With the economy continuing a downward spiral it looks to be a slow summer for new residential construction.

“Everything is slower than normal,” said Milani Homes owner Fred Milani.

Milani has built houses in the Atlanta area for 26 years — the majority in DeKalb County.

“I am not building unless it’s presold,” he added.

The weak economy has taken an excessive toll on DeKalb County’s Development Department, which includes county building inspectors.

The department, which is funded solely from revenue from building permit fees, is suffering a budget crisis due to a sharp drop in building activity.

DeKalb Chief Executive Officer Burrell Ellis anticipated $8.2 million in the 2009 budget after meeting with department officials. However, officials are now anticipating about $4.3 million less for the department.

In 2008, the amount was $8.3 million after the county received about $9.7 million is permitting fees in 2007. “DeKalb County has not been immune to the impact of the global economic recession,” Ellis said in a statement issued by the county concerning the Development Department’s budget. “Construction activity is significantly down through the Atlanta region and across the United States.” To balance the department’s budget, Ellis is proposing budget transfers, a property tax increase, department layoffs and furloughs.

The department currently has 107 employees. Ellis’ proposal will take the department down to about 50 employees.

“Further reduction in our Development Department would be tantamount to declaring a moratorium on development in DeKalb County at a time when we should be investing resources in building infrastructure, creating jobs and stimulating economic activity,” Ellis said in the statement.

Milani said he only expected to build about 10 homes this year after building 15 in 2008.

One of Milani’s current projects is the Oak Grove Preserve, a subdivision off Briarcliff Road near Lakeside High School.