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Letter: Shame in a place that’s always been

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Editor:

When I was growing up, my mother could not say anything worse to me than, “Shame on you.” It immediately brought on humiliation caused by something I had done or by my foolish behavior. Once reminded, it was something I tried hard never to do again.

Many in our world today seem to have lost any sense of shame.  In the world of politics, it has become a free-for-all in behavior.  Yet, there are still things that cross the line in civility.  Most certainly when it forces others to unwillingly become part of that shame.

At Alaska Federation of Natives convention, in the place that has always been, that line of shame was crossed.  Gov. Michael Dunleavy and his wife were invited to speak at AFN. It was especially honorable to a small quiet Native woman dressed in her usual Kuspuk, who stood beside her husband, a man from another land who came to her village as a teacher many years ago. Together they had three beautiful daughters and showed how those two lands could meet in a loving, caring and respectful manner. She is so proud of this man she calls husband. He knows the Native ways because of her and his life in their land.

One can only imagine the pain Rose Dunleavy must have felt in her heart as she and her husband stood before her people and heard a large group shout, boo and turn their backs as he spoke.  

The heartache was visible on her face as she held her hands tightly in front of her looking sadly at her husband. What would her three daughters think when they heard about such disrespect?  She had taught her daughters respect learned from her elders. How could she explain such behavior from some of her people?

She was there to present the Shirley Demientieff award, which was based on respect. How was she going to be able to walk to the podium after such disrespect? This quiet woman had worked so hard the past year to stand in front of others in such a public manner.

As a woman of her word, she walked to the podium obviously shaken about what had just happened. Oh, the sadness she and others must have felt.

There are so many Rose Dunleavys in Alaska. Many I have met and now call friends. They are strong, independent women who love their Native land but have also learned to love those that once visited and decided to stay.  My heart is sad as I know it was not a proud moment for them in the land that has always been. 

Judy Eledge, Anchorage

What’s the communications plan for the governor?

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DUNLEAVY DOESN’T HAVE A MOMENT TO LOSE

Gov. Michael Dunleavy needs a press secretary and a speechwriter. He also needs a crew of affable grammarians who can answer the mountain of unanswered constituent letters piling up in his office.

What Dunleavy needs, it seems, is a massive communications makeover. Without it, he’s left to his own devices in communications, and that would spell trouble. Trouble like what he ran into when a handful of protesters who stole the spotlight from him at Alaska Federation of Natives last week.

Dunleavy is capable as a communicator, partly because he was a teacher for many years, mostly in rural Alaska.

He’s a policy wonk who thinks through the tough issues with his small-government sensibilities, yet he needs to communicate that he understands that policy decisions have human consequences.

Contrary to what some critics say, Dunleavy has a vision; smaller government that is more efficient, less intrusive, and more responsive is certainly a vision. Allowing citizens to vote on taxes and the PFD is a vision. But Dunleavy hasn’t hit his stride in communicating his vision and he has faced a media that has sharpened its knives on every one of his missteps.

Dunleavy recently lost Matt Shuckerow, his press secretary, who left to become campaign manager for Sen. Dan Sullivan. Shuckerow was a capable hand and well-respected by the press corps, so far as their respect for press secretaries go.

Now Dunleavy’s communication director/strategist Mary Ann Pruitt has stepped back from her role running comms on contract with the governor’s office. Must Read Alaska has learned she is renegotiating the contract, as she gears up for what will be a monster year at her thriving company, PS Strategies, which has clients in several states. She never intended to stay past the Dunleavy transition phase, anyway.

Pruitt, through her company, is also likely to have a role in defending the administration against a recall, something that would have to be done outside the governor’s office. The Republican Governors Association is one of her company’s clients and RGA is paying attention. She’ll also be busy with political accounts to battle ballot measures that will come up in 2020.

So Dunleavy is going to need a new communication strategist to fill the void of these two talents. He needs someone who has superpowers to pull the message together and who understands the current media environment, the political environment, and Alaska.

