Mayor Cara Spencer announced today that the City of St. Louis, alongside taxpayer and Budget Director Paul Payne, has filed a lawsuit challenging the State Takeover Law (HB 495) as unconstitutional.

The mayor expressed disappointment that legal action is now required, but also acknowledged this was a necessary step as the City and the Board of Police Commissioners have been unable to reach an agreement over the budget for the Police Department, which affects the budget of every other City department.

"This is a measure we do not take lightly. Regrettably, we are at an impasse in terms of what the law requires the City to provide, so we must ask the courts to intervene and provide that necessary clarity," said Mayor Spencer. "While difficult, this is an essential step to prevent a financial crisis and bring legal certainty back to our City's governance."

The lawsuit seeks to overturn the law entirely and stop significant unfunded mandates from being forced on St. Louis taxpayers. It is filed to advocate for the City's financial stability and the constitutional rights of city officials and residents.

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"My commitment to the officers who put on the uniform every day and do dangerous work remains non-negotiable. My disagreement is with the Police Board's approach and the harm that would cause to all City services and residents," said Mayor Spencer. "This lawsuit seeks clarity and to protect all those who work for our City, and our right to provide a safe, clean and healthy place to live for all St. Louisans."

The decision to file a lawsuit was made following a challenging budget season with the Board of Police Commissioners. The Police Board certified a budget of $250 million on Feb. 25, excluding costs that would raise the actual expense to the City to $274 million. That is a cost that the City cannot cover without resorting to layoffs and severe cuts to essential services, including refuse, street repair and water service.

Yesterday, the City's budget director recommended a fiscal year 2027 budget for the SLMPD that includes the 7% pay increase approved by the Police Board in January. It represents a 4.3% increase over the fiscal year 2026 budget, reflects $7.5 million more in General Fund dollars above fiscal year 2026, and is an estimated 25.4% of City general revenue.

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The budget certified by the Police Board of $250 million did not include line items for retirement or Park Rangers, and excluded City Marshals costs. These required costs would mandate the City expend $274 million. The BoPC has also failed to provide allocation figures for contract funds, grants and asset forfeiture revenues.

What is even more concerning is the Police Board's printed assertion that, under their calculations, the city could be on the hook for as much as $333 million. They also continue to assert that their position is that the Rams settlement funds and the City's reserves should also be considered general revenue. The City simply sees no argument for that, and has repeatedly stressed this.

"It's simply not true," said Mayor Spencer. "Treating the Rams funds and reserves as general revenue means they would soon be exhausted because they lack recurring revenue streams. The Rams settlement was a singular allocation, and the City's reserves are designated for maintaining the City's solvency and must be safeguarded."

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