Win Gruening: Juneau Assembly down in the weeds looking for cuts. How about looking up at the trees first?

By WIN GRUENING

May 1, 2026 – When Juneau’s Assembly Finance Committee met on April 22 to consider possible cuts to the budget, they were offered a 2-page list of 41 possible service reductions. Compiled by city staff at Assembly direction, a variety of possible savings, some significant and some not, were presented.

Discussed during the meeting were questions members had about specific items and, in some cases, whether or not, they were worth pursuing. In addition, they reviewed memos on sales tax exemptions and some possible new revenue options.

One of the items in the weeds that ate up 20 minutes of discussion was the possible licensing of pet cats. While this isn’t common across the country, presumably the license fees collected would help reduce the $1.1 million currently spent on animal control.

One of the more significant discussions regarded the repeal of the sales tax exemption for retail sales by non-profits. While one can argue that exempting certain non-profits from paying sales taxes benefits society generally, no such argument can be made to justify exempting retail purchases by tourists at non-profit retail establishments.

Sealaska Heritage, Discovery Southeast Glacier Gift Shop, Juneau Arts and Humanities Council, and DIPAC are examples of non-profit sellers that are not required to collect sales taxes on retail sales such as art, books, jewelry, souvenirs, tours and other tourism related activities.

Finance Chair Christine Woll suggested removing the repeal of this exemption from consideration. Her proposal failed on a 7-1 vote.

What was surprising during the 2.5-hour meeting was the absence of discussion on issues that prompted the passage of two citizen initiatives that have forced the Assembly to finally address citizen concerns about community affordability and unnecessary discretionary spending.

Thankfully, Assembly members are reviewing community grants, the $1.5 million travel budget, and some administrative expenses. Challenges facing Eaglecrest Ski Area are being discussed and need to be addressed. Whether that involves a revamped scaled-down operation, a non-profit organization taking it over, or perhaps donation of the facility to another entity remains to be seen.

There seems to be an unfortunate inclination, however, to concentrate on cuts that will plug the hole this year without looking at true structural changes that will make a difference far into the future.

For starters, streamlined permitting and less bureaucracy will help spur development and increase the tax base. More accurate budget forecasts will promote transparency and clarify financial options.

The Assembly pulled back $5 million from its on-going commitment to fund the Capital Civic Center (aka the New JACC), though millions have been already spent to date. This project, rejected by voters, has never achieved the widespread support that it promised. It cannot justify the scale of construction cost ($60 million+) in a town of Juneau’s size, nor can it justify the large subsidy that it will require to maintain it.

Yet, city elected officials continue to support the project and, if and when it ever gets built, taxpayers will be on the hook for operating and maintenance costs in perpetuity. If the city is serious about truly responding to voters’ concerns, it will let the project return to its original intent: a completely self-supporting facility built with funds raised by its boosters and that a non-profit owner can afford to operate.

Another example is the Assembly’s attempt to build a new city hall. That project has morphed over time after voters turned down two bond issues to pay for its construction. The current plan, to purchase two floors in a building owned by the Alaska Permanent Fund, was flawed from the start. While upgraded office space and some consolidation is a worthwhile goal, justification for that location, the amount of space it provides, and its escalating cost has never been justified in light of other adaptive re-use alternatives.

The Assembly has an unenviable job. There is no way they will make everybody happy. There will be pressure to continue the status quo and defer to entrenched special interests.

Assembly priorities should focus on the clear message that 7,000 concerned citizens and voters sent last year to restrain discretionary spending and curtail programs and projects unrelated to core government functions.

Win Gruening retired as senior vice president in charge of business banking for Key Bank for the State of Alaska in 2012. He was born and raised in Juneau and graduated from the US Air Force Academy in 1970. After serving as a pilot in the US Air Force flying in the Pacific and Vietnam, Win began his banking career with Rainier Bank in Seattle and moved home  to Juneau in 1980. Win has been involved extensively in various local and statewide organizations such as United Way, Junior Achievement, and the Alaska Committee.

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