One City and Borough of Juneau Assembly member on Thursday said looming budget cuts “may be more noticeable” than previous ones, while another predicted a decade of tight city budgets
Assembly Members Karen Crane and Ruth Danner gave an overview of where the city budget currently stands to the Retired Public Employees Association (RPEA), though they couldn't provide updated information since the city manager and staff are working on the next two-year budget plan. They said the Assembly traditionally doesn't see that kind of information until March. Crane is the chairwoman of the city Finance Committee.
Crane said in the last budget cycle, the city also faced an unexpected shortfall and had to use a combination of "rainy day" funds, tobacco tax revenues and cuts to avoid layoffs.
"As the city manager says, the low-hanging fruit has already been picked," she said. "The next series of cuts may be more noticeable to the public than the last ones. I can’t tell you where those cuts are going to come from."
The looming deficit for the next cycle is from a decrease in sales tax revenues, low interest revenues and some state and federal funding sources ending.
Crane said some people say the city budget has just grown and grown.
"There is much more to the borough than they think about when they think about the budget," she explained. "When someone says the budget has grown, it has, but where has it grown? It has grown in areas primarily where the citizens of Juneau have voted for."
Crane said people tend to think there are too many public employees, and while that perception may still be debated by the public, she points out those larger numbers aren't in the core of city jobs. She said there are roughly 1,800 staff that work with city in some capacity — 500 work at the hospital, 800 at the school district and other staff work in departments considered to be enterprise funds (like the hospital), which is expected to make revenue.
"I do think the reductions over the next two years are going to be difficult," Crane said. "We’re hoping to have a lot of public input as we go through this process. ...We hope this is not the only time we’ll hear from you."
Danner said the $7.5 million deficit is just "small potatoes" to what they could be looking at. She said in her personal opinion the fiscal climate is likely to be worse over the next decade.
Danner said if a plan for a pipeline were in place and ready to go today, it would still be 10 years before anyone saw revenue from it. She said the same of several other economic development projects.
Danner also said it was important for the older sector of the population to get involved and give their opinions, because they are a growing sector. She showed graphs of percentages of people age 65 and older in Juneau. In 1990 that group represented 5 percent of Juneau's population. In 2010 that was 8 percent. By 2024 it's expected to more than double to 18 percent.
"I want us to design a future that will accommodate us all and the whole community so that we can continue to grow and prosper here," she said.
Both Assembly members said everything will be on the table for consideration when looking at what to cut to balance the budget — including school district funding, to small grants to organizations like Perseverance Theatre.
They said that it basically comes down to two options — increase revenues via taxes (likely an unpopular choice) or make service cuts.
Some members of RPEA suggested if the city had to raise taxes, that they should do it in property taxes instead of sales tax, since there is a federal subsidy for property taxes.
One suggestion that came from the group was to seek community input via some sort of contest for finding the most creative ways to cut down the projected $7.5 million deficit over the next two fiscal years.
“We’ve got 30,000-plus eyes and brains,” the woman suggested.
Another member said she sees a lot of little things around the city that could be done to cut costs. She said that there was a period when the street sweeper came by her house twice a day for months. She had asked why and the answer was to keep drainage clear further down the road. Another woman shared a story about an unnecessary street light that she eventually got the city to remove.
“I think we all see small things that waste money,” one member said.
Another suggested a closer look at raising the sales tax in the summer.
"If we raise it in the summer, it’s not only the tourists that pay it, it’s everybody," Crane said.
One member suggested the city look at ways to cut consumption of fuel oil and look into reimbursement grants for converting to renewable energy sources. Another said the city also needs to take a closer look at energy conservation when they build new projects.
Another member expanded on that, asking the city to evaluate long-term costs of new projects. She said she really hasn't seen the city do it much, but each project should include costs of maintenance and employee costs per year once built.
Some members also wanted change with the city's investments. They wondered if the city could model the Permanent Fund or other groups who are making money in the markets. Danner said the Fund's investments are online, but she explained the way it invests is different from the way the city would have to invest, but some form of it could happen if there is public outcry for such a change.
