Wrangell officials are worried state budget cuts will impact the Community Revenue Sharing Program that makes up a large portion of the borough’s income.
Through the Revenue Sharing Program, the state sets aside $60 million for distribution to municipalities across the state. Of that, Wrangell gets just under $600,000 each year. That money goes to provide basic services including maintenance of public buildings and snow removal.
But Alaska’s major budget deficit could affect that source of revenue.
The Wrangell Borough Assembly adopted a resolution Tuesday to request that the state continue to fully fund the revenue sharing program.
Borough Manager Jeff Jabusch said without the revenue sharing program, Wrangell would have to increase property taxes by 40 percent to keep up current services.
“We can’t do that. We can’t raise the mill rate. But that’s the magnitude of the money we get from the state. So it would certainly be devastating to Wrangell if that happens at the state level,” Jabusch said.
But Jabusch said if faced with funding cuts, the borough would not raise property taxes. He said Wrangell would cut services.
“We’ll get through it and survive it,” Jabusch said. “The city is in good financial shape at this point, so we’ll be able to, I think, make some tough decisions and make it all work, and maintain the bulk of our services that we provide. But it will be painful.”
Under Gov. Bill Walker’s proposed budget, Wrangell could also face major cuts to its jail funding. Wrangell has also lost its Wildlife Trooper. The Wrangell Borough Assembly is asking state officials to keep those services and jobs in Wrangell.
