Covid-19 has created a crisis situation for Lexington’s finances. Mayor Linda Gorton began her annual budget speech Tuesday with a simple statement. “Crafting a budget for a city of 325 thousand people is always a challenge, crafting a budget while also managing a coronavirus state of emergency, it’s just plain hard,” announced Gorton.
Calling it a “crisis budget,” Gorton laid out ways to make up for an expected $49 million loss in revenues with no tax increases, no layoffs of permanent workers, no pay increases, and no new positions. Among other things the mayor is calling for more than $12 million in various cuts internally and reducing funding to outside agencies by $6 million. “With this budget we will not have to claim bankruptcy. We can manage our cash to stay afloat. We can keep out city on a sustainable path financially. I have confidence Lexington’s economy will adjust to this uncertainty,” explained Gorton.
In addition to the cutbacks, Gorton said more than $30 million will come from a variety of other funds including $13 million from the rainy day fund, a fund not touched since it was established in the 1990’s.
The mayor said this is a time when citizens may be able to offer more help to non-profit social service groups. “This is an important opportunity for our citizens. If you can afford to help these agencies and the people who depend on them, now is the time,” said Gorton.
Gorton said the budget still maintains focus on public safety, sewers, sanitation, and roads.
The mayor’s plan suspends direct funding for LexArts, but provides for a grant of up to $200,000 to match funds raised by the arts organization.?
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