• Contact reporter Sarah Day at 523-2279 or at sarah.day@juneauempire.com.
Comments (33)
Add commentPositive cash flow
does the hospital pay it's own way? Itemise those functions that government should do and privatise those that government has no business doing.
People voting
"When someone says the budget has grown, it has, but where has it grown? It has grown in areas primarily where the citizens of Juneau have voted for."
Yea, like dual high schools with double on that budget requirement and the same with pools.
Ya think there might be overspending? Raising property taxes is not the answer because you cannot guarantee that the "Feds" will continue to subsidize.
Cut spending. Period. Balance your budget. Period.
What Gives?
Just yesterday the Parks and Rec was trying to decide how to spend a extra couple million...
Something just does not make sense here. The city is broke and has been for a while and yet Parks and Rec is busy spending money the city really does not have.
@Argh, I agree
Funny how that school was forced down the voters throats and the pool, well lets not get into that right now, we have a new concern. Last month there was a lot of talk about building a new library in the valley. I guess someone forgot that we were broke.
Yes Rod, I mean broke... you have done such a good job as manager you managed to hide our financial position from us until you were almost out the door.
More than two choices
"They said that it basically comes down to two options — increase revenues via taxes (likely an unpopular choice) or make service cuts."
I think they can still do the same things more efficiently. Yeah, Rod's done a good job, but there's more efficiency to be squeezed. Every City employee should be part of the solution. All hands on deck.
Don't lay the blame on Rod....
Place the blame on his 9 bosses...he tried to cut positions to balance the budget, he got cut off at the knee's by the Mayor and the assembly when the unions started squealing about wage increases and reduced positions..they hit the rainy day account for 2 million to solve that issue....such a bold decision.
It is refreshing to see this on the front page as the various interest groups are brainstorming on how to push their pet projects in the most favorable light for voter support next October.
Our Mayor with his Green initiatives and agenda are just another example of wasting our dollars and when you throw in the library crowd, Parks and Rec, the Arts groups, etc. fighting for 7 or 8 million in sales tax revenues, our basics like roads and sewers take a back seat. We need to broaden our economy to create non governmental jobs; what has the JEDC (another pet project of our Mayor's) done with their 2 million dollar budget to entice actual businesses here in Juneau or SE AK?
We need a dose of reality some leadership at City Hall, not more tax and spenders.
City Budget
The hospital should be sold. As this article states, 500 people work at the hospital, those people get older every day. Since the City owns the hospital, does the City pick up the hospital staff retirement?
Also, how can the hospital be making money, with all the construction spending going on? Sell the hospital to a Health Maintenance Organization, maybe it can make a go of it and reduce costs to users.
Cost Cutting
One more thing, sell Eaglecrest to a private enterprise that can develop it, to include tourist skiing. Sell Treadwell arena.
Where are the losses?
Can they be more specific on where the losses are? Maybe a breakdown on how much is lost from the state and feds. Sales tax revenue down? Juneau, at least from a housing standpoint, seems to be full. Maybe we need to tax everyone in town. I see the tax exempt forms out at all the stores and they are heavily used. Anyway, give us some more info.
Two Words
Build AJ
AJ Mine revenues to the CBJ will cover wages, schools, new water system, budget shortfalls...and will keep property tax/sales tax increases off the table.
It is common sense to go after efficiencies, but If you want continued City services and high standard of Juneau living conditions- connect the dots- build the AJ, pay to protect and build alternatives to our water supply and fill our CBJ coffers.
Cannot believe the article never mentioned AJ development once as an alternative funding source. Perhaps the discussion is a bit short sighted and a disservice to CBJ citizens to only mention cutting services vs. raising taxes when we have an alternative revenue source/ economic development waiting to happen.
Budget deficit?
"Something just does not make sense here. The city is broke and has been for a while and yet Parks and Rec is busy spending money the city really does not have."
Well said and right on the money; why do we keep coming back to this? The city (assembly) constantly wants to build new structures and then voices concerns about running out of money to take care of the existing structures.
