From the Mayor’s Desk: St. Louis Responds to “Gramm-Rudman” Tax Bill

Historical April 1986 report or notice. Original dates, prices and contacts describe the source period; current availability has not been established.

The term “Gramm-Rudmann” keeps popping up in the news in connection with efforts to lower the federal budget deficit.

The term refers to federal legislation sponsored by Rep. Gramm and Rep. Rudman which was passed by Congress and is now law.

This legislation requires a series of across-the-board cuts in federal expenditures unless Congress comes up with an alternate plan for balancing the budget.

While lowering the federal deficit is probably a necessary and worthwhile goal, under the current approach vital programs receive the same size cuts as the frills.

As a result, the federal government is on a course of mindlessly disengaging from a host of social service programs designed over the years to help the needy. _ What does Gramm-Rudman mean to St. Louis?

One very vivid example is the impact this law will have on senior citizen programs in the City of St. Louis.

This fiscal year the City will receive $3,694,390 in federal and state funds to provide service to our senior citizens.

This money is used to provide meals; transportation and in-home services.

The meals are served at 45 neighborhood sites throughout the City.

As a result of Gramm-Rudman, we will only receive $2,929,815 during the next fiscal year which begins July 1, 1986.

Because of this loss of $764,575, I set up a task force consisting of four senior citizens center directors and two members of my administration to devise a plan to absorb these cuts, while minimizing any reduction of services.

The plan which the City has adopted in response to the cuts includes several steps.

First, all federal and state senior citizen funding will go to service providers.

The allotment designated for central administration will now also be given to the service providers. Secondly, to compensate for elimination of this central administration allotment, 24 of the 31 staff positions at the St. Louis Area Agency on Aging (S,LAAA.) will be abolished.

The remaining seven positions will be funded out of the City’s general revenue.

In a related move to pare down administrative costs, the management of the social service programs will be turned over to an outside community service agency.

The Director of the Department of Human Resources’ is negotiating with experienced not-for-profit agencies and will select one to manage the program in the near future. Thirdly, all service providers currently receiving funding from S.LAA.A. will receive a maximum 9.5% cut beginning July 1, 1986.

To control costs, meal providers Will accept a standard unit cost reimbursement for meals.

A professional fund-raiser will be retained to generate at least $100,000 in supplemental funds. Depending on the success of this program, the scheduled 9.5% cuts could be reduced. What is most disconcerting about these steps is the realization that they are only a temporary solution. Future cuts in federal funds triggered by the Gramm-Rudman Act will require even more drastic measures.

The federal government needs to understand that these cuts cause very real hardships for real people.

The unthinking stroke of a pen can have severe repercussions at the local level. I will be appointing a Long-Range Senior Citizen Planning Commission to develop recommendations for coping with these federal cutbacks.

But I think it is abundantly clear that the City alone cannot meet the needs of our growing senior citizen population. Your help is needed in convincing our U.S. Representatives and Senators that these funding cuts need to stop.

Please call or write our federal legislators and let them know how you feel.

Originally published in The Times of Skinker-DeBaliviere, April 1986.

Read this article in the original newspaper issue.

Original source: SD_Times1986_04.pdf, printed page(s) 2; PDF page(s) 2.