When the voting public is educated about an issue like Proposition A, they usually can deliver a positive result. Some of us did fight hard against Prop. A’s passage and I thank all who did. I also thank the vast majority of city voters, 68 percent, who rejected the proposal.
Tuesday’s election brought a lot of changes to the St. Louis community. None, however, is more important than the passage of Prop. A. When we woke up Wednesday morning, the city of St. Louis was changed forever.
Voters across Missouri determined the fate of our city by requiring, beginning in April 2011, the city to decide every five years to keep or drop the one percent earnings tax. From this day forward, one-third of city revenues, or about $140 million, will be put at risk every five years. This perpetual uncertainty and/or the eventual loss of the city’s largest revenue source is immediately beginning to take its toll on St. Louis’ ability to create jobs, fund city services and issue long-term debt.
Some will argue that not all is lost and the worst can still be avoided if the people vote to keep the earnings tax in April and beyond. Unfortunately for everyone who lives, works or visits our city, Prop. A’s passage has significant consequences. Starting yesterday, our unstable and unclear financial future could be a detriment to the city’s current and future development and growth.
Imagine for a moment you are a business owner, investor or family thinking of doing business in St. Louis or relocating here. How attractive does a city with an uncertain financial future look?
One day the city can afford to pay for police and fire protection, the next day it can’t. One day the city can afford to issue bonds to fund capital and infrastructure improvements, the next day it can’t. One day the city is an attractive, competitive place to do business, live, work and play, the next day it isn’t.
It is unfortunate we were unable to defeat Prop. A and protect the city’s credit rating and future.