Louisville Metro’s budget predictions for the current fiscal year have proven overly optimistic in the current financial crisis.
The budget passed in June anticipated a revenue growth of roughly 2%. But in the first quarter of the new fiscal year, income actually shrank by 2%.
Mayor’s spokesperson Chris Poynter says the situation will get worse.
“That’s just July, August September. The economy really didn’t tank until October,” says Poynter. “We’re just now getting our tax revenues from October and it does not look good.”
Poynter adds that the city is already looking at ways to cut costs.
“I think you’ll see potentially everything from a freeze on travel, a freeze on open positions,” he says. “All of those things are on the table.”
The city faced a similar shortfall in the last fiscal year. It was partially offset by hiring and travel freezes.