But who? The list of people with that kind of “master communications strategist” talent in the state is short, and most of those people are already busy with other, better paying clients, or they can’t break away from existing projects to help the governor.

Dunleavy needs a person of the caliber of a Michael Dubke, the former communication director for the Trump White House, who also once had a key role in the election of Sen. Dan Sullivan.

Or a Matt Mackowiak, who did communication strategy during a critical juncture in the Parnell Administration.

Or a Mike Pauley, who was one of Dunleavy’s key strategic advisers on during the campaign and who has lived and worked in Alaska for years, (now in Seattle).

Or a Sarah Erkmann-Ward, owner of Blueprint Alaska, a communications firm in Anchorage, who has the respect of the media and the trust of the governor.

All are big-picture strategists, but this would be a more-than-full-time job. The person Dunleavy needs is going to have to stand up a 360-degree communication war room that is dedicated 24/7 during what will be a most-challenging year ahead.

That’s a special person.

Radio personality Dave Stieren, newly hired into the Governor’s Office as a community relations liaison is not that person — he’s not a speech writer, not a press secretary, and not the cordial guy with good bedside manners to manage a team of creative political professionals. He’s more of a street fighter and the governor needs to play to his super powers.

The right person for this role hasn’t materialized overnight, and that keeps the red flag flying, as this governor needs to get his message out more than ever: Dunleavy goes into the next budget cycle facing a $880 million deficit, a recall campaign, and a recalcitrant House and Senate Majority.

There’s more: According to Morning Consult, a polling firm that tracks the popularity of politicians, Dunleavy went from a 29 percent disapproval rating during the first quarter of the year to a 41 percent disapproval rating in the third quarter. He now ranks ninth from the bottom among the 50 governors.

To compare, last year at this time former Gov. Bill Walker had a 54 percent disapproval rating. In January of 2018, 52 percent of Alaskans disapproved of him, so he was a whole lot worse off than Dunleavy.

And in fairness, Dunleavy approval rating has ticked up slightly since the first quarter, and is now at 43 percent. That’s a couple of points advantage for him, and he could build on it if he could get his message out.

Getting that comm. team in place, it seems, would be a priority of the highest order, something he might want to act on sooner, rather later.

‘Log-rolling’ at issue with ‘Better Elections’ ballot item

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A DAY IN COURT FOR RANKED VOTING, NO-PARTY PRIMARIES

Alaska’s election system could be headed for a radical change if a three-part ballot initiative gathers steam — and 28,501 valid signatures.

But first, it has to get through its legal hurdles.

The “Alaskans for Better Elections” ballot initiative was argued in Anchorage Superior Court on Monday before Judge Yvonne Lamoureux, who is a registered nonpartisan.

The initiative would remove partisanship from primaries and largely from general elections. It would make it much harder for third-party groups to engage in campaigning in the state because it would tighten finance disclosure rules.

On the side of the “Better Elections” initiative sponsor stood lawyers Scott Kendall and Jahna Lindemuth.

They are the former chief of staff and attorney general for former Gov. Bill Walker, and their client is former Rep. Jason Grenn, who agreed to be the initiative sponsor and plaintiff.

On the other side were State of Alaska attorneys (who were once employees of Lindemuth and Kendall during the Walker Administration). Assistant Attorneys General Margaret Paton-Walsh and Cori Mills, argued on behalf of Lt. Gov. Kevin Meyer who had denied allowing the Better Elections initiative to proceed to the ballot because it violates the “single-subject rule.”

The courtroom gallery held only a handful of interested onlookers, including this writer, a reporter from KTVA, and Josh Applebee, who is the lieutenant governor’s chief of staff. Grenn attended the oral arguments, but only a handful of others were in the audience. No representatives from the Republican Party attended, although the GOP has the most to lose if the ballot measure succeeds. The Alaska Republican Party insists on not allowing Democrats, Green Party, or Libertarians, for example, to vote on their primary ballot.

