news & Insights

May 1, 2025

Behind the City’s Budget + Why It Matters

Center for Neighborhoods

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 RevenueOccupational Taxes56.2%Property Taxes23.5%Insurance Premium & Net Profits23% (combined)Water Company Dividend4.0%Licenses & Permits3.2%Charges for Services2.4%Intergovernmental Revenue1.6%Municipal/County Road Aid1.5%Community Development (Federal)1.2%Other/Capital Funds5.4%

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

FunctionShare of Capital BudgetPublic Health & Services58.4%Economic Development16.3%Operations & Budget17.0%Chief of Police1.5%Emergency Services2.4%Elected Officials (combined)4.4%           


For 50 years, Center for Neighborhoods (501c3) has cultivated and educated grass


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By Center For Neighborhoods • September 30, 2026
Start with Neighbors, then Follow their lead  Yesterday, Mayor Craig Greenberg stood in Russell and announced 25 new permanently affordable homes on Elliott Avenue. In that presentation, there was one thing not apparent: Russell: A Place of Promise, the neighborhood's community land trust, is leading the project. Its partners include The Housing Partnership, Inc., Louisville Metro Government, which is investing $1.45 million, and the Louisville Affordable Housing Trust Fund, which is adding $1 million. The homes are the part people will see. The part that made them possible started years ago, on front porches, when organizers knocked on doors and asked Russell residents what they wanted for their neighborhood. Then they kept listening, and eventually they handed residents the keys to the process itself. The most important asset is already there Asset Based Community Development starts from a simple idea: the people who live in a neighborhood are its foundation. Residents know which blocks are changing, which elders everyone trusts, and what a new development will mean for the family next door. No consultant can bring that knowledge in from outside. Russell has plenty to build on. It was once a hub of Black-owned businesses that created jobs and a center of Black homeownership. It is also a neighborhood that lived through redlining and urban renewal, and through decades of plans made about Black residents instead of with them. A resident-first approach takes both parts of that history seriously. How Russell did it Two leaders have carried this work from the start. Cassandra Webb and Theresa Zawacki, RPOP's Interim Co-Executive Directors, have led the initiative since its beginning, bringing backgrounds in community organizing and urban planning. That pairing matters. Organizing and planning worked side by side from the first day, instead of planning going first and outreach coming later. Webb has explained that the team chose from the beginning to invest in people first, because community development too often treats people as an afterthought. Zawacki has described the work as building shared decision-making and shared learning with Russell residents. The early work was slow and personal. Since 2018, RPOP has canvassed the neighborhood, held events large and small, and set up neighborhood pop-ups with resources. Those conversations grew into organized groups of residents. In 2020, the Russell for Russell Resident Coalition brought together 26 Black Russell residents between the ages of 22 and 72, and their work produced the Russell Partnership Pledge, a set of shared values that still guides RPOP. Residents didn't only give feedback on someone else's plan. RPOP's structure as a nonprofit community land trust, and its founding board members, came out of a multi-year shared learning process in which Russell residents worked with RPOP to define the organization's future. Today RPOP's board is made up mostly of community members who take part directly in land use planning. A community land trust works like this: residents buy the house while the land stays in trust, which lowers the cost of owning a home and caps resale prices so the home stays affordable for the next family. Residents picked this tool because it answers the question they kept raising. How do we welcome investment without being pushed out by it? What a resident-first process asks of us Russell's path breaks down into four steps. Each one builds on the one before it, and none of them can be skipped. Step 1: Go find people where they are. A meeting notice on a website reaches the people who already come to meetings. Knocking on doors reaches everyone else. In Russell, this meant years of canvassing, pop-ups, and events before anyone talked about a plan. Step 2: Let residents set the priorities. Once people are at the table, ask what matters most to them, and accept the answer even when it differs from what the city or a funder expected. A plan built on residents' priorities is stronger because neighbors will defend it. Step 3: Hand over the lead. Input sessions ask residents what they think. A resident-led process asks residents to decide, then gives them seats on the board that carries out the decision. In Russell, that board is made up mostly of community members. Step 4: Plan for years, and budget for them. RPOP launched in 2018. The homes announced today are breaking ground in 2026. That time was work, not a delay, and funders and the city have to pay for it the same way they pay for construction. Metro already knows how to do this For city leaders, the best news in Russell's story is that Metro helped start it. RPOP launched in 2018 with incubation from Cities United and Louisville Metro Government, and fiscal sponsorship from the Community Foundation of Louisville. Fiscal sponsorship means an