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Councilwoman McCraney
601 W. Jefferson Street
(502) 574-1107
Email Councilwoman McCraney
Visit the District 7 Website
Phone Numbers
of Interest
Air Pollution: 574-6000
Animal Services: 363-6609
or 361-1318
Anonymous Tipline:
574-LMPD (5673)
Brightside: 574-2613
Jefferson County Clerk's Office: 574-5700
Legal Aid: 584-1254
Metro Call: 311 or 574-5000
Metro Parks: 456-8100
Metro Police: (Non Emergency) 574-7111 or 574-2111
Metro Safe: 572-3460
or 574-7111
MSD: 587-0603
PARC: 569-6222
Poison Control: 589-8222
Public Works: 574-5810
Solid Waste Management (SWMS): 574-3571
TARC: 585-1234
Veteran's Affairs: 595-4447
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Hello Neighbors,
With a Louisville Metro budget crisis on our hands, we find ourselves on both ends of a spectrum. As a community, we have positive momentum in many areas – a growing economy, low unemployment, and ratings in the top quartile of municipalities by Fitch Ratings, Inc. and Moody’s Investors Service. But on the other end of the spectrum, we must address a budget shortfall, and that is never an easy thing to do. From my perspective, our city is transitioning in ways that many of us have never seen before, and at every turn, there are uncertainties that make it difficult to predict the future.
According to the city’s Office for Management and Budget, Louisville Metro faces a $65 million general fund budget gap over the next for years, caused largely by newly mandated pension increases from the Kentucky Retirement Systems. This amounts to $86 million in the fiscal year that ends June 30 and grows to $97 million in the fiscal year that starts July 1, and up to $136 million in fiscal year 2023.
To address this issue, Mayor Fischer has proposed to increase a current 5% insurance premium tax to 12.5% in fiscal years (FY) 2020 and 2021, 13.5% in FY 2022, and 15% in FY 2023. The insurance policies affected include: Life, Home, Fire, Casualty, Marine and Miscellaneous (malpractice and extra liability policies). Currently, health insurance and auto insurance are exempted.
What are our options? Cut the budget, increase revenues, or realize a combination of both. Some say that bringing in more tax revenue probably wouldn’t do anything to reduce the deficit right now because they believe we don’t have a revenue problem in the city, we have a spending problem. As such, we must demand from Louisville Metro government that things be done differently. It must be mindful of all operational expenditures; eliminate unfilled positions and implement a hiring freeze; restructure administrative functions and departments; refrain from introducing costly new initiatives and programs; think about ways to maximize efficiencies; and lobby Frankfort to leverage our revenue options.
The revenue options available to us today without Frankfort’s involvement, a referendum or a constitutional amendment include:
- Property Tax Increase (an increase of more than 4% is subject to recall by voters) (doubling the tax would raise $70-75 million)
- Utility Franchise Fee (5% fee generates $13 million; can’t be applied to suburban cities)
- Car Rental Tax (3% tax maximum would create $500,000- $1 million annually)
- Insurance Premium Tax Increase
The revenue options NOT available in FY 2020 include:
- Transient Room Tax (requires a constitutional amendment)
- Restaurant Tax (requires state legislature votes)
- Occupational License Fee (requires state legislature votes)
- Local Option Sales Tax (requires state legislature vote)
Budget reductions or a combination of budget cuts and revenue have been discussed at the Metro Council. Managing budget reductions is painful. There is no hidden financial resource we can tap and there is no non-specific “fat” or other low-hanging fruit that can be eliminated to completely solve our problems. Nor can our city simply turn to capital projects spending, external grants, or the rainy-day fund to shore up our operating budget. These funds cannot ethically or legally be used for that purpose.
As far as cuts are concerned, the Metro Council understands the importance of maintaining essential public safety services – police, fire and emergency medical services. We are therefore rejecting the mayor’s suggestion that they be included in the budget cuts. The Metro council is currently discussing cuts such as our Metro Council Neighborhood Development Funds (an estimated savings of $520,000), take home vehicles for Louisville Metro non-essential employees, FY 2020 cost of living adjustments for Louisville Metro employees, and 5% salary cuts or furloughs for all Metro employees earning $90,000+ annually.
In addition to specific cuts, a newly formed Ad Hoc Committee has been formed to investigate long-term structural savings. I have been appointed to serve on this committee. We will look into consolidating departments and privatizing such entities as the Louisville Zoo, Belle of Louisville, PARC (downtown parking facilities) and golf courses.
It is important that as a community we recognize these constraints and the role we all play in the difficult decisions being made as we work together to right size the budget based on current realities. We must work together, sharing ideas and feedback in order to reduce and eliminate our financial deficit. Together we will move forward and continue to build upon our strengths.
Our city has been faced with obstacles and challenges in the past, and through each of those times, we have persevered; we have found a way to come together; and we have continued to improve our reputation and status as a compassionate city. I am confident that even with this new set of challenges, our resolve as a city will be unchanged, and we will harness the grit that fuels each of us to continue moving forward. We must be committed to running a streamlined government that doesn’t skimp on service. The careful approach being taken by the Metro Council will serve us well and carry us through fiscal year 2020 and into the future.
Thank you for your patience as we work through this most difficult process, and please know this,
- I am a NO vote to the current proposal handed to us by the mayor and as the current ordinance is written.
- I am advocating a one-year fix to address the pension issue, and not a four-year tax plan. This will give us the necessary time we need to dig deeply to find palatable cuts.
- I support increasing revenue and making cuts to satisfy the pension bill only. I will not support the current plan to pay for the shortfall in healthcare costs or a built-in surplus.
- I will make sure the language in the ordinance clearly states that new revenue (including any tax increase that might get voted in) is earmarked solely for pension crisis – ONLY.
- While I do not want to vote on ANY tax increase, the reality is, if we cannot find $20 million in cuts (not including essential public safety or social services) to satisfy the
one-year pension obligation (which, by law, must be paid), an increase in taxes must be implemented because the law requires a balanced budget. I will NOT, however, vote for an insurance premium tax increase above 1.5% in 2020. My support of this tax increase comes with a stipulation that the rate hike will sunset - (expire).
Tough times call for tough decisions. We will get through this. My mother would say, as she comforted us through difficult times, “this too shall pass.”
Respectfully,
Councilwoman Paula McCraney
 Mr. Daniel Frockt, CFO, Louisville Metro Office For Management and Budget, and the Honorable John M. DeWeese, Mayor of City of Riverwood and President of Professionals' Insurance Agency, Inc. discussing the insurance premium tax proposal at a forum hosted by several Metro Councilmembers on March 6
 In the early 1900's Suffragettes forged purposeful action for equality. Suffragettes started International Women's Day with the first officially named "International Women's Day" event held in 1911. Today, the ten values that guide International Women's Day are justice, dignity, hope, equality, collaboration, tenacity, appreciation, respect, empathy, and forgiveness.
Remember to spring your clocks forward an hour before you got to sleep this Saturday night. It's the time of year for Day Light Saving, but why do we lose an extra hour of rest every second Sunday in March?
The United States adopted Day Light Saving During World War I under the Standard Time Act of March 19, 1918. The reason for implementing DST was to save energy. People thought more daylight in the evening hours would lower the amount of lights and electricity used in a twenty-four hour period. In 2005, the Department of Energy performed a study which found the equivalent of the power used by 100,000 households for a whole year is saved during the time period Daylight Saving Time takes place. So Daylight Saving Time could be saving you some money on your LG&E bill every month!
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