Kendall and Lindemuth’s services and the entire “Better Elections” campaign efforts are funded by Outside money that comes through organizations such as the liberal Massachusetts group Represent.Us, which gets funding from groups such as the “dark money” Tides Foundation. George Soros funds the San Francisco-based Tides Foundation.

These Outside groups know that it’s easy to get a ballot measure on an Alaska ballot, and it’s relatively cheap. Alaska is a target for Outside groups during every election cycle.

Attorney Kendall argued that past courts have always liberally interpreted that single-subject rules that are found both in statute and in the Alaska Constitution.

He cited the 2014 Marijuana Ballot Measure 2, which had four subjects: Legalize the commercialization of marijuana, create a tax structure for sales of cannabis products, set up a regulatory framework, and create a Marijuana Control Board to make decisions.

But the Assistant Attorney General Paton-Walsh said radically changing the election system in Alaska is an order of a different magnitude. Voters need to be able to decide each one of the changes separately, and the sponsors could have easily separated each proposal into a different ballot measure that would more appropriately be presented on its own.

As written, the measure is summarized in its title:

An Act prohibiting the use of dark money by independent expenditure groups working to influence candidate elections in Alaska and requiring additional disclosures by these groups; establishing a nonpartisan and open top four primary election system for election to state executive and state and national legislative offices; changing appointment procedures relating to precinct watchers and members of precinct election boards, election district absentee and questioned ballot counting boards, and the Alaska Public Offices Commission; establishing a ranked-choice general election system; supporting an amendment to the United States Constitution to allow citizens to regulate money in Alaska elections; repealing the special runoff election for the office of United States Senator and United States Representative; requiring certain written notices to appear in election pamphlets and polling places; and amending the definition of ‘political party’.

The most significant change proposed is to eliminate party politics in elections. All candidates, regardless of affiliation or non-affiliation, would run on the same primary ballot. The top four vote getters would proceed to the general ballot

IS IT LOG-ROLLING?

Voters might want to get “dark money” out of the election cycles, but they shouldn’t have to vote for the other things on the initiative just to express their will on the dark money question, Paton-Walsh argued. Lumping them together is an “all or nothing” proposition that voters should not have to make.

She said the initiative makes such significant change to the democratic process and the institution of elections themselves, that these changes should be separated.

Paton-Walsh said that campaign finance and the elections are separate functions, the first run by the Department of Administration through the Alaska Public Offices Commission, and the second run by the Division of Elections.

Further, having campaign finance reform packaged with mechanical changes to elections is log-rolling, she argued. Log-rolling is when initiative sponsors deliberately insert into a ballot measure dissimilar subjects in order to gain the passage of one particular item. Log-rolling is committed through stealth, inadvertence, and fraud.

Mother Jones magazine, a far-left publication, defines log-rolling initiatives this way: If a proposed amendment were to make it to the ballot via petition, it’s bound by a “single-subject rule” aimed at preventing “log-rolling”—forcing voters to compromise one issue for another, or leading an unpopular measure to success by tying it to a more likable cause.

The log-rolling example in Mother Jones referred to last year’s Florida Amendment Nine, which would put a ban on both offshore drilling and indoor vaping in the State Constitution. It was allowed on the ballot and passed.

Kendall said no such log-rolling is being done with this ballot initiative, and that all three of the subjects being debated are intertwined, and must be considered as one package.

The set of disparate items is not as wide as offshore drilling and vaping, but is the method of voting and the method of campaigning close enough to be under the same ballot title? That’s for the court to decide now.

Judge Lameroux asked Kendall if he agreed that his best argument for keeping all three aspects in the ballot measure is increasing voter knowledge.

“Absolutely,” Kendall replied. “It’s to empower voter knowledge and empower voters with more choices.”

