Why I’m voting yes on Ballot Measures 1 and 2, and no on Measure 3

(City and Borough of Juneau photo)

By Tom Boutin

The reasons I am voting yes on Ballot Measures 1 and 2 boil down to Juneau affordability, financial common sense, and fairness to every age group. 

Perhaps no one has told the runaway Assembly, but there is demand elasticity directly linked to taxes. The translation is that while the Assembly believes taxpayers have no recourse no matter how much the Assembly increases taxes, that is not true: There is some elasticity in that taxpayers can leave, perhaps especially young, working families. 

For example, if I stood at the entrances to Fred Meyer and Safeway to query working families I would find that more than one in 10 people are considering relocating from Juneau within the next one to two years, and the cost of living would be cited as the main reason. We cannot reduce the costs of groceries delivered to Juneau, the cost of furnace maintenance, nor transportation costs. But taxes, including the mill rate, are discretionary for the Assembly. Ballot Measure 1 merely caps the mill rate at about the current level: It doesn’t reduce city revenues.

The persistent rise in assessments gives a huge windfall to most city governments, but this city government insists on raising the mill rate as well. General price inflation, minerals sales at the two mines, and lengthened cruise ship schedules raise year-over-year city revenues. But poor spending decisions by the Assembly destroy what would otherwise be fund balances envied by all other municipalities. Spending $9 million to demolish residential housing on Telephone Hill (with no plan), $20 million to import and reconstruct a ski tram (with no plan), $18 million to buy part of the Permanent Fund building, and taxpayer-funded drag queen lessons are just a few examples of their fiscal misdeeds. One pundit recommends CBJ represent that Eva Braun used the Austrian tram preparatory to the 1932 Olympics, and then place the tram on Telephone Hill as a static display attracting the odd tourist.

CBJ has been poorly led for some time. While the excessive and irresponsible taxing and spending have ramped up mostly during the past several years the Assembly has long drawn vitiating attention, even at the national and international levels for some time. The Assembly made a mess of extracting Juneau from its official relationship with a Russian city after the invasion of Ukraine, and before that the Assembly debated the Paris Climate Accord for six months. No surprise they cannot control spending.

I imagine the city manager is overwhelmed by the now-annual flooding and the persistent homelessness problem. I like to think that in calmer times, she would have pushed back against malfeasance.

Ballot Measure 2 will eliminate sales taxes on food and residential utilities for all families, making Juneau more affordable. Ballot Measures 1 and 2 are essential to making Juneau affordable for working families. Please be sure to vote yes on both 1 and 2.

I strongly recommend voting no on Ballot Measure 3. Its seasonal sales tax increase to 7.5% is problematic and proves we have a greedy and deaf Assembly. The Assembly wants to fleece the cruise ship passengers and crews (and seasonal tourism workers), but those people can avoid taxes on internet and on-board sales while we in Juneau and surrounding villages will have to pay the higher rate during much of the year. And when the Assembly decides we need another arts building, a second skating rink, or the other half of the Permanent Fund building we will be paying 7.5% year-round. Juneau’s taxpayers and economy are very much at the mercy of a gluttonous and capricious Assembly, so voting no on 3 is an easy decision.

• Tom Boutin is a Juneau resident who has served as chief of staff for the Alaska State Bond Committee, the Alaska State Pension Investment Board and the Alaska Retirement Management Board. He also was the CEO of the Alaska Industrial Development and Export Authority, a state-owned bank, appointed by Gov. Mike Dunleavy. In addition, he worked for many years in the forest products industry.