Mayor Announces Budget Cuts

by jhoban on December 10, 2008

Louisville Metro Government’s rainy day fund, social services and employment have not been touched in the final round of budget cuts for this fiscal year.

To cope with a $20 million shortfall, Mayor Jerry Abramson cut some services, froze hiring and reduced operating costs, including travel. He’s also increased the fee for take-home cars, ordered pay cuts for him and other administrators, and added a fourth furlough day for nonunion employees.

All of the cuts were made despite recommendations that the mayor tap into the $65 million rainy day fund. He says that would be irresponsible.

“Government needs to follow the same approach that so many families are telling me they’re following, and that is when they have economic difficulties – they’re laid off or they’re threatened to be laid off – they begin to reduce their household spending,” he says. “You do that first.”

Abramson says he hasn’t ruled out the need for layoffs or tapping the rainy day fund to balance the next city budget that begins in July.

The cuts include:

Closing government for four days
and placing non-essential employees on unpaid furloughs         Saves $2.9 million

Service reductions (libraries, parks etc) and grant cuts                Saves $3.4 million

Hiring freeze                                                                                Saves $2 million

Restricting travel, office, training expenses                                 Saves $1.9 million

10 percent pay cuts for mayor, directors                                     Saves $205,000

3 percent General Fund reductions for
elected officials, agencies                                                           Saves $585,000

Reducing overtime                                                                       Saves $2.4 million

Training class changes (merge two police classes, delay
fire and corrections clases by six weeks)                                     Saves $1.2 million

Operating savings (contracts, telephone services, etc)                Saves $1.3 million

Revising take-home car program (increase monthly charge
to $100 for take home only, $160 for second job use)                Saves $500,000

Delaying capital projects (click for details) Saves $3.6 million
—————————————————————–
TOTAL SAVINGS                                                                              $20 million

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