Only on 12: Finance chair admits 'we don't have a $9M deficit' after ...

News 12 at 6 o'clock / Thursday, Sept. 1, 2011

AUGUSTA, Ga. -- Augusta's finance chair says scratch this year's projected $9 million budget hole.

The ongoing city budget drama has gone on for really, most of the past month. City Administrator Fred Russell has been in the hot seat most of that time.

In early August, News 12 uncovered more than $350,000 in raises for select city employees. The raises were approved by Russell.

Later in the month, Russell released documents showing the city saved $2 million through a countywide reorganization.

But that only stirred the pot. Commissioner Alvin Mason called the savings an outright lie. Several department heads told us they wouldn't see any savings.

This week, we first told you about an expected $1.6 million surplus from last year's city budget.

Augusta's Finance Chair Jerry Brigham is now saying scratch this year's $9 million budget hole. Brigham says the city is spending less than expected this year.

We questioned if there ever was a $9 million deficit.

"We have a surplus and the following year we have a $9 million hole?" we asked Brigham.

"You know," said Brigham. "We don't have a $9 million hole ... we have a balanced budget."

But the city listed five "difficult" measures that were needed to fill a $9 million deficit in a November 2010 budget memo.

"With the goal to maintain a reasonable level of service for the citizens of Augusta, many difficult decisions were and will have to be made as the 2011 budget is implemented," Russell wrote. "They include: A reorganization of governmental operations that will equate to a savings of $1.5 million through operational efficiencies and service reductions, a mandatory freeze on capital outlay and the redirection of $2.3 million to the general fund, the sale of surplus property expected to generate an estimated $2 million in revenue, five furlough days for all employees with a resulting cost reduction of $1 million, the use of $1.5 million of fund balance."

The city administrator is now recommending the city slash the final two furlough days this year. That brings the furlough savings down to $600,000.

"Did we get the $2 million dollars from sale of property?" we asked Brigham.

"You know we haven't," Brigham said. "Why are you asking me a question you already know the answer to?"

"We didn't get the $1.5 million from the reorganization [either]?" we inquired.

"The year's not over," replied Brigham as he walked away in frustration.

"There is no explanation for the public, sir," News 12 said.

"Bull@#$%," responded Brigham, "I gave you an explanation."

Commissioner Alvin Mason said citizens should be livid right now.

"They should be calling commissioners," Mason said. "Phones should be blowing up."

Mason points to the recent sacrifices of firefighters, deputies and all city workers.

"Do you realize that people took as much as a $18,000 to $20,000 pay cut?" Mason said. "Do you realize bus transportation and other folks have lost jobs potentially because we said we were $9 million in the hole? Do you realize how many more criminals are on the street because the sheriff had to give up a million dollars? This is serious business."

Commissioner Corey Johnson is defending an administration he claims exaggerated the numbers.

"When I saw it," Johnson said, "I knew there was no way possible that we could be in a hole after coming off a balanced budget."

Mason is renewing his call to fire the city administrator.

"If we can't get 10 commissioners to act, then perhaps we need to go outside of this particular agency and get the Department of Justice involved," Mason said.

This will all come to a head at next Tuesday's commission meeting.

Want to see more? Watch the whole interview here:

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Source: http://www.wrdw.com/home/headlines/Only_on_12_After_furloughs_and_privatization_finance_chair_admits_we_dont_have_a_9_million_deficit_128926373.html

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