Assembly keeps closure of city museum, Mt. Jumbo gym on possible budget cuts list; opts not to close pools

Eaglecrest avoids worst-case cuts; city leaders also look at removing or altering sales tax exemption on purchases beyond $15,000 to help plug multimillion-dollar deficit

Juneau Assembly members discuss possible reductions to next year’s municipal budget during a Finance Committee meeting at City Hall on Wednesday, May 13, 2026. (Mark Sabbatini / Juneau Independent)

By Mark Sabbatini

Juneau Independent

This is a developing story.

Closing the Juneau-Douglas City Museum and Mount Jumbo gym, leasing out the Douglas Fire Station, and reducing a range of community grants are among the proposals still on the Juneau Assembly’s cut list after a marathon budget-crafting session Wednesday night.

However, the possibility of closing one of the city’s two public pools and the Dimond Park Field House appears to be off the table. Eaglecrest Ski Area also avoided the harshest cuts proposed, with Assembly members approving enough funding allowing for "bare minimum" operations next year that envisions a 44% reduction in staff.

Assembly members essentially spent Wednesday night’s Finance Committee meeting deciding which items among several dozen possible budget-balancing measures should remain alive for consideration as a final spending plan for the fiscal year starting July 1 is drafted during the next few weeks. The Assembly is required to pass a final budget by June 15.

The Finance Committee is scheduled to make final decisions on most of the remaining items on the cuts list during its meeting next Wednesday, after which the resulting budget will be considered by the full Assembly. Many of the items have a range of possible reductions so the museum, for instance, could be subject to a funding cut that would keep it open with fewer staff or result in it being fully closed with its collection divested — or no cuts at all.

The Assembly is scheduled to take public testimony at its June 8 meeting before passing a final spending plan.

City leaders are looking for savings largely due to tax cuts passed by voters last fall that are expected to cost roughly $12 million.

In addition to possible budget cuts, Assembly members considered several proposals to increase revenue.

Among those advancing for further consideration is altering a cap that applies local sales tax to the first $15,000 of a purchase, either by raising the cap to $30,000 or eliminating it altogether. A memo from City Finance Director Angie Flick estimates eliminating the cap could generate up to $6.75 million during the coming fiscal year and up to $9 million the following year.

However, concerns were expressed by some Assembly members about potential adverse impacts of the additional tax on businesses and people making large purchases. As such, the proposal is set to be introduced at a special Assembly meeting later this month and then considered at a regular meeting next month when public testimony will be allowed.

• Contact Mark Sabbatini at editor@juneauindependent.com or (907) 957-2306.