Addressing Louisville’s Budget Shortfall Brought on by Pension Increases

As many of you are aware, Louisville Metro Government is facing potential drastic cost reductions in next year’s budget if the costs primarily associated with increased state pension liabilities are not offset at least in part by a revenue increase.

The city is proposing a 7.5% increase in taxes on insurance premiums on home, boat, and other insurance coverage. (Auto and health insurance are not included in this proposal.) Thanks to our hard work seeking a source for the LAHTF, we know this tax is low in Louisville, the increase is only dollars additional each month, and would create the income needed.

Without the increase, cuts would eliminate many of our members doing great work including Family Scholar House, Volunteers of America, Centerstone, Neighborhood Place, SummerWorks, Center for Women and Families, Elderserve, Community Ministries and more through the loss of EAF, NDF, and other city programs.

You can help support the increase in the insurance premium tax which has been proposed by the mayor and must be passed by Metro Council by March 22. You can also share with them the importance of making sure this increase means continued funding of the Louisville Affordable Housing Trust Fund.

Here is how you can act:

  • Contact your council person to let them know your story, how this will impact you and your agency, and to ask them to join in support of the revenue proposal or to specifically tell you how they will address potential service reductions through an alternative plan of revenue and cost cutting.
  • Attend one or more of these community hearings where council members are listening and making their decisions to share your story.

Thank you for your commitment to Louisville’s poor and homeless during this difficult time.