Louisville Budget Committee Hearing on FY2026-2027 Budget for Human Resources and Public Works – May 11, 2026
Louisville Metro Budget Committee Hearing: FY2026-2027 Budget for Human Resources and Public Works (May 11, 2026)
The Budget Committee, chaired by Kevin Kramer (R-11) and Vice Chair Markus Winkler (D-17), held a hearing on May 11, 2026, from 3:02 PM to 5:31 PM, to review proposed budgets for the Human Resources and Public Works and Assets departments for fiscal year 2026-2027. The meeting was conducted via video teleconference with ten committee members present.
Discussion Items
Human Resources (Proposed Operating Budget: $7.3 million)
- Dependent Care FSA Match Pilot: HR Executive Director Ernestine Booth-Henry explained the new program that matches employee contributions up to $2,500 to reach a $7,500 household cap. Currently, 138 employees are enrolled in the dependent care FSA, with 77 of those enrolled at $2,500 or more. The $500,000 appropriation from last year was not used and will roll over to FY27 to ensure funding through open enrollment.
- Health Care Costs: Multiple council members questioned rising health care costs (total $69 million for FY27). Councilman Piagentini proposed a spousal carve-out for dual‑income households, noting a previous spousal surcharge was withdrawn due to a union grievance. Director Booth-Henry noted that a $6 million claim drove cost increases and that the department is working with the broker on cost‑control strategies. Councilman Winkler emphasized that plan changes must be finalized by early January for open enrollment in April, so mid‑year data may be too late.
- Tuition Assistance: The program is stable at around 68–70 participants, now including certifications, which may increase participation.
- Paid Parental Leave: The program has helped recruitment but can create departmental hardship (e.g., overtime to cover shifts for LMPD officers on leave). No specific overtime tracking exists for this leave.
- Artificial Intelligence Strategy: HR is using AI to identify gaps in policies and training, but Councilman Piagentini requested a broader AI efficiency plan for all departments before the next budget cycle.
- Overtime Management: Director Booth-Henry stated HR has no direct control over department overtime; CFO Angela Dunn noted quarterly budget meetings track overtime rates and challenge departments when spending exceeds budget. Councilman Winkler urged better incentives to reduce overtime reliance.
- Staffing: HR is budgeted for 61 positions (as of April 1, 2026), up from 57 revised in FY26 but with no new positions requested. Councilman Piagentini clarified that the increase reflects already‑filled positions, not new hires.
Public Works and Assets (Proposed Operating Budget: $68.5 million; Capital Budget: $65.9 million)
- Road Paving: The city has allocated $30 million per year for paving for the third consecutive year, using data‑driven “OpenGov” software to prioritize roads. The goal is to bring all roads to a rating above 70. Executive Director Wes Sydnor stated that a forecast for when maintenance levels can drop (to $15–20 million) will be provided later.
- State Grants: State grants jumped from $6,000 in FY26 to $7.8 million in FY27, largely from a state surplus and gas‑tax formula changes. Officials will confirm the sustainability of this increase.
- LED Lighting: The department will follow up on cost savings from the LED conversion.
- Solid Waste Management:
- Weekly Recycling: Councilman Lyninger requested the cost to return to weekly recycling pickup, citing rodent problems from missed collections. The department will provide an estimate.
- Large Pickup: The switch to appointment‑based pickup appears to be improving flexibility, but illegal dumping data will be provided.
- Trash Receptacles: A backlog exists due to a vendor change; 75 carts are being deployed per day. Councilman Winkler requested a cost estimate for placing and maintaining cans at all bus stops.
- All In on Clean Initiative: The 32‑position pilot was not funded last year due to a minimum threshold, but the department is collaborating across agencies on a smaller scale.
- Sidewalks and Speed Humps: Councilman Hudson noted inefficiencies in bevel‑and‑replace sidewalk repairs; the department will consider policy changes. Councilwoman Chappell requested dedicated funding for speed humps and traffic calming; historically, costs were borne by council districts. The department has no line item for speed humps but is exploring new, cheaper portable options.
- Street Sweeping: The USD costs $177,000/year vs. $38,000 for county areas. Questions remain about state reimbursement and contractor certainty for long‑term investment.
- Guardrails: $300,000 allocated for repairs; officials aim to recoup costs from insurance of vehicles that damage guardrails.
