MSB Assembly postpones gas tax vote, sets public advisory vote on issue

During the regular meeting of the Mat-Su Borough (MSB) assembly on August 5, the proposed $0.07 per gallon gas tax was again front and center as it was on the agenda to be voted on during the meeting.

Early into the ordinance discussion, Assembly member Stephanie Nowers proposed an amendment to put the gas tax in front of the residents in November as an advisory vote, meaning the voters would not be voting for the tax itself, but instead inform the assembly members of their feelings, though Nowers said for her, the results of such a vote would direct her vote on the tax, saying if it’s a “no” vote from the people, then the tax would go nowhere for her.

“I am looking forward to the advisory vote and giving people in the Valley a chance to voice their vote up or down.”

Within her amendment, Nowers called for the Borough Manager to prepare future budgets allocating 30% of the revenue raised from the tax to be spent to reduce property taxes and 70% to be spent on voter-approved road projects. Assembly member Maxwell Sumner later amended that if the gas tax does pass, the revenues instead be a 50/50 split.

“Why should we prefer one over the other,” Sumner said when explaining why he wanted the 50/50 split.

“I think that builds trust, to see that the money is going to some immediate property relief,” said Nowers about the secondary amendment.

Both measures were approved by the assembly, with Assembly members Tim Hale and Dmitri Fonov opposing the primary amendment and all but Assembly member Dee McKee opposing the secondary amendment.

The advisory vote means that discussions will be had, along with more public testimony during the December 2 MSB assembly meeting.

Public sentiment leaned heavily against the tax, with many commenting that the MSB should look inside itself and make fiscal cuts there before adding an additional tax to the people.

“When my husband’s work capacity was full, we had to move money around to find a cheaper apartment,” said one woman, who added, “If we have the ability to move resources around, why can’t you?” She told the assembly that she and her family would like to buy a house in the Borough, but with the rising costs of food, rent, and fuel, she says that dream seems to be getting further and further away. “Your idea is to put a tax on something people in Alaska have to do-we have to drive…I believe it to be unreasonable and absurd to add on to the existing prices of gas, already as high as it is, and I hope that you realize that no one in the Valley wants this.”

Still others fear that if the gas tax were to go through, even with a time limit of a year and a half for the tax, that there would only be an incentive to continue adding taxes.

“This is a matter of taxes upon taxes upon taxes upon more taxes, and I, for one, am tired of it,” said Dan Stanton.

“You’re not short on money, you’re mismanaging it and not spending it wisely. You continuously raise property taxes and now want to put a gas tax into effect, which will be detrimental to working Borough residents’ budgets,” said Daniel Potter. “If you’re failing to be good stewards of your current tax money that you receive, why are you trying to gaslight the public, saying you need more money when you’re clearly wasting what you have?”

Previously, MSB Manager Mike Brown, who proposed the gas tax, explained that the Borough is facing a tough financial situation as the population increases, and with that growth, an increased need for more infrastructure, such as roads and schools. And while residents have been very supportive of both, voting to take on new road and school debt during the most recent bond sale elections, the problem remains that these debts are paid for by property taxpayers. Unless the MSB diversifies its source of revenues to pay for new roads or schools, Mat-Su residents will face a tough choice in few years.

“I can totally appreciate why folks might not like the fuel excise tax, but that doesn’t make the debt problem go away,” said Brown during closing comments. Assembly member Bill Gamble said that he would like to find a way to diversify how government funds itself and that during the next several weeks while the gas tax discussion is postponed, he would be looking into alternatives to funding government.

The assembly and Brown were also open to having town hall meetings to discuss the gas tax.

This is a developing story.