1996-06 Requesting that the Governor and Legislature Cease Making Disproportionale Cuts to Existing Municipal Revenues and Programs that Force Higher Local Taxes or Cuts to Basic Local Public Services.KODIAK ISLAND BOROUGH
Introduced by: Mayor Selby
Requested by: Alaska Municipal
League
Drafted: Mayor Selby
Introduced: 03/07/96
Adopted: 03/07/96
A RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY REQUESTING
THAT THE GOVERNOR AND LEGISLATURE CEASE MAKING DISPROPORTIONATE
CUTS TO EXISTING MUNICIPAL REVENUES AND PROGRAMS THAT FORCE
HIGHER LOCAL TAXES OR CUTS TO BASIC LOCAL PUBLIC SERVICES
WHEREAS, oil revenues are collected by the state government, but do not belong
to the state government. Oil revenues belong to all of the people of the state to
ensure a basic level of public services in all communities, whether provided by state
or municipal government; and
WHEREAS, state revenue sharing with municipalities is not unique to Alaska and is
not an oil boom program. According to a federal research agency, every state in the
United States provides some form of revenue sharing. Alaska is now below the
average among the western states for sharing state revenue with its municipalities;
and
WHEREAS, the percentage of the state budget appropriated for municipal revenue
sharing has now been cut to the same level as in 1972, well before the oil boom,
when many municipalities lacked the finances to construct and support decent basic
services such as water, sewer, provide adequate public safety services, and health
services; and
WHEREAS, since 1986 the state has shifted over an estimated $200 million costs
to local taxpayers through cuts to municipal revenue sharing, transfers of state
service responsibilities, and unfunded state mandates on municipalities. All sales and
property tax increases among municipal governments since 1986 total only $188
million per year. Therefore, all or most sales and property tax increases paid by
Alaska citizens since 1986 went to balance the state's budget; and
WHEREAS, since 1986, the state has cut Municipal Assistance /Revenue Sharing by
$83 million, which is approximately twice the amount of any "new tax" proposed by
the Long Range Financial Planning Commission for implementation during this
century; and
WHEREAS, the impact of the state's cuts in revenue sharing, cuts in other municipal
programs, and new unfunded mandates on municipalities since 1986 is roughly equal
to taking away the value of one permanent fund dividend check from every family
that pays property taxes; and
Kodiak Island Borough, Alaska Resolution No. 96 -06
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WHEREAS, approximately half (or $10 million) of the actual reductions in the State's
Proposed Budget for next year simply "pass the buck" to local taxpayers; and
WHEREAS, the proposed state budget for next year would cut the state operations
Tess than 1% while the proposed cut to direct municipal revenue sharing is 8 %, or
more than eight times greater; and
WHEREAS, according to the OMB Budget Report:
*Direct state aid to municipalities will decrease 9.8%
- Municipal Assistance (MA) - $2,556,700 ( -8 %)
- Revenue Sharing (RS) - $2,101,700 ( -8 %)
- Senior Property Tax Exemption - 51,163,800 ( -100 %)
TOTAL - $5,822,200
*Additional cuts /transfers /new unfunded mandates to municipalities:
- Transfer pupil transportation cost - $2,627,400 ( -8 %)
- Municipal Lands Trust Program -$ 91,000
- Coastal Management Grants -$ 100,000
- Community Schools -$ 100,000
- Health /Social Service Grants -$ 834,900 ( -1 % to all grants)
- Municipal Libraries -SLED grants -$ 75,000
-Fire Training fees -$ 180,200
- DEC landfill Permit increases -$ 400,000 (estimated)
TOTAL - $4,408,500
TOTAL MUNICIPAL IMPACTS - $10,230,700
WHEREAS, cuts in municipal revenue sharing and the resulting fiscal pressures have
been a major factor in municipal dissolutions. Many smaller communities are
considering unincorporating and giving the responsibility for providing local services
back to the state government. The cost to the state to provide services will be much
higher than the cost of municipal revenue sharing; and
WHEREAS, in the explanation of the proposed state budget, it states that the
"Overall reduction in state aid to local governments /school districts is 1.2 % ".
Schools are not a municipal aid program. The Alaska Constitution states, "The
legislature shall by general law establish and maintain a system of public schools...."
It is clearly a state responsibility to provide for education. The actual proposed
overall reduction in state aid to local governments is actually 8 -10 %; and
WHEREAS, all municipal governments balance their budgets and that many municipal
governments use long range fiscal planning tools; and
Kodiak Island Borough, Alaska Resolution No. 96 -06
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WHEREAS, the Alaska Municipal League and the Alaska Conference of Mayors have
adopted resolutions supporting the development of a Long Range Financial Plan for
Alaska, and have offered to work in partnership with the state to develop the plan;
NOW, THEREFORE, BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND
BOROUGH THAT:
Section 1. The Governor and the Legislature are requested to carefully study the
impact of state budget actions and avoid passing a disproportionate
share of cuts, transfers, and unfunded mandates on to local taxpayers.
Section 2. The Governor and the Legislature are requested to support the
implementation of the "Revenue Sharing for Safe Communities" program
developed by the Alaska Municipal League (AML) and the Alaska
Conference of Mayors (ACoM) to improve and stabilize the current
Municipal Assistance and Revenue Sharing Programs.
Section 3. The Governor and the Legislature are requested to work in formal
partnership with municipalities as proposed by the AML and ACoM to
develop a State /Municipal Long Range Financial and Services Plan for
Alaska in recognition of the fact that the state and municipal
governments jointly provide Alaska's public services and that both serve
the same citizens /taxpayers.
ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
THIS SEVENTH DAY OF MARCH, 1996
ATTEST:
(De2,0„)..et
Donna F. Smith, CMC, Borough Clerk
KODIAK ISLAND BOROUGH
Kodiak Island Borough, Alaska Resolution No. 96 -06
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