Juneau: community diversified, but some concerns of slowdown trickle through city.

• Author: Bohi, Heidi
• Position: TOWNS IN TRANSITION

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Juneau looks forward to the prosperity that comes with the increasing development of tourism and related small businesses, increased mining activity, new public and private construction, and the long-awaited building of a new airport. At the same time, local leaders and economic indicators point to the increased loss of government jobs, a flat economy, no measurable population growth and talk--again--of moving the capitol or legislative sessions out of Juneau.

"Overall, Juneau's economic indicators send up a warning flag we hope will inspire the community to inject renewed effort into business development, diversifying our job base, increasing opportunities for young adults and building on Juneau's role as the hub of the Southeast region and the capital of Alaska," the Juneau Economic Development Council (JEDC) Web site states.

As the capital and the third-largest city in Alaska, the largest employer in Juneau continues to be government--local, state and federal--and the University of Alaska Southeast (UAS). All state departments have offices in Juneau, including the Superior and District courts. A large federal building houses the regional headquarters of several federal agencies, including the U.S. Forest Service, National Park Service, National Marine Fisheries Service, Bureau of Indian Affairs, U.S. Fish and Wildlife Service, U.S. Postal Service and the U.S. Coast Guard. It is estimated that for each government worker, one private-sector job is needed to supply the services required by government workers.

DECLINING GOVERNMENT

Although government is still at the top of the list of employers, every decade since statehood the threat of moving the capitol or legislative sessions out of Juneau to someplace more accessible has been as certain as the 100 inches of rainfall that falls there--and today is no exception. That, combined with "capital creep"--middle-and upper-management positions being relocated to Anchorage--has local leaders concerned that slowly, but surely, the government is being dismantled there. Juneau's work force and infrastructure has been built to meet the needs of government and it is important for the surrounding region to have a solid industry like government that creates the solid platform for the city and borough to be able to serve Southeast as a hub, providing services that range from health care to transportation.

Moving the capitol and not replacing it with another industry of similar size is not in anyone's best interest, said Brian Holst, executive director of JEDC of legislation that was introduced during the last session.

"Statewide there are other more pressing needs," he says.

Although recently introduced bills are not expected to go anywhere, Juneau Mayor Bruce Bothelo--elected in 1988, 1991, 2003 and again in 2006--says that in the meantime, the power of a potential move is disruptive to the community because it makes Outside investors less willing to consider Juneau as a place to locate to. Also, existing local businesses are less likely to invest money in...