Report from Tom Kluberton—
It’s budget season at the Borough right now, we had a Special Meeting in the
Wasilla Fire Hall last Thursday to listen to public testimony and three
priorities are making themselves clear:
- Schools: The manager’s budget constitutes the minimum amount the
borough can contribute to the school budget by state law. At that level of
funding severe cuts would have to be made, but the mil rate would decrease
slightly.
The school district has presented their budget in three scenarios: the
first involves the significantly reduced service levels I mentioned above;
the second holds school offerings at the present level requiring about $20
million more than the minimum shown in the budget now. And, the third level
offers “enhanced” school offerings at a cost of another $12 million over the
mid-level.
If the Assembly raises the school budget to the status-quo (or, mid-level)
it would raise the mil rate almost to the ceiling allowable under the tax
revenue cap.
A bill pending in the State Legislature (HB 95) threatens to adjust the
Borough’s share of school funding from 4 mils on assessed value for pre-1999
improvements and 2 mils for improvements built after 1999 to 3 mils.
If passed, this act would cost the Mat-Su approximately $9M more in school
funding. This increase would force the borough into the tax revenue cap and
the going would get tough!
- The Animal Shelter: The current animal shelter is in quite poor
condition and undersized for the borough’s population. Last year voters
declined to support a $10 million bond issue for replacing the shelter. The
Borough has produced a design to add-on to the existing structure at a cost
of $5 million and this effort has a lot of public support. If HB 95 passes,
I would predict this becoming a voter issue again.
- Palmer & Wasilla Libraries: The borough has given the cities of
Palmer and Wasilla a grant over the years that the cities have used to
support their city libraries. With the tax revenue cap and increases in the
school budget, the borough has anticipated reducing this funding and
requiring the cities to bear more of the costs of their libraries on their
city sales tax revenues. Naturally, this has become an issue for many folks
and perhaps the best solution will be the introduction of a borough sales
tax that might promise to increase the borough’s overall revenues.
Obviously much will be driven by what the final outcome of the state budget
looks like. The session is due to end on May 16th and the Borough budget
will come to completion soon afterward.
Governmental Affairs Committee
Linda Oxley, Chair, WACO
Phone: 2615 Email:
chair@waco-ak.org
Erin McLarnon
