Mayor Tim Kelly’s administration has released a balanced budget proposal for fiscal year 2025-2026, prioritizing key investments in infrastructure, public safety, affordable housing and public transit while navigating economic uncertainty and the end of federal pandemic aid.
The proposal allocates 59% of funds to police, fire and public works. It includes $10 million for road improvements, $2 million for preserving affordable housing, $10 million for transit upgrades and $5.1 million for the Wilcox Bridge replacement. Additional investments include $150,000 for traffic light modernization and over $1 million for early learning centers.
”Since coming into office, my core focus has been tackling Chattanooga’s structural challenges and setting our city on a path toward shared prosperity and common purpose – and that commitment remains as strong as ever,” said Kelly in his budget message.
One notable absence is pay raises for sworn police officers and firefighters. “That’s not just wrong, it’s risky,” Kelly noted. “If we can’t fill our academy classes and keep our best sworn employees, we won’t be able to meet our city’s needs.”
Kelly pledged to return later this year with a separate compensation proposal for first responders.