Then why not separate initiatives so voters could have distinct choices? Lamoreaux asked.

“Each one has less efficacy on its own,” Kendall explained.

Plus, he said, having to collect signatures for three ballot initiatives is expensive, and his group’s polling shows that 65 percent of voters favor these initiatives. Kendall estimated it could cost up to $150,000 to get the 28,500 signatures needed from 30 of Alaska’s 40 House districts, once you include travel and other expenses.

Already the group has gathered more than $150,000 in donations from mainly outside groups, and it has not even started collecting signatures.

In order to be on the November ballot, those signatures need to be gathered by the beginning of the next legislative session, which begins Jan. 21.

It appears from statements made in court on Monday that both the State and the lawyers for “Alaskans for Better Elections” are gearing up to argue their cases once again before the Alaska Supreme Court.

Lamoureux said she’ll come up with a decision swiftly.

Glenn Clary, Chairman of the Alaska Republican Party, said, “This is important enough that every Republican in Alaska should be engaged in defeating this ballot measure, if the courts foolishly rule to allow it to proceed.”

The essence of the State’s position on the Better Elections ballot measure is argued in this summary from Attorney General Kevin Clarkson.

More popcorn, please

THE ANCHORAGE DAILY PLANET

Count us among those agog at Senate President Cathy Giessel’s recent declaration of support for Rep. Josh Revak to succeed the late Republican Sen. Chris Birch in District M.

Revak, it turns out, has been a staunch supporter of a full, statutory Permanent Fund dividend, a stand that sank Rep. Laddie Shaw’s appointment to Birch’s Senate seat.

Shaw, Gov. Mike Dunleavy’s first pick for the job, was rejected by the GOP majority in a 6-6 vote last month although he was more than qualified. Why? His support of a full statutory dividend, which would have put about $3,000 into each eligible Alaskan’s pocket this year – instead of $1,606.

Birch was an ally of Giessel when it came to the dividend and Shaw would have been a vote in the wrong direction. Unsatisfied to simply vote against seating him, Giessel stooped to trashing him after the vote. In a Facebook post, Giessel lamely defended Shaw’s rejection, by suggesting, “Many times we know these individuals in a way that perhaps you don’t.”

Really? She actually trotted out innuendo to smear Shaw, a fellow member of the Legislature. For the record, Shaw is a decorated, two-tour Vietnam veteran and former SEAL.

His rejection vividly illustrates the divide in the Senate. One group believes government should come first; the other, the individual.

It is highly unlikely Giessel, despite having campaigned for Revak’s election to the House last year, or the other members of her caucus who want your dividend have changed their minds. So, you have to wonder about the support for Revak, who also is an Army veteran, a tank crew member and Purple Heart Medal recipient.

Interesting theories abound, of course. One is that either Revak or Giessel & Co. have flipped on the full-dividend issue – which is a big deal in District M, or there could be something else in play. There is a recurring whisper that Giessel is trying to organize a Senate coalition of Democrats and Republicans to have her way on the dividend issue. In that case, if Revak were not part of the ruling coalition, his vote would be meaningless and support for him a moot point.

He is scheduled to be interviewed Nov. 2 by the GOP senators.

Oh, what a tangled web …

More popcorn, please.

Read the Anchorage Daily Planet.

Is Bill Walker in violation of state Executive Ethics Act?

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Former Gov. Bill Walker and his partners at Brena, Bell, and Walker have a contract with the City of Valdez to provide legal services that include: “Represent the City before FERC in the Alaska LNG permitting process to ensure objective analysis of the Valdez Alternative.”

This is a version of the previous contract Walker used to have to be the city attorney for the Prince William Sound municipality before he became governor. Since leaving office, he has returned to the law firm that he sold to Robin Brena for an undisclosed amount of money in 2015.

