A dangerous budget-buster
GLENDALE, ARIZ. – A new study from the Common Sense Institute Arizona confirms why Glendale, Ariz. leaders and businesses have been sounding alarms over Proposition 499: If the measure passes, it has the potential to inflict severe damage on one of the city’s most important economic drivers and on the city’s entire quality of life.
The study 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.
“If Proposition 499 were to pass, overnight Glendale would become a less competitive travel destination. Travelers would see higher room rates and diminished attractions, workers would find fewer job opportunities, and the City of Glendale would see lower tax revenues that would require cuts to critical core services,” Save Glendale Jobs Chair Kim Grace Sabow said. “Between now and Election Day we will be working hard to urge Glendale voters to say no to Proposition 499.”
If passed, Proposition 499 would:
- Mandate a new sky-high minimum wage in Glendale only for hotel and event center workers far above the state minimum wage.
- Impose strict limits on the amount of square footage a room attendant could clean before triggering double pay.
- Mandate how service fees are managed at hotels and event centers.
- Require onerous recordkeeping.
- Force Glendale to establish and staff a new city bureaucracy costing taxpayers millions.
“If Proposition 499 were to become law, hoteliers and city leaders in Glendale would be faced with only bad options,” Grace Sabow said. “Hoteliers will be forced either to raise room rates, reduce
their employees’ hours, or cut jobs. The very people the backers of this proposition claim to represent will get walloped. Meanwhile, the city will be forced to raise taxes or cut existing services – things like parks, police, and fire. This initiative isn’t just a budget-buster, it’s dangerous.”
The Common Sense Institute Arizona analysis is not the only one predicting negative consequences if Proposition 499 passes. A report by 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 the measure were to pass in November.