Mayor's Budget Speech to Metro Council
Fiscal year 2008-2009
2 p.m. May 29, 2008
Metro Council Chambers

I appreciate the opportunity to join you once again -- to chart the course of our hometown, as I see it, for the year ahead. 

This is the 19th city budget I've prepared and presented since I first became mayor.  And one thing I have learned:  Every budget is a balancing act. Not just balancing dollars and cents…though that's a challenge. In fact, we expect the smallest revenue increase in 5 years - 2.9 percent.  It's also a balancing act in terms of how we spend that money.  

Because in tight financial times, we need to first meet our responsibility for today's basic needs -- the day-in, day-out city services that people depend on and expect from local government…from police to patching potholes…from picking up garbage to fighting fires…from responding to EMS calls to fixing traffic signals…mowing parkland…inspecting restaurants…issuing building permits...and on and on. 

We need to balance those responsibilities with our continued commitment to important projects that we've already begun - to ensure that our city is in a strong position to move forward once the economy improves. It's not so different from the balancing act many of our residents face, staring at their own family budgets in these tight times.  You feel lucky you're still bringing home a paycheck. But odds are good that your everyday expenses - from food to health insurance to gas -- are rising faster.  

At the same time, you have projects you've started, projects you want to complete -- and long-term goals you're committed to…whether you are setting aside money for college down the road or investing toward retirement, knowing $100 today will bring $500 later in life.  The balance -- between today's needs and tomorrow's promises -- is the same challenge we tackle in this budget that I present to you today. It's a sound, sensible, strategic spending plan that emphasizes basic services, first and foremost - at the same time it invests in the future.  

It is balanced -- based on what we know today. But one thing we can count on is change.  These are unpredictable times. The price city government pays for gas went up by 55 cents a gallon in just 6 months. And we use 2.8 million gallons a year. So every 1-cent increase costs the city almost $30,000. Then there are cuts in funding the city receives from the state: cuts in jail reimbursements, social-service and mental-health funding. And there are additional uncertainties as one of our major local employers - Ford -- goes through a period of retrenchment…and another major employer - GE - decides to put its large, profitable operation, Appliance Park, in play…for sale, spinoff or partnership.  

Yes, my friends, we live in challenging times. 

But you know, we can also point to dramatic positive changes in our city…including changes that we've enacted together over the past 5 years: a streamlined city government that has reduced its workforce by 12 percent --1100 fewer jobs, including 400 vacant positions eliminated with this budget. Other positive changes include our expanding city of parks…and the panorama of projects on the drawing board for downtown: our new arena, Museum Plaza, life-science research buildings, new retail, commercial, housing, hotels and the expansion of Fourth Street Live.

So far, we are fortunate - and we have managed our resources well.

Our challenge…in lean times…is to keep positive momentum going while we continue to provide a solid level of basic services. Just as you might look at housing or food as essentials of daily life in your personal budget…when I think about our city budget, I think first and foremost about keeping our community safe...making sure we have the police, fire and EMS services that are the heart of public protection.  

The balanced budget I present today does not eliminate police or fire classes as Lexington's mayor recently proposed, facing what he called a $10 million "structural imbalance" for the year ahead.  My budget does not cut library hours or eliminate our bookmobile, as the mayor of Nashville recently suggested when he faced a 1 percent increase in revenue for the upcoming year.  I am not proposing layoffs or a property tax increase, as the mayor of Atlanta recently recommended…as her city faced a $140 million shortfall for next year. 

Let me give you a few highlights of what this balanced budget does.  First, as I said, this balanced budget continues basic services, despite modest revenue growth.

• This budget keeps our police department at or above existing strength, with 100 new officers - 3 classes -- to be trained in the year ahead and $1.5 million invested in body armor and in-car computers.
• My budget proposes a new class of 30 firefighters and we will spend $2.8 million on new fire vehicles this year.
• In EMS, we will continue to improve response, through shift realignment and new GPS technology.
• In Corrections, we will soon receive recommendations from a community commission on ways to more efficiently and effectively manage our growing jail population. This year we also plan 4 classes of up to 80 corrections officers.
• Altogether we will continue to spend more than half our operating budget on public protection to keep our residents safe.
• This budget also spends more than $5 million on streets, alleys, sidewalks and signal upgrades - from paving to safety improvements for some of our more rural roads. Whether you drive on Cooper Chapel Road or River Road, you will see road-widening projects move forward.

This budget continues to support parks, public health, neighborhoods, housing and family services…with most city departments held at this year's levels. One notable exception to this just-the-basics plan is one priority I know you share. This budget fulfills a long-time promise to build our first new library in 10 years - an innovative branch in Newburg with young people as a target audience. This new branch library - with computers, a homework center, electronic book scanners and other interactive experiences - is a great fit for the Newburg area, which has the highest concentration of households with children in Louisville.    Second, as I said earlier, this balanced budget continues to pay for significant projects developed over the past 5 years. 

