Following another sales tax failure, what is next?

MOBILE, Ala. (wala) - Tuesday morning, in a four to three vote, the Mobile City Council voted down putting another penny on the dollar for Mobilians' sales tax.

But what does that mean for Mobile’s budget?

Mayor Sam Jones’ proposed budget was focused around the added revenue from the one-percent sales tax increase. Jones has said the city faces a $29-30 million deficit and now that the tax has been voted down, the council needs to find a revenue generator to come up with the money or cut the budget to reflect the deficit.

Councilwoman Gina Gregory hinted at implementing a half-a-percent tax increase to solve the problem. At the meeting during which the vote failed , she said she believes city leaders need to find a way to compromise with one another.

Gregory said she knows the city needs money for infrastructure.

She named “drainage repairs, sidewalk repairs, vehicles for police officers and firefighters and well as garbage trucks” as specific needs.

She said the city also needs money for Airbus and its suppliers, but the real question is how much money the city needs.  

“There has been a lot of talk about what the real deficit is and those numbers keep moving,” Gregory said.

Finance Committee Chairman William Carroll, said he still believes the one-cent sales tax is needed for the city to move forward without making cuts.

“The sales tax increase was struck down today, but that doesn’t mean it will be struck down tomorrow,” Carroll said. “At some point in time, the city is going to have to put a permanent fix or some type of revenue stream in place so that we will have a permanent source of capital funding.”

Carroll said he would like the council to find another resource of revenue for capital and economic development.

He said next city council meeting, there will be a new item on the agenda. He’s hopeful it will be the answer to the city’s revenue problem.

Read our special report on the city of Mobile's budget.