Councilman supports alternate budget solutions

MOBILE, Ala. (WALA) - Over the years, the economy has gone up and down and round and round, but The A&M Peanut Shop in downtown Mobile hasn't cracked under the pressure.

"[This] shop's been here since 1947,” said owner Deborah Deguire.

The variety of peanuts and cashews mean the livelihoods of the men and women who work there, and Deguire feels if a penny tax can help the livelihood of the Port city, she's all for it.

"I don't think it's going to make that big a difference in everybody's pocket individually, and if it helps the city that much, then go for it," Deguire said.

However, one city council member doesn’t like the idea at all.

"Any tax increase during this economy, when everybody's struggling, is a bad idea," said Mobile city councilman John Williams.

Mobilians just stopped paying a temporary one-cent sales tax increase in September. The Mayor wanted that tax to last longer. He said a new penny tax is needed to prevent cuts to fire and police services.

"I would certainly hope that we wouldn't have to do any of this, and we wouldn't have to do it had our initial proposal been approved as we presented it 18 months ago," Mayor Jones said.

The Mayor said the city is cutting its budget, and saved nearly $2 million in 2011. Williams said the mayor should've done more.

"That is a fraction of what we ought to be saving when we know the end is near - when we know that rough times are certain to continue," said Williams. "With the city council's action last year of a temporary sales tax, it produced no change in behavior, and we're looking for a change in behavior."

Williams said most of the city budget goes to personnel. To save money, some employees will have to go. Williams said like many families in this economy, the city must learn to live within its means.

"We don't have to take the police off the street, the firefighters off the street, and we don't have to stop picking up household garbage,” said Williams. “We can do those things and still go where we're going. We're just going to have to do it with less people."

Back at the peanut shop, they've managed to survive thanks to their customers.

"It’s looking good," Deguire said. "But, you know, it all comes down to how much money people have in their pockets, and that sometimes gets a little scary."

Mayor Jones is counting on the money in people's pockets to save this city, but Williams feels the city should save elsewhere.

Mayor Jones will meet with the city council on Tuesday to discuss his one-cent tax plan. Then he will host a series of public meetings to hear from you.