Our city funding concerns
We recognize the serious need to increase our stock of affordable housing, but we have reservations about the City’s request to increase sales tax rates as a vehicle to comingle funds for housing and for outreach programs.
For starters, the large increase in the City’s Manager’s discretionary budget waves a red flag; it suggests a desire to hide details from public scrutiny. When asked by a Commissioner to explain the proposed 2.7 times increase in City’s Manager’s Office funding, staff provided this answer: “This is due to the creation of the Homeless Solutions division ($2.5M budget in 2025).”
The City has not been forthcoming with details about specific uses of increased funds. Staff and some social service agencies give lip service to assisting only Douglas County residents, but we have no evidence of accountability. A “No” vote puts pressure on the City to use our fixed resources first and foremost for our permanent residents.
“Harm reduction” is listed among the services the City hopes to offer. Has the City defined for the community what that really means? In most programs, this means needle exchanges, which should not be a feature in any neighborhood or central business district. The City’s unwillingness to talk about this increases distrust; it is, however, consistent with the unspoken position of City staff: “Trust us. We know what we’re doing.”
Most communities in Kansas and across the country have provided detailed results of their annual Point In Time (PIT) counts from January. Lawrence drags its feet; is there something to hide?
The City needs to address housing and homeless issues more efficiently, and a NO vote on raising taxes makes that point. Just the number of competing non-profit agencies asking for City funding is evidence of inefficiencies.
The City needs to make hard decisions about consolidating services and locating them in a large, central clearing house (AKA “Hub of Hope”). A “Yes” vote would unfortunately take some pressure off the City to operate efficiently. Not all budget problems are best solved by raising taxes.
It is important to remember that a “No” vote does not interfere with the current funding from sales taxes to address affordable housing problems.
In the City’s words, “The proposal repeals the existing special sales tax (of 0.05% for affordable housing) and replaces it with a new sales tax (of 0.10% for affordable housing and homelessness Page 2 of 10 programs). If approved, the “new” sales tax will be in effect on April 1, 2025 until March 31, 2035. If the ballot measure does NOT pass, the existing special sales tax for affordable housing approved by the voters and effective April 2019, will continue as previously approved by voters. It will sunset on March 31, 2029.”
The City has miscalculated sales tax revenue in recent years and is looking to bolster public transit programs with general funds, since previously anticipated revenue is not materializing. This reveals a problem associated with projects funded by the variable nature of sales taxes. The City’s current prediction of sales tax growth of 3% in 2025 is worrisome.