- Engineering Staff: Staffing is at a 10‑year low; a staffing study is underway. The department is using consultants to supplement capacity for increased federal/state projects.
- Salt Supply: After a severe winter, salt storage is being replenished; the state raised the reimbursement cap by $400,000. The budget does not increase salt spending significantly, relying on state reimbursement for extraordinary events.
- Fleet and Overtime: The department actively monitors overtime with monthly reviews and is adjusting schedules to reduce it. The capital equipment budget dropped from $5 million to $3.5 million, focusing on solid waste and snow removal vehicles.
Key Outcomes
- No votes or formal actions were taken; the committee heard testimony and will continue budget hearings the following day (May 12, 2026, at 4:15 PM).
- Follow‑up requests: HR will provide the report card metrics and a mid‑year financial model on health insurance changes. Public Works will provide:
- Road paving timeline for maintaining 70+ rating and required maintenance funding.
- Cost analysis for weekly recycling pickup.
- Inventory cost for right‑of‑way trash cans ($500,000 estimate).
- Breakdown of state grants and street sweeping reimbursement.
- Data on LED savings, salt reimbursement, and traffic calming project carryover.
- Staffing: Public Works eliminated three attrited positions with no immediate negative impact; a comprehensive staffing study is expected for FY28.
- AI and Efficiency: Both departments are to explore AI and automation to reduce administrative dependency, with reports expected before the next budget cycle.
Meeting Transcript
Good afternoon. And welcome to the second budget hearing, or I guess technically third or fourth, depending on how you're counting. So but the second day of budget hearings. Today is Monday, May 11th. The time is currently 3.02 p.m. I am joined in chambers by Councilman Leninger, Councilman Piagentini, Councilman Reno Weber, Councilman Mulvey Woolwich, and Councilman Parker, and I think we'll have a couple of other people joining us here momentarily. So again, welcome. I mentioned Councilman Kramer will be joining us momentarily. So let me go. Our first hearing today, actually, before I get into the hearing, I want to make a comment to my colleagues that the administration just asked me to reference. And that is, you know, our staff is kind enough to prepare a budget document for us every meeting. Can be a little bit challenging to the presenters. They don't get a copy of that. That is exclusively for us. Okay. And so when you're working from that document and you reference, hey, on page four, uh, you're referencing a document that they have never seen. So just be aware that's an internal document that staff prepares for us. It's not shared with the it's not secret, but it's just not a document that they don't have available. And so if you could just be aware that your questions um they won't know what you're talking about. So anyway. Uh our first hearing today is the human resources budget hearing. Uh, and I would like to welcome Ernestine Booth Henry, the executive director of human resources to the chambers. Uh, as a reminder, departments will not make any opening comments, and we will begin immediately uh with council member questions. Uh council members, you are uh allowed to ask three questions at a time, and after that you'll need to go back into the queue. Uh also I will uh call on first-time questions uh before I go back to you when you're in the queue a second time. So these are Beth's comments, by the way. So uh so the human uh resources department for FY27, uh the proposed operating budget is 7.3 million. Um I will start off with the first question and ask uh Director Booth. Um can you talk about the dependent care FSA match pilot program that will start in FY27? Uh can you explain uh talk a little bit about the program and then the expected expenses associated with it, please? Sure. Good afternoon. Ernestine Booth Henry, Executive Director for Human Resources. Thank you, Mr. Chair. Um as far as the dependent care FSA, that program is designed to assist our employees with child care services. They are allowed to put money aside in our FSA program and then utilize that money for child care expenses. The current amount, the the cap for the household is 7500. An employee can put aside um up to 5,000. We will match 2500, half of their portion to get to the 7500 cap. Currently we have um 138 employees that have enrolled in the dependent care FSA, and 77 of those employees have enrolled in 2500 or more. Fantastic. I think you know that's a fantastic benefit that we're offering, and I hope uh people take advantage and you know it continues to make us an employer of choice. So uh Councilman Reno Weber. Uh thank you so much for being here. Uh I as I said, I'm gonna ask of everybody, you know, please say for everybody, and I see that this piece is in your pre-work. What is the mission uh uh of HR and then how will you know that you are being successful? I think this is a function that's got uh a lot of pieces to it, and there's a lot of benchmarks. Yeah. We um our goal is to hire and attract the best qualified candidates to fulfill all of our needs across the city.
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