These are promises we have made to our residents…investments we have already begun to make that require a commitment over time. 

• First and foremost, we continue to deliver on public safety commitments as our MetroSafe emergency communications system moves into its final phase with new radios, other technology upgrades and renovation of its headquarters. 
• My budget continues the modernization of our city fire department, which celebrates its 150th anniversary this year.  As you know, we're currently building two new firehouses in Clifton and Portland. This budget provides the funding for a third new firehouse in the Beechmont neighborhood to be constructed next year. 
• As I am sure you will remember, previous budgets have set aside funding toward a new, centrally located Animal Adoption Center. With the added funds I've placed in this budget, our city can begin construction of the first phase of a new headquarters for Metro Animal Services on Newburg Road just outside the Watterson Expressway.
• My budget also continues our commitment to revitalize neighborhood commercial development: We know diverse, appealing stores and services enhance quality of life for nearby residents. So we will continue to play matchmaker, encouraging new businesses to fill neighborhood needs. This year we will continue to improve sidewalks, plantings and other streetscape elements in neighborhood commercial areas…in partnership with a number of you on the Metro Council…who have chosen projects important in your neighborhoods…including Preston Street and Preston Highway, Poplar Level Road, West Market, Bardstown Road, Shelbyville Road and the area around the University of Louisville.
• As UPS invests in its latest $1 billion expansion with 5,000 new jobs, my budget proposes to increase our share for the Metropolitan College program. This program gives UPS a strong and stable night shift…and gives those night-shift workers the extraordinary opportunity for a free college education.  Metropolitan College has been a key to the growth of UPS as our state's largest employer. 
• In addition, my proposed budget continues our commitment to "Go Green Louisville." My budget sets as a goal to cut energy use in city government buildings by 10 percent over the next two years. We also plan to scale back gas consumption in our city fleet by driving smarter, choosing more fuel-efficient vehicles and expanding the use of pool cars. We'll keep encouraging our employees to use TARC by continuing to pay for them to have no-charge bus service.  Our ridership is up 12 percent over this time last year.   

Finally…this balanced budget embraces partnerships - where every dollar we spend attracts or leverages many more dollars in matching funds or economic impact.

• We'll invest $250,000 towards an indoor aquatics center in the $20 million Salvation Army Kroc recreation and education center to be built on Cane Run Road.   
• My budget continues to add bike and pedestrian paths - from linking our Olmsted Parkways to making it safer to travel down River Road.  Every $1 we spend on bike improvements from our city budget brings us roughly $5 in state or federal funds. Why are paths and sidewalks so important? They add to the quality of life in this community, whether you are commuting to work, running errands, exercising for better health, simply relaxing or appreciating at ground level the vitality of our neighborhoods.  
• This budget continues our investment in the Louisville Zoo, our community's top nonprofit tourist attraction. We want to keep the momentum going as the Zoo raises $25 million for its new Glacier Run exhibit.  Our public investment will leverage a $1.5 million private gift. 
• My budget also provides $4.2 million in operating grants for more than 125 nonprofit and faith-based organizations, with a priority on our strong network of community ministries.  
• And this budget fuels downtown's economic expansion with the continued purchase of key parcels of the former Water Company block for our new Center City district, an expansion of Fourth Street Live.   

Our public investment in this land will foster a private investment of at least $200 million -- and up to $450 million over the next several years -- to revitalize Louisville Gardens to the west of Fourth Street Live and create an exciting mix of shopping, hotel, housing and more to the east of Fourth Street Live.   

So: Those are some highlights of what this balanced budget does…with limited funding.  

Just as you and your families may gather around the kitchen table or your home computer to sort through your finances when times are lean, we set a clear course with this budget that focuses on basic needs… follows through on projects we've begun…and makes investments where we leverage public dollars with multiple private dollars.

I'd like to wind up with three words: To be continued. 

As you know, I am an optimist…a glass half-full…we'll-find-a-way-to-make-it-work kind of person…especially when it comes to charting a course for our community. But as I said at the beginning of my presentation, we operate in times of change. 

The bottom line with this balanced budget is that I feel confident that we have a strong team in place: in my office, in your Metro Council chambers, in city departments…that can help us leap over any hurdles and find our way through any storm clouds.

How will we do that? The same way we've worked together over the past 5½ years. Together, we have created a more efficient, effective, responsive and accountable government…enhanced our community's economic vitality…improved our residents' quality of life.

As we face the next year's challenges, we know beyond a doubt that by working together, and only by working together -- as partners -- will we be able to continue to keep our community strong today and make it an extraordinary place for our children and grandchildren tomorrow.

Thank you.      


Mayor Abramson