Tight budget blues

May 15, 2007

By Russell Stigall

Frontiersman

MAT-SU - The public testimony portion of the Mat-Su Borough budget process is finished. Now the borough assembly begins its ‘cut and amend' phase for a tight spending plan not substantially different in size than last year's budget.

Voters showed strong support for a new borough animal shelter, school funding, libraries and additional borough employees during two days of public comments on Borough Manager John Duffy's April budget proposal.

Assembly member Michelle Church said the budget's limits make deciding between services difficult but necessary.

&#8220We have the animal group, and we have the kindergarten group. We get to choose between puppies and 5-year-olds,” Church said. &#8220It is at that kind of emotional level.”

The budget process is on hold for now until legislators in Juneau pass the state's capital budget, which is expected by Wednesday. This budget could include funds for road construction and municipal revenue sharing.

After Juneau shows its hand, borough assembly members will meet to adjust the budget to the requests of borough voters.

The proposed comprehensive budget for fiscal year 2008 totals $311,752,900. Of this, $221.1 million goes to school operations, $18.3 million to debt service, $36.5 million for borough operations, $4.8 million for fire service area operations, $7.6 million for road service operations, $6.5 million for the solid waste and Port enterprise operations, $15.9 million for capital projects and $1.1 million for other areas and E-911 operations, according to Duffy's proposed budget.

Duffy said the new budget should not create much of a difference in taxpayers' checkbooks.

The proposed areawide mil levy is the same as last year, and the non-areawide is slightly higher, Duffy said. The levy rates are proposed to be 9.644 and .370 respectively.

&#8220Overall it is the same budget as last year's,” Duffy said.

The borough assembly must pass a budget in time for the borough's finance department to set and mail the 2008 mil rate statements by early July.

School district

Education costs may take a larger share of the budget.

The Mat-Su Borough School District has proposed an increase in its operating budget of $37 million. Some of that is covered by state funding, some by borough cash. The borough's contribution for 2008 is a proposed $40.8 million.

This is the first year the school district has implemented its new Program Based Budgeting system. The system delegates budgeting decisions to groups of administrators, teachers and parents.

The groups came up with three separate budgets that funded certain programs based on the district receiving a status quo 100 percent of the projected 2008 budget, a &#8220bare bones” 85 percent of the budget and an enhanced budget of 110 percent.

&#8220I don't think we can get to where the school system wants the budget,” Church said.

That depends on what happens in Juneau, Church said. No scenario takes the school district to the enhanced level, though.

&#8220[Juneau] will get us the best that they can get us. Then we'll do the best we can with what we have,” Church said.

The current shortfall in the borough's education funding could eliminate kindergarten in small schools. Church said the decision to remove kindergarten came from the district's program based budgeting system.

&#8220We are not choosing to eliminate kindergarten from small schools, it is the school district. We can't tell them what to do with their money,” Church said.

Assembly member Mary Kvalheim said the district made a mistake funding administration before other programs.

&#8220We don't want more administration, we want programs,” Kvalheim said.

Kvalheim said that when the district says it is going to cut football and art and music if it is not fully funded, that is a false choice.

&#8220These programs are mostly funded by parents anyway,” Kvalheim said.

Animal Control Shelter

The budget's debt service funds a $5 million remodel and expansion of the Mat-Su Borough Animal Care and Regulation Center located near the landfill on 49th State Street.

In a recent manager's report on the 22-year old facility, Duffy cited many health and safety hazards associated with the current buildings. That includes an OSHA requirement that puts almost the entire building off limits for employee breaks.

&#8220I'm going to vote for this, I don't care what happens,” Kvalheim said.

Kvalheim said shelter employees can't keep the current building clean due to its poor drainage and cramped kennels.

&#8220I'm not just taking about the animals, we are jeopardizing people here,” Kvalheim said.

Assembly member Church said she would like to shelter to follow the example of the Valley Community for Recycling Services, which is are raising funds to build a new facility.

&#8220Government isn't as loving as these groups are. Who would you rather have taking care of your dog, the borough manager or one of these people who love dogs,” Church said.

Church said she is unsure if the borough will have the needed $5 million.

New Borough Employees

Mat-Su has the highest constituent to employee ratio of large Alaskan boroughs. The borough employs one employee for every 293 constituents compared with the State of Alaska, with one employee for every 44 residents.

&#8220We shouldn't be proud of that, that is negligent. People are burned out and are not operating at their best,” said Church.

One of the most frequent calls Church said she get comes from people who do not get the services they need.

The budget also funds work toward a new borough building.

&#8220We need employees and a place for them to work,” Church said. &#8220They're crammed in there like mice.”

Duffy's proposed budget calls to expand the borough workforce by as many as 10.5 new employees.

If Duffy's budget is approved by the assembly the Borough Information Technology Department will get 1.5 new employees, Accounting could see one new employee as would the Assessment Division, Engineering, Planning and the Attorney's Office. Port Enterprise Fund could add three new jobs and Emergency Services, two.

Municipal Libraries

The municipal libraries of Palmer and Wasilla are on the chopping block in Duffy's proposed budget.

The borough warned Wasilla and Palmer that the borough's annual block grants to city libraries would be phased out over the next three years, Kvalheim said.

The grants will ratchet down by a third each fiscal year until gone.

Kvalheim said the decision to take away borough funding of city libraries came with the voters' approval of a tax cap in 2005. This cut the borough's revenue at a time when cities were increasing theirs through a sales tax, Kvalheim said.

With public comment on the budget over voters will have to trust their assembly members to make the best choices in funding.

The assembly is supposed to take the budgeting concern off the shoulders of its constituents, assembly member Church said.

&#8220We're supposed to have an idea of what people want and to be intelligent enough to make a good decision,” Church said.

Contact Russell Stigall at

352-2267 or russell.stigall@ frontiersman.com