Senate Majority Coalition Website

State Senator District E

Senate Majority Leader

 

Senator Cathy Giessel Newsletter

UPDATES



Issues affecting

your family, community and jobs.

February 8, 2024

 

Dear Friends and Neighbors,



More on Cook Inlet

Natural Gas Supply!

On Wednesday, Feb. 7, I invited the House Resources committee to join my Senate committee to hear from Hilcorp, HEX/Furie, and BlueCrest Energy who are all resource development companies with leases to develop natural gas in Cook Inlet.

 

Joining them was ENSTAR, the utility using that natural gas to keep us warm in SouthCentral Alaska. Here is the link to the recording and the presentations.

 

GO Bonds

I want to also highlight the Senate Finance meeting on Feb. 6 on the topic of State Debt. This is important because there is discussion about Government Obligation Bond (GO Bond) to fund the upgrade/modernization of the transmission grid along the Railbelt. The Federal Government has awarded Alaska Energy Authority (AEA) $206.5 million to begin that upgrade process but it requires an equal match of state funding.

 

You will see, on pages 6-9 of the presentation, that Kroll Bond Rating Agency rated Alaska as AA, with a stable outlook. This is largely because in 2018 we enacted the Percent of Market Value (POMV) spending limit on the Earnings Reserve Account (ERA) and we have yet to violate that spending limit. We have had balanced budgets and in FY24 we had a surplus. In other words, the Legislature has been responsible with spending and budgeting (credit for that goes to the Senate, of course!)

 

The State Debt presentation shows that we do have room to afford a GO Bond. The devil is in the details, however, it could incite a feeding frenzy.

 

Defined Benefit Pension

The Senate voted to pass a new hybrid defined benefit plan on Friday, Feb. 2. This modest but fair pension would provide firefighters, police officers, teachers, snow plow drivers, air quality regulators and more with an ability to avoid retirement poverty.

 

Every year we are losing working families, adults age 18-64, teachers, and professionals in public service. These folks are taking the five years of earned employer contributions and their own contributions to the 401-K style Alaska system and leaving state services. We know this because we can see $9.5 million dollars every month being taken out of the defined contribution system Alaska has in place for public employees.

 

The new hybrid defined benefit system being proposed is NOT the old pension that Alaska used to have. The new system would require the fund to be 90% funded at all times. If the fund earnings fell below that 90%, employees, employers, and retirees would have to contribute more to bring the fund back up to 90%. There would be NO unfunded liability.

 

South Dakota uses some similar elements in their pension system which today maintains 100.1% funded position. They are able to retain their valuable public employees in local and state government. Alaska education today is scrambling for teachers, drawing on J-1 visa folks to fill our teaching positions.

 

State Savings Account

The Governor's proposed budget for the coming year has a $1 billion deficit. He wants to take that $1 billion out of savings.

If we did that, we would be out of savings in two years. Then we would begins cannibalizing the Permanent Fund. The Governor incorrectly believes that we only need $400-500 Million in savings to remain viable. Incorrect. Fiscal conservative/prudent amount in savings is $3.5 billion total, with balanced budgets, to ensure a 95% chance of being able to provide 2 years of future budgets. At this time Alaska doesn't have a formal reserves amount requirement, which Minnesota does have.

 

Capital Project Funding Requests

One more week to submit your project in CAPSIS! The deadline to submit your capital project in CAPSIS (Capital Project Submission and Information System) is next Friday, February 16 at 5:00 pm. To submit district spending requests for the FY25 capital budget, communities must have a CAPSIS account setup in the Legislative Finance Division's system. Please contact my staff, Julia O’Connor at 465-5078, to help you through the process.

 

 

Items in this Newsletter:

·     Special Order: Thank You to Our First Responders

·     Broadband Office Map

·     Alaska Economic Trends February Issue

·     Senate Committee Meetings

·     Current Topics: Education, Economy, Minerals, Health Care, Politics

·     Resource Values, Permanent Fund

Special Order of Business on Friday

Alaska Broadband Office

 

On Thursday, February 1st, the Alaska Broadband Office gave a presentation to the Senate Community and Regional Affairs Committee. You can watch the whole presentation here, and look at the slide deck here.

