Juneau at a crossroads: People before budgets
- Guest contributor
- 10 hours ago
- 3 min read
By Angela Rodell
It started the way many community movements do — neighbors gathered around coffee, talking about rising bills, the kids who had left and not come back, and a growing sense that Juneau has become just too expensive for ordinary people to stay. From this conversation, the Affordable Juneau Coalition was born — not from a political party or focus group, but from residents who love this place and are afraid it is slipping away.
This October, Juneau voters face a choice. Ballot measures approving a nine-mill cap on property taxes, and exemptions on essential groceries and residential utilities from sales tax are on the table. These aren’t radical ideas, but rather measured responses to a growing affordability crisis.
Critics claim the nine-mill rate cap is dangerous, pointing to the existing 12-mill cap as the necessary limit on property tax. The real comparison point for the proposed nine-mill cap is not 12, but the actual millage rates adopted in recent budgets. In FY25, the general government mill rate was 8.96. In FY26, the Assembly adopted 9.16.
This cap only applies to the general government levy — not the debt service levy used to pay for voter-approved bonds. The total impact? A projected $1.05 million reduction on a $195 million budget.
The same goes for comparing Juneau’s mill rate to Anchorage and Valdez, two communities that do not collect sales tax. At first glance, that makes Juneau appear to be “low tax.” But this is not an apples-to-apples comparison. Juneau relies heavily on sales tax which is the largest general fund revenue contributor. In FY26, property tax is expected to bring in $64.7 million, while sales tax is expected to bring in $70.3 million.
It’s important to note that part of this increase in sales tax collection is driven by inflation — residents are paying more for goods and services, which in turn generates more tax revenue. This overcollection of tax revenue has led to the city accumulating more than $20 million in unrestricted reserves.
To generate the same $135 million in property and sales tax revenue using property tax alone, the levy would need to more than double, increasing the mill rate from 9.16 to about 19.1 mills. On a $500,000 assessed home, the tax bill would jump from $4,580 to $9,555 – an increase of nearly $5,000 per $500,000 in value. That is the true “apples-to-apples” comparison, and it underscores the importance of acknowledging Juneau’s unique revenue structure before making sweeping claims.
These facts matter because too many Juneau families are feeling the squeeze. Property assessments are rising. Utility bills are climbing. Groceries and fuel aren’t getting cheaper. For those living paycheck to paycheck or on fixed incomes, these aren't abstract policy debates — they’re daily decisions between paying for food, heat, or medicine.
Support for these initiatives isn’t about gutting services or rejecting civic responsibility. It is about rebalancing priorities. For too long, the city’s budgeting mindset has been to protect the budget first and ask people to adjust.
Voters have said no to a new City Hall and performing arts center, and yet both continue through the planning pipeline, with the city approving to spend $17.9 million in cash at its most recent meeting. Meanwhile, residents see tent encampments grow, water and sewer bills increase, requests to pay for HESCO barriers, and affordability worsens.
A fully funded budget means nothing if families can’t afford to stay, if school enrollment continues to drop, and if businesses can’t find workers because no one can afford to live here. Unless we want a city filled only with empty nesters, cruise ship passengers, and government offices, we need to change the trajectory.
Juneau has the tools to ensure flourishing neighborhoods, full classrooms, local businesses and multigenerational families. What we need is the will to act. Modest tax relief is not reckless, it’s responsible. It’s a way of saying we care not just about what we spend, but about who gets to live here.
The Affordable Juneau Coalition started with neighbors and coffee. It continues with a simple idea: people come before budgets. Vote Yes – Yes – No to keep Juneau affordable.
• Angela Rodell is the treasurer of the Affordable Juneau Coalition.