Is the population of Juneau growing so fast we have to build to keep up with it? (rhetorical of course)
Something has got to give and end right away. Talk about spending 6 million on trails, parks, etc. during a so-called budget crunch for the next decade. Something is going on that isn't quite right.
Start with voting all the
Start with voting all the progressives out of office. Juneau is nothing more than a microcosm of the federal government. Liberal policies aren't sustainable and there's not enough money for their pet projects and social engineering.
And there's the RPEA union saying "raise property taxes" because there are" federal subsidies" to cover them.
They just don't get it - the money is gone.
Manager has done a good job
If it were not for the leadership of the current city manager, we would be in much worse financial shape. He made significant cuts in the last budget with little impact to public services in order to balance the budget. Property taxes have not been increased in his entire time as manager, and the city savings account has been increased from $3 million to $10 million. The city is not broke. They have enough money in the savings account (thanks to Swope) to cover the entire current shortfall. Instead of using all of the savings, the manager is continuing to identify areas that can be reduced. On the radio he said he was holding most vacant positions open, identifying cost savings through conservation measures, making further reductions in each department, and coming up with some ideas where revenues could be increased. He's doing exactly what he should be. Look around, compared to other communities in Alaska and the lower 48, Juneau has done an excellent job in managing the financial downturn.
Just a thought
Over many years, in a private business, a university teacher,and a fisherman/worker, I have observed things in government and agencies - that is, if there arises a new task, a new responsibility, then the only answer on the university and governmental system "We have to hire a new person."
I have found in life that I can actually do more than one thing at one time - I can chew gum and walk, I can take on new tasks and assignments and fit them in to my work load.
Do agencies always have to hire new people, or can they drop some things that are no longer necessary and have their workers take on a new responsibility?
With tongue in cheek. I am writing, but I don't know how to click the submit sign, I guess I'll have to hire someone to do that for me.
To Calypso
Thanks for your comment. But I don't think it really contributes much to the discussion. It appears to be just you "venting" again. Have a nice day.
Hospital?
we ought to have a look at their financial picture along with everything else but I have a sneaky feeling that if anything the city is doing is paying it's own way it's probably the hospital. At least it is generating a significant revenue stream, most departments have little or none.. Streets, Parks and Rec, etc.
What, no money?
This is really quite simple:
1) Sell land
2) sell a few expensive assets
A) Eagle Crest
B) Tredwell Arena
3) Privatize many City functions
4) Stop all new construction projects
My solution vs. Right wing nuts' solutions
My solution:
1. Raise tobacco taxes $1/pack. Put it to the voters. It will ALWAYS pass.
2. Enforce the $200 cigarette butt ordinance 20 times per day (20 x per day @ $200/each x 365 days = $1.46 million annually). Start on South Franklin, move to ANB hall, then Marlintini's.
Right wing nuts' solution to everything:
1. Cut services.
2. Cut more services.
3. Gut the unions. Outsource everything. Pay sub-minimum wage, layoff 95% of the workforce.
4. Privatize everything like schools, hospitals, prisons, and let the market work things out. Cheap education is better than quality education. Cheap hospitals are better than well-funded hospitals, especially in a frontier where the next closest hospital is 600 miles away and costs $20,000 to get you there aboard a leer jet.
5. Cut taxes.
6. Cut taxes more, especially on those who can afford to pay them with the least difficulty.
7. Cut taxes more. Cut more services.
8. Complain when it takes any city service longer than five minutes to respond.
9. Scream that it's the unions and teachers fault.
10. Continue spending millions leasing library space in the valley indefinitely even though it would be cheaper in the long run to simply build a new one.
11. Never consider any tax increase under any condition, but always, always demand more services from the city like sewers or police or fire departments. Cut programs to the elderly to pay for it all.
Right wing solution-have a
Right wing solution-have a government that does ONLY those things that the majority of the people can not do for them self's, i.e. fire dept, police dept, road maintenance.
Get the government out of the way of economic development, i.e. AJ mine, the road, etc..
The lefts solution-TAX, & CONTROL those that produce, & make as many of the lazy/ idle-mined as dependent on the nanny-state as possible.
