Alaska mayors again plead for Legislature to fix deficit

For the past two years, mayors across Alaska have pleaded for the Alaska Legislature to do something — anything — to solve the state’s multibillion-dollar deficit.

On Wednesday, they started the third year of what is expected to become an increasingly vocal campaign.

“We’re not just going to sit anymore,” said Kathie Wasserman of the Alaska Municipal League and Alaska Conference of Mayors.

ADVERTISEMENT
0 seconds of 0 secondsVolume 0%
Press shift question mark to access a list of keyboard shortcuts
00:00
00:00
00:00
 

“We have tried resolutions, we have tried letters, and I think the mayors are frustrated,” she said.

In a letter signed by Fairbanks North Star Borough Mayor Karl Kassel (also vice president of the Conference of Mayors), the mayors are asking for some kind of progress in the upcoming special session to be held in Juneau.

On the special session agenda is a payroll tax proposal offered by Gov. Bill Walker. A crime bill is also on the agenda.

By phone, Kassel said the mayors know that if the Legislature doesn’t act, costs will be passed to their cities and boroughs. They, in turn, will pass those costs via property taxes and sales taxes to residents who demand services.

That has already happened in some areas, particularly school debt reimbursement, he said. The state used to pay half the cost of construction and major renovations. Now, it pays nothing.

“The costs of inaction are very significant for local municipal governments and we also want them to be aware that when they are pushing down costs to local municipalities, that isn’t really a cost savings or reduction to taxpayers in the state,” Kassel said.

The mayors are asking for a “three-legged stool” to solve the deficit. That includes budget cuts (which have already happened), spending from the earnings of the Permanent Fund, and revenue generation.

“We understand that revenue generation is a big word for tax, and we understand that’s going to impact our communities,” Kassel said. “However, the three-legged stool, to stand up, needs a little of all three things.”

The mayors are still drafting their campaign to make the message clear, Wasserman said, but the plan to press forward was approved unanimously at the last state meeting.

City and Borough of Juneau Mayor Ken Koelsch didn’t attend the meeting where the mayors agreed upon their strategy, but he has no doubts about it.

“That’s a no-brainer for us,” he said.

Contact reporter James Brooks at james.k.brooks@juneauempire.com.

More in News

Jason Criss stands for a photo in Soldotna, Alaska, after being named a qualifier for the Special Olympics USA Games on Thursday, July 10, 2025. (Jake Dye/Peninsula Clarion)
Soldotna athlete to compete in 2026 Special Olympics USA Games

Thousands of athletes from across all 50 states will be competing in 16 sports.

The entrance to the Homer Electric Association office is seen here in Kenai, Alaska on May 7, 2020. (Photo by Brian Mazurek/Peninsula Clarion)
HEA opens bids for real property

The deadline to submit bids is 5 p.m. on Aug. 11.

Arturo Mondragon-Lopez, Jr. (right) attends a change of plea hearing related to the October 2023 fatal shooting of Brianna Hetrick on Wednesday, Feb. 5, 2025, at the Homer Courthouse in Homer, Alaska. (Delcenia Cosman/Homer News)
Mondragon-Lopez sentenced for death of Homer woman

Arturo Mondragon-Lopez, Jr. accepted a plea deal in February for the shooting of Brianna Hetrick.

Soldotna City Hall is seen on Wednesday, June 23, 2021 in Soldotna, Alaska. (Ashlyn O’Hara/Peninsula Clarion)
Soldotna OKs $395,000 capital plan

This year’s list of capital projects is “nominal compared to some past years,” according to officials.

A map of areas proposed for annexation by the City of Soldotna. (Provided by City of Soldotna)
Soldotna adds annexation proposal to ballot

The proposed annexation is split across five small areas around the city.

Nets are extended from North Kenai Beach in Kenai, Alaska, during the first day of the Kenai River personal use dipnet fishery on Thursday, July 10, 2025. (Jake Dye/Peninsula Clarion)
‘A really good day’

Kenai River personal use sockeye salmon dipnet fishery opens.

The entrance to the Kenai Peninsula Borough building in Soldotna is seen here on June 1. (Photo by Brian Mazurek/Peninsula Clarion)
Borough assembly to consider ordinance to increase residential property tax exemption

If approved by voters in October, the ordinance would increase the tax exemption by $25,000.

Vice President Kelly Cooper speaks during a meeting of the Kenai Peninsula Borough Assembly in Soldotna, Alaska, on Tuesday, July 8, 2025. (Jake Dye/Peninsula Clarion)
Borough considers seasonal sales tax rate

Borough sales tax would be modified from a flat 3% to a seasonal model of 4% in summer months and 2% in winter months.

Most Read

You're browsing in private mode.
Please sign in or subscribe to continue reading articles in this mode.

Peninsula Clarion relies on subscription revenue to provide local content for our readers.

Subscribe

Already a subscriber? Please sign in