LEFT, RIGHT, OR CENTER: PROP. 499 IS BAD FOR GLENDALE
Even progressive group braces for lost jobs, higher prices
GLENDALE, ARIZ. – Think tanks and economists from across the political spectrum agree that if Glendale Proposition 499 were to become law it would inflict severe damage on the Glendale economy.
“During a contentious election season, there’s at least one thing analysts from across the political spectrum can agree on: Proposition 499 will wallop Glendale consumers and cost jobs,” Save Glendale Jobs Chair Kim Grace Sabow said. “Whether left, right, or center, there’s no denying that overnight Proposition 499 will make the Glendale tourism sector less competitive, which will put jobs at risk, cause prices to rise, depress visitor spending, and slash the sales tax revenues the city depends on for basic services. The consequences of Proposition 499 are far-reaching and severe.”
The center:
Common Sense Institute Arizona found that:
- Proposition 499 would reduce Gross Domestic Product (GDP) in Glendale by between $120 million and $1.9 billion.
- The city’s events and accommodation sectors would be hit hardest; together they represent an estimated 8.2% of the city’s entire economy.
- Between 1,700 and 32,000 Glendale jobs could be at risk.
The right:
“The massive boom in Glendale’s hospitality industry over the past several years has boosted the local economy and created thousands of new jobs. Mandating a minimum wage for hotel and event center employees would eviscerate these gains. Hotels will be forced to pass the costs on to consumers, making it unaffordable to visit and spend money in Glendale. Jobs will also be threatened, because businesses cannot afford to double or triple their payroll overnight. While well-intentioned, the unintended consequences of this measure will have severe consequences for the businesses, workers, and families of Glendale.”
Victor Riches and Christina Sandefeur, writing for the Goldwater Institute
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The left:
Even the progressive Grand Canyon Institute’s analysis predicted cost increases and job losses if Proposition 499 became law.
As reported by KJZZ’s Matthew Casey, “He [Grand Canyon Institute Research Director Dave Wells] also said up to 5.5% of hotel and event center workers in Glendale could lose their jobs or see their hours cut, if Prop 499 passes.”
According to Wells’ review of the measure, in addition to higher room rates and depressed occupancy levels, “Upward pressure on prices at concessions at major Event Centers like Desert Diamond Arena and State Farm Stadium will likely be about 6%.”
The economists:
An analysis from Applied Economics finds that Glendale could be slammed with a loss of between “$1.4 million to $2.9 million in cumulative declines in sales tax collections over the next five years from lower hotel occupancy and corresponding reductions in visitor spending” if Proposition 499 were to pass.