Friday, May 14, 2010

Prop 100

In the months leading up to this Tuesday's election there has been news reports on services the Arizona State Legislature is cutting due to our budget crunch. I personally have been affected and so has the small business I work for. The state cut parents out of the KidsCare program. This is the higher income tier of AHCCCS. So, last September my coverage was cut, but my daughter's coverage continued. Now, the State is threatening to cut AHCCCS completely. In fact they did and then renewed it at the 11th hour.
I see this as a scare tactic.
The argument for the increased sales tax as proposed in Prop 100 that I have heard from the Governor's mouth is, Hey, I am a republican and I am asking for a sales tax increase. I have voted against sales tax increases my whole career. Now I am asking for one. Doesn't that show we really need it?
What?! I'm asking for it so you should give it to me?
Oh and also if you don't pass Prop 100, education funding will be further cut. So, pass it or else.
I will not be threatened or bullied into giving the state more money.
If the Governor was offering a carefully thought out plan for future spending; if she'd admit to the mismanagement of state funds in the past; and if she'd explain in detail how she'll put the state on a track for fiscal sustainability I might be willing to vote yes on Prop 100.
The state sales tax has been increased by 1.1% since 1995. And, the Arizona government has grown by 30% in that time. Also, the state gives our money away to out of state businesses and consultants. No wonder the state is broke.
Raising the sales tax, esp. during a very slow recovery from a painful recession will discourage spending in the Metro areas of the state. Why wouldn't I buy all my books, DVDs, electronics, shoes, etc. online when I get an automatic discount because the sales tax is now 9.1%?!
Arizona State Legislature and Gov. Jan Brewer: want to raise revenue?
  1. Encourage citizens (and snowbirds) to shop at brick and mortar stores, preferably locally-owned stores. 
  2. Change the Arizona procurement laws to weigh for a local business to fulfill a contract as 48 other states do.
  3. Move the state's money into local banks and credit unions.
In short, stop the leakages of our wealth to other communities.

Just some thoughts from a humble indie-shop employee without health insurance who loves her home state of Arizona.
Vote no on Prop 100 and demand the Legislature go back to the drawing board and do what every poor and middle class family in America is having to do, trim the fat and spend more wisely.

Monday, May 3, 2010

My Impact with One Purchase

I have been thinking a lot about this factoid that Local First-type organizations speak about: approximately 45 cents of every dollar spent at the locally-owned business stays in the local economy vs. 13 cents spent at a national chain business.
I recently purchased a pair of shoes from my favorite indie shoe store. I could have easily bought the same shoe at a department store or--heaven-forbid--online. But, not only do I appreciate the friendliness of this businesses, the sales people are knowledgeable and spend the time you need with you. I tried on a few styles and hemmed and hawed as I tried to decide between two pair. In the end I choose my new $100 sandals in brown.
It is very convenient that my purchase was nearly exactly $100. That means $6.10 went to the state capital and $2.00 went to city hall to fund basic services. And, according to the statistics mentioned above $45 of my purchase stayed in my community through paid wages and purchased office supplies, marketing and advertising dollars, etc. If I had bought the same shoe at a big box shoe seller only $13 would have stayed in the local economy. That's $33 lost.
There are 600,000 people in my community. Let's say half of those make a $100 purchase of shoes, clothes, or electronics a month. If 300,000 people make that $100 purchase at a big box store my community loses $9.9M per month! Is that correct? Whoa, what an impact one person can make!
For those who have a penchant for online shopping, try keeping those tax dollars in the state. Unless, of course, you want to have to put out your own fires and haul your own trash to the dump. If 300,000 people in Tucson redirect $100 of online shopping a month to stores in town (preferably locally-owned stores) we'd keep $600,000 in the city coffers and over $1.8M in state coffers in just sales tax revenue. Per month. Over a 12-month period, that is well, a lot of money. My figures are conservative. All it takes is less than half of the population of Tucson to spend $100 a month at a local business instead of a big-box or worse an online store to keep the economy humming.
In a state with relatively low property and income taxes, we really need our sales taxes to fund basic services such as police and fire departments.
Let's not give the state more per dollar of our hard earned money, let's just keep it local people!