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Original Article: City budget depends on Christmas shoppers

By Bud Foster – email

Probably the last thing to come to mind when Christmas shopping is Tucson city hall.

But the city depends on a brisk holiday sales season to replenish is depleted coffers and probably this year more than most.

Tucson has just announced it will be another $30 million in the red this year on top of the $28 million already cut and the projected $60 million deficit next year.

The bleeding just won’t stop.

But a bountiful holiday shopping season could stem the flow just a bit.

For every $50 dollar sale, $4.05 goes to sales taxes. $2.80 goes to the state. $.25 goes to the RTA for road construction. And $1.00 goes to the city of Tucson.

But those dollars have been slow to come during this recession.

“Our average sale used to be $30 dollars. Now, were seeing $20 to $25,” says Lisette DeMars, who works at Mrs. Tiggy Winkles toy store and heads the Local First Tucson sales organization.

It’s not that the stores are seeing a slowdown in customers. DeMars says just as many people as ever are coming in but they’re just not spending as freely.

“There’s birthday’s happening. There’s holidays happening but they’re budgeting a big more,” she says.

The city is also battling Internet sales where tax free, free shipping sites abound.

But it goes to the heart of quality of life.

Those sales tax dollars go to pay for police, fire, salaries, parks and recreation. With the budgets dwindling, so to, will the quality of life.

“It goes back to people who live here, who are investing in our community,” DeMars says.

It probably costs a bit more to buy local products than with the big chains but the dollars spend locally go a bit further.

“What it means is local businesses hire local CPA’s, local window washers, local carpet cleaners instead of outsourcing to out of state so when you spend locally, it works harder for the local community,” she says.

So the city of Tucson has hung its Christmas stocking with care hoping the local business community stuffs it with cash. But early indications are, it could just as easily be stuffed with a lump of coal.  

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