LEXINGTON, Ky. (May 26, 2020) – In the wake of Governor Andy Beshear’s announcement last week that Kentucky cities will receive federal coronavirus relief funds for COVID-related expenses, Mayor Linda Gorton today set priorities for how she will recommend that money be spent.
City government has several teams that have been working hard for weeks, putting together Lexington’s application for the funds. The city does not knowyet exactly which expenses will qualify as virus-related expenses.
“Even so, I felt it was clear to establish priorities now,” said Gorton, who has been a forceful advocate for federal assistance, telling state and federal officials, “our city needs help.”
Gorton said the city budget she had to propose in April made cuts that “hurt people who are in need of our help” because of plummeting revenue and mounting COVID-related expenses.
“It was not the kind of budget I wanted to present; it was the kind of budget the times demanded,” Gorton said. “With some federal assistance, we can do better.”
Gorton set priorities based for the federal dollars on community needs, and some on the city’s financial stability.
“It’s important to do both: provide for critical services, and ensure our city remains on a sustainable path financially,” Gorton said. “These are needs I could not fund in my proposed budget because of our funding shortfall.”
Because of the fall-out from COVID-19, the budget lost $40 million in previously expected tax revenue.
Priorities (in no particular order) include:
• Funding for the social service agencies we have supported in the past. Gorton also continues to raise private dollars for these agencies through her “Mayor’s Fund for the Greater Good” initiative.
• Providing funds for affordable housing and those who are experiencing homelessness.
• And replenishing the City’s Rainy Day Fund.
The city’s financial picture will continue to change, Gorton said.
“On April 28, when I presented my budget proposal, I said I felt our budget would go through several revisions because of the upheaval of the pandemic. That’s exactly what’s happening.”
The Lexington-Fayette Urban-County Council will ultimately vote on the how to spend federal dollars.
Council continues to debate and consider amendments to the Mayor’s proposed budget. The Council is expected to ratify the budget on June 9. The new budget goes into effect July 1.