The problem for Walker is that as recently as 11 months ago, he was directing that Alaska Gasline Development Agency from his post in the Governor’s Office. That was well-known, in spite of the firewall that the AGDC board was supposed to be. It was Walker directing the gasline and it was Walker making the deals with China.

Now, Brena, Bell, and Walker is defending Valdez as a potential terminus for the Alaska Gasline, by making arguments to the Federal Energy Regulatory Commission on behalf of Valdez that Nikiski is an inappropriate terminus. Their reasons include that Anchorage and the MatSu don’t need natural gas.

[Read: He’s back: Former governor says Anchorage, MatSu don’t need natural gas]

The relevant section of Alaska law that applies to Walker is in Section II of the Executive Ethics Act:

II. Post-State Employment Restrictions

A. Two-Year Restriction on Participation in Certain Matters

“Under AS 39.52.180(a), a two-year prohibition applies to certain post-state employment activities. For two years after leaving state service, a former state officer may not “represent, advise, or assist a person for compensation regarding a matter that was under consideration by the administrative unit served by that public officer, and in which the officer participated personally and substantially through the exercise of official action.” The Department of Law reads this provision consistent with the legislature’s intent that AS 39.52.180 be narrowly applied.10 Thus, subsection 180(a) prohibits an activity during the two-year post-state employment period only if the activity meets each of the elements of that subsection.

The Ethics Act and related regulations define most of the terms used in AS 39.52.180(a). A “public officer” includes any public employee in the classified, partially exempt, or exempt service.11 “Person” includes a business or organization.12 “Compensation” means money or other economic benefit received in return for services rendered to another.13 “Administrative unit” means “a branch, bureau, center, committee, division, fund, office, program, section, or any other subdivision of an agency.”14 “Agency” includes an executive branch department.15

“Matter” includes “a case, proceeding, application, contract, or determination, proposal or consideration of a legislative bill, a resolution, a constitutional amendment, or other legislative measure, or proposal, consideration, or adoption of an administrative regulation.”16 General formulation of policy also does not constitute a “matter” for purposes of post-state employment restrictions.17

“Official action” means “advice, participation, or assistance, including, for example, a recommendation, decision, approval, disapproval, vote, or other similar action, including inaction, by a public officer.”18 Whether participation in a matter is “personal and substantial” depends on the circumstances of each case. Routine processing of documents, general supervision of employees without direct involvement in a matter, and ministerial functions not involving the merits of a matter do not constitute “personal and substantial” participation.19 As a former public officer, you are precluded for two years from further involvement in matters in which you had substantial actual involvement and took official action.”

Walker may have figured out a workaround by having one of his partners serve as proxy for him in his dealings on the gasline matter, but he can’t pretend to not be involved through the back door. And that would be prohibited by law.

The remedy? Nikiski, if it were so inclined, could file a complaint with the Attorney General, since it is being targeted by Brena, Bell, and Walker.

UAF cost savings include big cut to KUAC public radio, TV

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BACK TO BASICS FOR PUBLIC BROADCASTING?

University of Alaska Chancellor Dan White last week outlined some of the steps the Fairbanks campus will take to meet budget cuts for that campus. The campus public broadcasting entity was a sitting duck.

Systemwide, the State of Alaska withdrew $25 million in support for the University of Alaska. The Fairbanks share of that is $12.5 million, but with some fixed costs going up and even with some across-the-board reductions, UAF still has to trim $10 million from its budget.

Unlike some other public broadcasting stations, KUAC’s employees are University of Alaska Fairbanks employees, which make them more costly than many of their public broadcasting counterparts, as they are part of the generous benefits package that comes with university employment.

” To meet the remainder, we are realizing $500k from moving some of KUAC’s expenses to private and corporate support, $2.5 million from reduced facilities maintenance, and $700k from research; the balance will be met through reserves and sales of land and facilities,” Chancellor White explained in his weekly budget update at the school’s website.

That means KUAC is going to have to depend on more corporate support from the community, and look to local philanthropists. It might try other strategies as well to reduce costs.

