Wrangell, like much of Alaska and the country, relies on fundraising for all sorts of good causes. Many of those causes look pretty similar to public services that are covered by taxes.
That’s not necessarily a bad thing, but it is something that elected officials and the public should keep in mind as they increasingly talk about cutting government spending and relying on donors to pick up the tab.
In Wrangell’s case, the borough assembly decision last year to reduce financial support for the Senior Center, school district and public radio station KSTK means those organizations need to rely more on fundraising.
It’s not just Wrangell.
Paying the travel bills to send students to state competition, upgrading playgrounds, building an animal shelter or helping to set up child care services are all important community needs across the state that depend on fundraising, grants and donors.
There is nothing stopping the borough from spending more tax dollars on community services. Of course, that could mean raising taxes or cutting spending elsewhere in the budget. And that is the dilemma facing the borough assembly: Use taxpayer money so that everyone contributes to a better quality of life in town, or let individuals and businesses decide which services are important and worthy of their donations.
The borough is not cold-hearted in its spending decisions, and the assembly has consistently approved spending for community services which, although popular, do not generate anywhere enough money from fees and rentals to cover their operating costs.
The assembly appropriated about $250,000 in general fund dollars to subsidize this year’s operations at the Nolan Center, which provides a venue for community events, movies, plays, memorial services and so much more. The municipal budget includes a $550,000 subsidy to run Parks and Recreation operations and facilities, which are important to most everyone’s health and enjoyment.
Of course, there are limits to how much the borough, or state or federal governments, should contribute to community services. Every choice comes down to how many people benefit from the service, how much it costs, are there other funding options and what’s the level of community support for the program.
But the assembly and the public should keep in mind that relying on fundraising to pay the bills — such as the school district’s move to depend entirely on community donations to send students to state competition — works just like a voluntary tax. Nothing necessarily wrong with that, but it puts more pressure on those willing to help and relieves others of the responsibility.
- Wrangell Sentinel
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