Atlanta's city budget is $33.3M in the red

ATLANTA - The City of Atlanta's finance department made a list and checked it twice. It found its checkbook $33.3 million short in the first quarter of fiscal year 2025. 

At the City Council's finance committee meeting on Wednesday, the Finance Department said the deficit stems from increased spending on public safety, employee pay raises, and other unexpected costs.

They're now urging the city to tighten its belt into the New Year and the start of the new fiscal quarter. 

Added security expenses at the site of the new Public Safety Training Center, pay increases for police officers and other city workers, as well as a new animal control contract contributed to the deficit. .

Council member Howard Shook, who chairs the Finance Committee, said the situation is not untenable, but they have their work ahead of them.

"I mean, I'm a worrier by definition. And so when I hear the word overrun, my teeth start to itch," he said. "It’s good that they brought our attention to it. And, you know, measures are going to be taken to take a real close look at any new spending initiatives," Shook said.

Council member Alex Wan expressed surprise at seeing such a stark financial picture. 

"I think we're not used to seeing red numbers and big red numbers," Wan said. "So I think, in a way, that was a good just reality check for us."

Despite the multi-million-dollar shortage, Shook is confident that city leaders can correct course. 

"I know what a real deficit looks like and what a real crisis looks like," Shook said. "This is caught early and it's extremely correctable. You know, it's just now going to be a question of will the politicians refrain from getting on the bandwagon for any new major spending initiatives."

After celebrating a recent AAA bond rating upgrade, Shook said balancing the books to maintain that positive rating will be a top priority.