Monday, December 13, 1999
Ludlow budget 6 months late
BY CINDY SCHROEDER
The Cincinnati Enquirer
LUDLOW — Six months into the fiscal year, Ludlow officials are struggling to adopt a budget, making theirs the only Northern Kentucky city — and possibly the only one in the commonwealth — operating on last year's budget.
“This is certainly the exception, rather than the rule,” said Bob Leonard, cities branch manager for Kentucky's Department for Local Government. “Most cities normally have their budget adopted by (July 1). Very seldom do you see them go this long.”
Officials in this Kenton County city of 4,700 offer a variety of reasons for their delay in adopting a budget, but most maintain it isn't affecting city operations.
“The services are going on just as if we'd passed a budget in July,” said Councilman Ben Cloud.
Some Ludlow officials have privately acknowledged that they are weary of fielding questions about the city's budget delays. However, none can offer a prediction aboutwhen one will be adopted.
Recommended cost-saving measures being considered Ludlow officials include such things as creation of a fire taxing district and transfer of the city's financially strapped water department to the Northern Kentucky Water Service District.
“I think this burden has been totally dumped on this council's shoulders,” Councilman Jack Redd said last week, as residents and city officials alike criticized Ludlow's long tradition of free spending without thought to future needs.
“I think this has been going on for eight to 10 years, and all of a sudden, you're in a bad position,” Ludlow resident Steve Chapman told City Council on Thursday. “It's up to you to make the tough decisions.”
In Kentucky, cities are the only government entity that can operate on a previous year's budget indefinitely without facing sanctions.
Public school districts have to file a copy of their current year's budget with the state Department of Education by Sept. 30, or risk losing state funds that make up more than half of their revenues.
At the county level, fiscal courts must adopt a balanced budget by July 1, or risk having the state take over county operations. County officials who continue to operate their government in violation of state law risk being shut down, sued — and in extreme cases — jailed.
“A few years ago, Breathitt County (Fiscal Court) wouldn't pass a balanced budget, so we took them to court, and the
judge ruled they had to balance their budget,” said Lonnie Campbell, county branch manager for the Department for Local Government. “The officials who'd voted against adopting a balanced budget ended up going to jail for two or three days, before they decided they'd had enough of that, and approved an occupational tax to balance their budget.”
Kentucky cities, however, face no such oversight when it comes to adopting annual budgets, said Bill Thielen, general counsel for the Ken tucky League of Cities.
This is not the first time a Northern Kentucky city has gone months past the July 1 deadline for budget adoption.
In 1997, a divided Independence City Council adopted a new budget four months into the fiscal year, after two hours of debate and a tie-breaking vote by Ike Gabbard, then mayor.
The following year, Independence passed its budget nearly two months late, after city officials expressed fears about how the delay would affect needed roadwork and employee morale.
This year, after election of a new mayor and a turnover on council, Independence officials adopted a budget by the start of the fiscal year.
“From my knowledge of Ludlow's situation, it sounds like the mayor and the council are having a little disagreement,” Mr. Leonard said. “The bottom line is, the mayor can put forth his plan, but once it gets to council, it's up to them. Both sides have got to come to some kind of resolution.”
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