TEMPE, AZ — Tempe voters appear to be rejecting a proposed sales tax increase by a double-digit margin, with Proposition 424 trailing as it sought to raise more money for public safety, transit and child care.
The proposition looked to raise $50 million through a half-percent sales tax hike to help fill a $24 million budget hole. As of Thursday evening, unofficial results showed more than 59% of voters, or 26,535, were against the measure. Nearly 41%, or 18,190, were in favor.
Although the proposition outlined public safety, transit and child care as services that would be funded by the revenue, some voters, like Tempe-based Brick Road Coffee owner Gabe Hagen, wanted to see more transparency on what exactly that funding would look like.
"We don't want to just write a blank check to people anymore, and that's what this somewhat felt like," Hagen said. "It felt a little rushed, and I think it's time to go back to the drawing board."
Tempe voters approved sales tax measures in 2010 and 2018 by wide margins, Hagen noted.
"Tempe voters are not afraid to pass tax increases when we know what it's funding, and it's funding something that we feel is worth it," Hagen said.
Tempe's police and firefighters unions each contributed $30,000 to the Tempe Forward PAC in June, campaign filings show. United Phoenix Firefighters contributed $15,000 in early September. The PAC's Yes on 424 campaign warned that public safety and services would suffer if the tax failed.
Some voters, including those who previously spoke to ABC15, said such campaign messaging was too broad.
Hagen, who is now opening a third coffee shop in Phoenix, also worried the tax would burden workers and customers, echoing concerns by the No on 424 campaign, which questioned why the tax would raise double the budget shortfall and called the tax regressive.
"There's a lot of people that are struggling to put food on the table," Hagen said. "At the end of the day, when you come asking for more money for these things that just are not the priority right now--the priority is, can I pay my rent? Can I feed my family?"
Those worries also align with the broader affordability concerns driving voters this midterm. Nationally, the ABC News Voter Poll found about 6 in 10 U.S. House voters expressed concern and frustration with fuel and food prices.
In a statement to ABC15, the Tempe Officers Association repeated its warning if city cuts fall on the department.
"We stand by our warning in the strongest possible terms: The defeat of Proposition 424, if followed by cuts to public safety, absolutely will mean longer emergency response times.
"Tempe officers will continue doing everything they can, but dedication cannot replace the resources needed to respond quickly when people need help. When you dial 911 because you've been the victim of a crime, every minute matters.
"The consequences of cutting resources for police and firefighters will be felt by every person waiting for help."
In a Facebook post, the Yes on 424 campaign stated it respects voters' decision.
"The challenges that inspired Proposition 424 remain," the post reads in part. "Tempe faces significant financial pressures, and difficult choices lie ahead as our city works to preserve essential services, protect public safety and meet the needs of a growing community."
During Thursday's regular council meeting, Mayor Corey Woods said making up for the $24 million budget shortfall without the tax "is not going to be easy."
"We're going to need to get creative, roll up our sleeves and figure out how to do more with less," the mayor said.
Woods said budget discussions will begin next week.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
