Skagway residents are divided over how to spend nearly $8 million in relief money. A resolution drafted by the administration and an amendment from the finance committee present two options for how to distribute the cash.

Skagway received $2.9 million in relief money on Tuesday morning. It is the first of what could be three installments. Now the municipality has to figure out how to spend it.

The cash didn’t come with much of an instruction manual. The money must be spent to alleviate the ill effects of the COVID-19 pandemic. In a town like Skagway, whose entire economy is tied to seasonal tourism, the question is not so much if one is affected, but rather to what degree.

“I guarantee you that the vast majority of people have a need because of COVID,” said Mayor Andrew Cremata said the administration’s resolution is a simple way to get money to people who need it and stimulate the local economy.

“People who have a need will be able to apply for this program and get money in their hands to solve their personal issues. And I can think of no better way than to spend taxpayer money than to give it back to taxpayers,” he said.

The municipality drafted a resolution to distribute the cash directly to its roughly 900 year-round residents. That would take the form of monthly $1,000 checks to each resident for about eight months.

But the finance committee said the plan doesn’t address the degree of impact. The body wants to see those experiencing more dire financial hardship get more money. At a special meeting on Tuesday, it unanimously approved an amendment to the plan that includes a sliding scale of need.

Dozens of Skagway residents wrote and called in. They were divided between whether to give everyone the same amount or try to compensate for need. Residents overwhelmingly favored additional support for children and families. The superintendent and school board were among the many who wrote to support that detail.

How much money each person should get wasn’t the only issue. Many people objected to one of the eligibility requirements: being eligible for the state’s permanent fund dividend. Deb Potter said proof of Skagway residence should be enough. 

“I get that it’s kind of an easy, administrative way to determine eligibility on this. But it’s problematic in that there are a lot of people that, say, moved here last winter, who wouldn’t be eligible to file until the 2021 filing. And multiple people have mentioned that for one reason or another, they’ve lived here year round for quite a while, but just never filed for the permanent fund,” she said.

Some said the plan overlooks local businesses, which are struggling to operate with a significantly reduced clientele. The million or so tourists predicted this summer are unlikely to materialize between cruise ship cancellations and the Canadian border closure.

Mike Healy was among the business owners who said the municipality should consider using some of the relief money to keep them open. 

“I like the idea of putting money in people’s hands,” he said

“But come October, November, December⁠—where are they going to spend it at? Every year, I have a line item in my marketing budget, and it’s called winter loss. I anticipate losing $50,000 every winter, just to stay open through the winter, to provide that service, to have a community … But I can guarantee you I will not be doing that this winter unless there is some sort of incentive for me to do that.”

He suggested grants or low interest loans. Skagway Development Corporation also submitted a request that the assembly allocate up to $2.5 million of that relief money to businesses, along with a plan for distribution.

Residents who have not yet weighed in will have a chance at the next Skagway Assembly Meeting on Thursday at 7 p.m.