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Mayor Greg Fischer proposes a mid-year spending adjustment

His $20 million mid-year spending adjustment proposal would update existing equipment, match a federal grant and raise union and non-union pay.

LOUISVILLE, Ky. — Mayor Greg Fischer proposed a $20 million mid-year spending adjustment Nov. 29. The money would go towards upgrading outdated Public Works trucks, matching a possible federal grant and potentially raising wages and salaries for new and existing Louisville Metro Government (LMG) employees.

Chief Financial Officer Monica Harmon said this adjustment is due to savings from decreased LMG operations, unanticipated revenue and "recovery of expenses from other federal grants."

The breakdown of the proposal is:

  • $1.5 million in matching funds will go towards a federal Build Back Better Regional Challenge grant of $50 million. This grant is designed to help revitalize communities impacted by the pandemic.
  • $5.7 million will upgrade equipment like the Public Works trucks and other sanitation equipment.
  • The remaining $12.8 million will go towards potential LMG employee wage and salaries adjustments.

“This proposal builds on the work we’ve been doing to improve critical city services, retain the best and brightest city workers and build a sustainable, equitable economic recovery,” said Fischer.

Louisville Metro’s current turnover rate is 7.04%. Union and non-union employees are applying for the private sector due to higher compensation said Ernestine Booth, the LMG Director of Human Resources.

“With limited funding over the past few years, many of our union contracts included wage increases of zero to two percent, and our non-union grid has not been adjusted since 2016,” Booth said.

Metro Council Chair Bill Hollander said this unexpected money will not only allow them to address salary issues but will help them to retain employees to better serve the public.

The Budget Committee will consider this ordinance Dec. 9 and voting could end as early as Dec. 16.

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