At a finance committee meeting Tuesday, assembly members Brenda Josephson and Tom Morphet rehashed a debate to reallocate sales tax revenue funds from tourism and economic development to the areawide general fund.

Rather than advancing the ordinance, Josephson and Morphet scheduled another finance committee meeting next week to further discuss it.

In July, assembly member Sean Maidy proposed reallocating 1 percent of the revenue from the tourism and economic development fund to the areawide general fund, as advised by borough manager Debra Schnabel. At the past two assembly meetings, the ordinance was amended to reallocate .3 percent, instead of 1 percent.

On Tuesday, Schnabel said the ordinance would transfer funds to cover the costs of other departments that are likely to need them. She said the fund balance in the tourism and economic development fund has grown several years with a surplus. This fiscal year, the fund had $628,000 but less than 60 percent was budgeted for tourism. The surplus went to the Haines Economic Development Council, operating transfers and road improvements.

The reallocation is also aimed at mitigating potential effects from the state budget cuts. Schnabel mentioned the issue of school debt reimbursement and funding for areawide policing. “(Reallocating funds) would be a prudent thing to do,” she said.

“I’m loathe to change the formula, because I think we have a good, well-rounded tourism industry, largely because we get to attract the kind of visitors we want,” Morphet said. “I’m a bit concerned that we have this fund balance, because maybe we aren’t doing everything that we can for tourism.”

“As an assembly person, I hear back from very few people on issues, and this is an issue people are calling me in on. There’s concern about taking away from tourism and economic development, so I’m being sensitive to those who have reached out,” said Josephson.

Doug Olerud, owner of the Alaska Sport Shop, voiced concern at the meeting. “We’re not the only community in Alaska that is going to be facing this issue,” he said, speaking of state budget cut effects, “and I think if we stay strong and continue to promote Haines in a positive way, we have a chance to bring in people.” Olerud suggested that tourism funds spent maintaining trails could be an economic driver in the community.

“Though this may not be the best idea, it was just an idea for how we want to move forward as I try to figure out what level of taxation our citizens will bear in this community, and for what purpose,” Schnabel said. “Do I think they want to support schools? Yes. Do I think they want to support police services? Yes.”

On Wednesday, Schnabel said, “I left the meeting with some different ideas… Alongside that, I have a very deep concern for funding areawide functions without increasing general sales tax.”

The next finance committee meeting is tentatively set for Aug. 13.

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