As City Manager Rorie Watt pointed out, less money in peoples' pockets means less money going to local businesses and less being collected in sales tax.
More concerns were voiced by a City and Borough of Juneau official over the proposal to cap the Permanent Fund Dividend as part of the restructuring legislation now under consideration.
City Manager Rorie Watt noted the potential impact on CBJ coffers while a guest on Action Line Friday.
"When the Permanent Fund checks come out, that's a lot of money that rattles around peoples' pockets and ends up in the merchants' stores," explained Watt. "If the dividends go down by $1,000 and we've got 30,000, that's $30 million that's not going to circulate around the community. Our guess is - depending on what they do - we're probably going to collect $1 million less in sales tax next year. That's tough on the city, and if you're a merchant, you're already planning what you're going to be doing in the fall so it's tough on our business community, too."
Watt says the local government believes the Legislature needs to approve a full approach to dealing with the fiscal gap now.
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