Last month, KUAC announced it would eliminate five of its radio and television channels in October, in response to the cuts, which also include a $144,539 line item from the Alaska Public Broadcasting System, which was zeroed out by the Dunleavy Administration.

Discontinued channels included the one that broadcasts 360 North. Digital radio channels KUAC 2 and KUAC 3 were also shut down.

Between the two cuts, KUAC lost 17 percent of its overall $2.9 million operating budget.

In 2016, KUAC was receiving $1.1 million from the State of Alaska through the University, and another $160,361 of public funds came through the Alaska Public Broadcasting Commission.

[View KUAC’s FY 17 budget audit here]

[View KUAC’s FY18 audit here]

To compare, Alaska Public Media, based in Anchorage, received less than $400,000 from State funds in 2018, and has a more diversified base of support. The budget cut from the State this year hit the APM consortium less drastically than what KUAC is going through.

The cost drivers include KUAC’s ownership by the University of Alaska Fairbanks; while in 2018 APM had $1.13 million in salary and benefits, KUAC’s budget for salaries and benefits was $1.74 million.

[View Alaska Pubic Media’s FY18 audit here]

“These one-time actions will not solve our budget for next year, but will give us time to look at larger opportunities,” White wrote. “I don’t anticipate asking for additional across-the-board reductions to meet this uncertainty. Identifying vertical reductions will happen through our established processes.”

UAF has also started an expedited academic review, in anticipation of an additional $25 million systemwide reduction next year.

Some ideas generated earlier this year when the campus was expecting a much greater cut are still under consideration and Chancellor White asked the university community for feedback on which to consider:

  • Shift selected public service and outreach functions to alternative funding streams, similar to KUAC. Consider the Mining and Petroleum Training Service (MAPTS), K-12 Outreach, Cooperative Extension Service, Marine Advisory Program, and others.  None are being proposed for elimination.
  • Increase private support for Athletics, transitioning off of general funds.
  • Shift full-time employees to 37.5 hour work weeks, with some exclusions.
  • Implement and expand shared service centers.
  • Sell less well used UAF property and facilities.

Russian pranksters get Dunleavy on the line

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A pair of Russian pranksters, posing as an Ukrainian ambassador and president of Ukraine, managed to get Gov. Michael Dunleavy on the phone last winter and pranked him. The event occurred in February but has made the rounds again after being posted on YouTube by a Russian media outlet.

During the conversation, the pranksters, who posed as an ambassador and President of Ukraine Petro Oleksiyovych Poroshenko, warned Dunleavy of the “Russian threat” to reclaim Alaska, and explained that Moscow asserts it had only rented Alaska to the U.S. and now wants its land back, and that a referendum was going to be on an upcoming ballot.

“All I can say on behalf of Alaskans – we are Americans, and we have no desire to become part of Russia,” Dunleavy responded.

The recorded conversation was posted this weekend by RT.com, a Russian news channel. The clip had started recirculating on Friday, Alaska Day, on YouTube, where it’s been seen by more than 17,000 people in two days:

https://www.youtube.com/watch?time_continue=136&v=JuzmOn7F488

Dunleavy isn’t the first politician to fall for the pranksters, but perhaps the latest. Russian pranksters Alexey Stolyarov and Vladimir Kuznetsov, otherwise known as Lexus and Vovan, had previously pranked national and international officials, including French President Emmanuel Macron, Democrat Congressman Adam Schiff, former US ambassador to the UN Nikki Haley, then-UK foreign secretary Boris Johnson, and US Special Envoy to Venezuela Elliott Abrams.

The governor’s voice seems to indicate that he catches on halfway through the call and is trying to gracefully extract himself from it, but no one in the Administration would talk about the caper, which is masterfully executed by the pranksters.

