The Haines Borough Assembly considered significant cuts to the manager’s proposed budget at their Tuesday meeting in anticipation of a lean year. Those included an end in funding for the borough’s economic think-tank.

The Haines Borough Assembly voted to cut all funding to the Haines Economic Development Corporation at their Tuesday meeting. That’s as COVID-19 restrictions cause a worldwide economic crisis.

Assemblymember Paul Rogers moved to cut the budget’s $72,800 allocation for the economic development group.

“Economic development does a lot of reports, and I don’t see that those reports have a lot of results that are necessarily meaningful to growing the economy in any significant way,” he said.

Assemblymember Josephson said she supported the amendment to save money and because she doesn’t see the direct impact of the program.

“I’ve talked to lots of people and one of their frustrations about economic development is it’s so nebulous. It’s so intangible. Who knows what it means…” Josephson said.

HEDC Board President Heather Shade suggested reduced borough funding rather than eliminating funding altogether. Assembly members Zephyr Sincerny and Stephanie Scott were in favor of funding HEDC at a reduced rate of $35,000 per year. Sincerny said that supporting a local economic development group during a time of economic downturn and uncertainty is a good investment.

“In a time when we’re making cuts, this is one way that we can put out a little bit and potentially get a good return on it, so to speak. I think that the HEDC could be an effective vehicle for managing the CARES Act money that’s going to be coming through,” he said.

The borough assembly voted in favor of Rogers’ amendment with Sincerny and Scott opposed. Borough funding for HEDC will continue through the end of August.

HEDC Executive Director Margaret Friendenauer said she will continue to support local businesses seeking pandemic relief and to keep track of the CARES Act funding that’s coming down from the federal government until then.

“For now HEDC plans like continuing their work in the community and working through the five year plan like we always have been, but if the borough expects to take on more economic development activities… I didn’t hear many specifics about that or any vision for that last night. I hope that they develop some vision for that in the coming weeks and months,” said Friedenauer.

HEDC formed as a non-profit organization in 2017. It released a baseline economic study and formulated a Five Year Economic Development Plan for the borough. It released an Economic Indicators report last fall. It’s projects include data-gathering on economic factors like access to childcare and the impacts of the Alaska Marine Highway System.