established nonprofit handles the money and paperwork so a new effort can get started before it has its own nonprofit status. Metro also lent its own people. Zawacki left her position as Senior Policy Advisor to Louisville Forward to serve as an Executive on Loan to the initiative during its early years. And Metro has committed land: the former American Cigar Company site at 30th and Madison is owned by Louisville Metro Government with a formal commitment to RPOP, and residents plan to make it a mixed commercial and residential campus. Staff time, patient support, public land, and trust in residents' decisions made today's announcement possible. None of those are unusual tools. Metro can offer them to other neighborhoods on purpose. The ask Before Metro funds the next neighborhood plan in Louisville, build the RPOP steps into the contract from the start. Pay for door knocking and years of organizing, not only the final document. Require that residents set the priorities and hold seats on whatever body carries the plan forward. And when public land is on the table, offer it first to the residents who wrote the plan. Russell's neighbors did the hard work of deciding what their neighborhood needs. Twenty-five families on Elliott Avenue will soon live in the result.
Modern storefronts at dusk with lit windows, trees, parked cars, and floating profile icons over the street.
By Center For Neighborhoods • September 28, 2026
How much of the commercial property in a neighborhood is owned by the people who live around it, and how much wealth has that ownership built for them? No one can answer. There is no registry, no reporting standard and no annual number. Capital allocates to what it can see, and this category is nearly invisible.
By Center For Neighborhoods • September 24, 2026
If you followed this year's fight over data centers in Jefferson County, you've already seen the Land Development Code at work. The packed public hearings, proposed setbacks from homes and schools, and Planning Commission's 5-3 vote in September all came down to rules about what gets built where. The same code that determines how close a 500,000-square-foot server farm can sit to a house also decides whether your street can have a duplex, a corner store, or a sidewalk that leads somewhere. Louisville is now rewriting that code in full for the first time since 2003. The Land Development Code puts the city's comprehensive plan, Plan 2040, into practice. It defines single-family and duplex lots, determines which businesses can open on commercial corridors, and sets rules for subdivision plats, signs, landscaping, and connections to transit. It applies to every neighborhood in Jefferson County outside the 12 independent cities. In 2020, Metro Council passed Resolution 82, directing the Office of Planning to recommend changes that would make development more equitable and inclusive. A HUD grant is funding the full rewrite. The goals are to bring the code up to date, make it easier for residents and applicants to navigate, and use language people can understand without a lawyer. In West and South Louisville, decades of disinvestment have left neighborhoods with walkable streets and small lots that could support duplexes and corner apartment buildings. But the code still limits most of those blocks to single-family homes. Neighbors can't legally rebuild the density that once existed there. The Highlands has nearly identical old streets and mostly allows that housing mix today, which helps explain why it looks the way it does. Farther out, in wealthier, less dense parts of the county, large-lot, single-family-only zoning continues to keep density and diverse neighbors out, just as it was designed to do almost a century ago. An equitable rewrite needs to address those restrictions along with the barriers in West and South Louisville. Neighborhoods that used zoning to stay closed off should be part of the change. For families, the rewrite could change the housing choices available on their block. Across much of the city, single-family-only zoning rules out duplexes, accessory units, and small apartment buildings that help keep neighborhoods affordable for multiple generations of the same family. Small businesses face their own barriers. Rigid commercial zoning can make it hard to open a corner store, restaurant, or home-based business on a street where neighbors already walk and want those services. The new rules will help determine what housing and businesses are possible in your neighborhood for years. CFN's Policy Hub explains how zoning works, what form districts are, and how a text amendment such as the data center rules moves through Metro Council. Its plain-language zoning and planning overview is one of the site's most-visited pages. The update runs through December 2028. Plans call for 12 public meetings in three rounds, with planning staff office hours after each round. There will also be six focus groups, including one for neighborhood organizations, and neighborhood walking tours. Before the first round of meetings, the Office of Planning is holding Community Dinner Conversations for neighborhoods that have historically been left out of planning discussions, including West and South Louisville. No meeting dates are posted yet. Sign up for project updates on Louisville Metro’s LDC Project website to be notified when public meetings and other engagement opportunities are announced. CivicPulse is presented by Center for Neighborhoods as part of our effort to use AI to help distill public information and make civic issues easier to follow. AI can make errors. Please let us know how we’re doing.

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