Juneau Assembly faces budget crisis with projected negative fund balance

The City and Borough of Juneau faces a projected negative general fund balance of nearly $1 million at the end of fiscal year 2027. The shortfall stems from voter-approved tax cuts in October 2025 that reduced sales tax revenue.

The Assembly must now weigh service reductions, facility closures, and potential property tax increases. Final budget adoption is set for June 15.

Dozens of residents packed Monday's Assembly meeting to defend Eagle Crest Ski Area, Telephone Hill, and other recreation facilities threatened by cuts.

Community pushback

Resident Brock Tabor, speaking on behalf of recreation facility users, said coaches, parents, and organizers recognize the need to raise fees.

"Many of us are acutely aware of the fiscal challenges ahead," Tabor said. "We're all acutely aware of the fact that we're going to need to raise fees, and that's going to be hard."

Tabor urged the Assembly to seek innovative solutions to preserve facilities that make Juneau livable for families. He asked the Assembly to consider community-generated revenue ideas.

A February 2026 Juneau Independent report on the city's budget survey showed residents strongly prioritizing streets, schools, and public safety while being more open to cuts in tourism marketing and climate initiatives.

Reserve fund debate

The Assembly voted 5-4 to fund a $558,000 appropriation for the Natural Resources Conservation Service View Drive buyout program from general funds rather than the Restricted Budget Reserve. The appropriation would fund appraisals and cost estimates for a possible NRCS buyout program for flood-affected View Drive properties.

Assembly Member Christine Woll moved to preserve the reserve, arguing it should only be tapped with a plan to replenish it.

"The intent of our restricted budget reserve is to use it in times of emergency with a plan for how we'll refill it," Woll said.

Assembly Member Neil Steininger defended using the reserve, citing the projected negative general fund balance and the emergency nature of the flood response.

Gondola repayment

The Assembly appropriated $12.2 million to repay Goldbelt Inc. for the gondola installation after authorizing the city manager to terminate the revenue sharing agreement. The repayment includes the $10 million capital contribution plus interest accumulated over just short of three years at 7%.

Mayor Beth Weldon, who voted for the Eaglecrest gondola project in a 5-4 split, said the Assembly saw increasing general fund subsidies for Eaglecrest and viewed the gondola as a potential solution.