A mix of new food-tax revenue and employee salary cuts could allow Phoenix to preserve about half of the general-fund services originally slated for the chopping block.
City officials so far have only a rough idea of what could be spared. But if every city union agreed to the wage reductions that police and fire unions accepted this week, the City Council would need to cut only $70 million, instead of $140 million, from police, parks, libraries and other services, budget officials said.
The cuts will come just a year after the council axed a record $156 million from the budget, resulting in swimming-pool closures and cuts to library hours and park maintenance.
All seven bargaining units pledged support Thursday for some level of concessions, but only the largest police and firefighters unions have tentatively agreed to 3.2 percent wage reduction over two years. Those givebacks would save more than 110 public-safety jobs.
All seven bargaining units pledged support Thursday for some level of concessions, but only the largest police and firefighters unions have tentatively agreed to 3.2 percent wage reduction over two years. Those givebacks would save more than 110 public-safety jobs.
"A combination of cuts, revenue increases and employees sacrifices. We've said all along that those three things together will help us tackle the deficit situation," said Assistant City Manager Ed Zuercher, who noted that top managers are taking furloughs and have not had a raise in two years.
The new budget picture emerged as the city kicked off the first of 15 public hearings on the food tax and proposed budget cuts.
At Maryvale's Carl Hayden High School Wednesday night, about 400 Phoenix residents and employees rallied in support of the 2 percent tax on meat, vegetables and other grocery items. A few voiced support for a 4 percent food tax.
Backers said the 2-cent-per-dollar tax, which would raise $62.5 million over 15 months, was critical to keeping police officers and firefighters on the street, and preventing senior centers, libraries and after-school programs from shutting down. The tax takes effect April 1.
"I ran from Detroit because of a lack of police officers and a lack of safety," said 32-year resident Eliot Fuller, owner of the Wagon Yard Restaurant and Saloon on Bell Road. "This scares the living hell out of me. I have children. I have grandchildren. We need to be protected."
On Thursday, hundreds more packed an auditorium at the Devonshire Senior Center, which had been faced with the threat of closure before the food tax passed. One of those in attendance was Millie Gallagher, 81, who takes a Reserve-a-Ride van each weekday to the center at Los Olivos Park. It's where she chats with friends, nibbles on turkey sandwiches and plays games.
"I'd be lost without it," she said, adding that she supports the food tax.
However, Don't Tax Our Food, a group of Valley libertarians, is seeking to overturn the tax at the ballot box. And the Community Alliance, a group of 25 social-service agencies, said Thursday it opposed the tax because it disproportionately hurts the poor and seniors.
The coalition instead supports a quarter-cent city sales-tax increase.
"Low-income families need the extra money to pay their share of reduced-price school lunches, buy underwear and shoes, and pay utility bills," alliance Chairman Tim Schmaltz said in a statement.
Mayor Phil Gordon struck a different tone at a City Hall news conference. In a rare show of solidarity, several council members and leaders from all seven unions flanked the mayor as he praised employees for their financial sacrifices and residents for supporting the tax.
"We will get through this and maintain essential services one way or another," Gordon said.
In the coming weeks, union leaders and management will hammer out the details of the concessions, which could include wage reductions and furloughs.
"We all are going to give as much as we can to save city services," said Frank Piccioli of the American Federation of State, County, and Municipal Employees 2960, which represents 911 operators, fire inspectors and other non-sworn employees. "We know no matter what, we are not going to be able to save them all, so we are trying to prioritize to save as much as we can, to save as many as we can."
