Revenue sharing returns to cities under SB 72

MAT-SU — Valley governments are looking forward to having more state money should Senate Bill 72 pass the Alaska Legislature this session.

SB 72 is a community revenue sharing initiative that passed through the state House on Wednesday. The bill establishes the necessary framework for distributing $60 million a year to communities in Alaska for the next three years.

Gov. Sarah Palin, a supporter of revenue sharing, was pleased to see SB 72 move forward.

“As a former mayor and city council member, it is my belief that services are best provided at the most local levels possible,” Palin said in a prepared statement. “I am pleased that Senate members have committed to fund municipal revenue sharing for the next three years. They took our proposal and made it better, and I appreciate them for working together to accomplish this.”

And while it may sound like just another piece of the state’s legislative business, many believe the bill will provide a much-needed boost for city governments in the Valley.

Marvin Yoder, interim deputy administrator for Wasilla, said revenue sharing used to be a part of Alaska government until 2003, when former Gov. Frank Murkowski decided to end the program. If revenue sharing is resurrected many local improvement projects can be as well.

“Basically, the municipal league has always felt that revenue sharing is a way to reduce local taxes,” Yoder said. “This is also a way to share the wealth of the state with municipalities.”

Yoder said there are numerous ways a municipality can benefit from revenue sharing. In Wasilla, the money provided from sharing could help pay for police and fire services. At the same time, money coming from the state would help minimize the burden on local taxpayers.

According to SB 72, a community in a unified municipality or borough must have at least three of seven services to qualify for revenue sharing:

• Fire protection;

• Emergency medical;

• Water and sewer;

• Solid waste management;

• Public road or ice road maintenance;

• Public health;

• Search and rescue.

Palmer Mayor John Combs said SB 72 would provide funding for many projects in communities across the state, including Palmer.

“What this bill does is put money into a community and they can determine what is needed most in that community,” Combs said.

In Palmer, Combs said options of what to spend potential revenue sharing funds on are many. For example, the money could be used to help replace some of the aging equipment in the city’s public works department. The money could also be reserved for improving the Palmer Public Library or other services the city offers.

Overall, the mayor said the bill is a good start at providing funding relief for Alaska communities and he appreciates all of the work and support from Governor Palin and the Legislature.

Although the bill passed the state House, the Senate will revisit SB 72 to review any changes the House may have made.

Contact Chris Gillow at chris.gillow@frontiersman.com or 352-2284.