City of St. Louis planning to set aside millions in budget over fears of earnings tax losses - First Alert 4

ST. LOUIS, Mo. (First Alert 4) - City of St. Louis leaders unveiled the fiscal 2025 budget Wednesday, which includes losses for some city employees.

During the Board of Estimate and Apportionment Wednesday, Mayor Tishaura Jones, Board of Alderman President Megan Green and Comptroller Darlene Green discussed the proposed $1.3 billion budget, which is almost the same as 2024′s budget.

Officials cited the proposed $580 million general fund budget, which includes $26 million that will be set aside as a contingency plan. The $26 million represents the estimated amount the city could lose if lawmakers in Jefferson City pass a law excluding remote workers--who work for St. Louis companies--but live outside of the city limits from paying the city’s 1% earnings tax.

People who work and or live in the City of St. Louis pay a 1% earnings tax. The contingency money results in some city employees not receiving 3% raises.

“There’s been this looming doomsday kind of situation of the City of St. Louis losing the earnings tax,” St. Louis Alderman Rasheen Aldridge told First Alert 4. “Being a former representative, I’m glad that we’re taking precaution, but I’m also very hopeful that this bill won’t get done.”

Aldridge hopes city employees won’t leave for new jobs because of the 3% pay increase the city plans to withhold for the time being.

“I think it’s critical to be able to retain and keep our employees here at the City of St. Louis as we have an age problem with people retiring out, and people feel like they’re not getting paid what they need to get paid,” he said.

During Wednesday’s budget meeting, Budget Director Paul Payne said it’s possible the workers can receive their 3% raises this fiscal year depending on pending litigation regarding remote workers suing the city over remote work during the pandemic and if the Jefferson City bill fails.

“I think there is some time if you--depending on how the fiscal year goes, this would be something you probably would know later when you got actual information where you could revisit that in terms of what the revenue is, how it’s tracking and whether or not that allows for any sort of movement,” Payne said.

The budget needs to be approved by various city offices by July 1.

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