State Senator District E

 

Senator Cathy Giessel Newsletter

UPDATES

Issues affecting

your family, community and jobs.

 

 

February 9, 2023

 

 

Dear Friends and Neighbors,

 

Work continues on Education Funding, along with Recruitment & Retention of police, firefighters, snow plow drivers, teachers, SNAP (food stamp) employees and others.

 

The Finance Committee is continuing review of the proposed budget, including $2.5 Billion for a Dividend this coming fall. I've included the graphics of what that looks in the Finance section below.

 

Photo: it was a pleasure to greet Supreme Court Chief Justice, Daniel Winfree, when he presented to the joint House and Senate. We were classmates in high school.

 

Items in this Newsletter:

 

·     My new Webpage

 

·     Alaska Economic Trends - Where are 2005 Graduates?

 

·     Senate Committee Meetings

 

·     Retirement Program Proposal

 

·     Financial Picture - Budget Summaries

 

·     Alaska Facts



·     Current topics, economy, healthcare, energy

 

·     Oil and Permanent Fund Resources

 

 

 

 

My new webpage for the Senate Majority is live! Click the logo above to check it out!

 

 

 

 

Senate Committee Meetings

Week of Feb 2-8, 2023

 

Finance Committee

 

February 2- Order of Operations- Alaska's Oil Tax Regime

 

February 6- Appropriation: Supplemental; Reappropriation: Amending

 

February 7- Fiscal Scenarios

 

February 8- Repealing Funds, Accounts, and Programs Public Testimony, Interference with Emergency Services Public Testimony

 

Community & Regional Affairs

 

February 2- Overview: Department of Public Safety

 

Education Committee

 

February 6- Association of Alaska School Boards Legislative Fly-In by School Board Members and Students

 

February 8- RIP for Public Employees/Teachers Testimony & Increase Base Student Allocation Public Testimony

 

Health & Social Services Committee

 

February 7- Direct Health Agreement: Not Insurance Public Testimony

 

Judiciary Committee

 

February 8- Informational Hearing on Department of Justice Investigation of the State of Alaska's Behavioral Health System for Children

 

Labor & Commerce Committee

 

February 8- Workforce Challenges in Alaska

 

Resources Committee

 

February 8- Tax Structure on Cook Inlet by Alaska Department of Revenue

 

State Affairs

 

February 2- Address Confidentiality Program

 

February 7- Joint Meeting with House State Affairs; Overview: Department of Public Safety

 

Transportation

 

February 2- Presentation: Overview of Alaska Marine Highway by Department of Transportation and Public Facilities & Alaska Marine Highway Operations Board

 

Joint Session with House -

 

February 7- U.S. Senator Dan Sullivan's Annual Address

 

 

Should Alaska's Retirement Benefits be Revised?

Would this make a difference in Recruitment & Retention for key positions serving Alaskans?

 

 

 

 

 

 

Budget Scenarios with Dividend

from Senate Finance meeting

February 7, 2023

 

The Legislative Finance Division analyzed the Governor's budget proposal, including a various Dividend amounts. Here are some summary slides. The entire presentation and recording is here.

 

BELOW: FULL DIVIDEND

Cost would be $2.5 Billion for about a $3800 dividend for every man, woman and child who qualifies.

Graph on left is spending:

The blue bar: state revenue from taxes (the oil barrel illustration above).

The green bar: POMV earning from the Permanent Fund that is available for spending.

The yellow bar: spending from savings.

The red bar: deficit that would require taking extra from the Permanent Fund

 

The Surplus/(Deficit) line shows you the year and what the number is. For example, FY24 (that's the full dividend proposed) shows deficit $519 Million.

 

Graph on right is savings accounts:

Green bar: Earnings from Permanent Fund

Yellow bar: Savings accounts

 

Effective POMV Draw Rate: We set 5.00%. We would have to overdraw by FY27, as you can see.

 

 

BELOW: 50/50 Dividend

Cost would be $1.25 Billion for Dividend (about $1900 Dividend).

Graph on left is spending:

The blue bar: state revenue from taxes (the oil barrel illustration above).

The green bar: POMV earning from the Permanent Fund that is available for spending.

The yellow bar: spending from savings.

The red bar: deficit that would require taking extra from the Permanent Fund

 

The Surplus/(Deficit) line shows you the year and what the number is. For example, FY24 (that's the full dividend proposed) shows Surplus $182 Million.

