The City of St. Louis, MO Faces Funding Gaps and Declining Population: What’s Next?
St. Louis has long struggled with unreliable city services, and the pandemic only made these issues worse. From inconsistent snow removal and trash pick-up to delays in emergency dispatch and street cleaning, residents have faced significant challenges. These problems are closely tied to the city’s revenue and population decline, which have left St. Louis grappling with underfunded infrastructure and outdated systems.
How Population Decline Impacts City Services
Seventy years ago, St. Louis had a population of 800,000. Today, that number has dropped to just under 300,000. This dramatic decline means fewer taxpayers are supporting the same 60 square miles of city infrastructure. As a result, the city has struggled to maintain essential services. Additionally, service fees for necessities like water and trash have been set much lower than those in neighboring communities, further straining the budget.
To address these challenges, the city must modernize its approach to hiring and funding. For instance, outdated hiring practices, written into law decades ago, have created lengthy processes that discourage potential candidates. Moreover, low pay for city jobs has made it difficult to attract and retain talent. A 2023 study commissioned by former Mayor Tishaura Jones revealed significant pay disparities, showing that St. Louis lags behind peer cities and surrounding municipalities.
Steps Toward Improvement
The Board of Aldermen is actively working to address these issues. In the coming months, they plan to introduce legislation to amend pay scales and streamline hiring processes. These changes aim to fill vacancies more efficiently, improve service delivery, and make St. Louis a more competitive employer.
Economic Justice and Education
Another critical issue tied to the city’s population decline is the state of the St. Louis Public Schools (SLPS). Many young families are leaving the city, citing the struggling school district as a primary reason. Over-reliance on property tax abatements to incentivize development has drained funding from public schools. To combat this, the Board of Aldermen introduced Board Bill 66, which seeks to codify the Economic Justice Scorecard. This tool evaluates development proposals based on their community impact, including effects on schools, ensuring that future incentives do not come at the expense of education.
Funding St. Louis: The Earnings Tax
The city’s earnings tax, which accounts for one-third of its general revenue, is up for renewal in April 2026. This 1% tax on the pay of residents and workers in St. Louis is crucial for funding city services. If voters reject the renewal, the tax will phase out over a decade, leaving a significant gap in the city’s budget. Mayor Spencer recently signed Board Bill 106 to ensure the tax is placed on the ballot, emphasizing its importance for the city’s financial stability.
Looking Ahead
As St. Louis works to address its challenges, the focus remains on improving city services, supporting public education, and ensuring sustainable funding. The Board of Aldermen’s efforts to modernize hiring practices, adjust pay scales, and prioritize community-focused development are steps in the right direction. By addressing these systemic issues, St. Louis can move boldly forward, together, toward a future that works for everyone.
For more insights into St. Louis’s challenges and progress, check out The Narrative Matters, a platform dedicated to exploring stories that shape our communities.
Related Resources
- Learn more about the earnings tax and its impact on St. Louis here.
- Explore how population decline affects urban development on The Narrative Matters.
By addressing these systemic issues, St. Louis can move boldly forward, together, toward a future that works for everyone.
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