Thursday, October 1, 2009

Sales tax news good, but not great for Mesa

The sales tax revenues have stabilized some after a couple months of dramatic decline. The good news is that Mesa won't have to face another round of dramatic cuts to bring the budget in line with revenue - at least not now. The bad news is that the sales tax revenues are still low. Staying stable is better than shrinking, but the city is going to have to continue to do more with less.

Also, this only goes to further show that Mesa really needs to diversify its revenue sources. Having one source, such as sales tax, hold such sway over the budget is not good for the long-term economy viability for the city. In addition, it seems like we are now waiting for the end of the month and crossing our fingers that revenue should be okay. The city cannot be operated like some sales office hoping to make its "numbers" for the month.

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