St. Louis Mayor Tishaura Jones on Friday instituted a hiring freeze on nonessential city positions.
After an emergency Cabinet meeting, Jones cited proposals in the state legislature that could cut the city's revenue from its earnings tax and other threats to city income.
The mayor gave three reasons for her decision:
- A Missouri House bill that would exempt remote workers who don't live in St. Louis from the city's earnings tax.
- A lawsuit that challenges the city's earnings tax on remote workers.
- A decision by the Board of Aldermen to override Jones' veto of a bill that would allow a board to negotiate firefighter pensions.
Mayoral spokesman Conner Kerrigan said state legislation exempting remote workers who live outside St. Louis from the earnings tax could cost the city $109 million. The proposal passed the House and now goes to the Senate. He said the firefighter pension bill also has the potential to be detrimental to the city’s finances.
“We are watching closely what the House of Representatives and Senate and the governor are going to do around the earnings tax,” Kerrigan said. “But the passage of [the firefighter pension bill] at the Board of Aldermen certainly hurts. We realize now that we're dealing with a fiscally irresponsible Board of Aldermen, and our budget decisions going forward have to reflect that.”
Kerrigan said the hiring freeze doesn’t apply to police officers, 911 operators, sanitation employees, airport workers or water department personnel.
“Any other positions will be subject to the hiring freeze, with the exception of some on a case-by-case basis,” Kerrigan said.
The firefighter pension bill sponsored by Alderman Bret Narayan would allow for a majority of current and former firefighters to have oversight over the current pension plan. If it passes, the state legislature would have to approve the measure. While the Board of Aldermen would have to approve any changes in pension benefits, the Jones administration has argued that it could drive up costs to the city if board-hired actuaries recommend any benefits.
Narayan said there’s no financial crisis.
“I think in between the ARPA funds, the Rams settlement funds and the budget surplus that [President Megan Green] spoke to earlier, the city is sitting on more money than I think we've ever had,” Narayan said.
Green said that there hasn’t been a public briefing with Jones’ office and Budget Director Paul Payne on the financial issues but that the mayor and budget director have been invited to speak to the budget committee if an earnings tax issue came to fruition.
Green said the pension board could save the city $500,000 a year by combining the boards of different pension funds.
When asked if the city would be open to using the $250 million of Rams settlement money to cover a potential financial hole, Green said the board is still listening to residents' thoughts on how to use the funds.
“We have heard from residents across the city that essential city services are one of the top things that they would like to see funded with that money, including worker salaries and worker retention,” Green said. “I think we will continue with having those discussions and we will continue on working on plans for how residents want us to see those funds spent.”
ARPA funds approved for America’s Center
The board also voted 11-3 to approve an additional $15.3 million in interest on federal pandemic relief funds for renovations to the America’s Center downtown.
“This does put us on a path to make sure that for at least next year, we are able to get the improvements in place that we have promised conventions,” Green said. “So when they do come to St. Louis next year they have all of the amenities along with the convention center that they had been promised.”
Green said there’s still a budget gap that needs to be filled to get the center to what the city initially approved years ago.
Officials of Explore St. Louis, which operates the center, have said the $210 million from the city and St. Louis County to expand the center had been used up.
Alderwoman Cara Spencer, who sponsored the bill, said the center will help revitalize downtown.
“I do strongly believe that convention centers, that amenities in our downtown core, are critical to the success of our downtown and therefore to our city and therefore to our region,” Spencer, a co-sponsor of the bill, said.
Alderwoman Sharon Tyus criticized the bill, citing city efforts aimed at revitalizing parts of downtown St. Louis hasn’t kept people and business there. She also argued that north St. Louis needs significant reinvestment.
“We poured billions of dollars or more downtown,” Tyus said. “We overbuilt all these lofts and things like that and now we have a problem with short-term rentals.”
Spencer agreed that funding for city services and parts of the region are critical for the viability of the region and said she’s still concerned about what the final cost for the center will be.
Updated liquor license rules
The board also made it easier for restaurant owners attempting to receive a liquor license by approving a Narayan-sponsored bill that removes a requirement that bars and restaurants petition neighborhood residents to obtain a liquor license.
Narayan said restaurateurs could still go through the neighborhood plat and petition process if they choose or participate in a process with the city’s excise commission.
“Assuming you’re in a neighborhood residential zone, this would give the neighbors four different hearings to come and discuss the restaurant and the liquor license before there was a permanent liquor license granted,” Narayan said.
Alderman Joe Vollmer said that the excise commission is understaffed and that the change would make it more difficult for residents to provide input and eliminate oversight.
Jones supports removing the requirement and said the bill's passage will make the city more vibrant.
“Right now, obtaining a liquor license in St. Louis is a lengthy, cumbersome process, and I’m glad we are able to make it easier for restaurants and bars to get their license,” Jones said in a statement.
