Last week, Mayor Craig Greenberg unveiled his FY 2025–26 budget, launching Metro Council’s fast-paced push to finalize the city’s spending plan before June 30. Over the next six weeks, Council will hold a marathon of public hearings and behind-the-scenes negotiations that shape everything from library hours to housing investments.
Yet for most residents, the process remains opaque and inaccessible. Strengthening civic engagement means ensuring people can understand what’s happening. When budget decisions are translated clearly and shared widely, more Louisvillians can speak up, weigh in, and help steer the city’s priorities in real time.
We at CFN watch this process closely, and we’re using AI to help make our research and insights available to you, public officials and other civic engagement enthusiasts in ways never before possible. As a first exercise, we asked ChatGPT to answer a number of questions we would have about the budget address and got these answers. If this is your thing, stay tuned for more in the coming weeks!
Summary of Budget Changes for Louisville Metro Government
FY 2025–2026
Overall Themes
The FY 2025–2026 budget focuses on:
- Public safety enhancements
- Government efficiency (e.g., AI integration)
- Early childhood and youth services
- Wage increases (5% raise for non-union employees)
- Infrastructure, housing, and cleanliness initiatives
Departments with the Largest Increases
1. Public Works & Assets
- Increase: Over $10 million
- Details:
- $1.75M for city cleanliness efforts (street sweeping, litter baskets)
- 32 new positions transferred from Office of Planning
- Transportation-related planning responsibilities added
2. Office of Management & Budget (OMB)
- Increase: Approx. $13.7 million
- Details:
- $6M to fund suburban EMS runs inside the Urban Services District
- $7.5M for non-union employee wage adjustments
- $600K to Evolve502
- $100K to TARC for Metro employee ridership program
3. Louisville Metro Police Department (LMPD)
- Increase: Net increase despite some line-item cuts
- Details:
- $750K for consent decree monitoring
- $1.02M to continue protactical performance contract
- 5 positions transferred in from Records Compliance
- Despite these, $3.55M in reductions in specific areas (see decreases below)
4. Parks & Recreation
- Increase: Over $1 million
- Details:
- $423K for staffing/security at Algonquin & Camp Taylor pools
- $300K to YMCA for early learning readiness
- Transfers in funds for conservation and cooperative extension ($363K)
5. Metro Technology Services
- Increase: Approx. $3.4 million
- Details:
- $1.89M for new AI programs
- $1.53M for computer replacements
- 4 new positions added, 3 more transferred in
Departments with the Largest Decreases
1. Office of Strategic Initiatives (formerly Office of Philanthropy)
- Decrease: $4.48 million
- Cause: End of state-required funding for Thrive by Five initiative (mineral severance tax)
2. LMPD – Specific Line Items
- Reductions Totaling $3.55 million:
- $2M in non-scheduled overtime
- $948.5K in safety/security equipment
- $400K in safety supplies
- $200K in advertising
3. Sister Cities Program (Economic Development)
- Eliminated: $30,000
4. Brightside
- Decrease: One full-time position eliminated
Other Notable Increases
- Library: $1M for books and reopening Fern Creek branch (with match from Foundation)
- Office of Social Services: $1M to Volunteers of America, $500K to Dare to Care
- Emergency Services: $1.6M for drone program and 9-1-1 call triage nurses
- Metro Animal Services: $350K for operations and humane society programs
Takeaway
The 2025–2026 budget invests heavily in:
- Public safety
- Staffing and compensation
- Infrastructure and cleanliness
- Youth and early education
At the same time, it phases out or consolidates select initiatives (e.g., Thrive by Five, Sister Cities) to reallocate resources.
