Southern Arizona Leadership Council Stands in Opposition to Proposition 414

MEDIA CONTACT:
Southern Arizona Leadership Council
Ted Maxwell
President & CEO		PRESS RELEASE
Paula Toomey
520-327-7619
ptoomey@salc.org		January 22, 2025
FOR IMMEDIATE RELEASE

SOUTHERN ARIZONA LEADERSHIP COUNCIL
STANDS IN OPPOSITION TO PROPOSITION 414

Tucson, AZ — The Board of Directors of Southern Arizona Leadership Council (SALC) has taken a position in opposition to Proposition 414, the City of Tucson’s Safe and Vibrant City Initiative.

SALC strongly supports properly funding those who protect and defend public safety. The need is real for both public safety resources and programs that can help disrupt the cycle of societal strain in our community. However, SALC believes Proposition 414 merely perpetuates the structural budget challenges that have left our chartered priorities underfunded.  This approach to seeking a safer City through increased taxation negatively impacts inflation-weary families as well as businesses both large and small.

We have reviewed the Ordinance language and the accompanying Truth-in-Taxation Policy for Proposition 414. We have heard the City leaders’ presentation of how the funds would be allocated over the 10-year taxing period. We commissioned an independent economic analysis comparing Tucson’s budgeting practices and taxing policies relative to similar sized municipalities in Arizona. The reviews and analysis show that a half-cent sales tax is an inefficient and inequitable route to balancing the budget.  Other cities struggling with similar budget challenges have instituted other ways to achieve better outcomes.

Some of the key concerns that led to our opposition to this initiative include:

  • Citizens who can least afford it will bear the brunt of the highest sales tax of any Arizona metro.  Sales taxes are regressive, placing a greater financial burden on middle- and low-income households who spend a larger proportion of their earnings on taxable goods and services compared to higher-income households.  Nearly 20% of City residents live at or below the poverty level. Tucsonans also rank near the bottom of average wages in Arizona and wage growth over the past 8 years has been dramatically slower than almost all our Arizona peers.  Raising additional revenue by increasing consumer prices will be the cause of more societal strain and not the solution.
  • Proposition 414 is a fiscal shortcut with 10-year consequences.  While the challenges facing Tucson are urgent, addressing them with a 10-year sales tax increase raises concerns about fiscal accountability and sustainability. Prop 414 relies on capital expenditures stretched over a decade, with benefits that may be delayed and funds that are vulnerable to redirection or repurposing.  Increasing Fire and Police staffing with funding designed to sunset continues a cycle of financial instability, trading temporary fixes over meaningful strategic planning. Just as families and businesses must do, it is time for the City to make disciplined budget choices for sustainable solutions that fund the community’s priorities.
  • Proposition 414 does not address Tucsonans’ biggest concerns. Clever branding of this initiative suggests it will enhance Police and Fire emergency response times and resources. The reality is that even with Prop 414 funds, Tucson emergency services would remain underfunded compared to our peer cities. This shortfall perpetuates a culture of scarcity and increases the risk of another public safety budget crisis in the future. Police and Fire are core responsibilities explicitly outlined in the City Charter. The business community continues to appeal to City leadership to fully fund these essential services first within Tucson’s nearly $2.4 billion budget.  Only after these mandated needs are adequately met, should additional taxes be considered to address supplemental priorities.

Because of our commitment to real outcomes, we cannot support the “something is better than nothing” approach of Proposition 414. As engaged members of the Tucson community, we have conveyed our concerns to City leaders and expressed a willingness to collaborate on more effective solutions.

We urge City of Tucson voters to vote NO and reject Proposition 414. Public safety requires prioritized and reliable funding. Proposition 414 fails to meet these critical needs. We are dedicated to working together to construct a better solution on behalf of our community.  Tucson deserves better.

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