City finance committee discusses budget

MOBILE, Ala. (WALA) - Chief of Staff Al Stokes stood up at Tuesday’s finance committee meeting urging the city council to vote in favor of a tax increase. He doesn’t believe Mobile’s budget can be balanced without it.

“If we don’t have the revenue, then it’s going to be your budget and your decision to make cuts,” Stokes said. “That’s going to be your challenge to do that, and it’s going to impact every aspect of city government.”

The meeting follows a public hearing Tuesday morning addressing Mayor Sam Jones’ budget plan, which includes a one percent sales tax increase.

Discussions about the tax increase started before the old sales tax increase expired and now, the deadline to act is just a few weeks away.

Special Report: Mobile City Budget

At their regular meeting, the council tabled a vote to increase the sales tax from nine cents on the dollar to 10 cents.

Though they have that tax in common, officials said this year’s proposed budget differs markedly from past years on both the revenue and expenditure sides.

Councilman William Carroll said Jones’ proposed budget leans on the sales tax increase to balance it.

He said the committee needs to decide if there will be a revenue generator, a portion of a revenue generator or no revenue generator at all for the new budget.

"I think it's still very clear there are not five votes for a one percent tax increase. I think it's clear we understand a compromise will need to be reached," Gregory said.

Richardson said he was hoping the tax increase would carry Mobile until Airbus arrived. Then, the revenue and tax dollars from that would help bring mobile out on top.

“Mobile's sitting in a hole right now. We're $30 million in the hole. We need to come up, and why one penny, why not two pennies?” said Joseph Lozano.  

However, other citizens like Al Jackson said Mobile has been given opportunities like the cruise terminal, and they have failed to generate revenue though that.

So, the question remains: what is the city council going to allow as a revenue generator?

Officials said “If the proposed renewal of the one cent sales tax is not taken into consideration, this year’s budget has approximately $16 million less revenue than last year’s budget.”

Whether or not it's the penny sales tax, the public will have to wait until next Tuesday's vote.

The deadline to balance the proposed budget is October 1, that's when the 2012-2013 fiscal year begins.