Hearing addresses tax increase, budget

MOBILE, Ala. (WALA) - Dozens turn out for a chance to comment on Mobile Mayor Sam Jones' proposed budget and sales tax increase.

A public hearing was held at Government Plaza Tuesday, and there was only a handful of seats left.

Mayor Sam Jones has asked the city council to increase the tax by a percentage point bringing Mobile’s sales tax to 10 cents on the dollar instead of nine.

The city council has been divided on the issue, and the measure needs five votes to pass. The tax was previously voted down.

While council members were slated to vote on the budget and sales tax increase, it was held over for one more week.

But, that did not stop folks from putting in their two cents.

Jim Mathers wanted his voice heard when it comes to Mobile Mayor Sam Jones' proposed budget and sales tax increase.

Mathers said he doesn't believe the city is poor, just poorly managed. He doesn't favor increasing the sales tax.

He hopes his council member Gina Gregory doesn't either, even though last time she voted in favor of raising the sales tax.

"Gina, when people fool you once shame on them, when they fool you twice shame on you. Be careful, Gina. You've been played. You gave a vote of yes two years ago and said you wanted to see change. I want to ask you, did you see that change?" asked Mathers.

Earlier this year, Councilwoman Gregory sent a letter to the Mayor's office with her own ideas on how to tackle the city's budget problem.

Henry Schwartzberg thinks raising the sales tax is a bad idea, too. 

He believes the budget shortfall is overstated. Mayor Jones said it’s around $29 million yet others say it could be $20 million less than that.

Schwartzberg believes there are ways to save money, and it doesn't involve raising taxes.

"Increase employee premium and co pay and that will reduce costs to the city; therefore assisting the budget also," said Schwartzberg.

Yet, that doesn't sit well with Joseph Benson, a police officer of 35 years.

He said officers are leaving the City of Mobile left and right for better pay and better benefits.

"If you go up on the insurance, if it goes up too bad, you are cutting salaries and losing more than you lost now," said Benson.

One man even suggested city council members lower taxes to draw in more people.

The economics teacher said when you cut taxes people spend more.

Fred Richardson isn't buying the idea.

"I guarantee you and if you go to another city and buy something from McDonalds you are not going to ask what the tax costs? You want to know how much the hamburger costs. When you get and ready to go to the hotel, you want to know how much the hotel costs not the tax. I have heard that theory before, and it does not work," said Richardson.

What will work is still unclear, but it does not appear raising the sales tax will pass since because it takes five yes vote.

As it stands, three have already said no; Bess Rich, Gina Gregory, John Williams.

The budget needs four votes of approval to pass.