LOUISVILLE, Ky. — Louisville is expecting a stronger revenue outlook for this year than originally forecast even though most of the funds are yet to be collected.
Daniel Frockt, the city’s chief financial officer, announced the mid-year budget update Thursday, The numbers are based on data from the first six months of the fiscal year, through Dec. 31, 2020.
The general fund revenue is about $34 million, or 5.5%, higher than expected last summer.
The increase is based largely on payroll taxes and corporate net profits taxes, which make up a bulk of Louisville’s revenue streams. Unlike property and payroll taxes the city collects on companies’ profits can swing wildly — up or down — based on factors including federal tax policy.
The Bureau of Labor Statistics (BLS) reported Louisville’s unemployment rate was 5% in December, down from a peak of nearly 17% in April, the month after Kentucky officials confirmed the first COVID-19 case in the state.
In December 2019, the city’s unemployment rate was 3.3%, according to the BLS.