There by ensuring a reliable block of votes when it comes to holding power over the peasants.
I Want More ...
Jo Macnamara does seem to sum it all up for us. If I read Jo correctly, he/she would have us believe that the fiscally conservative is the first to scream when services are cut and that we are the ones that want the social ills to get even worse. Well Jo, you are just wrong about all that.
Conservatives are compassionate people. We just believe that people should do for themselves what they can and that we do not need government to tell us how to do it. We also believe that those people that can not do for themselves should be helped. We live in a wealthy country that is able to do that. We also believe that government should stick to want the Founders outlined and defined in our Declaration of Independence and our Constitution of The United States.
I did read over your 11 point plan and I do understand where you are coming from. It is the left side of entitlements and bigger government to solve all our problems. Well, I for one do every thing I can to keep ALL levels of government out of my life as much as possible and I have been the happier for it.
Try life as a conservative; you'll never go back to the left.
A perspective to consider before dismantling our city
Cities are also the backbone of
their regional economies, where investments in
infrastructure and services provide a platform
for private sector investment and growth.
-Ron Loveridge, NLC President, Mayor of
Riverside, California
Mike
Conservatives are compassionate????
@AKJustice: That was laughable.
Those same conservatives are the ones who boo gay servicemen at republipuke debates.
Those same conservatives refer to waterboarding not as "torture" but as "an enhanced interrogation technique." See Bachmann and Cain here:
http://www.youtube.com/watch?v=fqWrP-duX7s
Those same conservatives are the people who want to pass constitutional amendments against gays who want equal rights, not special rights.
Conservatives are always trying to restrict a woman's right to her own body and health care choices.
Conservatives are compassionate to the wealthy only because that is their base.
And FYI, I voted for Ronald Reagan in 1980 because I thought I was indeed a conservative, but I grew up and saw the republipuke party for what it was; minions for the wealthy and corporations. I view them now as the biggest threat to our liberty and constitution since they are always trying to amend it. And in my mid-twenties, I became a progressive (you people call us 'liberals' and that's fine as well). So, I suggest YOU try the other side. We are true compassionates.
And history has shown that under progressive leadership like Teddy R., FRD, and Bill Clinton, our nation has thrived, whereas under conservatives like Hoover, Nixon, Reagan, Bush and Bush, we have plummeted.
God, how I long for the 90 cent/gallon gas of the Clinton years. He was an awesome POTUS. I also miss the peace and prosperity of those years.
@JOMAC
I thought you were old enough to recall the prime lending rate hovering around eighteen percent? Have you forgotten that during that time our economy was completely in the tank? What was that do nothings name again? Jimmy Carter the Peanut Farmer? Fine Liberal. now days we would call him ultra progressive but back then we were not so politically correct, we called him a budding communist.
Mr. Justice's comment is kind
Mr. Justice's comment is kind of funny. Try life as a conservative and you'll never go back? That's like telling someone to try becoming a rich person because they'll like it better. I imagine having a simplistic worldview where some people are just bad and others are just good (like themselves) and everything can be summed up in a 5-second sound bite is quite attractive. But is it right or moral to do so? Absolutely not.
Being a conservative (or what passes for it in this country) is fine and dandy when you're a member of the fortunate class, because you don't really utilize the social safety net, so it's naturally self-serving to demand lower taxes, and most probably don't even realize the immorality of demanding the government help out those who don't need help and ditching those who do.
But for everyone who is not a member of the fortunate class, being a "conservative" is not so peachy.
Standing in the light
So, back to the main subject! Where do we get the money to continue to fund our ever growing local government? I did provide suggestions besides raising taxes. But the detractors seem not supportive of self reliance, free market and belt tightening and prefer instead to deny the true realities and time proven building block of our great country. The Founders and our predecessors did not have social safety nets to fall into. They had to buck up and make things work.
As for the greatly vilified rich, most of them started from right where most other people start. Often the difference between the successful and those that dis them is simple setting goals, developing a plan and sticking with the plan. My family has worked at and failed at several businesses. Finally, after not giving up, we have hit upon a business we are succeeding. We have been poor and we have been middle class. We like middle class better. We would next, like to try rich. We think we will like that better than middle class. This achievement is from a guy that left high school 6 weeks into the 10th grade. I made my opportunity; Our Country makes this possible. I believe in the American way!
