LOUISVILLE, Ky (WDRB) — Louisville Metro Council held its first hearing Thursday evening to debate the city’s next budget, and council members on both sides of the aisle agreed on at least one thing: there is never enough money to fund every need.
Mayor Craig Greenberg unveiled his $1.1 billion budget proposal April 23. Roughly half of that budget goes toward police and fire services. The remaining money is split among dozens of other departments, leaving some agencies competing for a thin slice of the pie.
One area under scrutiny this year is the city’s rainy day fund. This is money set aside for emergencies like floods, natural disasters or other crises when the city may need to respond quickly without outside help.
"We haven’t budgeted for this year. I know that we have done that historically," said one member of the Office of Management and Budget team.
The city currently has close to $90 million in the rainy day fund. Republican Councilman Kevin Kramer, of District 11, said while some may question setting aside money that is rarely used, maintaining reserves is important for the city’s financial reputation.
"When you put money in the rainy day fund and almost never comes back out again, basically you just set money off to the side," Kramer said. "The problem though is heaven forbid you would actually need that at some point."
Kramer added that lenders and bond agencies watch how cities manage reserve funds.
"If you’re thinking about lending us money in the next year or five years and we’re not putting money in that rainy day fund, then they’re going to be wondering how well are you managing," he said.
Greenberg’s proposed budget currently includes no additional contribution to the rainy day fund this year. Traditionally, the reserve target has been enough to cover roughly two months of city expenses. Metro Council will ultimately decide whether to add money back into the fund before the budget is finalized.
Public safety spending also remains a major focus.
Democratic Councilman Markus Winkler, of District 17, pointed out that some Louisville police officers are still driving aging Ford Crown Victoria patrol cars, a model discontinued more than a decade ago.
"When was the last time the Crown Vic was manufactured?" Winkler said.
Kramer said aging equipment extends beyond police vehicles.
"We’ve got fire trucks that are in service right now that we’ve been driving for 22 years in the city of Louisville," Kramer said.
Council members said every department has a list of needs, but funding priorities differ depending on perspective.
"I’m sure that Councilman Kramer has an infinite list of things that he would like to see funded," Winkler said. "I’ve got a list, and we’ve got 24 colleagues that you ask that you’d probably get 30 lists from."
Kramer said some priorities are less visible to the public, but just as important.
"When I say fix what’s broken, I mean literally things that are crumbling," Kramer said. "But I also mean those things that we are supposed to be fixing that we haven’t been."
Another growing concern is the city’s employee healthcare plan. Metro officials said healthcare costs jumped 30% this year, with a 4% increase projected next year. For now, the city plans to absorb the increase without passing costs along to employees.
"If we’re wrong and it’s another 30% next year, then it’s a different conversation," Kramer said. "But the good news is that we’re able to do this without going to our employees and changing their benefits."
Council leaders said maintaining affordable health insurance remains an important recruiting tool for city workers.
Winkler said residents often overlook how many daily services are funded through Metro Government.
"Your roads get paved, your sidewalks get redone, you have access to free libraries, free parks, pools, community centers, police service, fire service, EMS service, and on and on," he said.
Metro Council will continue to hold hearings throughout the month about the budget proposal. It is expected to take its final vote on the budget June 25.
Its hearing next Wednesday, May 13 will be open to the public. Click here for more information.
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