what form that takes. We will see."

What we know:

Atlanta is working to fill a $20 million shortfall in this year’s budget, Shook said. Mayor Andre Dickens will present his proposed budget to the City Council next week. The city must pass a new balanced budget by the end of June.

Shook said he believes the focus will be on cutting some of the city's workforce.

Michael Smith, Mayor Dickens' press secretary, told FOX 5 the city's position is not unique. 

"The Mayor is committed to a safe, thriving Atlanta built for the future with opportunity for all of our communities," Smith said. "Once introduced, the public will see the proposed FY26 budget reflects those values while protecting the City’s financial health and resilience.

The backstory:

According to Shook, several recent events led to the budget gap, including snowstorms, President Jimmy Carter’s funeral, and providing security for the new Atlanta Public Safety Training Center, which has been the target of vandals and activists opposed to the project.

These costs piled up quickly, pushing the city into the red, Shook said.

The council is required to pass a balanced budget by the end of June. 

What's next:

Each city department will have to justify its budget requests in detail, Shook said.

The new fiscal year begins July 1. 

Until then, hiring for vacant positions now reportedly requires special approval from the Mayor’s office. 

Officials are also waiting to confirm whether expected federal funding will still be available, after the Trump administration's own cost-cutting initiative, DOGE.

The city has to plan for major events over the course of the next year, which include preparations for the 2026 FIFA World Cup. 

Shook expects public safety costs for the event to be high.