MSB Assembly postpones gas tax vote

During the regular meeting of the Mat-Su Borough (MSB) assembly on August 5, the proposed $0.07/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.

However, it was pointed out that the amendment as currently phrased might not be able to be placed on the ballot.

“The way the resolution is phrased, you can never bring that as a ballot proposition because you cannot designate revenue,” said Jesse Sumner, who is currently a member of the Alaska Legislature. “The revenue raised can be spent however the assembly…decides.” He recommended the ballot question be worded to ask voters if they want a tax on fuel to fund the government.

Public sentiment leaned heavily against the tax, with many commenters expressing frustration and mistrust to the assembly, fearing that if the gas tax were to pass, 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?”

Others commented 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. If we have the ability to move resources around, why can’t you?” said Samantha Carney. “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.”

David Eastman, former state representative, said that there are two things that Alaskans cannot live without—food and energy, and fears that the costs for both will go up if the tax passes, impacting not just immediate household budgets, but could put a damper on visiting elders and relatives, going out and exploring Alaska on ATVs and snow machines, and even something as simple as taking kids to school. “All those things that we do as Alaskans, things that require energy, if it’s more expensive, it makes it harder for us to do them.”

He then reflected the views of others who spoke, that imposing this type of tax could make the MSB akin to Anchorage, which has a $0.10/gallon tax. “I remember when Anchorage passed their .10 cents a gallon tax, and now we want to pass one too?” He said that not having that kind of tax is an advantage here in the Valley.

No one from the public spoke in favor of the gas tax.

MSB Manager Mike Brown, who proposed the gas tax, but reiterated 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.

The next MSB Assembly meeting is scheduled for August 19 at 6:00 p.m. at the Assembly Chambers in Palmer.