On Oct. 3, 1986, Alaska’s Department of Revenue looked at possible solutions to budgetary issues. Although oil revenue increased in July, overall, Alaska was looking at a $1 billion budget compared to the $2 billion the previous year. Ideas included instituting a state personal income tax, tapping into unused state savings from the Alaska Permanent Fund, continuing budget reductions and changing oil taxes.
On the local level, the budget slump meant a crunch on campaign money. Municipal candidates had sent about one-third of the money spent last year in advertising, and those running for school board were spending even less.
Also on the local ballot was a new way to vote for Juneau Board of Education members. If approved by Juneau voters, the next school board election will be similar to the municipal election in that it will split candidates into districts but allow all Juneau voters from any district to vote for their School Board picks.