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Voter Mandate Reversed
The 2019 Sales-Tax Referendum, Quietly Cut in Half
In October 2019, Memphis voters raised their own sales tax by 0.5% with one dedicated purpose: backfill the underfunded police and fire pensions. Mayor Young's FY2027 Proposed Budget reduces that dedicated transfer by $13.4M, the exact dollar amount missing from the Police Pension ADC.
FY26 Transfer
$26.9M
100% of dedicated revenue to pensions
FY27 Transfer
$13.5M
Roughly half of the prior year
Diversion to General Fund
−$13.4M
Voter-mandated dollars redirected
Promise to Proposal
How the Voter Mandate Got Unwound
Oct 2019
Voters approve a 0.5% sales-tax increase dedicated to police and fire pensions.
FY2026
$26.9M transferred from the dedicated revenue stream to public-safety pensions.
FY2027 Proposal
Transfer cut to $13.5M. $13.4M of voter-approved pension money is redirected to the General Fund.
Today
Zero narrative explanation on page 11 of the budget book. No public vote authorized the change.
The Math
$13.4M Out of Pensions, $13.4M Into the General Fund
| Line | Amount | Citation |
|---|---|---|
| FY26 Referendum Transfer (adopted) | $26,900,000 | Exhibit B, Revenue Detail by Category, p. 11 ↗ |
| FY27 Referendum Transfer (Mayor Young proposed) | $13,500,000 | Exhibit B, Revenue Detail by Category, p. 11 ↗ |
| Year-over-year diversion | −$13,400,000 (−50%) | Calculated: FY26 − FY27 ↗ |
| Matching shortfall in Police Pension ADC (Line 051307) | −$13,400,000 | Exhibit E, Police Services Expenditure Detail, p. 170 ↗ |
Questions Council Should Ask
Before Approving This Transfer Cut
- •Who, by name, authorized reducing a voter-mandated transfer from $26.9M to $13.5M?
- •Does redirecting referendum dollars to the General Fund violate the ballot language voters approved in October 2019?
- •What General Fund line items are being propped up by this $13.4M, and would they survive a clean vote on their own?
- •What is the actuarial impact on the unfunded pension liability of cutting the ADC by the same $13.4M?
- •Why is there no narrative explanation on page 11 of the budget book for a 50% cut to a voter-approved revenue stream?