City allocates $45M budget with reduced staffing and increased outsourcing contracts

During the recent Budget and Public Employees Committee meeting held on May 12, 2025, the City Council of St. Louis discussed significant changes in the budget for the upcoming fiscal year. The proposed budget for fiscal year 2026 is set to increase from approximately $42.9 million to $45 million. This increase, however, comes alongside a notable reduction in full-time equivalent positions, which have decreased from 303 to 297.

The discussion highlighted the challenges the city faces in retaining and attracting employees, prompting a shift towards outsourcing certain services. City officials explained that when staffing levels cannot meet operational needs, they turn to professional services and contractors. For instance, four parks are currently managed by a private contractor, and there are ongoing contracts for managing vacant buildings and lots. Despite the budget increase, the funding for these contracted services remains a concern, with requests for additional funding not fully met.

One official pointed out that while the budget is increasing, the allocation for essential services, including overtime and seasonal work, has not kept pace with needs. Specifically, a request for $5.5 million was made, but only $2.9 million was allocated. This shortfall limits the city’s ability to maintain properties adequately, with current capabilities allowing for only three rotations of vacant buildings in a six-month period.

The meeting underscored the ongoing struggle with rising costs, particularly in employee benefits, which contribute to the overall budget increase. As the city navigates these financial challenges, the reliance on contracted services raises questions about the long-term sustainability of city operations and the quality of services provided to residents.

In conclusion, while the budget increase reflects an effort to address some operational needs, the reduction in staffing and reliance on outsourcing may impact service delivery. The city council will need to carefully consider these dynamics as they move forward, ensuring that the community's needs are met without compromising on service quality.