FY 2025–2026 Recommended Budget
Total Revenue Forecast
- Total Available Funds: $953.1 million
- Increase from FY25: $35.8 million (+3.9%)
- General Fund (GF) Revenue: $876 million (up from $857.8M in FY25)
- Growth Rate (GF only): +2.1%
- Excluding debt and fees: GF revenue grows by +2.6%
Key Revenue Increases
1. Employee Withholdings (Payroll Tax)
- FY26 Estimate: $397.7 million
- Growth: +3.9% from FY25
- Share of GF Revenue: 45%
- Note: Adjusted intrinsic growth rate is 4.5% due to a prior-year reporting anomaly
2. Real & Personal Property Taxes
- FY26 Estimate: $201 million
- Growth: +4.3%
- Share of GF Revenue: 23%
- Factors: Higher property assessments and rate adjustments
3. Insurance Premium Taxes
- FY26 Estimate: $99.7 million
- Growth: +4.0%
- Share of GF Revenue: 11%
4. Local Corporate Net Profits
- FY26 Estimate: $103.5 million
- Growth: +1.8%
- Share of GF Revenue: 12%
5. Water Company Dividend
- FY26 Estimate: $37.7 million
- Increase: Up from $33.9M in FY25
- Reason: Rolling 3-year average formula now includes previous pension obligation adjustments
Revenue Holding Flat
- Municipal Aid & County Road Aid:
- FY26 Estimate: $14.3 million
- No Change from FY25
Revenue Decreases
1. Mineral Severance Taxes
- FY26 Estimate: $520,000
- Decrease: Down from $610,000
- Reason: Reduction in state-level extraction revenues
2. Election Expense Refund
- FY26 Estimate: $160,000
- Decrease: From $311,000
- Reason: Fewer elections scheduled in FY26
3. Investment Income
- FY26 Estimate: $7.67 million
- Decrease: From $16.68 million in FY25
- Reason: Lower projected interest rates and capital gains
Revenue Breakdown by Source (FY26)
| Revenue Source | % of Total Revenue |
| Occupational Taxes | 56.2% |
| Property Taxes | 23.5% |
| Insurance Premium & Net Profits | 23% (combined) |
| Water Company Dividend | 4.0% |
| Licenses & Permits | 3.2% |
| Charges for Services | 2.4% |
| Intergovernmental Revenue | 1.6% |
| Municipal/County Road Aid | 1.5% |
| Community Development (Federal) | 1.2% |
| Other/Capital Funds | 5.4% |
Overview of New Capital Spending
Louisville Metro Government FY 2025–2026
Total Capital Budget:
$240.3 million
- Funded by:
- Federal funds: $70.8M (29.4%)
- Bonds: $69.2M (28.8%)
- Capital Fund (Local): $34.6M (14.4%)
- State funds: $15.3M (6.4%)
- Other funds: Notes, Agency Receipts, CDBG, etc.
Major Capital Project Categories
1. Infrastructure & Streets
- Metro Street Paving: $30M
- Sidewalk Repair & Alley Paving: $3M
- West Louisville Streetscape & 2nd/3rd St Conversions: $12.7M
- Trail & Bike Projects (Louisville Loop, Highland Park Bike Park, etc.): $10M+
2.
Parks & Recreation
- Deferred Maintenance: $3.2M
- GG Moore Park Improvements: $500K
- Olmsted Park Match Projects: $1.25M
- Environmental Resiliency (Urban Tree Canopy): $250K
3. Libraries
- Fern Creek Library Project: $2M (State-funded)
- Capital Campaign (Main, Parkland, Portland Libraries): $7.65M
4. Public Safety & Facilities
- LMPD HQ Renovation: $9.25M
- Fleet Replacement (Police, Fire, EMS, Parks): $17.1M
- ADA Compliance for Metro Websites: $445K
- Data Center Upgrades & Cybersecurity: $5.75M
5. Housing & Community Development
- Affordable Housing Trust Fund: $15M
- Homeowner & Rental Preservation: $3.4M
- Shelter Renovation & Ramp Removal: $1.2M
- One West Capital Improvements: $1.1M
6. Economic Development
- South & East End Infrastructure Funds: $6M
- Downtown Infrastructure Fund: $2.5M
- Simmons College STEAM Hub: $3M
7. Other Notable Projects
- Transit Hub Acquisition: $3M
- Election Poll Books (Clerk’s Office): $4.07M
- Flood Gate Upgrades at Slugger Field: $215K
- Kentucky Science Center Maintenance: $300K
Capital Spending by Function
| Function | Share of Capital Budget |
| Public Health & Services | 58.4% |
| Economic Development | 16.3% |
| Operations & Budget | 17.0% |
| Chief of Police | 1.5% |
| Emergency Services | 2.4% |
| Elected Officials (combined) | 4.4% |