Anchorage Mayor Dave Bronson has vetoed much of the Anchorage Assembly’s proposed FY 2022 budget, a move that he says reflects his commitment to stop unsupportable city spending.
The mayor’s office said the Nov. 30 vetoes will put the city’s budget back under the tax cap by $110,000.
Bronson’s office defended the vetoes, saying they keep the budget in line with the mayor’s emphasis on “public safety, an economically prosperous and business friendly community, compassionately resolving the homelessness crises, minimizing service impacts to the public while seeking savings, re-organizing for more efficient and effective government, and aligning costs to better represent cost causer/cost payer.”
The mayor’s office claimed that the Assembly has based its budget on projected revenues without asking the city’s finance department to review or comment on the predictions prior to passing the budget.
“Without a valid funding source and with the new COVID variant and bond rating concerns, my administration cannot validate or certify the funding source increases that the Assembly attempted to provide for in their amendments,” Bronson stated.
Municipal Treasurer Daniel Moore explained his concerns.
“Specific to the two revenues, the recent announcement of the new Omicron variant discovered in South Africa late last week caused U.S. and Global investment markets to significantly decline in a single day,” Moore observed. “This new variant could very likely negatively affect projected revenues for both the MOA Trust and Room Taxes going into 2022.”
In a memo to the city’s Chief Financial Officer Travis Frisk, Moore made the following comments and recommendations concerning how to address the budget.
ALASKA WATCHMAN DIRECT TO YOUR INBOX
MOA Trust Dividend Revenue
Approximately, 1.5 weeks prior to the announcement of the Omicron variant the MOA Trust’s market value was $444.9M and it had annual YTD return of approximately 10.9%. After last Friday’s steep decline in the markets tied to the Omicron announcement, the MOA Trust’s market value declined in a single day by $8.2M and its YTD return reduced to 9.0%. Using the MOA Trust dividend projection model, the most recent projected 2022 dividend prior to the Omicron announcement was $19.1M. After last Friday’s news, the projected 2022 dividend declined $200K to $18.9M. The Assembly’s omnibus budget amendment assumed a 2022 Trust Fund dividend of $19.3M which is $400K short of the updated projection done post-Omicron announcement.
Room Tax Revenue
Given what the MOA experienced in 2020 when Room Taxes were severely impacted by the initial effects of COVID-19 (i.e., a 56% revenue decline in budgeted 2020 revenue), the Finance Department recommends exercising significant caution in projecting 2022 Room Tax revenue in light of the recent announcement of the Omicron variant. Room Tax revenue cited in the Mayor’s Proposed Budget is $24.5M for 2022. 2021 Pro Forma Room Tax revenue is currently projected to be $27.5M. Given the uncertainty that Omicron may have on future 2022 summer travel plans, it would be inadvisable to assume that 2022 Room Tax revenue would exceed 2021 revenue by several million dollars as the Assembly assumed in its omnibus budget amendment. Until more is known about the potential negative impact of the Omicron variant, 2022 budgeted revenue should remain conservatively budgeted at $24.5M as cited in the Mayor’s Proposed Budget and should be further revisited and potentially adjusted as part of 1st Quarter 2022 budget revision.
12 Comments
Treasonous communist get their. slap down!!!! Great Job Mayor!!!!!!
OMICRON IS SPIT IN THE. PUBLICS EYE SPELLING OF MORONIC…. JAIL THE MEDICAL TYRANTS!!!!!
Living and spending within your means. Isn’t that what being mature is all about?
Don’t pay attention to Ghislaine Noelle Marion Maxwell..
Omicron is less deadly than the Delta.. but be sure to freak out and not pay attention to the more important things going on.
Brandon is setting up to get Epstein’s lil black book and the pedo island findings from being seen by the public.. or ever truly brought to justice.
-I’ll believe in America’s judicial system when Billary or the long list of scum whom visited Epstein’s island are held accountable.
I don’t see the problem here. Just print more money, that’ll fix it.
Why do we even pay taxes anymore when government can just print baby print?
Modern times call for modern solutions. Have politicians pay for their pet projects with their own salary.
I should not have to fund government wellfare.
The mayor is making too much sense. I anticipate that this veto will, too, be overridden (sigh…)
One only has to look at the history of the left leaning assembly to realize that moderation is not at their core and won’t be now or anytime in the future, moral turpitude would instead be at their core.
Dave Bronson for GOVERNOR !!!!!!!
Great job, Mayor Bronson! We LOVE your fiscal responsibility and your ability to tighten the City’s belt like the rest of us have to when our income declines!
Many of us are behind you on the covid crap too! We want to keep our businesses open, walk about freely breathing the fresh air instead of breathing our own waste back in because we have to wear masks, and be able to make our own medical decisions on what to do with our own body and not be persecuted because we do or do not want to get the jab! We also want to visit our loved ones in the hospitals and nursing homes. I believe the medical staff came to enjoy a no-public or visitor policy during the covid-19 shutdown and are trying to keep it that way! We need to be able to see and help our loved ones and visit them so they know they’re loved and keep their spirits up. And with all the evil stuff going on in medical facilities that they’re trying to keep the public from finding out, it’s more important than ever that our loved ones be able to have their family and friend advocates visit them while they’re in the medical facilities.
Keep up the great Work!
FIGHT. THESE COMMUNIST DESTROYERS NOW ANCHORAGE !!! RISE AND ARREST THE TREASONOUS…
Thank you, Mayor Bronson, for leading our city in a more conservative direction and protecting the rights of all citizens to keep and bear arms, as we still stand as a Sanctuary jurisdiction. Keep up the good work!
Ron DeSantis is a gift that keeps on giving and keeping his people FREE!
Governor Ron DeSantis announced funding proposals to support Florida’s National Guard and
to establish a Florida STATE GUARD, a civilian volunteer force that will assist the National Guard in state-specific emergencies that would maintain law and order. (i.e., violent protestors and looting)
ARE THE LEFTIST DEMOCRATS WHO CONTROL CALIFORNIA, OREGON, WASHINGTON, CHICAGO AND DETROIT PAYING ATTENTION TO DESANTIS OR ARE YOU GOING TO CONTINUE TO MAKE YOUR CITIES A CESSPOOL?