And for the record, at one time when I was very young, I was also a lib. After trying that for a few years and discovering I was able to take care of myself and make decisions for myself, it wasn't long that the conservative concepts became the norm.
In closing, in the industrious world ,people are broke out into 4 areas: 1) Those that produce more than they consume. 2) Those that produce what they consume. 3) Those that produce less than they consume. 4) Those that produce nothing. If the incentive for those that produce more than they use is removed groups 3 and 4 stand to suffer the most.
Be careful what you wish for! Don't dis the rich. Reduce government. Grow industry and celebrate successful people.
rich vs. poor
All wealthy people credit their wealth to hard work, dedication, and making perfect decisions in life.
Most non-wealthy blame their non-wealth on various factors outside of their control.
I have a brother. He is wealthy. He credits it all to his brilliant decisions in life. But the truth is, he married into it.
Most wealthy people in this nation didn't get their wealth through hard work. It was handed to them by their ancestors. And in places like the south, that ancestry usually included slave labor.
But the truth to wealth or poverty is usually this: luck.
You will never hear a wealthy person say, "It was total luck. I played the stock market and got incredibly lucky. Plus, I married an heiress, and my Daddy was great at insider training, and when he died, I got it all."
If hard work, dedication and a strong work ethic would instantly translate into wealth, I would have been a billionaire years ago.
So please spare me the regurgitated fox news blond quotes. They are getting tired.
Your view of the world...
It is remarkable how a person's view of their own world is so often also their own reality.
The City is going to have less money to spend this next budget cycle. They must reduce their spending to balance. Just like the rest of us have had to do.
Over the years as the local population has grown the City budget grew. Today with our local population growth declining, to just 1.8% over 10 years from the 2000 census, it only makes sense that the next budget cycle must shrink as well. This process can be done fairly painlessly through attrition and early retirements of our more expensive city employees.
Another suggestion would be to suspend the senior sale tax exemption for 2 years. This would likely generate $1 to $4 million per year or so as our senior population is significant. I could support that if at the same time the City suspended sale tax on food and living essentials purchased in the grocery store. Doing this would help the growing family and general wage earner and be somewhat revenue neutral for the City. It would not help those on public assistance as they already pay no sale tax when using food stamps.
Another suggestion is to trim down the school bus program to require the children living 1/4 of a mile from their school to walk. And that the school system district the community and require the students in those districts to attend that school. An exemption could be that those parents that want their children to attend a school outside their district would need to arrange their own transportation.
Yet another suggestion is for the City to suspend the purchase of new vehicles and equipment for 2 years.
And finally, close any or at least trim back any City enterprise that does not completely support it self. Raise the prices and eliminate all discounts and exemptions if that will generate the income to make it revenue neutral or operate in the black.
These changes would be a little painful but tolerable and shared by all of us.
Declining?
Our local population isn't declining, Justice.
If you're going to make stuff up, I suggest you do it with things that aren't so easily disproven.
Note to Jo.
It's about time you switch to tea and quit wharever it is that you have been drinking! Your reality dosn't resemble any that I know of."Tea parties are for little girls(and Jo) with imaginary friends."
Thanks
Please don't confuse us with the facts:
1) Friday, September 30, 2005, Juneau Empire, the article, "Make Juneau More Affordable", Stated, "Juneau's population declined by 280 people last year." and "Our school district enrollment is declining - 477 fewer students now than in 1999" and "Juneau's birth rate is below the nation's and our Sunday school populations and child care options are down" and "The 20-35 age group is noticeable during the tourism season, but absent after September when college, jobs and housing beckon them south" and so on.
2) Tuesday, May 27, 2008, Juneau Empire, the article, "Energy crisis counts as a 'Rainy Day'". Stated, "As a teacher in the Juneau School District, I am very aware that school populations in Juneau are declining."
I leave it to you Lat. Are there years we are declining or not?