Explore how city budgets impact every aspect of urban life, from streets to health. Learn why tough decisions are necessary and how you can get involved in shaping your community’s future.
Courtesy of Dynasty Media
A MESSAGE FROM THE PRESIDENT
A new legislative session means new faces, new opportunities, and, crucially, a new budget. Each year, within days of calling the Board of Aldermen into session, the City’s operating budget is under scrutiny—through dozens of meetings, hours of resident feedback, and weeks of negotiating.
From Streets to Refuse to Health, every corner of the City relies on the budget for funding. That’s why it’s so important that we get it right; sometimes, that means making tough decisions. I hope this issue of Deep Dive clears up why and how those decisions are made and the ways you can get involved.
Following the Money
The last issue of Deep Dive explored how our local government functions, who the major players are, and why it’s important to know your representatives. Building on the overwhelmingly positive reception to that issue, this time we’re turning our attention to something just as crucial—how our local government is funded.
As we head into a new legislative session, this topic is especially relevant. The first order of business for the Board of Aldermen is to pass the yearly operating budget, a process that determines how resources are allocated across the city, by July 1st of each year.
While the economics of local government can seem even drier than a typical civics lesson, it’s arguably the most important part of how government operates. Without funding, we couldn’t hire employees or pay for the essential services residents rely on every day. At a time when vital revenue sources are increasingly at risk, understanding how our government generates and spends money is more important than ever.
In this issue of Deep Dive, we’ll start by breaking down how a new budget is created and approved at the beginning of each legislative session and fiscal year. Then, we’ll examine how those funds are spent and the layers of oversight that govern city expenditures. Finally, we’ll explore the present and future of the city’s revenue streams—and the threats they face as federal instability and corporate interests reshape the financial landscape.
So, buckle up and let’s dive in!
The Budget Process
In the fall of each year, the Budget Division and Budget Director Paul Payne request revenue estimates from each City department. In January, these individual estimates are used to calculate a full budget estimate for the City, and each department is allocated funding. Armed with that knowledge, departments submit budget requests, outlining operations, programs, and initiatives that are responsive to resident needs.
In February, negotiations begin. The Budget Division holds a series of meetings with each department to discuss their requests and compare it to the funds they were allocated. If there are discrepancies, it is up to the Budget Division and the department in question to decide on cuts and corresponding increases. Once meetings are held with each department and agreements are reached, the Budget Division submits a proposed budget to the Board of Estimate and Apportionment (E&A) at the end of April.
If you missed the last issue of Deep Dive, E&A is a three-member board composed of the Mayor, the President of the Board of Aldermen, and the Comptroller—citywide elected offices. These three officials hold three hearings—the first, a presentation from the Budget Director; the second, an opportunity for public comment; and the last, a vote. The Board of E&A must recommend changes and send the new revised proposed budget to the Board of Aldermen by the deadline, typically the end of April or beginning of May.
| Former Chair of the Budget & Public Employees Committee and newly-elected Mayor Cara Spencer. The proposed budget’s first stop is the Budget & Public Employees Committee, where a public hearing is held for each budget section. Once these are completed, the committee sends the budget to the full Board of Aldermen for review. Once reviewed by the Board of Aldermen, it is approved by the July 1st deadline, and the year’s operating budget becomes official. While most residents would assume this is where their alder has the most say over the City’s spending—they would be wrong. Alders are only able to suggest cuts to line items, not make additions. Moreover, E&A is not obliged to respect those recommended cuts, and can simply reallocate them back to where they were prior. The Board can protest by refusing to pass the budget by the deadline, but that would be futile. If a budget is not approved by the Board of Aldermen July 1st, the original E&A budget proposal automatically goes into effect. In most legislatures, including St. Louis County, the state of Missouri, and U.S. Congress, power over spending is more robust. In St. Louis City, the Board of Aldermen is hamstrung by our charter, and amending it takes a lot of work. Last November, voters had the chance to approve Proposition B, which would have allowed alders to suggest line item increases given a corresponding cut. This change would have brought the Board more in line with other legislatures and given residents more influence over the budget. Unfortunately, Proposition B did not pass at the ballot box. Now that we have an understanding of how each year’s budget is approved, let’s take a look at how budget spending works. |
city budget, public funding, urban development, civic engagement, government decisions, community involvement, city planning, public health funding, budget allocation, local government
#CityBudget #PublicFunding #UrbanDevelopment #CivicEngagement #CommunityInvolvement #DeepDive #CityPlanning #PublicHealth #LocalGovernment #MakeYourVoiceHeard