Juneau budget: NGO gift shops exempt from sales tax

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THE RISE OF THE NONPROFIT (NO TAX REVENUE) GIFT SHOPS

By WIN GRUENING

In a recent Assembly Finance Committee meeting, Jeff Rogers, City and Borough of Juneau Finance Director, presented a report from his department that warned that the city’s budget path has become unsustainable.

Solutions will be debated at length and will not be arrived at easily.  

The difficulty facing the Assembly will be balancing revenues and expenses without adversely affecting our economy at the very time the state is cutting back.

Today, Juneau’s general fund stands at a relatively healthy level of $16 million.  But past and continuing draws on the general fund balance – even after accounting for 1 percent annual revenue growth – would drain it down to a minimum level of $5 million in three years.

To their credit, city staff and elected officials are tackling this challenge before the city faces a financially precarious situation.

Rogers told Assembly members that they would likely need to adjust both expenditures and revenues.  In plain language that means considering cuts to the existing budget as well as tax increases.

Committee members were provided with data on 92 city-wide departments, programs, and funds that detailed their budget impacts, population served, and whether they were mandatory, essential, or discretionary.

On the revenue side, options presented primarily centered around some variation of increasing sales taxes or property taxes. Each currently contribute approximately half of the total $100 million collected in city taxes annually.  

One of the areas being explored is removing some of the 37 different sales tax exemptions currently in place – an action that would increase tax revenues – with minimal impact on most residents.  This has the advantage, unlike property taxes, of shifting some of the burden to summertime visitors without actually raising the sales tax rate.   

Some of the exemptions are not significant enough to warrant much consideration but one of the most striking is the one that exempts sales to or from certain non-profit entities. 

On its face, this exemption doesn’t make sense. Strangely, it was never even mentioned in an extensive report by an Assembly subcommittee reviewing tax exemptions in January 2015.

While one can argue that exempting certain non-profits from payingsales taxes helps them and, thereby, benefits society generally, no such argument can be made to justify exempting retail purchases by Juneau residents and visitors when they shop at non-profit retail establishments.

Indeed, some non-profits operate businesses in Juneau that sell goods and services that often compete directly with private sector businesses that have no such advantage.

Sealaska Heritage, Discovery Southeast Glacier Gift Shop, Juneau Arts and Humanities Council, state and city museum stores, and DIPAC are examples of non-profit sellers that are not required to collect sales taxes on retail sales such as art, books, jewelry, souvenirs, tours and other tourism related activities.

Current estimates by the city of non-taxable sales by non-profit entities exceed $27 million annually.  This exemption, then, could be essentially forfeiting up to $1.35 million in sales tax each year if the bulk of sales are by 501(c)3 and 501(c)4 organizations currently exempted under the code.  This is more than the estimated tax revenue gained when the Senior Sales Tax Exemption was removed by the Assembly several years ago.  

Why are we exempting retail purchases by visitors who expect to pay local sales tax?  

Further, why would a non-profit object to collecting the tax? It doesn’t change the amount they receive and would enhance the well-being of the community they serve.

Most cities and states do not have a similar exemption and have crafted ways to carve out exceptions for organizations like the Salvation Army, Girl Scouts, community sports leagues, etc.

It’s never easy for elected officials to argue that programs or exemptions are not essential.  

While the recent passage of Proposition 1, raising the bed tax by 2 percent, demonstrated that taxing visitors is not problematic for Juneau voters, the electorate also signaled that they are unwilling to fund non-essential projects. Nor are voters willing to quietly accept general tax increases without a rigorous review of expenditures and tax policy first.

How well the Assembly performs this balancing act will determine whether taxpayers will be subject to a fair, equitable, and transparent public process.

Win Gruening retired as the senior vice president in charge of business banking for Key Bank in 2012. He was born and raised in Juneau and graduated from the U.S. Air Force Academy in 1970. He is active in community affairs as a 30-plus year member of Juneau Downtown Rotary Club and has been involved in various local and statewide organizations.