Assembly Fails Fuel Tax

Mat-Su Borough residents overwhelmingly voted against an area-wide fuel tax in November’s election, with about 4,000 residents in favor and about 9,000 residents against it. That’s according to Borough Clerk Lonnie McKechnie at this week’s Assembly meeting. Assembly members put the proposition on the ballot as an advisory vote. 

The Assembly pushed their vote on the measure until after the election results were certified. Borough Manager Mike Brown in previous interviews discusses the need for alternative funding sources to pay for area-wide transportation and other large capital projects. The fuel tax could have been used to help pay for them. Currently, the Borough funds these projects through debt service. 

At the current funding levels, the Borough will pay about $67 million in interest alone over the next 20 years on that debt. Staff held open house discussions throughout the Borough to better understand how residents felt about the proposed fuel tax and alternative ideas for funding large projects. 

Brown says in previous interviews that most other options would be some form of sales tax, which will require voter approval to enact. The Assembly unanimously voted against the fuel tax at this week’s meeting.