This News from WBBJ on the meeting yesterday afternoon on the Current Budget.

JACKSON, Tenn.-The city of Jackson budget review committee met Tuesday afternoon as they work toward a (an attempted) balanced budget for the upcoming fiscal year.

The committee made up of three councilmen (Randy Wallace, Scott Conger, and Ernest Brooks) and two Jackson citizens voted to re-purpose a current tax levied in Jackson. Half of the city’s current sales tax goes to Jackson-Madison County Schools. The committee is recommending it instead be added to the city’s general fund .

“They are voting to resend that to be used for infrastructure and the demands that are on the city government everyday,” said Jackson Mayor Jerry Gist.

The recommendation will go before the entire city council in a special meeting, Thursday.  If it does not pass, then the city will consider
layoffs and budget cuts. The committee is also considering what they are calling a “hamburger tax” and storm water fee.

Editors Notes: WBBJ stated that 1/2 of the sales tax revenue would cease going to the county while the city web site states of the 2.75% sales tax, City receives 28% and Madison County Schools 72%. If the site is true, this could equal something close to 35 million dollars annually added to the general fund. This will also mean the county would have to make up the lost dollars which would come back to citizens of the city and county through some sort of additional tax.

The city would then be free to piss those dollars away as well.

Of course the city will look like the good guys while transferring to the county the extra work in finding revenue. This has been the general strategy of financially struggling city’s over the years. The city of Jackson like Memphis more recently, dumped its school system years ago while still collecting taxes on the operation of that program. It moved those dollars to build the new City Hall, introduce the city to minor league baseball (which the city taxes fund more than contracts for street maintenance) and build a money trap golf course.

Financially the city is struggling as it has since 2007 and continues to borrow money to operate at its present pace. According to a proposal by the Mayor the debt service is over $104 Million, over 30 million more than when he first came to office. A proposal by Council Neudecker in 2007 would have left the city debt free by 2016. The council at that time ignored that conservative direction.

Apparently the city is not a follower of Dave Ramsey.



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