Ditto on rescue animals. We have used petfinder (Pet adoption: Want a dog or cat? Adopt a pet on Petfinder) to great success. Found one in the Layfayette area and one in Louisville and they have worked out great. Most places want $100-150 for a dog and that is really just reimbursing them for the shots/neuter that they have performed on the animal already. They are always so grateful that you are simply interested in a shelter animal so selfishly it feels great too.
Just a note: We found that small dogs, especially puppies, tend to go pretty fast. Good luck with your search!