Juneau Assembly Finance Committee cuts Travel Juneau budget 31% in 5-4 vote

The Juneau Assembly Finance Committee voted 5-4 Wednesday night to cut Travel Juneau's hotel bed tax funding by $400,000 on a recurring basis. The reduction drops the destination marketing organization's budget from roughly $1.27 million to about $867,000.

Travel Juneau Executive Director Liz Perry said the cut would likely take Juneau out of the visitor marketplace for two to three years. The reduction targets destination marketing spending. The organization's visitor services and tourism management programs would continue.

Mayor Beth Weldon initially proposed a $700,000 one-time reduction. That amount equals what Travel Juneau spends on destination marketing. Assembly Member Brooks amended the motion to $400,000 recurring. The amendment passed after extended debate.

Perry said the cut would eliminate the organization's market presence. "It will take us completely out of the visitor industry marketplace," she said. "No trade shows, no association dues, which will lock us out of marketing. City and Borough of Juneau will lose FIT and they will lose meetings if we cannot stay in the marketplace."

The reduction represents 31 percent of Travel Juneau's hotel bed tax allocation. The organization also receives $614,000 from marine passenger fees, $312,000 for crossing guards, and $47,000 for visitor assistance programs.

Assembly members supported the larger cut, citing community budget survey results. Sixty-two percent of respondents prioritized tourism marketing for reduction. Finance Committee Chair Wall opposed the amendment. She said the cut would harm Juneau's independent traveler market and reduce future hotel bed tax revenue.

"Marketing is always the first thing that gets cut, and then you see the results later down the line," Chair Wall said. "I know we will still get independent travelers here because we have a cruise industry that brings them to us. I know it will not be as many."

The committee directed the city attorney to draft a resolution transferring the $400,000 from hotel bed tax to the general fund. The Finance Committee is working to close a projected $8 million operating deficit for fiscal year 2027. Voter-approved sales tax exemptions and soft revenue drove the shortfall.

The budget package moves to the full Assembly for public hearing and final action June 8. Travel Juneau's reduction is among $736,000 in recurring operating cuts the committee approved Wednesday. Other cuts include $261,000 to the city museum, $75,000 from the landscape budget, and $300,000 one-time from the Juneau Economic Development Council.

The committee also approved major one-time actions affecting the fund balance. Members voted to redirect $2.72 million that had been allocated to the restricted budget reserve. Those funds will instead fall to general fund balance. The committee removed $1 million from the Gastineau Avenue widening and turnaround project, moving those funds to the general fund.