CLAYTON — St. Louis County Executive Sam Page wants to use $59 million in Rams settlement funds to help cover a growing deficit in next year’s budget.
St. Louis County faces a $61 million hole in its general fund, up from the $38.4 million deficit expected at the end of this year, according to the recommended budget Page’s office released this week. Page also expects a $20 million shortfall in the health fund, though that is less than the expected $24.4 million deficit this year.
Page’s total $1 billion budget request is down more than 8% from this year because of a proposal to cut to nearly 200 of the county’s roughly 800 vacant positions, but more is needed.
“For the last several years, we’ve been able to rely on one-time fixes to balance the budget,” Page wrote in a Wednesday memo to the County Council, which must approve the budget. “I believe we will need use this same strategy again this year.”
Several factors are contributing to the increasing deficit, including a pay boost for police and county workers, the cost of next year’s elections, leasing space for county departments and a decrease in the expected amount of tax revenue from marijuana sales.
Page wants to use the county’s share of the NFL Rams settlement money to help fill the gap between revenue and spending.
The county in 2021 received $169.3 million from the $790 million settlement of a lawsuit over the Rams’ departure from St. Louis to Los Angeles. The county put its share in a high-interest savings account that has generated millions in interest payments, but officials also have approved spending the money on various projects, including $40 million to repair subdivision streets and $10 million on cybersecurity. A state audit of the spending earlier this year dinged the county for using the cash without an approval process.
If the council approves Page’s idea of balancing next year’s budget with the Rams money, about $75 million would remain in the settlement fund, according to Page’s memo.
Page also is suggesting the council reconsider a proposal to add a sales tax to out-of-state internet purchases. Voters would have to approve the idea, but they rejected a similar measure in 2022. Earlier this year, the council declined to put the question to voters again.
Such a tax could produce between $45 million and $75 million annually for the county, according to Page’s memo.
Over the coming weeks, the County Council will hold hearings with department heads about their requested budgets. The council has until the end of the year to approve a budget.
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Kelsey Landis | Post-Dispatch
St. Louis County government reporter
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