LEXINGTON, Ky. — Lexington Mayor Linda Gorton (R) presented the Fiscal Year 2021 budget projecting an estimated $49 million in lost revenue as a result of the COVID-19 pandemic.
Gorton described the budget as focusing on the “nuts and bolts” of government — focusing on public safety, garbage pickup, sewers, and roads.
"While this budget plan reflects input from many people, it’s safe to say not one of us likes it,” Gorton said during her budget address. "This is a crisis budget, not much different than one in wartime.”
The more than $372 million budget takes into account the estimated $9 million loss in revenue for the current fiscal year and the $40 million loss in revenue for FY21.
"The impact of COVID-19 on city revenue has been immediate and significant,” Gorton said. "Beyond that, the rebuilding process is expected to take several years. This kind of drop is unprecedented in the history of the Urban-County Government.”
The budget does not fund things like land preservation or infrastructure improvements as a result of the loss in revenue however Gorton says she is not proposing any tax increases to help supplement the revenue loss.
The city will not lay off any permanent employees either but it will not fill 47 vacant positions or provide pay increases for employees unless they are included in a contract, no new positions will be created during FY21 resulting in about $7.5 million in savings.
An additional $12.6 million is being saved through various reductions within the government.
"My team has taken a strategic approach to cutbacks this is not a one-size-fits-all, across-the-board percentage cut across all divisions. We have tried to choose thoughtfully and carefully,” Gorton said. "For example, we’ve cut back on landscaping and mowing in Environmental Quality and Public Works; on social services; on athletics programming and pools in Parks; and on the affordable housing fund."
Public safety will still make up more than half of the budget — with funding of essential operational spending remaining the same as last year.
The budget cuts $6 million in the funding of external agencies, including eliminating funding to the Extended Social Resource grants which help to fund social service agencies. Direct funding for LexArts has also been suspended in the budget.
"The city will provide a grant of up to $200,000 to match funds raised by LexArts, dollar-for-dollar, after July 1,” Gorton said. "In addition to LexArts, we are suspending funding to other cultural facilities, including the History Museum and the Explorium.”
For the first time since the 1990s $13.6 million will be pulled from the Rainy Day Fund to help balance the budget, additional funding has been pulled from the Tenant Relocation Fund, the Risk Insurance Fund, the Parks Acquisition Fund and the Budget Stabilization Fund, the money set aside two years ago to help us cover rising pension costs resulting in $30.2 million total.
"I recognize these are one-time monies. And I recognize that we are using one-time monies to meet recurring expenses,” Gorton said. "That’s not something we would normally do. But these are not normal times.”
As the city continues to grapple with high unemployment numbers Gorton says they will continue to focus on workforce development.