St. Louis County Budgeting: $273,300 AI Contract

The St. Louis County Council spent $273,300 on an artificial intelligence platform to tackle its ongoing budget deficit. The council signed the contract with Tyler Technologies in mid-September to access a Priority Based Budgeting solution that analyzes spending patterns and compares the county’s finances to other jurisdictions.

Christopher Grahn-Howard, the budget policy coordinator for the council, stated that the tool aims to shift the county away from incremental budgeting. He described the current process as an outdated model that simply adjusts last year’s figures for new expenses without evaluating the necessity of existing programs. Grahn-Howard expressed hope that the software will force department heads to view spending through the lens of specific services and goals rather than traditional line items.

County Executive Sam Page’s office has raised questions about the tool’s effectiveness. Elizabeth Eisele, a spokesperson for Page, noted that many suggestions from the AI are simplistic or ignore recent county actions. She cited examples where the program recommended implementing online permitting or online reservation systems for parks, both of which the county already operates. Eisele also pointed to a suggestion to hire more corrections officers to cut overtime, noting that recruitment remains difficult due to wage competition with neighboring jurisdictions.

The timing of the contract has drawn scrutiny. Conversations with Tyler Technologies began nearly a year ago, but the final approval came too late to influence the current fiscal year’s budget. Grahn-Howard acknowledged the delay but expects to have sufficient time to analyze the data by January. He noted that the county already uses Tyler Technologies for other services, distinguishing this new budgeting product from previous contracts that faced public criticism in other cities like Kansas City and Kirkwood.

The purchase has also highlighted the political divide between the council and County Executive Page. Councilwoman Lisa Clancy, Page’s only ally on the council, cast the sole vote against the contract. Eisele observed that the AI has proposed several cost-saving measures that Page previously advocated for, such as updating program fees and seeking outside sponsors. While Page’s office has prepared legislation for some of these measures, the council has not acted on them. The tool may now provide external validation for ideas the council previously passed over.

The county is not the only local government using Tyler Technologies, but the company has faced backlash elsewhere. In Jackson County, the firm’s role in property assessments was a key issue in the recall of the county executive. In Kirkwood, city leaders blamed the company for issues related to a $15 million deficit and delayed access to financial reports. Grahn-Howard remains confident the new platform will prove useful, though he conceded that the council may decide not to renew the contract at the end of 2027 if the results do not justify the cost.