Budgets and finances have been central to debates throughout the pandemic, as people’s lives are weighed against corporate bottom lines. How were governments, from local to federal, expected to keep themselves afloat with no active commerce, loss of tourism, and reduced spending of their citizens during lockdown periods? In March of 2021, President Joe Biden signed the American Rescue Plan into law, creating a historic $1.9 trillion stimulus package for the nation. This package included the direct stimulus payments of $1,400 and helped fund unemployment compensation but it also gave large amounts to state and local governments. So where has this money gone?
According to the Office of Missouri State Auditor, the state has, as of March 3, 2022, already received $7.47 billion and has spent $6.68 billion, returning only $3.4 million back to the federal government. While that $800 million difference may seem like a lot, it translates to only 10% of the budget. St. Louis, in contrast, has not been spending as efficiently as the state or its local citizens would like.
From the time the stimulus package was signed, it took six months for the city to agree on an initial spending plan. Mayor Tishaura Jones enacted the first round of spending, a $135 million budget, that outlined support to vaccine efforts, public health and safety, and economic relief for businesses and individuals. While the deliberations in part were held down by the stipulations and restrictions the federal government placed on how the funds could be used, the real obstacle slowing spending now is local policy and systemic issues.
This first allotment of spending created $500 direct payments for St. Louis households. The program was designed to aid roughly 9,300 residents, so it was supposed to cost a little under $4.7 million. Yet, there was one main issue, the program strictly stipulated that the payments were per household. Each household could only be given $500, regardless of how many individuals in the home had experienced a loss of income due to COVID-19. A one time payment of $500 was expected to offset multiple losses of income over months of distress. So do you think they actually spent that budgeted $4.7 million? Not a chance.
If this relief program accounts for $4.7 million, where has the other $130 million gone? Is it being spent at all? Not surprisingly, other programs did not exactly make it off the ground. While $7.8 million was for emergency shelters for the unhoused population, only $392,000 has actually been spent, which amounts to 5% of the emergency shelter budget, and 0.02% of the whole program’s spending. This is a risking real lives, as we saw throughout February temperatures fluctuated and displaced unhoused population turning to overburdened volunteer based shelters. This disparity between roughly 600 city sponsored beds available and the actual size of the unhoused population, which is estimated at 1000, is critical, as we already saw one unhoused death this year.
Because of the promise of public health support through vaccine efforts spent $950,000, with $727,000 being spent on gift card incentives. That accounts for 0.07% of the total budget, with nearly double the amount being spent on housing going toward gift cards for a lifesaving vaccine.
The plan also budgeted $5 million toward police overtime payment costs in an effort to aid in public safety. Yet the police department does not anticipate using any of the aid during the current fiscal year, according to Mayor Jones’ aide, Nahuel Fefer. How did they budget $5 million if there is no need for it? Was there no foresight to place these funds elsewhere, even if our spending is painfully slow across the board?
Other efforts don’t shape up any better, as a report submitted to the aldermanic panel by Mayor Jones’ office showed only $3.4 million having been spent as of January 31st. The city has spent 2.5% of its already approved spending over a period of six months. That’s 2.5% of funds that were allocated to the city in March of 2021. If all these delays in funding weren’t enough, these percentages aren’t even in the scope of total funding St. Louis will see, a whopping $498 million dollars. More concerning is the fact that if these funds are not spent by 2026, the federal government is within its rights to demand repayment. If it took us six months to spend $3.4 million, how do we plan to spend $498 million in only four years? We need policy reform for better spending, equitable distribution of funds to underserviced areas, and a better understanding of what St. Louisans actually need, or we will lose half a million dollars and countless lives.