Sykes: Difficult Borough Budget Period Ahead

Next week, the official process for deciding the Mat-Su Borough’s budget for the next fiscal year begins.  While the state budget has not yet been finalized, it will likely result in a loss of revenue, and possibly an increase in expenditure, for the Mat-Su Borough.  KTNA’s Phillip Manning spoke with one Mat-Su Assembly member who anticipates a difficult budget season.

Since January, legislators in Juneau have worked on a state budget at a time when oil prices are down significantly.  At least one member of the Mat-Su Borough Assembly thinks that that body may be in for a similarly difficult situation.

“The teeth-gnashing that we have seen for the past almost three months in Juneau is about to start right here in the borough.  It’s not going to be any easier.”

That’s Jim Sykes, Assembly Member for District 1. Part of the revenue problem facing the Mat-Su this year is the loss of some state funding, such as a reduction in state revenue sharing.  Earlier this week, Borough Manager John Moosey told the Frontiersman newspaper that the borough, “can replace the revenue or…stop doing things.” Assembly Member Sykes says that the borough budget process should involve serious prioritization of services and projects.

“Basically, we have to sit down and make a real honest list of needs and wants, and start funding the needs first, and deciding what wants we want to be able to support.”

In addition to potential cuts, Assembly Member Sykes says there are revenue streams that the borough has cut off in recent years that may need reconsideration.  One of those is the ability to permanently register older vehicles instead of having to re-register every two years.  Sykes plans to introduce an ordinance to repeal that provision.

“I think that one is pretty simple, because people have expected to pay it for years.  The only people who register vehicles drive on the roads, and that’s where some of the money goes.  It’s kind of a user fee.  So, I think that is a really good place to start, because it directly affects road service areas and the ability to maintain them, especially dust control.”

Assembly Member Sykes says he will also introduce an ordinance instituting a borough-wide seasonal sales tax.  His goal is to use it to start a discussion on the issue, and he doesn’t know what the potential prospects of its passing are.

Vern Halter, who represents the Upper Valley on the Borough Assembly, says he wants to see the Borough Manager’s proposed budget before making detailed comments.

The initial budget proposal from Borough Manager John Moosey will be presented to the Assembly next week.  After that, a series of public meetings begins.  The meeting scheduled for Upper Valley residents will take place on May 7th in Willow.