Memphis, TN. -  In his overall efforts to highlight an urgent need and to promote an upcoming event, Shelby County Mayor A C Wharton, Jr. today received an assist from the front page of The New York Times.  This assistance came in the form of a Times article entitled "Rescues Weighed as Homeowners Wallow in Debt" which focused on the housing slump nationally while using Memphis' specific challenges as the example throughout the article's narrative.

Mayor Wharton linked this article's information on Memphis' serious foreclosure crisis to the property tax and Shelby County's over-reliance on this tax as a source of revenue.  He clarified, "The link is a straight line.  More foreclosures mean less in property tax for county government."  Shelby County currently faces at 16.5 million dollar budget shortfall.

Mayor Wharton, who has pushed vigorously for alternate sources of revenue, also cited a December 23, 2007 article from The New York Times (December 23, 2007 - "Taxes are Reassessed in Housing Slump").  In this article, local governments, specifically those with excessive foreclosure rates and a heavy reliance on the property tax, are singled out for having to find ways to replace the revenue lost from property taxes.  Wharton also referenced a recent U. S. Government Accountability Office report which indicated that it would be difficult for county governments to address future fiscal deficits solely through tax increases and/or expenditure cuts. (http://www.gao.gov/new.items/d08317.pdf )

In concert with this attention on the community's housing challenges, Mayor Wharton will today announce a Roundtable Discussion of industry leaders, experts and economists who will address the local impact of foreclosures with specific attention to its implications for the property tax and county government.  This event is scheduled for Monday, March 10, 2008 at the Fogelman Executive Center
at the University of Memphis.  Noted economist and Director of the Sparks Bureau of Business and Economic Research, Dr. John E. Gnuschke, Ph.D will help to lead this important discussion and research effort.

Mayor Wharton commented: "I think that sometimes we have to hear the problem articulated from other sources before we give it the necessary attention.  Beyond government officials, we have called together experts and academics to breakdown the real impact of the housing bust." He continued, "Today's article in the New York Times was a compelling reinforcement to our argument of how property taxes are unreliable as a primary source of revenue.  The housing slump just punctuates our dire need for alternative sources of revenue." 

Mayor Wharton also took the liberty to generally invite members of the business community to "chime in" relative to proposals for additional revenue streams for the county.  "If my voice is hoarse from making this same statement, so be it, but we can not cut our way out of this shortfall.  And as we continue to see from other sources, you don't have to take my word on it."