The Jefferson County Council has approved a $153,824,768 budget for 2023, about $3.7 million less than the one it approved for 2022.
The reason the budget took a dip is the same reason it went up by nearly $37 million last year – because of the American Rescue Plan Act (ARPA).
The county had received $43.6 million through that federal stimulus package, and that influx of cash significantly bolstered the county’s bottom line when the 2022 budget was drawn up.
For this year’s budget, the county doesn’t have that same kind of cash influx. However, it still has $35,984,000 in ARPA funds left to distribute, including $300,000 that the balance earned in interest over the year.
A number of applications from local governments, businesses and nonprofit agencies are still pending.
The county itself has designated spending $8.75 million of ARPA money for infrastructure improvements needed to develop a manufacturing plant in Crystal City for James Hardie Industries.
Another $4 million has been set aside to build a crime lab for the Jefferson County Sheriff’s Office, County Executive Dennis Gannon said.
The discretionary part of the county budget – the general revenue budget, from which most of the county’s operations are funded – increased, from $29,396,340 in 2022 to $31,343,404 this year.
The new budget includes a 2 percent cost-of-living pay increase for most county employees. Last year, employees received a 3 percent pay boost.
“It’s important because we want to keep a good workforce,” Gannon said. “Of course, you always want to do more, but I think we’re pretty competitive, especially when you factor in benefits, such as good health care insurance and retirement plans. It isn’t always about what the pay is, but again, we want to do as much as we can for our employees and still stay within our means.”
Like last year, Gannon said, this year’s budget doesn’t call for a lot of spending on big-ticket items, but it focuses more on maintenance of current facilities.
That’s reflected in the Public Works Department’s list of scheduled projects for 2023.
Although the county’s website lists high-profile projects, like improvements to Seckman Road near the Mastodon State Historic Site entrance in Imperial, work on High Ridge Boulevard and bridge replacements on Armbruster, Doss Hollow and Harness roads and Commerce Drive during the year, most of the scheduled work involves pavement restoration and improvements.
The county’s charter requires the county budget to be balanced when it is approved, meaning that anticipated spending has to match estimated revenue.
“I like that we’re required to submit a balanced budget,” he said. “It keeps us from overspending and getting behind the eight-ball.”
Gannon, who had to submit a proposed budget to the council by Nov. 1, said this year’s budget is similar to last year’s, in that it is a “conservative” one.
“No, there are not a lot of bells and whistles in this year’s budget,” he said. “We have to spend our money wisely, and be conservative. There is not a lot of growth expected.
“And our department heads and elected officials realize that the cost of business is going up. Between supply chain issues and product shortages and fuel costs, it costs more to replace a bridge than it used to, and the costs are more unpredictable. I’m thankful that they took that into account when they submitted the proposed budgets for their departments,” Gannon said.
The county’s general operations are funded through a 1/2-cent sales tax, and while that fund was up by 4.3 percent during 2022, Gannon said he fears it might be leveling off after a 9.6 percent increase in 2021.
Identical 1/2-cent sales taxes are collected for law enforcement and road and bridge improvements.
Gannon said he and his administration continue to be concerned about the growth of online commerce.
“The loss of non-collection of sales taxes on internet sales continues to be an ever-increasing burden on our budget,” he said.
However, Gannon said, he doesn’t anticipate placing a “use tax” measure that would allow the county to impose its sales taxes on internet sales on the ballot in the near future.
Voters turned down a countywide use tax proposal in August 2018. After considering floating the issue again last year, Gannon decided against asking the council to place the issue on the April ballot.
“I’m not a big tax guy to say the least, but we have learned that people in Jefferson County do not want more taxes. However, we have to pay our bills.
“But I don’t see us retrying a use tax unless we get support from all of our council members,” he said. “They have to be all in.”
The council voted 6-0 to approve the budget, with Scott Seek (District 5, Festus) absent.