Skagway’s borough manager, Brad Ryan, has proposed an economic stimulus plan to help the municipality create jobs that bring value to the community. Projects such as new trails, trail maintenance, and recreational cabin construction, are seen by the manager as ways to employ residents while adding tangible value to the daily lives of Skagwegians. At the same time, the upgrades to Skagway’s recreational infrastructure would appeal to the independent traveler that doesn’t rely on cruise ships to travel.
The economic stimulus plan would create four full-time year-round municipal jobs with benefits and an additional 12 seasonal full-time jobs without benefits. There would also be funding for the local food bank, a positive graffiti mural project, an upgrade to the school’s air system, and several projects for local contractors.
Last week’s Thursday night Assembly vote to introduce the stimulus plan was split in a 3-3 tie, with the Mayor voting yes as the tiebreaker.
“In my opinion, the number one thing we need right now is jobs. Obviously, the municipality can’t create enough jobs for everyone in this community. But projects like this can create some and very well could keep people here,” said Mayor Andrew Cremata.
He feels that without jobs during this economic downturn, people will be forced to leave. And once they leave, there is a very small likelihood they will return. So in order to keep people here and employed, the municipality should act.
Others, like Assemblymember Hanson, argue that although the city does have a sales-tax revenue surplus at the moment, spending that money in a time of uncertainty is a frightening proposal.
“We run out of money somewhere around Christmas of ‘22, if we don’t change anything, and we don’t have a (cruise ship) season next year,” said Hanson at a finance committee meeting last week.
Hanson is concerned that if the municipality does run out of funds, the money being suggested for this stimulus could be put to better use by paying the municipality’s monthly bills. Though he admitted, that amount wouldn’t cover the costs for long.
The mayor argues that if there aren’t cruise ships coming to port in 2022, the conversation changes dramatically.
“If you look at it from the perspective of we don’t have ships in 2022, I think we’re having a very different conversation because now we’re talking about the survival of the community on a very fundamental level because if cruise ships don’t rebound by 22, those companies are going bankrupt. And there may not be anything to rebound into.”
In his manager’s update last week, borough manager Ryan said that after working closely with the Treasurer to assess finances, he is confident that the sales tax reserve will have a balance of over $2million through July of 2022. He believes it is important for the MOS to step forward and support the community, and that as the largest employer in Skagway the Municipality has the ability to create jobs and stimulus opportunities that are fiscally responsible.
And therein lies the question, how much spending is fiscally responsible with an economic future that remains so uncertain?
There will be two public hearings before the Assembly decides whether to adopt the stimulus plan, it is scheduled to be on the agenda again at the next Skagway Assembly meeting on April 1st.
