Mobile's deficit debate rages on

MOBILE, Ala. (WALA) - Mobile Mayor Sam Jones hopes a one percent sales tax hike can save the city from a proposed $29 million budget crisis.

But as the council members debate the measure, the expected May 1 start date for the tax is not possible. Therefore, the mayor's office has to revise its figures.

The mayor is now aiming for a start date of June 1.

"We have to keep those policemen out there, we have to keep the firemen, the garbage trucks running, that's what we do. And you do it based on the resources we have available to you," Mayor Jones said.

Jones expects that sometime in early to mid-May, the city council will be able to take up a vote on the sales tax.

Council facing friction

Some council members have made their opposition obvious.

Councilwoman Bess Rich said the tax will divert up to $30 million a year from the economy to the city's coffers.

"Looking at it another way, this is not just one penny on the ground. It is three billion pennies, that's a lot of pennies to pick up off the ground," Rich said.

Councilman Fred Richardson, a supporter, gave a brief history lesson.

"From 1989 to 2012, with the exception of 16 months, we've been operating on the nine cent [sales tax]. And I want you to find me one company, one in Mobile that is selling an item today for the same price he or she sold it for in 1989,” Richardson said.

Richardson said the sales tax increase in 1989 propelled Mobile's growth and led industries like Austal and ThyssenKrupp to the area.

Some city council members have said the city needs a better accounting system, or there should be more transparency from the Mayor's office.

The mayor defended his accounting team, and continues to make the point that he saw this deficit coming when the sales tax hike of 2010 came to an end.

The mayor warns that, without a sales tax hike, city services, firefighters and police officers could face cuts. On the other hand, one council member warns a tax hike would hurt businesses and low-income residents.

The council tabled a vote on the sales tax increase until a later meeting at their normal Tuesday meeting.