Summary
This article is important because it gives the investment community some insight into how Atlanta’s political environment may impact the city’s growth. The article also provides some insight into how each mayoral candidate plans to address increasing unemployment in the city.
Analysis
The candidates for mayor of Atlanta do not appear to offer any cogent plans for use of the city's budget for economic growth. Atlanta's unemployment rate for May 2009 is 9.7%, slightly above the national average and equal to Georgia's statewide unemployment rate. Unemployment is expected to rise to 10% by year's end according to some analysts and more than likely so will Atlanta's unemployment rate. In addition to an apparent lack of a budget plan for growth, economic development proposals offered by the candidates are based primarily on business recruitment that will hopefully lead to job growth. Only a minority of the candidates have provided any firm statements on business recruitment or growth in general with no substantive proposals. The three leading candidates are Atlanta Councilwoman Mary Norwood, State Senator Kasim Reed, and Atlanta City Council President Lisa Borders. Mary Norwood, who reportedly leads all the candidates, has not expressed a substantive position on economic development. Ms. Norwood’s budget focus is on financial accountability and a reprioritizing of budget priorities. She has expressed support for a commuter tax. Kasim Reed, a Georgia state senator, may focus his economic development plan on the extension of tax credits to encourage businesses to open in economically distressed areas of Atlanta. Part of his platform includes establishing a closing fund that would finance the retention of these businesses. Reed also calls for reducing the city’s pension plan and increasing the property tax rate. Lisa Borders, current president of the Atlanta City Council, includes in her platform the recruitment of more businesses to Atlanta, increasing property taxes to fund additional police and firefighters, and selling methane from city-owned, non-operating land fills. While it is still early, there may be a break with the city’s current action plan for growth and development as implemented by Atlanta’s current mayor. This inconsistency may be the last thing the city needs and may also contribute to further uncertainty for investors. In addition, should Ms. Norwood continue to lead and eventually win the election, economics and business might not take the highest priority.
