Debt debate expected to impact local jobs, projects - KMOV.com

Debt debate expected to impact local jobs, projects

(KMOV) – Local leaders have been sending warnings to the public on how the debt debate could impact the local economy.

Leaders say the local community can expect layoffs and major construction projects to be shut down as a result of the ongoing debt issue.

Many local programs such as unemployment, police and construction workers rely on the federal government for funding.

St. Louis police may soon lose the $300,000 a month the department receives from federal grants to help pay officer’s salaries if no debt deal is completed.

The construction project on the Page and Olive connector is getting $40 million in federal grants and could be affected by the potential debt deal.

A drop in the bond rating could also impact St. Louis County even if the debt ceiling rises. 

St. Louis County is borrowing $23 million this year in bonds to run operations until all the tax money is collected at the end of the year. Should St. Louis County's bond rating drop, borrowing money could become a challenge.

Powered by Frankly