Last month, Go Forward CEO Ryan Watley proclaimed “Enough is Enough” and chastised the Pine Bluff Commercial and local NAACP Branch. Last week, we discovered that he had been improperly directing city officials (the finance director) to redirect public funds via text message and phone calls without supporting documentation, including sending $300,000 checks to a post office box. Enough IS enough — we’ve had enough of Go Forward.
What has Go Forward produced over the last 60 days that would justify another vote on this tax? Other than a nearly $700,000 embezzlement that can be placed at its feet. You can’t rely on a regular or legislative audit following a misappropriation of that size. Certified accountants and financial professionals know you must conduct a forensic audit after an embezzlement. This means you must conduct a forensic examination to determine the extent of the theft prior to completing an independent financial audit–not merely a legislative one.
Ryan Watley, Go Forward CEO, said that Go Forward has decided to be transparent…
Here are a few clarifying questions we have for Dr. Watley:
Independent reporting for Pine Bluff & Jefferson County since 1879.
1) There was nearly a $1 million embezzlement at Go Forward/Urban Renewal–will you support a forensic examination and audit of the five-eighths-cent tax dollars? If not, why not?
2) Likewise, will you support and provide independently audited financial statements for the GFPB Inc. private dollars for 2017-2023? If not, why not?
3) Since GFPB Inc. is a tax-exempt nonprofit organization, please provide the IRS Form 990 for 2017-2023. If not, why not?
4) Where does the money for your $170K salary come from? Who pays you and why has this been such a secret since 2017?
5) The Arkansas State Constitution prohibits a city from donating or appropriating public money to a private individual, corporation, entity, organization, association, etc. How is Go Forward legal since no other entity (including the City of Pine Bluff or Delta Rhythm and Bayous Cultural District) has been allowed to access the five-eighths-cent sales tax proceeds other than Go Forward or without Go Forward’s authorization? Attorney General Opinion (2023-025) says this was not legal.
6) If Pine Bluff taxpayers have contributed $1.5 million plus $3.5 million (over $5 million) or 100% of the equity for the convention center hotel, then the city should “own” the hotel and not a private development group. Why are we giving away public dollars/property to a private hotel group? Attorney General Opinion (2023-025) says this is not legal.
7) Why is your father qualified to sit on the Public Facilities Board over the Convention Center hotel, other than favoritism, nepotism, or cronyism? Even if it’s legal, doesn’t this look bad for Go Forward going into the election?
8) Will you return the tax dollars that Go Forward funneled through Parks and Recreation to pay for travel, lodging, and concert acts/promotions in violation of the Arkansas State Constitution? Attorney General Opinion (2023-025) says this was not legal.
In 2017, the city of Pine Bluff passed a five-eighths-cent general use sales tax. However, it is referred to as the Go Forward Tax because no other entity has been able to direct or access the funds other than GFPB Inc. (Go Forward), a private non-profit entity. Aldermen Glen Brown Sr. and I argued that the city passed a general use sales tax in 2017 and that the five-eighths cent sales tax proceeds could be used for the general administration of the city, including Go Forward. Mayor Shirley Washington countered that we “promised” the money to Go Forward. Therefore, the city has a “moral obligation” to reserve the sales tax money for the Go Forward initiative.
However, the Arkansas Constitution, as stated above, prohibits cities from donating or appropriating money or property to private entities.
Mayor Washington declared that the city has a “moral obligation” to use the five-eighths-cent sales tax money exclusively for Go Forward because they sponsored the tax campaign.
Consequently, the City of Pine Bluff has “earmarked” the five-eighths-cents sales tax exclusively for Go Forward, i.e., to Go Forward (GFPB Inc.) or Go Forward-controlled entities, e.g., Urban Renewal Agency and/or the Convention Center Hotel Public Facilities Board.
When the city needed to access the five-eighths-cent sales tax proceeds to purchase communications equipment for the Police Department, the city had to borrow its own money from Go Forward and then repay it with interest.
When the City Council voted twice (9-0 and then 8-0) to fund the Delta Rhythm and Bayous Cultural District with $2 million directly from the unallocated five-eighths-cent sales tax proceeds, Mayor Washington separated the funding and placed it under the control of Go Forward. She stated that the city wanted to avoid creating a precedent where anyone other than Go Forward could access the five-eighths-cent sales tax proceeds.
These facts indicate that the city has been appropriating tax dollars to private organizations or individuals. If so, it is not a permissible use of sales-tax revenue because that use would likely violate Arkansas law. Article 12, § 5 of the Arkansas Constitution prohibits cities from donating or appropriating “money for… any corporation, association, institution, or individual.”
Black’s Law Dictionary (2d Edition) defines “appropriate” as 1. To make a thing one’s own; to make a thing the subject of property; to exercise dominion over an object to the extent, and for the purpose, of making it subserve one’s own proper use or pleasure. 2. To prescribe a particular use for particular moneys; to designate or destine a fund or property for a distinct use, or for the payment of a particular demand. 3. To distribute.
Therefore, in my opinion, the Go Forward public-private partnership violates the Arkansas Constitution. While Texas, Oklahoma, and Kansas have enacted legislation giving local municipalities broad (seemingly unlimited) powers regarding “economic development” related activities–Arkansas has not.
Moreover, the ballot language for the five-eighths-cent sales tax does not stipulate economic development purposes; it is a general use tax. Thus, according to Mayor Washington, the city of Pine Bluff “promised” to break the law and has a “moral obligation” to violate the Arkansas Constitution.
Ivan Whitfield is a former Pine Bluff City Council member and is currently the president of the Pine Bluff branch of the NAACP.