This story has been updated to correct specifics of claimed economic impacts of Ship-Free Saturday for Bartlett Regional Hospital.
A lopsided financial battle is occurring with the Ship-Free Saturday ballot proposition, as less than $500 raised by supporters is being countered by more than $300,000 from cruise lines and other major tourism companies, plus tens of thousands of dollars more in “non-monetary” contributions, according to campaign finance reports.
Expenditures by the group Protect Juneau’s Future in opposition to the measure on the Oct. 1 municipal election ballot are roughly $600,000 as of Aug. 30, including debts to be paid, according to a 30-day report filed Sept. 3 with the Alaska Public Offices Commission. That includes some expenses that will be paid leading up to election day.
Contributions to the group of $75,000 each have been made by Royal Caribbean Group, Carnival Corp. and Norwegian Cruise Line Holdings — with the latter two made through subsidiary companies — and another $50,000 has been contributed by Goldbelt Inc., according to APOC.
In addition to the monetary dominance, the political tides are strongly against the proposition. Eight of the nine candidates for Juneau Assembly and mayor say they oppose it, as has the CEO of the city-owned Bartlett Regional Hospital, and the City and Borough of Juneau has published materials proponents of the measure say is highly favorable to the cruise industry.
Meanwhile, the Ship-Free Saturday group reports $380 in contributions from two individuals on its 30-day APOC report, including $300 from lead advocate Karla Hart. She said Wednesday the group has received one check since then she has not deposited and may return instead.
The obvious question to proponents: does that suggest people in Juneau generally don’t support the proposition that would ban ships with capacity for 250 or more passengers on Saturdays and the Fourth of July?
“Juneau residents have lived experiences which will inform their votes,” Hart replied in an email Tuesday. “About 30 Juneau residents invested hundreds of hours gathering signatures from over 2,500 Juneau voters who wanted the chance to vote on whether or not to have Ship-Free Saturdays.”
Karla Hart (left) speaks in support of the Ship-Free Saturday ballot initiative during a forum Sept. 4 at the Gold Town Theatre. (Mark Sabbatini / Juneau Empire file photo)
Hart stated the group backing the proposition “made the choice to not fundraise and spend on signs and ads.”
“I accepted a few campaign donations to have some funds on hand if needed, and to pay for a couple of banners and the Gold Town rental,” she wrote, the latter referring to a $100 rental of the small movie theater for a forum where supporters discussed the issue. “Almost daily I’m declining unsolicited offers of contributions. Every helicopter that flies over, whale watch boat that throws wakes, ship that spews air pollution, and bus that blocks traffic is an advertisement for Ship-Free Saturdays.”
The obvious counterpoint question to Protect Juneau’s Future: Is the opposition campaign essentially a big-money effort funded by the cruise and tourism industry for its own gain?
“We reject that notion,” Portland Sarantopoulos, campaign manager for Protect Juneau’s Future, wrote in an email Wednesday. “Protect Juneau’s Future is a local organization led by residents from diverse backgrounds. Our 22 co-chairs and 5 executive committee members all live in Juneau. In addition to monetary donations from the cruise lines, we are proud of the many small dollar donations made by residents concerned about the negative impacts of Proposition 2.”
The biggest expenditure by Protect Juneau’s Future so far is $200,000 budgeted for Anchorage-based Thompson & Co Public Relations for management and consulting services — half of which had actually been paid as of the 30-day report. Other major expenditures include $110,000 for media advertising (including the Juneau Empire), with $50,000 spent as of Aug 30; $75,000 for direct mail advertising, with none spent as of Aug. 30; and $75,000 for research including polling, with none spent as of Aug. 30.
Sarantopoulos stated the total of roughly $600,000 in money already spent and pending debts “is what we deem necessary and plan to spend” for the duration of the campaign.
Hart stated such spending by opponents of the proposition “indicates to me that they know that they have a serious problem with public dissatisfaction with impacts of the cruise industry.”
“Were we just the handful of old people they try to portray, they wouldn’t be worried,” she wrote. “They’ve done polling as well. That their fundraising and spending, including outside donations directly from the cruise industry, continues to ramp up is a good sign that their polling continues to have them worried.”
Sarantopoulos, when asked if out-of-town interests are trying to make a case to voters that local opponents of the initiative aren’t able to, noted again the Juneau representation within her group.
“We knew we would be unable to manage this campaign without consultants given our primary focus on business operations and providing a world-class experience for visitors to our city during the busy season,” she wrote. “The statement that this campaign is being led by out-of-town interests is false and creates a dangerous narrative that people who call Juneau home year-round are somehow not dedicated to this community just because they work in the tourism industry.”
Duff Mitchell (right), a board member of the Downtown Business Association, reads a question to Juneau Assembly and mayoral candidates during a forum Tuesday night at V’s Cellar Door restaurant. All of the candidates at the forum said they oppose the Ship-Free Saturday ballot measure, although one candidate not at the forum supports it. (Mark Sabbatini / Juneau Empire)
Protect Juneau’s Future has emphasized that the cruise industry accounted for $375 million in direct spending in Juneau in 2023 — including $30 million on Saturdays that provided $3.7 million in taxes and fees, according to reports published by CBJ. The Ship-Free Saturday initiative has attracted global media attention, which Sarantopoulos stated is to Juneau’s detriment.
“The vote yes group has successfully shared its message across the world telling people they don’t want visitors in Juneau,” she wrote. “This directly impacts the livelihood of thousands of families who depend on tourism jobs to survive and take care of their families. It impacts the ability to share Tlingit culture, and allow it to grow and thrive. There are many other reasons to invest in this campaign, but these two alone are reason enough. We cannot idly stand by while livelihoods are threatened for so many of our neighbors and friends.”
