The following editorial first appeared in the Ketchikan Daily News:
This isn’t the year to increase city taxes.
The Ketchikan City Council appears to be in agreement.
The state of Alaska might take a different approach because of its multi-billion-dollar budget deficit — the main challenge in the upcoming legislative session.
But it’s certain that city residents cannot handle both increased city taxes and new state taxes. The Walker administration and legislators discussed both in the past year. They will be topics in the new session.
To date in the city’s budgeting season for 2017, its staff and council members are proposing no increases in sales, property or utilities taxes. That’s no new taxes.
The city mill rate would remain at 6.7 and the sales tax at 4 percent. Combined with the borough’s taxes, the result is a 11.7 mill rate and 6.5 percent sales tax for Ketchikan residents living, owning property or operating a business within city limits.
The city can achieve this status quo budget without reducing staff or service, according to officials. Given that, the choice is obvious.
The state is not as fortunate. Gov. Bill Walker’s administration has focused both on generating new revenue and in spending cuts. Walker even reduced individual Alaska Permanent Fund dividend payouts to all eligible Alaskans in the fall, which meant about $1,000 instead of a little over $2,000.
The Legislature, which seemed reluctant to act in the now-complete election year, did reduce its capital budget, which affected Alaska communities that depend upon it for maintaining infrastructure.
Ketchikan residents are affected both personally and as a community concerned with economics as a result of both the permanent fund and capital budget reductions.
Fewer dollars slow the economy and reduce available jobs. Increased taxes only add to the strain.
The times require a careful balance. The city’s current budgeting approach is reflective of that balance and a relief for businesses and residents who neither want nor are especially able to handle new taxes at this time.
No new taxes!
