Mobile Budget Shows Weak Sales Tax Growth

Mobile Budget Shows Weak Sales Tax Growth

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Mobile, AL -

Despite a sales tax hike that lasted for most of the fiscal year, the penny increase didn't give a huge windfall to the city's general fund.  The mayor's budget message says they only have $800,000 more dollars from sales tax revenue this year compared to last year--which equates to about zero growth in the general fund. 

“Our economy didn't move a whole lot last year so it did not go to where we projected it to go,” says Mobile Mayor Sam Jones.  The mayor says that will be a challenge but something they can adapt to.  He says the sales tax increase allowed them to buy new public safety equipment like garbage trucks and police cars.  Last year the city had a carryover of $13 million.  This year it's barely $600,000. 

“We had a large carryover last year and we ended up operating on it based on the way the council split up the penny,” says Jones.  In the $217 million budget there are still plans to give city employees a 2.5% raise which would start in January.

“We have proposed that, it is already part of the budget so there's no reason why they shouldn't.  The sales tax increase isn’t doing much for the city’s general fund.  The budget also has very little carryover from last year to the new fiscal year,” says Jones.    

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