Growing Juneau’s economy is fundamental to our future and the well-being of its citizens. Juneau’s elected leaders agree this is so since an overarching 2024 goal is to “assure Juneau has a vibrant, diverse local economy.” More money in your pocket increases your ability to better your future and, “yes,” increases the economy.
The Juneau Economic Development Council recently published a Juneau Alaska Open For Business document. On the front page is a subsection called Juneau By The Numbers. Bright red down-pointing arrows highlight a decreasing community and regional population, Juneau’s top employer hiring less, and down-trending K-12 student enrollment.
Our collective ability to achieve a vibrant and diverse local economy is closely tied to our freedom to invest discretionary income as individuals, families, and businesses. Increasing the speed of investment should be a primary community goal, and each of us plays a crucial role in this endeavor. “Investment” can take many forms: starting a new business, remodeling your home, shopping locally, and supporting community organizations.
It’s important to note that local government decisions that impede individual, family, and business investments are detrimental to economic growth. This should be a cause for concern.
Indeed, local governments must collect and carefully spend taxes to benefit their citizens. However, great care must be taken to focus only on what a community needs, which only the government can provide. This cautious approach is necessary to avoid the community’s economic stagnation (and outmigration).
A look back at revenue and expenses in proportion to the local government’s population is an indicator of how the local government is doing regarding leaving money in the pockets of individuals, families, and businesses. If the look back reveals level or downward trending graph lines, the Assembly would be considered focused on economic growth.
On the other hand, an upward trending ratio means less money individuals, families, and businesses have to spend growing the economy since the Assembly is sequestering more of it.
The featured graph at the beginning charts the revenue and expenses of the City and Borough of Juneau’s general government and enterprises (BRH, Docks and Harbors, etc.) funds from 2012 through 2023.
It is easy to see that total revenues and expenses have increased during this look back. Important to note, however, is our population has deflated over the last five or so years. Also, K-12 school enrollment, our replacement generation (K-12), is also downward.
Most striking is the steadily increasing Citizen Share Ratio. This ratio tracks the local per-person share of the CBJ revenue. The upward trend means the per-person citizen’s share has increased.
An increased share means you have less money in your pocket to invest in things you need, slowing down your ability to invest in our local economy.
These conditions are not healthy if we want growth. Thus, the overall community goal should be to reverse the trendlines so we all have more money in our pockets to invest.
To “assure Juneau has a vibrant, diverse local economy,” the Assembly has chosen to negotiate limits on cruise tourism, update the economic development plan, build a Capital Civic Center, help Eaglecrest become self-sufficient, complete the second channel crossing design, and figure out how to get a USCG ice breaker homeported in Juneau.
It’s fair to ask how each strategy will allow residents to keep more of their hard-earned money in their pockets.
First Things First Alaska Foundation
P.O. Box 240605
Douglas, AK 99824-0605
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