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