Lower taxes during PFD specials

By Michael Hekkers

We elect our Assembly members to balance the budget. Don’t hamstring them by cutting their budgeting tools in Propositions #1 and #2.

If you want CBJ to change the budget, tell them and vote for your candidate. I grew up in Colorado, where tax caps passed, and it wreaked havoc with finances. Leadville’s mayor said, “I can’t pay competitive wages. I can’t buy new fire equipment. I can’t pave my streets.”

CBJ already has difficulties hiring first responders and teachers. Douglas Bruce, the author of these Colorado tax caps hated paying taxes so much he went to prison for tax evasion and owed Colorado Springs hundreds of thousands in back taxes. The authors of the Juneau props are likely using these harmful tactics to springboard their political ambitions, not to make our lovely community a better place to live.

The Colorado tax limits created a convoluted budgeting process as lawmakers derived workarounds such as higher statewide car fees. Could there be a new Juneau car registration fee to pay for roads if Prop #1 passed? A Colorado State University economist said those limits prevented Colorado from taking on big projects.

For Juneau that could stymie big projects like finding a solution to our rapidly filling landfill, or repairing aging school infrastructure. According to the popular former Colorado Gov. Roy Romer, “Despite having one of the five best economies, it had one of the five worst education systems,” partially caused by those tax caps.  The passage of those caps was “the worst thing that happened in 12 years that I was governor,” he continues.

Prop #1 will not make your rent cheaper. It’s not CBJ‘s fault that Juneau has 28% higher cost-of-living than the national average. Juneau is expensive, but supply and demand, and the fact that we have one monopolistic barge company, we live in a small town, have expensive site preparation, and our long distance from Lower 48 ports are to blame.

Education, already repeatedly slashed by the governor, along with city services would be cut if #1 passes and would consequently make Juneau a less attractive place to live for working families at a time when our population is set to drop by 8% by 2050. According to JEDC’s 2024 Economic report, amazingly, our housing costs are cheaper than Anchorage. The CBJ voter information packet shows 30% of property taxes are paid by the three largest corporate landowners: AEL&P, and the two mines; and we know they don’t need a tax break.

JEDC reports Juneau has the cheapest groceries and third-cheapest utilities (of four Alaskan cities), which again questions the motives of Prop #2’s authors. "Yes" on Prop #2 (exemptions on groceries and utilities) can make sense for working families and only preserves services if Prop #3 is also passed to balance the lost revenue from Prop #2. "Yes" on Prop #3 would raise revenue mainly from tourists during the summer, and we would have lower sales taxes for the other six months including October PFD specials.

Ketchikan, Sitka, and Skagway have seasonal sales taxes. We heard last year during the presidential campaign that “egg prices would be lowered on day one.” Of course, egg prices weren’t lowered, and now the authors of propositions #1 and #2 are trying to dupe us again by saying that these props would instantly ‘make Juneau affordable.’ Don’t believe them. Vote no, yes, yes, or keep the status quo with no, no, no. 

• Michael Hekkers is a 27-year Juneau resident, guide, and heat pump advisor. Full disclosure: one of his employers receives CBJ grant funds.