Fulton County Chairman John Eaves couldn't persuade any of his commission colleagues Wednesday to back his proposal to raise an additional $33 million by increasing property taxes.

back his proposal to raise an additional $33 million by increasing property taxes.

Commissioners said they either didn't believe the county needed to raise taxes in 2008 or they think county residents had already been hit hard enough by an ongoing real estate slump that some say may bring a recession.
"It is evident we have the ability to live within our means," said Commissioner Lynne Riley, who made the motion to reject the proposed .75 mill property tax hike.

Commissioner Nancy Boxill said new programs and existing ones may have to be cut, but no one yet knows what reducing revenue by $33 million will mean.

"The bottom line is that $33 million would have to come out of expenditure reductions," said Patrick O'Connor, finance director.

Wednesday's meeting was the final hearing on a budget that's been in the works for months through departmental work and a series of public hearings. A final budget should be ready before month's end.

The decision Wednesday sets the stage next week for tough decisions for the board, which faces a proposed $691 million 2008 spending plan with just $617 million to spend — a $74 million gap.

The proposed budget called for using more than $41 million from savings plus the tax hike to cover the shortfall.

If commissioners stick to that, they will still need to find $33 million in savings to make ends meet. Riley suggested the commission could look at not funding vacant positions. Commissioner Tom Lowe said the county could cut how much it pays for employee medical care. Staff members suggested cutting the $100 million county contribution to the struggling Grady Memorial Hospital.

Eaves said when he introduced the budget in November he began with two basic assumptions: that Fulton would keep all 2007 programs and add a few new expenses. With those basic assumptions, revenue didn't cover all the expenses, he said.

On Wednesday, the board also closed the books on its 2007 budget.

The numbers showed the various agencies and departments spent $641 million in 2007. General fund income fell well short at $600 million. Fulton covered that gap by drawing down its savings account, which stood at $141 million a year ago and would be down to about $60 million by the end of 2008 if spending and revenue continue as expected.

Eaves' proposal would add about $50 million in new spending, an increase of about 8 percent.