Hart stated the election results will show what residents feel are in their best interests.
“Is Ship-Free Saturdays something that Juneau voters want?” she wrote. “I’m waiting for the outcome of the election. Regardless, it is clear that there are real problems with cruise industry impacts in Juneau and the cruise industry and Juneau allies know this.”
Advocacy by CBJ on behalf of the cruise industry
On Sept. 12 — the same day election ballots were mailed to residents — CBJ issued a press release noting $160,000 has been donated for Mendenhall River flood relief by Royal Caribbean ($60,000), Norwegian ($50,000), Carnival ($25,000) and Alaska Airlines ($25,000). The release noted it also coincided with a $75,000 donation by Disney Cruise Line to the Southeast Alaska Food Bank.
An optimist might see that as companies recognizing and assisting a need in a community where they have a significant presence, and accept the timing of the press release as coincidence. A cynic might see it as a ploy by the industry to further sway voters with the aid of a municipal government that’s taken other actions indicating opposition to the Ship-Free Saturday proposition.
Both City Manager Katie Koester and CBJ Tourism Director Alexandra Pierce stated Tuesday the timing of the press release was coincidental.
“Our community experienced a major event that has disrupted the lives of almost 300 families,” Koester wrote. “It is important to recognize efforts to assist our friends and neighbors.”
The donations for people affected by the glacier outburst flood from Suicide Basin that peaked Aug. 6 were made to the Juneau Community Foundation’s Mendenhall River Flood Relief Fund. Hart questioned both the timing of the announcement as well as it being made by CBJ officials.
“Did something unique happen right now that spurs recognition from the city of these cruise-related businesses right now?” she wrote. “What involvement did (Pierce) have in these industry contributions to the Juneau Community Foundation, which is not an agency of the CBJ, that sparks such a press release?”
Sarantopoulos noted local donations by cruise companies go well beyond the current situation.
“The cruise industry has demonstrated a long-standing tradition of supporting Juneau and its residents when needs arise,” she wrote. “The industry has dedicated hundreds of thousands of dollars and in-kind donations to bolster community organizations such as the Sealaska Heritage Institute, the Project Playground rebuild and the Southeast Alaska Food Bank. None of these donations has occurred when a proposition impacting cruise operations was on the ballot. We appreciate the many fundraising efforts aimed at flood relief, regardless of source.”
The most direct advocacy of the ballot measure by a non-elected official so far appears to be a statement by Bartlett Interim CEO Ian Worden publicized by Protect Juneau’s Future in opposition to the proposition. A press release issued by the group Sept. 11 noted his claim that passage of Ship-free Saturday could cause thehospital “to lose upward of $380,640 in revenue and five essential health care jobs.”
Worden’s full statement actually goes further, specifying the direct impact to the hospital will be “$732,000 in lost annual revenue, which is about the cost of seven full-time hospital jobs (salaries plus benefits)” if Ship-Free Saturday passes. He stated the communitywide impacts of the measure will result in the additional loss of five jobs and $380,640 in income.
“Obviously, if the cruise lines alter their schedule to bypass Juneau for more than one day, the negative impact goes up proportionally,” he wrote.
“While we can focus on the negative, the reality is many businesses rely on the positive economic impact of the cruise ship industry, including Bartlett Regional Hospital,” Worden added. “This industry helps to sustain BRH and many of the healthcare services available within the community.”
Worden, in response to a question from the Empire about his advocacy as the leader of a city-owned facility, stated in an email Tuesday “the CEO is a steward of the hospital on behalf of CBJ.”
“I have consistently provided the Assembly and Juneau citizens with information regarding actions and decisions that impaired the financial stability of the hospital,” he wrote. “Had this information been known, many of the financial issues could have been prevented. As a steward, I am providing information on the potential impact to the hospital so citizens can make an informed choice based on the most current facts known.”
Koester, in her email, stated “Bartlett Regional Hospital has its own operating board and have made the decision to engage.”
“I have advised them to consult with an attorney to make sure they are following all applicable laws,” she wrote.
City leaders have weighed in on previous ballot measures, including spending $50,000 for an “information” effort related to a $35 million bond measure to help fund a new City Hall that was defeated in last year’s elections. City attorneys have told the Juneau Assembly and administrative leaders sending funds on such information efforts are legal, although openly advocating for or against such a ballot item is not without registering with APOC and following its campaign regulations.
For the Ship-Free Saturday proposition, CBJ staff produced a purportedly neutral FAQ published at the city’s website. However, the top half of the three-page document lists steps CBJ has taken or is taking to mitigate effects of cruise ship tourism, including voluntary agreements reached with the cruise industry such as a five-ship-a-day limit now in effect and a daily cap of 16,000 passengers (12,000 on Saturdays) scheduled to take effect in 2026.
However, when residents actually fill out their ballots the CBJ-approved wording they will be presented with is highly favorable to the proposition since it is written by its proponents. The yes-or-no question is prefaced by 11 “whereas” declarations such as “city leaders and industry have had decades to act and have failed to balance the economic benefits to some against the economic and other harms of the many imposed by the cruise tourism industry.”
Municipal Clerk Beth McEwen has stated officials “are not certifying that the language in there is factual whatsoever,” merely that it meets legal requirements to appear on the ballot.
• Contact Mark Sabbatini at mark.sabbatini@juneauempire.com or (907) 957-2306.
