
NOTN- Juneau officials are watching state decisions closely as local government prepares for what could be a difficult budget season.
Christine Woll, chair of the City and Borough of Juneau Assembly’s Finance Committee, said the committee is preparing for the upcoming budget process.
“We’ve been going line by line, through what we typically fund, and asking a lot of questions. And so last night, we invited some of our partner agencies in to talk to us, and did a deep dive into their budget.” She said.
Those groups included Travel Juneau, which handles tourism marketing for the city, and the Juneau Community Foundation, which administers grant programs supporting local social services. The city typically provides about $1.5 million annually to each organization, Woll said.
“Given that, we’ll likely be thinking about cutting some services over the next few months, we want to make sure we understand what they’re up to and the impact of the dollars that we put in.” Woll said.
The committee also heard from the Small Business Development Center, which receives a smaller amount of city funding but provides coaching and support to local small businesses.
The Juneau Assembly has not taken a formal position on the proposed Cascade Point ferry terminal project, which is being considered by state lawmakers today.
“The assembly has not taken a position on Cascade Point. We probably don’t all agree on it is part of the reason. Obviously it’ll have an impact on our city, so we’re interested to see what happens.” Said Woll, “Personally, I’m not convinced that it’s the best use of state resources, especially because we do have a struggling ferry system, but the assembly has basically said, we know this matters, but if we’re not all going to be unanimous in our decision, we’ll wait and see how things play out.”
Questions about state spending priorities extend to Gov. Mike Dunleavy’s proposed fiscal plan, which includes a statewide sales tax. Woll said the Assembly is still deciding whether to take a specific position on the proposal.
“We’re still deciding whether we want to take a specific stance on his fiscal proposal around sales tax. We have taken a position in the past that I think is going to be presented to the Legislature today. We are figuring out how we fund our state budget; it is going to require a broad-based tax of some sort, and so we are supportive of that.” Said Woll, “I know there are folks with some concerns about if it is a sales tax, as proposed by the Governor, because, of course, the city has a sales tax, and that’s usually about 50% of our general income. The challenge is, if the state also has a sales tax that takes away some of our local control, we wouldn’t be able to decide who gets exemptions.”
Woll mentioned the Governor’s proposed sales tax might also make it harder for voters to approve future municipal taxes.
“Voters have to approve our local city sales tax. So if the state puts a tax on top of that, it just makes it less likely that the voters will support a city tax. So that definitely makes me a little nervous.” She said.
The Assembly is expected to continue its budget discussions in the coming weeks.











