We need the rainy day fund to weather the storm of this pandemic
In my long history of serving Lexington citizens, I have worked with six mayors and more than 50 council members, and I have been through many budget cycles.
Back in 2006 we created a rainy day fund to help us through tough economic times. No one imagined we could ever have a year as bad as 2020. Even before the first COVID-19 case, the mayor forecast a $22 million budget shortfall, which required a withdrawal from the rainy day fund. I don’t think we have seen the worst of this pandemic, either.
A little good news in these tough times is that Lexington is eligible for up to $25 million through the federal CARES Act. These funds are intended to provide for the costs of basic services, and to make up for revenues lost when our local economy came to a stop in the early days of the pandemic. I think we should use the money to replenish the rainy day fund and continue to pay for basic services, such as police, fire and all other essential city services and programs. We still don’t know the full impact of the pandemic and we need to weather this storm with money in the rainy day fund.
In the days ahead, I will not support various proposals to use CARES funds for certain non-profit service providers. Believe me, I think the programs are necessary and worthwhile, and I appreciate the services these agencies provide in our community. However, when we use one-time money to fund recurring expenses, we create a situation where tax increases and/or layoffs may become necessary.
Unemployment is high and local businesses have been hit hard by this pandemic so now is not the time to raise taxes. City employee layoffs would cut social service programs that provide essential services to the people who need them the most. It is our fiscal responsibility to provide basic services and the rainy day fund is intended to help us through the worst of times. We will get through this pandemic, but the storm is not over yet. We need the rainy day fund.
Richard Moloney is an At-Large Councilmember of the Lexington-Fayette Urban County Council.