COVID-19 to blame for $47 million shortfall in St. Louis; It could get worse

Krewson, coronavirus
Photo credit (UPI:Bill Greenblatt)

ST. LOUIS (KMOX) - The City of St Louis is looking at a $47 million budget shortfall because of losses due to the coronavirus pandemic. 

In a letter to St. Louis Mayor Lyda Krewson obtained by KMOX, the city's budget director says they'll have to consider not giving city employees a 3% raise they were supposed to get in July. However, that doesn't include city firefighters and police officers. 

There's also talk of five-day furloughs, no longer demolishing empty buildings, suspending bridge repairs, no longer cutting down Ash trees and various cuts to the streets, traffic, parks and garbage departments. The city's annual budget is around $1 billion and the budget director says this $47 million shortfall is just a projection – he says it could get larger depending on how long the coronavirus pandemic progresses. 

Some of the economic activity that has been halted, includes sporting events, concerts and conventions, leaving hotels, restaurants and more without business. 

Krewson announced the city will be extending its stay-at-home order until at least the middle of May. St. Louis County says it's doing the same. Missouri Gov. Mike Parson will extend the state's stay-at-home order to May 3, with hopes to "reopen the economy and get Missourians back to work." 

For the first time, the St. Louis Metropolitan Pandemic Task Force is showing data that the region's coronavirus curve is flattening, but say this is no time to ease social distancing.

St. Louis County Executive Sam Page says the stay-at-home order will be extended because they haven't reached the peak of COVID-19 infections, hospitalizations and ICU admissions.

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