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Louisville mayor cuts city budget by $20 million

On Dec. 10, Louisville Mayor Jerry Abramson announced a plan to help fix the city's projected $20 million budget deficit by delaying more than 40 building projects and delaying training classes for police and firefighters, among other measures, according to The Courier-Journal.

The plan does not include laying off metro government employees; raising taxes or fees; or cutting money allocated to social service agencies that help the poor and unemployed. Abramson says the plan will affect agencies across city government.

"The last weeks have been the most difficult to deal with in my almost 19 years as mayor," he says. "For this community to make it through the next 18 months, everyone must have skin in the game."

Abramson also had previously announced closing libraries and community centers; cutting grants to arts and economic development groups; Abramson and his top management staff taking a 10 percent pay cut; and implementing furloughs for city employees, with most city offices being closed Dec. 26, Jan. 2, April 3 and May 1.

Louisville's financial problems are being attributed to the struggling national and regional economy. The high unemployment rate and sluggish business earnings have led to less revenue for the city; almost 60 percent of Louisville's money comes from taxes from paychecks and profits.

Abramson says much of the city's future depends on how Kentucky handles its projected $456 million deficit, as well as what is included in the federal government's proposed stimulus package.

Louisville's budget must be balanced by the end of the fiscal year on June 30, 2009.

12/19/2008