LOUISVILLE, Ky.– Mayor Greg Fischer is warning of more possible budget cuts because of the massive economic downturn caused by the coronavirus pandemic.
Delivering his budget proposal to the Metro Council, Fischer says the city is projecting a revenue shortfall of $115 million in the current and upcoming fiscal years.
Much of that comes from payroll taxes, which have taken a hit with businesses cutting jobs.
Fischer says there’s no way to absorb the loss without considering a significant tax increase or reducing every single agency of Metro Government. He notes they’ve already furloughed 380 Metro public employees, and the city is facing more furloughs and possible layoffs.
The mayor is looking to Washington for help in offsetting the revenue shortfall. Louisville has already been provided about $134 million in federal reimbursements for COVID-19 expenses. The city is not allowed to use any of that funding to cover its budget shortfalls.
Fischer is proposing a continuation of the $621 million Fiscal Year 2020 budget, which also included cuts to manage pension costs.