While the borough budget usually draws lively debate, this year puts the assembly in a particular pickle. Because of the COVID-19 pandemic, the borough is expecting a significant drop in revenues, which leaves a shortfall that the administration and assembly will have to find some way to cover.
Most of the time, that would be taxes. But there is one other possibility this year: federal relief funds. Since March, the federal government has been working on distributing money to businesses, individuals, and states to help with the impact of the pandemic. Alaska so far has received about $1.5 billion.
But there are particular ways those funds can be used. For example, until the Secretary of the Treasury made an exception, they couldn’t be used to pay police and firefighters. Cities and boroughs, including the Kenai, have lost revenue through declines in sales taxes and property taxes as fewer people shop and eat out and properties—particularly oil and gas—have lost value.