Louisville Metro’s rainy day fund will most likely be tapped soon. But it won’t be used for the current budget shortfall.
Two months ago, the Kentucky Supreme Court ruled that Louisville’s firefighters were owed money for miscalculated overtime. Mayor Jerry Abramson estimates the judgement will cost the city at least $17 million. He plans dip into the city’s $65 million rainy day fund to pay the debt.
“We’re going to work through and negotiate an opportunity to give some money up front and then pay out the appropriate firefighters over a period of time, which will make it easier for us during these difficult financial times,” says Abramson.
Abramson has refused to use the fund to deal with a $20 million shortfall. He says those funds can be made up through cuts to government, and the rainy day fund is reserved for emergencies and maintaining the city’s credit rating.