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Budget Data Reveals Massive Overspending on St. Louis Municipal Services
Comparative analysis with Louisville and Indianapolis shows
more than $750 million in excess spending per year
June 24, 2014 (St. Louis, MO) – As part of its on-going studies, Better Together recently compared the budgets of metropolitan Louisville (KY) and Indianapolis (IN) to that of St. Louis region (St. Louis City and County). Research revealed that the per capita cost to fund municipal services in St. Louis City and County is $1,918.93, compared to $1,328.40 in Indianapolis-Marion County. A preliminary review of per capita spending in Louisville-Jefferson County has indicated a similarly significant difference in per capita spending between that region and St. Louis, as well
“These figures are striking,” said George Herbert “Bert” Walker III, Chairman of Better Together. “Even conservative estimates show a significant amount of excess spending in our region – to the tune of at least $750 million.”
At one time fragmented, both Indianapolis and Louisville have consolidated their city and county governments. Indianapolis consolidated its city and county governments in 1970; Louisville’s city and county governments merged in 2003. The fragmentation of the St. Louis region, with its 90 municipalities and 23 fire districts, plays a significant role in the total price-tag of our area’s municipal services.
“The thought of overspending by $750 million a year is unconscionable, particularly when you think about the lost-opportunity cost. What could we be doing with this money?” said Better Together Executive Director Nancy Rice. “That amount would pay for the CityArchRiver project more than two times over. It could provide our vibrant start-up community with a best-in-class fiber network. It could fund four school districts the size of Parkway.”
Based on the per capita numbers, a St. Louis family of four pays more than $7,600 per year for government services – 44 percent more than what the same family would pay in Indianapolis.
Walker added: “Families in the St. Louis region are funding government functions with money that could be spent on school tuition, medical bills, or home improvements. Our goal must be to clearly understand why such over-spending exists in our region.”
Complete budget information for the St. Louis, Louisville, and Indianapolis regions is available at www.bettertogetherstl.com/regional-comparison.