 

I have blown up the map here, shown on one of the slides. The yellow dots are underserved, and the red are unserved areas.

Senate Committee Meetings

Week of February 1-7

 

Finance

Feb 1 - SB 188: Approp: Mental Health Budget; Presentation: Alaska Mental Health Trust Authority Update

 

Feb 6 - State Debt Update

 

Feb 7 - SB 141: Naming Raymond & Esther Conquest Bridge (Invited and Public Testimony); SB 24: Public Schools; Mental Health Education (Invited and Public Testimony)

 

 

Community and Regional Affairs

Feb 1 - SB 161: Tax Exemption for Farm Use Land (Public Testimony); SJR 13: Amend Alaska Native Claim Settlement Act (Invited Testimony

 

Feb 6 - SJR 13: Amend Alaska Native Claim Settlement Act (Public Testimony)

 

 

Education

Feb 5 - Presentation: Alaska Council of School Administrators: State of Education from the Field

 

Feb 7 - Presentation: The Different Education Models Used by Alaska's Public Schools

 

 

Health and Social Services

Feb 1 - Executive Order (EO) 125: Eliminating the Alaska Council on Emergency Medical Services (Public Testimony)

 

Feb 6 - SB 115: Physician Assistant Scope of Practice (Invited and Public Testimony)

 

 

Judiciary

Feb 7 - EO 133: Eliminating the Criminal Justice Information Advisory Board (Invited and Public Testimony); EO 135: Eliminating the Alaska Safety Advisory Council (Invited and Public Testimony)

 

 

Labor and Commerce

Feb 2 - EO 127: Eliminating Board of Massage Therapists; EO 129: Eliminating Board of Barbers and Hairdressers; EO 130 Eliminating the Board of Certified Direct Entry Midwives (Invited and Public Testimony)

 

Feb 5 - SB 134: Ins. Data Security; Info. Security Programs (Invited and Public Testimony)

 

Feb 7 - SB 191: AHFC Make/Purchase Mortgage Loans (Invited and Public Testimony); SB 209: Electronic Monitoring of Fishing Vessels (Invited and Public Testimony)

 

 

Resources

Feb 2 - SB 118: Critical Natural Resources; Reports (Invited Testimony); EO 132: Eliminating the Alaska Chilkat Bald Eagle Preserve Advisory Council (Invited and Public Testimony)

 

Feb 5 - Presentation: Pikka Project Update and Net Zero Approach;

EO 124: Prohibiting by Regulation Live Capture, Posession, Transport, or Release of Native/ Exotic Game or Eggs; EO 126: Eliminating the Wood-Tikchik State Park Management Council; EO 134: Eliminating the Recreation Rivers Advisory Board

 

Feb 7 - Joint Meeting with House Resources: Presentation: Cook Inlet Gas Update by Hilcorp, Hex/Furie, BlueCrest Energy, ENSTAR

 

 

State Affairs

Feb 1 - SB 159: Alaska Veterans' Poppy Day (Invited and Public Testimony)

 

Feb 6 - SB 151: Missing/Murdered Indigenous People Report (Invited and Public Testimony); EO 128: Separate Membership of the Board of Directors of the Alaska Energy Authority and the Alaska Industrial Development and Export Authority (Public Testimony)

 

 

Transportation

Feb 1 - Presentation: Winter Weather Operations by Department of Transportation and Public Facilities

Current Topics

How to prove Alaska is really a family-friendly state. ADN

Education is again being starved as Alaska’s state government engages in its annual dance around how little we can provide to public schools. The numbers and nuance may change year to year, but the overarching argument remains the same: Since Alaska’s schools are underperforming, should we continue to underfund them? It’s an obvious act of self-destruction, but people perpetuate it because it presents a lower price tag. And it’s not just K-12 schools; we also demand that Head Start and the university system function with insufficient funding every year, and then we act aghast when the results are lackluster.

