LOUISVILLE (WHAS11) -- Could raising Kentucky’s sales tax help with a budget shortfall?
Mayor Greg Fischer said a combination of cuts and revenue is what will fix the $65 million budget gap.
This budget hole is mainly because of the state's pension problems. Earlier in February, the city council filed a proposed ordinance that would raise tax rates on home, life, marine and miscellaneous insurances.
Without these tax increases, Mayor Greg Fischer said there would be major cuts to public safety, community centers, and other programs.
Fischer said making those cuts would be a step back for the city and Louisville is making big strides.
"So it makes no sense to do anything that would make the people of Louisville less safe, but that is a possibility because you all have been covering this story and it's a possibility because of the $65 million budget challenge that our city faces as a result of the Kentucky retirement systems changes and calculating our pension obligation and not just for the city of Louisville, but for cities and counties all over Kentucky," Fischer said.
Kentucky currently has a six percent sales tax. Local governments can't increase the rate on their own. The change would need to be approved through a constitutional amendment.
The first of two public meetings for people raise concerns or comments is Thursday, Feb. 28, at 6 p.m. at Metro Hall
The Metro Council will vote on the potential budget cuts on March 21.
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