ST. LOUIS — As part of the American Rescue Plan, cities around the country are receiving stimulus money to offset lost revenue in the last year. In St. Louis, it’s being called a transformative, once-in-a-lifetime windfall: the payout is expected to be around $450 million dollars, nearly half of the city’s annual budget.
A spokesperson from City Hall said Mayor Lyda Krewson is working on initial framework for the money to ensure plans can pass through the Board of Aldermen when they meet again next month, and to help the next mayor hit the ground running—the first payment will not come until after Krewson retires from the job.
Both women running for mayor say it will be important to spend wisely.
Treasurer Tishaura Jones, a candidate for the job, issued the following statement related to the additional funding:
"The Mayor’s Office and the Treasurer’s team have been in close communication regarding the American Rescue Plan. Programs and disbursements like renter and mortgage assistance, small business assistance, and money for homeless services should be moved on quickly. We need to also make sure that we allocate a small portion of the funds for proper oversight to ensure equitable allocation of these funds. As Mayor, I will work quickly, and in partnership with regional and city leaders, to identify areas where we can lift up those who have been hit hardest by this public health crisis. As a candidate for Mayor, I am taking an active role in making sure that no one is left behind in our recovery from COVID-19."
Her opponent, Cara Spencer, is the Alderwoman from the 20th Ward. She says the payout plan extends beyond the pandemic.
“Our city has this unique, once in a century opportunity to not only address the shortfalls caused by COVID--and there are many--but to position our city, and our region, for growth,” she said. “It's a lot of money the city of St. Louis has really lost in revenue because of COVID but this federal package is significantly bigger than that, this package presents us with the opportunity to invest in long term strategy for growth.”
Mayor Krewson announced Friday a partnership with five other cites to share ideas and best practices for putting the federal funding to use.
The funding amount was based more on federal block grant information focused on socioeconomic need than on population. It will be dispersed over two years and all money must be spent in four years. While there have been some limitations outlined (the money can’t be used to eliminate taxes or fund pensions), Mayor Krewson said cities are still waiting on instructions from the Treasury on how the money can be used.
“We're still awaiting regulations and clarity, this is only a couple of days old," she said Friday.