 

Blue Market AK wins 2023 Alaska Grown $5 store challenge. Alaska Business

Innovation and creativity helped the two women who founded the Spenard Blue Market AK store in 2019 to win the Alaska Division of Agriculture’s 2023 Alaska Grown $5 Store Challenge

 

Group seeks new protections for rare Alaska flower found in mountains of Seward Peninsula. Alaska Beacon

An environmental group is seeking Endangered Species Act protections for a rare flower found only in a mountainous area of Alaska’s Bering Strait region where expanded mining is being planned.

 

The 9th-straight warmest month on record. Axios

(My comment - But not Alaska!)

 

Alaska's Arctic and boreal ecosystems see climate change-driven 'microbial awakening'. Alaska Public Media

Tiny organisms are making big moves in Alaska’s boreal and Arctic ecosystems, encouraged by climate change.

 

 

Education

'Teachers leaving faster than they can be replaced,' reports Alaska Dept. of Labor. Alaska's News Source

In the past three years, Aist said that the school district has turned over one-third of their teaching staff. ASD went over their turnover rates Tuesday at a school board work session. The district said it was down 400 staff this year, 140 of those teaching positions.

(My comment: How long will citizens put up with this? I’m trying to start the process of turning this around by providing teachers with the chance to have a good pension. SB 88 does that but the Republican Party hates it and vilifies Republicans who support a pension.)

 

It's time for a significant per-student increase in Alaska school funding. Alaska Beacon

Alaskans have advocated year after year through testimony, rallies, and letters to the editor; to increase the BSA and improve student outcomes through public education. Raise the BSA to invest in our youth and future workforce.

 

If we want to keep good teachers in Alaska, we need defined benefit retirement. ADN

In the 15 years since I joined this school that I love, we had hired roughly a dozen science educators who were young and full of energy and ideas. In that time, exactly zero of them had stayed for more than a few years.

 

Alaska legislators hear from school officials about the impacts of flat funding. ADN

The Legislature has been divided this year over how to address a substantial school funding shortfall. The bipartisan Senate majority has supported increasing the Base Student Allocation — the per-student funding formula. The Republican-led House majority has backed a contentious education package with provisions proposed by Alaska Gov. Mike Dunleavy, but the measure has stalled without enough votes to pass.

 

Alaska school administrators urge action on 'crisis' in teaching hiring and turnover. Alaska Public Media

“We are struggling in the worst crisis Alaska has ever seen in terms of turnover. We can’t recruit teachers,” said Lisa Parady, who leads the Alaska Council of School Administrators. “Fundamentally, that’s very important to high-quality instruction.”

 

Lawmakers, educators spar over education funding at joint education meeting. Alaska's News Source

The comprehensive education package being supported by the mostly Republican House Majority increases the BSA by $300 and includes teacher retention and incentive bonuses. But many educators in attendance for Monday’s meeting said $300 is not enough.

 

 

Energy

Dunleavy executive order creating an energy board is likely unconstitutional, legislative lawyer says. ADN

“I don’t know if there’s many people who disagree with the idea of splitting it,” said Sen. Scott Kawasaki, a Fairbanks Democrat. “I think it’s just how the governor has done it.”

 

Gas leak triggers chain of power outages spanning from Anchorage to the Mat-Su. Alaska Public Media

A gas leak at a Southcentral Alaska power plant caused a brief but widespread power outage early Thursday across the Railbelt’s power grid, as much of Alaska remains in the grip of a continuing subzero cold snap.

 

ENSTAR warns of possible natural gas shortage issues by 2026. Alaska's News Source

With Anchorage in the midst of some of the coldest temperatures in years, ENSTAR Natural Gas Company President John Sims said on Thursday morning the company surpassed a record for the most energy use in their system.

 

Atomic power gets funding. Axios

 

 

Politics

Alaska Senate advances public-sector pension plan to address recruitment and retention crisis. ADN

 

Alaska Senate passes new pension program for state employees, but final approval is in question. Alaska Beacon

 

Senate passes legislation establishing a defined benefits retirement system for public employees and teachers. Local First Media Group

 

Senator Jesse Kiehl states SB 140 is a local takeover. Local First Media Group

 

Pension plan for state employees, teachers on the block in Alaska Legislature. Alaska's News Source

The passage in the Senate was seen by many members as a way to retain and attract teachers to the state, as well as employees in key agencies.

