The Great Recession’s Impact on the City of Atlanta’s Budget

In addition to the recent effects of the Great Recession, Atlanta’s finances have been compromised in a number of ways during the last decade. Eight years ago, Atlanta’s finances were severely weakened by the actions of an outgoing corrupt administration. Since then, the city’s property tax receipts have remained stagnant, the city has been under federal- and state-mandated consent decrees requiring substantial investment in sewage and water infrastructure, and its pension obligations for police and firefighters, alone, have grown to 15% of the general fund budget. Although Atlanta has adopted a financial stabilization plan in an attempt to reach structural budget balance, such a plan requires a significantly reduced city workforce and bare bones services. These factors, combined with the city’s poor financial management history, make the outlook for an improvement in Atlanta’s financial position very tenuous.