Louisville budget deficit reached $29 million last year | News | Kentucky Roofing Contractors Association

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Louisville budget deficit reached $29 million last year

The budget deficit in Louisville, Ky., reached $29.6 million during fiscal year 2009, which ended June 30, according to The Courier-Journal. The deficit is $9.6 million more than projected by Mayor Jerry Abramson's administration leading up to the end of the fiscal year.

All the necessary cuts to the 2009 budget required by law have been made. However, year-end accounting adjustments, which the Louisville Metro Council is expected to approve this week, show the larger deficit; the deficit mostly is a result of sagging occupational tax receipts, which account for about 40 percent of the city’s general fund. The general fund pays for all city services and employee salaries.
The deficit largely is being made up by cuts to services and restrictions on departmental spending, saving $20.2 million, which is the original amount projected for the deficit. The rest of the deficit is being made up by cash transfers such as moving $4.9 million from the city's vehicle replacement fund; $3.6 million in savings from capital projects that were either completed with savings in previous fiscal years or previously delayed; and $2.1 million from the city's municipal aid fund.

The city did not touch its savings account, which remains at $65.4 million.

Abramson began addressing the projected deficit in November 2008 by announcing city employees would be furloughed four days; delaying more than 40 building projects; pushing back training classes for police and firefighters; and closing library branches, community centers and the city's only indoor pool one day per week, among other measures. His budget for the current fiscal year involved laying off about 100 employees.

The metro council has requested monthly revenue receipts from the administration so it can more closely track potential impending deficits. If projected over the entire year, revenue from the first four months of the current fiscal year would come up about $7 million short of what is projected in the budget.

12/17/2009