Louisville Mayor Greenberg's $1.1 billion budget proposal. Here are the highlights
Looking out from a podium in Louisville Metro Council chambers, Mayor Craig Greenberg showcased the highlights of his proposed $1.1 billion budget for fiscal year 2025.
Greenberg said he went through the budget "line by line."
"I found some areas that clearly need greater investment," he said." I found other budget items that might have been necessary once but need to be rethought."
In this budget, Greenberg said he prioritized fighting against "inertia," and making decisions because "'that's how it's always been done.'"
In preparation, Greenberg instructed city department leaders to make a minimum 1% cut of their "least necessary spending." He said this could look like cutting sponsorships or vacant positions. Re-evaluating is especially important now because American Rescue Plan funding is ending, Greenberg said. However, tax revenue is up about 4%, leaving the proposed budget at a similar total amount of money compared to last year.
The budget still has to be passed by Louisville Metro Council, which will review it in the coming weeks and vote June 20. While council members have not seen the details, many of them — on both sides of the political aisle — said they appreciated Greenberg's approach but are looking forward to delving more into the details.
"I appreciate the fact that we're going to, as he said, we're not going to allow inertia. We're going to look at each investment and make sure that the investment still makes sense," said Budget Committee Chair Councilman Rick Blackwell, a Democrat. "What may have made sense long ago, sometimes doesn't make sense now, particularly with changing priorities."
"I was really grateful to hear him talk about recognizing inertia (and) that there are programs that we have been paying for — since before merger, probably — that it feels like, 'We've always done this, we've always done this,'" said Budget Committee Vice Chair Councilman Kevin Kramer, a Republican. "There comes a time when you look at what we've always done and say, 'Does it still meet our needs?'"
While council members initially showed support for Greenberg's priorities, including affordable housing and public safety, many reiterated they will take a hard look at the budget's details.
"I am looking forward to taking a deeper dive into the budget to see where the expenses will absolutely match what the new proposals are," said Majority Caucus Chair Paula McCraney. "There are a lot of new proposals in this budget, particularly departments and new job opportunities and different employees to bring on board. I want to see how that's going to really fit with the dynamics of infrastructure, public safety, and everything else in between that our constituents are mainly concerned about."
As of 10 p.m. Thursday, the city had not released the full budget.
Here are some key takeaways from the mayor's budget proposal address:
Increase in city worker salaries
To compete with private businesses and other cities, Greenberg wants to "significantly" raise salaries for Metro employees "particularly in union positions and in critical and hard-to-fill jobs" At the end of February, the city had about a 26% vacancy rate — although the data is inexact — The Courier Journal previously reported.
"For example, a starting Metro EMT makes $18 an hour," Greenberg said. "EMTs who work for some of the suburban cities make more. St. Matthews pays $21 an hour. Fern Creek $22. Jeffersontown $23. We pay our first-year paramedics about $46,000 a year. Fern Creek pays $64,000. Okolona almost $71,000."
There is federal grant money for projects just "sitting on the sidelines," because there are not enough Metro employees, said Council President Markus Winkler.
Affordable housing
Greenberg emphasized the importance of investing in affordable housing. He proposed a $32 million investment "to meet the ambitious goal of creating or preserving 15,000 units of affordable housing units across the city by 2027."
The Louisville Housing Affordable Trust Fund will receive $15 million — the same amount as last year — despite Councilman Jecorey Arthur calling for it to receive $25 million "at least" at a Housing Not Handcuffs rally Monday.
In an uncommon move, the mayor allocated $238,000 to the Louisville Metro Housing Authority. The housing authority is not a Metro government agency, but the mayor appoints the executive board and director.
However, the housing authority is primarily under the federal Department of Housing and Urban Development.
"I call on our partners in the city, non-profits, businesses, everyone to show up and lend a hand if and when LMHA asks for help," Greenberg said. "We can and we will do better for the people who are counting on us and counting on the Louisville Metro Housing Authority."
LMHA public information officer Jailen Leavell said the housing authority is grateful for the mayor's proposed investment.
"With this vital support, we pledge to optimize every dollar's impact to enhance living conditions and provide essential housing support services to our residents within public housing complexes such as Dosker Manor and Avenue Plaza," he said.
Public safety
Greenberg proposed $448 million to go toward making Louisville a safer city and an 8.5% increase in the Louisville Metro Police Department budget.
“Far too many of our Louisville families have lost a loved one and had their worlds ripped apart by violence,” he said. “We must invest in the resources needed to identify the people taking part in these crimes so that we can get them off the streets, protect more lives and ultimately make Louisville a safer city.”
A majority of the proposed LMPD budget boost goes to increased wages, Greenberg said. Thursday night, the Metro Council passed contracts that include higher salaries for rank-and-file officers and LMPD higher-ups. Over four years, wages will increase by about 22%.
If approved, the public safety funding would go toward several other items including:
New license plate readers and MetroWatch cameras for LMPD
New search and rescue gear for the Louisville Fire Department
Emergency operations center upgrades
Addressing staff shortages
Consent decree monitoring
Homicide investigations
Firehouse repairs
Louisville streets and 'quality of life' investments
Greenberg's budget also calls for investments in improving travel and "quality of life" throughout Louisville.
He hopes to spend nearly $50 million on street paving, sidewalk repairs, guardrail replacements and traffic solutions. Greenberg mentioned establishing a city Department of Transportation — a project he allocated $250,000 to funding in fiscal year 2024.
While he did not reveal how much money would go toward the potential new department in this budget, Greenberg said the money "paves the way" for its creation.
Greenberg said the department would work closely with state and federal agencies — and the Transit Authority of River City (TARC). He did not indicate whether the TARC board's proposed budget, which spurred serious conversations about the agency's financial situation last week, was changed in his budget.
There is also more than $7.1 million for general park repairs. More than $2 million will go to create a new park ranger program, increasing wages for Public Works employees, opening libraries and reopening the Baxter Community Center.
Greenberg also pitched $5 million for the universal pre-K nonprofit Thrive by 5 Louisville, $1 million for the Kentucky College of Art and Design, $1 million for the Waterfront Botanical Garden, funding for the Belvedere redesign, money for Speed Art Park and money to reopen the swimming pools in Algonquin Park and Camp Taylor Memorial Park.
Reach reporter Eleanor McCrary at EMcCrary@courier-journal.com or at @ellie_mccrary on X, formerly known as Twitter.
This article originally appeared on Louisville Courier Journal: Mayor Craig Greenberg announces 2025 Louisville budget proposal
