PIKEVILLE – A proposed occupational tax hike for Pike County is off the table, and county officials are now saying cuts will have to take place.

The 1 percent proposed increase was taken off the table, according to Pike Judge-Executive Wayne T. Rutherford, who said there would not be enough votes to carry the ordinance.

During a work session Tuesday, residents opposing the increase spoke out and learned that the increase was set aside, but were told in return that it would mean cuts in other areas of the county budget, including layoffs and furloughs.

Rutherford said layoffs had been discussed, but did not elaborate, citing the fact that such discussions fell under personnel business and could not be shared until final decisions were made in regard to any action that might be taken in the coming weeks.

The county is currently facing a budget shortfall of about $3 million, due, according to officials, to less coal severance and property taxes coming into county coffers.

Additionally, county officials have said there is no revenue coming into the county, without specifying during Tuesday’s work session further into that statement.

Layoffs would account for $1 million in cuts, officials say, with other employees seeing furloughs and no raises. Officials have also mentioned cuts in funding to parks, the county jail, swimming pools and restrictions in regard to county employees taking county vehicles home after work.

Pike officials have said a budget needs to be finalized by June.