A local nonprofit organization, Lawrence Cares, is advocating for a "no" vote on an upcoming referendum that seeks to expand the city’s affordable housing sales tax to include funding for homeless services. The referendum, which will be on the ballot during the general election on November 5, has sparked significant debate within the community.
Key Takeaways
- Lawrence Cares opposes the sales tax increase, citing concerns over transparency and efficiency.
- The proposed tax would double the current affordable housing sales tax from 0.05% to 0.10%.
- If approved, the new tax would fund both affordable housing projects and homeless services.
- City officials warn of potential service reductions if the referendum fails.
Background of the Referendum
The Lawrence City Commission approved the ballot initiative in August as part of the budget discussions for 2025. The proposed increase would add an additional five cents to every $100 spent in the city, with the revenue split evenly between affordable housing and homeless services.
Currently, the city collects a 0.05% sales tax that was approved by voters in 2017, which funds various affordable housing programs. If the referendum passes, the existing tax would be repealed and replaced with the new rate starting April 1, 2025.
Concerns Raised by Lawrence Cares
Lawrence Cares, formed by downtown business leaders in February, has expressed reservations about the proposed tax increase. In a letter to the community, the organization stated:
- Lack of Transparency: The group argues that the city has not provided sufficient details on how the additional funds would be allocated.
- Inefficiency: They believe that increasing the tax could lead to a dilution of resources among competing nonprofits, rather than a concentrated effort to address homelessness.
- Focus on a Centralized Hub: Lawrence Cares advocates for the creation of a “Hub of Hope,” a centralized location for homelessness services, rather than spreading funds thinly across multiple organizations.
City Officials’ Perspective
City officials, including City Manager Craig Owens, have emphasized the importance of the referendum for maintaining current services. They warn that a failure to pass the measure could lead to:
- A $1.25 million shortfall in emergency sheltering services.
- A reduction in shelter capacity, which could exacerbate homelessness in the area.
- Potential cuts to other city services to balance the budget.
Owens noted that the city is committed to the “A Place for Everyone” initiative, which aims to end homelessness through a proposed $267 million investment over the next five years. He indicated that if the referendum fails, the city may need to explore alternative revenue sources, which could impact property taxes.
Community Response and Voting Information
As the election date approaches, community members are encouraged to consider the implications of their vote. Lawrence Cares has urged residents to support local organizations like the Lawrence Community Shelter through donations instead of endorsing the tax increase.
Advance voting for the referendum began on October 16, and residents will have the opportunity to make their voices heard on November 5. The outcome of this referendum could significantly impact the future of affordable housing and homeless services in Lawrence, making it a critical issue for voters to consider.
