Atlanta Journal-Constitution

How to Reduce Atlanta's Budget Deficit

Budget makeover should include outcome-based budgeting, privatization and asset leases

Atlanta's deficit was caused by poor fiscal management. The city needs a three-step budget makeover.

First, shift to outcome-based budgeting. Politicians and taxpayers must rank their budget priorities, funding the most important items at the top of the list. Then go down the list in order until you are out of money. This makes budgeting priorities transparent to everyone.

Second, more competition. Indianapolis and Charlotte reduced spending and improved services by requiring public employees and private companies to bid for contracts. Even when government employees win the contract, it is for much less than current costs — saving taxpayers millions.

Finally, lease infrastructure to private operators. Chicago has generated more than $3 billion recently by leasing roads, parking garages and more. The proceeds can build needed roads, pay long-term pension obligations and set up a rainy-day fund.

Tax increases aren't the answer. Atlanta's government can be better and cheaper.

Leonard Gilroy is Director of Government Reform





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