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Mayor Announces Budget Cuts

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 daysand placing non-essential employees on unpaid furloughs         Saves $2.9 millionService reductions (libraries, parks etc) and grant cuts                Saves $3.4 millionHiring freeze                                                                                Saves $2 millionRestricting travel, office, training expenses                                 Saves $1.9 million10 percent pay cuts for mayor, directors                                     Saves $205,0003 percent General Fund reductions forelected officials, agencies                                                           Saves $585,000Reducing overtime                                                                       Saves $2.4 millionTraining class changes (merge two police classes, delayfire and corrections clases by six weeks)                                     Saves $1.2 millionOperating savings (contracts, telephone services, etc)                Saves $1.3 millionRevising take-home car program (increase monthly chargeto $100 for take home only, $160 for second job use)                Saves $500,000Delaying capital projects (click for details) Saves $3.6 million-----------------------------------------------------------------TOTAL SAVINGS                                                                              $20 million

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