LOUISVILLE, Ky. — Louisville's budget may not be taking as big of a hit from the coronavirus pandemic as originally thought, announced city officials. The Louisville Metro Government budget forecasts for both the current fiscal year and the next have improved by roughly 2.5 percent, meaning the city won't have to take as much from its Rainy Day Fund. 

What You Need To Know


  • Louisville budget may not be as hard hit by pandemic as originally thought

  • Budget forecasts for current and next fiscal years improve by about 2.5 percent

  • City's chief financial officer urges caution

  • Louisville will still face shortfalls 

Chief Financial Officer Daniel Frockt said the estimated general fund revenue for Fiscal Year 2019-20 is $610 million, which is up from the $596 million Mayor Greg Fischer (D) announced in April. The estimated general fund revenue for Fiscal year 2020-21 is also at $610 million compared to $594 million in April.

The figure for Fiscal Year 2019-20 is still short $32 million compared to the $642 million predicted in the winter before the coronavirus pandemic forced businesses to close and led to mass unemployment. But wage earnings and profits have decreased less than revenue officials feared. 

While this may be a relief, Frockt remains cautious.

“The forecast continues to be extremely tenuous, as we’ve seen one fourth of the national workforce file for unemployment and one third of the Kentucky workforce.

“While the May totals were not as negative as anticipated, we still face structural budget challenges. We will continue to update monthly until we feel there is more certainty in the economy.”

Frockt also said that without intervention by Congress, structural budget challenges will force difficult decisions in the current fiscal year. 

The city will access $7.6 million of non-recurring funding and shift $5.8 million of road funds from the capital budget into the operating budget, making up a combined $13.4 million shortfall. The changes to this year's tax collection calendar will create an additional $11.5 million shortfall in Fiscal Year 2021-22. 

“While we expect to manage this sudden drop in revenue in the coming months, we will not be able to avoid cuts to vital services in the long-term, without additional revenue,” Frockt said.

 

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