Council Members Offer Alternative Plan to Deal With Pension Situation, Budget Cuts and New Revenue
An alternative proposal has been offered to deal with the
It calls for raising the insurance tax rate on all forms of insurance, other than health, in a more conservative manner and raising the car rental fee. It also calls for cuts or policy changes in Metro Government departments and all levels of management.
"Over the past several weeks, we have heard from constituents and agencies and have been working together to find an alternative solution that represents an appropriate balance of cuts with new revenue. We believe this proposal represents that balance," says Councilman
"From the beginning, I have said that solving this problem will require both new revenue and an acceleration of the cuts we started last year. While there is no consensus on all cuts, which will ultimately be determined as part of the budget process, it's clear the public and Council members want a balanced approach. I have been working with Councilman Winkler on this proposal and applaud his efforts," said Councilman
"I think it is vitally important to ensure for at least the next four years with this increased pension obligation that our employees, community partners and constituents know fully what they can expect from their government. That's the least we can do and that's what this proposal does," says Councilman
The insurance tax rate will be increased to 9% for the next two fiscal years, then increase to 10% in the following two years. Auto insurance would be slowly phased in beginning in FY 2021 and increase from 5% to just 6.5% by FY 2023. The rental car tax would increase to generate up to
The plan estimates these increases would generate as much as
To balance these increases, there is a call for cuts or policy changes in departments of Metro Government. The administration is being asked to consider some of the following areas to determine potential impact and feasibility:
Hiring freeze for all non-revenue producing positions and non-essential spending
Beginning July, 5% salary cut or furloughs for all employees earning over
Cut every Metro Council NDF or Cost Center account by
Increase Metro employee health insurance premiums
Eliminate COLAs for FY 20
Eliminate all take home vehicles (with minimal public safety exemptions)
Move USD to alternating weekly yard waste and recycling
No yard waste collection in winter
Move the Belle of
Return Youth Detention Services responsibility to the
Eliminate funding for the Living Room
Eliminate capital budget spending on bike lanes for at least two years
Reduce budgets in every department, focusing on management and communications positions
Eliminate suburban street sweeping
Reduce EMS service by one ambulance in areas where suburban districts provide service
Reduce /eliminate Council designated funds
"These potential cuts are significant and will be felt across all districts and areas of service but will address the structural deficit. Additional work will be needed to address the full balance of the pension obligation in FY23 and beyond. We are hopeful that the work of the
The alternative plan calls for asking the
Long-Term Care Technologies Market Latest Advancement and Global Outlook 2019 to 2024
Democrats in legislature roll out ‘public option’ health insurance as insurers, business question if it will offset rising costs
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News