Bowling Green proposes smaller budget for FY2027, cites decline in occupational tax revenue
BOWLING GREEN, Ky. — For the first time in several years, Bowling Green is proposing a smaller city budget, reversing a trend of record growth while officials say the city remains financially stable and residents should not expect cuts to services.
The proposed Fiscal Year 2027 budget totals $180.8 million across all city funds, down from $188.7 million in Fiscal Year 2026. The city’s General Fund budget would also decrease from approximately $116.9 million to $110.2 million.
According to Bowling Green City Manager Jeff Meisel, much of the decline is tied to lower projected occupational tax revenues.
“Most of that fell in the occupational tax category,” Meisel said. “When you really focus in on it at the General Fund, it was a reduction of roughly $6.7 million.”
Occupational taxes are collected from wages earned by people who work within Bowling Green city limits. The city’s occupational tax rate is currently 2%.
While the budget decrease may raise concerns for some residents, Meisel said the proposal should be viewed as a temporary adjustment rather than a warning sign for the local economy.
“I think it’s just a temporary correction,” Meisel said. “We’ve just seen a couple of industries slow down a little bit, different sectors around our economy. Just little pockets here and there. We had some reductions in employment, and so I think they’ll come back as we add more new jobs in the coming years.”
Meisel noted that the current reduction is significantly smaller than budget adjustments the city made during the Great Recession and the COVID-19 pandemic.
Despite the smaller budget, city officials say residents should not notice any reduction in services.
“There will be no direct service cuts planned with this budget reduction,” Meisel said. “Everything will continue to be provided as it is today.”
However, the city is taking a cautious approach when it comes to staffing.
Officials have decided not to add any new personnel positions in the upcoming budget, including potential additions within police and fire departments.
“We decided not to consider any additional personnel this year, including our public safety police and fire,” Meisel said. “We always want to try to add a little bit there, but I feel like we’ll be able to catch that up once revenues return to normal growth.”
Meisel emphasized that Bowling Green remains in a strong financial position. He said the city continues to maintain reserve funds above its required minimum level and has resources available to respond to emergencies such as severe weather or other unexpected events.
When revenues soften, Meisel said the city focuses on maintaining a structurally balanced budget rather than relying on reserve funds to cover everyday operating expenses.
“You don’t ever want to use reserves for operating expenses,” Meisel said. “That just gets you further and further behind and gets you in trouble.”
City leaders will continue reviewing the proposed budget before final approval ahead of the new fiscal year.
