City should raise taxes, not cut costs

The City of Peoria is in a world of hurt. Because of the recession, revenues are down. Way down. In fact, according to a report prepared for Tuesday night’s council meeting, “Staff is anticipating $3,334,129 less revenue than previously forecasted, which would result in a budget deficit of an equal amount.”

As a result, staff is trying to figure out a way to make up the difference. Curiously, they’re trying to do so through fiscally conservative methods, such as contract adjustments, expenditure reductions, revenue-generating activities, and reserve funds. In other words, they’re trying to save money without raising taxes.

But why? If the recent election has shown us anything, it’s that the vast majority of Peoria residents don’t give a hoot whether their taxes are raised. Most of them couldn’t be bothered to drag themselves downtown for early voting, or out to their polling place on a beautiful sun-shiny day. A majority of those that did voted to raise their own taxes for a non-essential project in the middle of an economic recession — some would say depression.

You know what that tells me? That tells me that the city council should stop stressing out about cutting costs and looking for other forms of revenue. In fact, they shouldn’t change a thing about their operating budget. They should simply figure out how much additional revenue they need, and then raise taxes to cover it. Done.

After all, the museum group didn’t look at any other alternatives to downsize their project, or to increase revenue-generating activity, or renegotiate contracts (like using non-union, but prevailing-wage labor), or any number of things that would have made their project more affordable. Yet, the majority of the few registered voters who turned out voted to give them $40 million anyway with no strings attached.

Not just the voters, either. Caterpillar, the Chamber of Commerce, almost all elected officials, District 150, the Peoria Association of Realtors, etc., etc., etc. — they were all for raising taxes. How could any of them complain if the city were to do the same for essential services, such as police, fire, streets, and sidewalks?

I’m calling on all those who supported and voted for the sales tax referendum to write their city council members and demand that they not cut spending, but increase taxes instead. Since we’re all so flush with cash, let’s start using it in the areas that are the most needy.