LOUISVILLE, Ky. (WHAS11) – How will the city solve its $65 million budget shortfall?
That’s the question on the minds of concerned citizens as city officials will hold the second and final public hearing on the proposed Insurance Tax Ordinance Monday.
How did we get here?
Officials say the budget gap is mainly due to the state’s pension problems.
Mayor Greg Fischer believes a combination of cuts and revenue could fix it.
Metro Councilmembers filed a proposed ordinance in early February that would raise tax rates on home, life, marine and miscellaneous insurances.
Those rates would increase from 5 percent to 12.5 percent in 2020 and 2021, 13.5 percent in 2022 and 15 percent in 2023.
Officials say auto insurance would not be affected.
RELATED: Mayor Fischer announces proposal to increase insurance premium tax rates to avoid budget cuts
Without those increases, Fischer says major cuts could come to public safety, community centers and other programs.
He believes that if those cuts were to happen, it would be a huge step back for Louisville and the city is making big strides.
For those who want to attend the meeting, it gets underway at 6 p.m. at City Hall on West Jefferson Street.
Metro Council will vote on the potential cuts on March 21.