© 2016, Citizens Tax Committee.

WHO'S TRUTH ON PROP 443

 

WHO’S TRUTH

In response to Council Woman Orr's letter to the editor.

 

The difference between truth and fact is that fact is something that cannot be combated with reasoning, for it is logic itself. But truth is something which depends on a person's perspective and experience.

 

Recently politicians and governmental officials reinforce the “fact” the Prop 443 ballot language “DOES NOT” state it will “pay down” the PSPRS unfunded liability.  They have promised to use the city’s reserve funds to augment liability payments to the PSPRS in first year. They have promised to pay more in years 2 to 10 if funds are available.  The city’s promises are not mandatory thus unenforceable by law. 

The politicians are willing to use the city’s reserve funds to pay PSPRS liability, but are unwilling to use them for the current city services of fire, police, library and etc.  Why is that?

 

The Politicians now admit the Annual Required Contribution (ARC) is a minimum payment.  Not too long ago these politicians were touting they were making their required payment to PSPRS as if it was the total required to fund the PSPRS for that year’s 100% liability payment.  The politicians are correct they never missed a ARC, forgetting to tell the taxpayer the unfunded liability was growing as the city continued to under pay.  Underpayment got the city into this mess.

 

2.00% is the City of Prescott’s sale tax.  A 2.75% sales tax is an increase of 37.5%.    That’s a large sales tax increase except to the “well to do” Prop 443 proponents who go to Starbucks.  This tax is a regressive tax, be it the purchase of milk or an RV and impacts individuals who least can afford it.  The Prescott’s sales tax table.

 

At the recent city’s candidate’s forum on water, Pro Prop 443 Candidates supported lower water rates for lower income homes.  Yet these candidates support higher taxes for food and other necessities. Why the double standard?

 

BUT MOST IMPORTANT, the City and the State Politicians have no solution to the PSPRS unfunded liability.  There are difficult decisions to be made.  Until that is done, they need revenue and the citizens are the ATM machine for their future mistakes.  Has the Citizens Tax Committee (CTC) distorted the truth?  You decide. 

 

They can keep their truths, we will keep our facts. 

 

John Lamerson

President, Citizens Tax Committee

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