 

Alaska Senate passes bill to revise retirement system to attract, retain workforce. Your Alaska Link

Some Alaskans believe a bill passed by the state Senate could potentially make our state a better place to live, work, and play. It involves changes to our retirement system.

 

Bjorkman bill would close hunting and fishing license residency loophole. KBBI

Two bills filed in the Alaska Legislature this session are looking to tighten the requirements for an in-state hunting license, in hopes of preserving resources for residents.

 

 

Healthcare

'Ineffective and inefficient': Alaska gets another federal admonition as food stamp backlog drags on. ADN

Alaska’s continued food stamp backlog this week prompted a second sharply worded letter from the federal government cautioning that the state’s “ineffective and inefficient” handling of federal food aid could result in penalties without prompt action.

 

Alaska's federal food stamp funding at risk, USDA letter warns. Alaska Beacon

Alaska’s Department of Health risks losing federal funding for its food stamp program, warned a letter from the United States Department of Agriculture on Tuesday. It said the department is out of compliance with federal standards for the Supplemental Nutrition Assistance Program due to what it described as “inefficient and ineffective administration.”

 

Help Alaska grandparents be with their grandkids. ADN

Currently, the Senior Benefits program assists more than 10,000 low-income seniors by providing modest monthly cash assistance based on the federal poverty guidelines for Alaska. As we heard from Alaskans statewide, recipients use the $76, $175 or $250 monthly payments to help pay for essential items necessary for maintaining healthy lifestyles, such as groceries, medication, transportation, rent, and utilities.

Alaska Oil Resource Values

 

Alaska North Slope crude oil price (2/7/24): $79.41

FY24 budget (beginning 7/1) is fully funded at a

forecast of $73/barrel of oil.

Price on 9/30/23: $87.99

Price on 9/30/22: $86.91

Price on 6/29/22: $116.84

Price on 3/8/22: $125.44

Price on 12/22/21: $75.55

ANS production (2/7/24): 484.752 bpd

 

Biden's LNG Exports Pause Leans on Broad Public Interest Statute. Bloomberg Law

The Natural Gas Act requires the energy secretary to issue an order approving export applications “unless, after opportunity for hearing, [the secretary] finds that the proposed exportation or importation will not be consistent with the public interest,” the law states.

 

Lawmakers discuss proposals to incentivize Cook Inlet natural gas production. Alaska's News Source

In Juneau, lawmakers are working to fix this dilemma, armed with the knowledge that several significant natural gas fields in Cook Inlet are not seeing development due to the current system in place, and Cook Inlet gas supplies are forecasted to drop below demand in the coming years.

 

Digging into Cook Inlet gas realities. Petroleum News

 

CINGSA experiences well problems; peak output drops from two wells. Petroleum News

 

Precious Metal Prices

Feb. 7, 2024

Gold - $2,048.89

Silver - $22.40

Platinum - $899.34

Palladium - $942.41

 

Alaska Permanent Fund

website

 

Fund value February 7 - $78,423,500,000

PFD payout from ERA, Fiscal years 1980-2024: $29.7 Billion

Cost of PFD in Oct. 2022: $2.2 B

Cost of PFD Oct. 6, 2023: $881.5 Million



Feedback is always welcome.

Have a great week!

 

Cathy 

 

Personal Contact:

907.465.4843

sen.cathy.giessel@akleg.gov

 

Past Newsletters on my website



My Staff:

·     Chief of Staff: Jane Conway (from Soldotna)

·     Office Manager: Paige Brown (from Anchorage/Girdwood)

·     Resources Committee Staff: Julia O'Connor (from Juneau)

·     Legislative Analyst: Angela Rodell (from Juneau)

 

 

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Senator Cathy Giessel's Newsletter | 12701 Ridgewood Rd, Anchorage, AK 99516