LEXINGTON, Ky. (LEX 18) — Mayor Linda Gorton announced Monday that she will present a nearly $40 million dollar decrease in revenue for the FY 20-21 budget year.
“This kind of drop is unprecedented in the 46-year history of the Urban-County Government,” Gorton said. “It represents a decrease of over 10% in our General Fund revenues. This will be painful.”
“This is not the kind of budget I want to propose, but it is the kind of budget that is fiscally responsible for the times,” Gorton said. “The economic impact of the pandemic is sudden and deep. We have no experience with anything like this. Even so, I have confidence Lexington will adjust to this uncertainty. The government will weather this event and be ready to help rebuild our economy.”
Mayor Gorton says that Lexington is fortunate, because it will not have to claim bankruptcy and will emerge from the pandemic.
The General Fund Budget for Lexington heavily depends on the occupational license fee, or payroll tax, and the net profits tax on businesses.
Since the COVID-19 outbreak, there has been a drop in economic activity. Since the beginning of March, officials say over 18% of local citizens in Lexington have filed for unemployment.