Fulton County adopts FY2025 budget after debate over reserve use, jail consent-order funding

The Fulton County Board of Commissioners voted to adopt its fiscal year 2025 budget after extended debate about using reserves and setting aside funds to respond to a pending Department of Justice consent order concerning the county jail.

County Manager and budget staff told commissioners the budget recommendation preserves a 16.67% fund-balance policy (roughly $165 million by the manager's accounting) and includes a non-agency category that can cover multi-department strategic initiatives and timing-related underruns. The manager said there is about $86 million in a non-agency line called "other" and that department enhancement requests total about $130 million.

"We still stand with the previous recommendation, which is keeping your powder dry and reserving 13,900,000.0 from underruns against what we know now to be unknowns, in the DOJ consent order," the county manager said during his presentation. Commissioners debated whether to hold the recommended $13.9 million in reserve for the consent order or to reallocate portions to justice partners and other priorities now.

Commissioner Barrett proposed a substitute amendment that would have redirected funding to justice system needs and other items. Her list included targeted allocations for the sheriff's office, district attorney, solicitor general, public defender, superior and state courts, the county attorney's office, veterans services, arts funding and other line items; the substitute's total was roughly $24.6 million. The substitute did not pass. A second, final motion to adopt the manager's budget recommendation -- which included the $13.9 million reserve and an allocation of $4.9 million to a risk-management/litigation reserve tied to the consent-order work -- passed on a recorded vote.

Votes at a glance - Adopt FY2025 final budget and FY2025 budget resolution; motion by Vice Chair Bob Ellis, second by Commissioner Abdul Rahman; vote recorded as: yes 5, no 2; outcome: approved. The approved budget maintains the 16.67% fund balance policy and reserves $13,900,000 against DOJ consent-order uncertainties.

Context and next steps Commissioners who opposed holding the $13.9 million in reserve argued for proactive funding to the justice partners to begin hiring and other compliance work immediately. Supporters of the reserve said unknowns remain and preserving reserves protects the county's AAA credit rating and its ability to respond to unanticipated risks. Commissioners also discussed the option of assuming a higher millage rate later in the year (which affects revenue estimates) as a way to fund enhancements without drawing down the reserve.

Ending: The board approved the FY2025 budget and directed staff to continue monitoring costs associated with the consent order and federal grant suspensions; commissioners signaled midyear budget reviews to consider additional allocations as more information becomes available.