Revenue sharing cuts will have minimal impact on Mat-Su cities

MAT-SU - Municipal revenue sharing will be cut this year by $3.4 million, or almost 11 percent, according to staff at the states Division of Municipal and Regional Assistance.

Although the budget must also go through the joint House-Senate budget conference committee, most involved with the process believe the figure is stable.

According to Bill Rolfzen, who handles state municipal revenue-sharing and municipal assistance for the division, the reductions mean the city of Palmer will lose $28,381, for a state assistance total of $217,359; the city of Wasilla will lose $23,095, for a total of $178,570; and the city of Houston will lose $2,644, for an assistance total of $39,913.

Only an 11-percent cut is good news, said Palmer city manager Tom Healy. Its kind of encouraging.

Healy said that reduction will not mean higher taxes for Palmer residents. Palmer Mayor Henry Guinotte said, however, that although the cuts wont mean higher taxes this year, continued cuts may result in a tax increase down the road.

Last year, the Legislature cut the amount of assistance by a third.

Wasilla Mayor Sarah Palin said Wasilla will feel little effect from the loss. In fact, she planned to introduce a budget to the council at its meeting Monday which would reduce Wasilla property taxes.

It would bring it down to just one mill levy, Palin said. That will be the fourth consecutive year in which property taxes could be decreased.

Palin said because of increasing sales tax revenues, the city has become less and less dependent on municipal revenue sharing.

Our sales tax continues to generate more than what we project each year, she said.