Fallout From Proposed Pension Fixes Has Broad Reach
Retailers: Sales Tax Increase Could Be ‘Last Straw’
POSTED: 4:24 pm CDT May 20, 2009
UPDATED: 5:19 pm CDT May 20, 2009
OMAHA, Neb. — Omaha faces a $500 million shortfall that could bankrupt the city and dry out pensions unless $30 million a year is generated for the next 30 to 40 years.
“We have a major problem here in the city of Omaha,” said Mayor Mike Fahey Wednesday morning as he and a task force outlined their proposed solutions.
The 11-person panel proposed three funding options, including a sales tax hike that officials said would be a last resort. Under the sales tax proposal, a rate increase of 6 cents would be proposed on property taxes. For the owner of a $100,000 house, taxes would increase by $60.
A second option is a half-percent increase in the city’s sales tax. That option would need approval by the state legislature and also a public vote.
The final proposal would be a $10 monthly fee on garbage collection, which would also require legislative approval. That option would generate about $15 million per year in revenue. It could also be established the quickest — as early as 2010. Continue reading “Fix it.”