Timing of the Food Tax Repeal - A Matter of Importance for Every Phoenix Resident
September 11th, 2011
We came together originally in February 2010, because we wanted to put an end to the habit of the City Manager's Office presenting a proposed budget that included Draconian budget cuts which resulted in what amounted to emotional blackmail of the citizens who would now have to come down to the budget hearings and self-humiliate by begging for services they couldn't live without and pointing fingers at everyone else's needs and saying why they should be cut instead. It was a divisive practice and we would participate no longer.
So our Coalition of over 50 community leaders in Arts and Culture, Persons with Disabilities, Seniors, Parks Associations, After School Programs (PAC), Block Watches, PNP, Libraries, anti-food tax groups, the civilian unions and the Phoenix Law Enforcement Association, representing over 100,000 City of Phoenix households, joined together and presented our budget solution to the City of Phoenix. We knew it would require sacrifices by all, but it was a budget we could all live with.
We then agreed to attend the budget hearings and unlike years past, simply state what was good about each of our organizations, refrain from saying anything bad about others, and end by saying we endorsed the Citizens for Phoenix solution which included a provision for the Mayor's "temporary" Food Tax to sunset in 2 years not 5.
Just as we were against the emotional manipulation of the citizens of Phoenix in 2010 to implement the food tax; we are against the current manipulation of the facts surrounding this Food Tax and a call for an immediate repeal for nothing more than political posturing in an election year.
During the past 12 months the food tax has raised $49 million. Of that, $29 million has gone into the General Fund to support police, fire, and all of the Human Services that would otherwise have been cut.
The remaining $20 million has been applied to Proposition and Enterprise Funds as follows:
- The 2007 Prop 1 receives $5 million. It had required the hiring of 100 Fire and 500 Police personnel (both sworn and non-sworn, but we were only able to hire about 60% of police number before a decline in sales tax put the fund in the red) and we are now restoring that fund.
- Prop 301 - Which dates to the 90's and includes funding for Block Watch, and other Community Based Policing positions and programs receives $2.5 million
- Transit 2000 Funds - Which provide for Dial-a-Ride, Bus Services, and Light Rail receives $10 million from its 0.4 cent share.
- Parks & Preserves Initiative - Which provide recreation programs, park maintenance and construction and desert and mountain preserve purchases receives $2.5 million
Citizens for Phoenix will continue to adhere to our original agreement that we want the 2% Food Tax to sunset on June 30, 2012. However, to those who say they will repeal the tax immediately or upon taking elected office we ask:
- How is it fiscally responsible to repeal these funds now when our current budget is balanced as a result of this revenue?
- Why are you doing exactly what we all accused the Mayor of doing - not consulting the public before making such a radical decision?
The repeal of the Food Tax can and should be done before the 5 year period the Council originally voted on, and sooner rather than later is the correct course. However, partisan politics has no place in city government and should not be driving this discussion.
It is the recommendation of Citizens for Phoenix that in order to be certain that this important issue is not used as a tool for anyone's personal gain, the repeal of the 2% food tax in June of 2012 must be dealt with in advance so that proper, prudent and intelligent planning and reallocation of funds can be arranged. This process should begin now, have public input, and the result should be voted upon by our new elected Mayor and City Council members so that the loss of revenue happens in a controlled and carefully planned environment. We expect minimal or no loss of City services and personnel as a result of this prudent course of action.