 

Graph on right is savings accounts:

Green bar: Earnings from Permanent Fund

Yellow bar: Savings accounts

 

Effective POMV Draw Rate: We set 5.00%. We would have to overdraw by FY30.

 

 

BELOW: 25 Dividend/75 State Services

Cost would be $830 Million for Dividend (about $1300 Dividend).

Graph on left is spending:

The blue bar: state revenue from taxes (the oil barrel illustration above).

The green bar: POMV earning from the Permanent Fund that is available for spending.

The yellow bar: spending from savings.

The red bar: deficit that would require taking extra from the Permanent Fund

 

The Surplus/(Deficit) line shows you the year and what the number is. For example, FY24 (that's the full dividend proposed) shows Surplus $1.063 Billion.

 

Graph on right is savings accounts:

Green bar: Earnings from Permanent Fund steady

Yellow bar: Savings accounts growing

 

Effective POMV Draw Rate: We set 5.00%. No overdraws done.

 

 

 

Current Topics



Ultra-rare 'rainbow clouds' light up the Arctic Circle auroras in stunning new photos. Live Science

 

The funding cliff for student mental health. Axios

The youth mental health crisis is not getting better, and schools are increasingly being pressed into service as first responders amid rising rates of suicidal ideation, overdoses, and gun violence.

 

Alaska public defender shortage will grow worse without action, budget documents indicate. Alaska Beacon

 

Alaska public defenders will begin refusing cases in Nome and Bethel, citing staff shortage. ADN

The state lawyers who represent Alaskans who can't afford to pay for their own attorneys will soon stop accepting new clients who face serious felony charges filed in the Nome and Bethel Superior Courts because of an ongoing shortage of qualified attorneys.

 

China-EV investigations. Axios

The U.S. electric car market and its reliance on China is heading for a collision with Congress. Lawmakers are setting their sights on the auto industry's global supply relationships as bipartisan support emerges to deal with the dirtier sides of "clean energy."

 

Automakers get more leeway on EV tax credits. Axios

More EVs will be eligible for purchase subsidies under a revised Treasury Department approach to implementing the climate law. Officials are broadening what's considered a crossover SUV to align with EPA's public-facing labeling standards.

 

More Southeast Alaska communities set to oppose lawsuit that threatens king salmon fishery. Alaska Public Media

Local governments around Southeast Alaska are speaking out against a lawsuit that threatens to shut down trolling for king salmon across the region this year. The lawsuit aims to protect an endangered population of orcas in Washington state.

 

Healthcare News

 

'It's so vital': New Mat-Su facility adds detox beds in a state with few options for residential addiction treatment. ADN

Withdrawing from opioids like heroin can be a dangerous and frightening experience without medical attention. There has been a shortage detox beds statewide, said James Savage, director of operations at Day One Center, the new facility that houses Dylan's Place. The center is operated by True North Recovery, a nonprofit drug and alcohol treatment center based in Wasilla.

 

New Mat-Su behavioral health clinic addressing 'desperate need' for services to open in April. ADN

 

Biden to push expanded insulin caps. Axios

 

Politics

 

Retiring from the high court, Alaska's chief justice defends its system of selecting judges. Alaska Beacon

 

House Committee advances pension bill intended to benefit Alaska police, firefighters. Alaska Beacon

 

Alaska's governor, lieutenant governor, and top officials are in line for a pay increase. Alaska Beacon

Governor Mike Dunleavy, Lt. Governor Nancy Dahlstrom and the commissioners of the state's cabinet-level agencies will automatically receive inflation-driven raises in July unless the Alaska Legislature passes legislation by March 25 to block the increase.

 

Economic News

 

How one state is rolling out an EV Charging Tax System. Route fifty

While state lawmakers are currently debating new taxes for charging electric vehicles, Iowa is set to collect those taxes starting in July. Four years ago, when EVs were still rare on Iowa roads, legislators approved a law that taxes kilowatt hours sold.

 

A proposed federal rule would lower credit card late fees. Alaska Beacon

As Americans continue to struggle with high credit card rates, the Consumer Financial Protection Bureau has proposed a rule to help lessen some of their financial burden- in the form of lower late fees.

 

Energy News

 

Certification from Nuclear Regulatory Commission. The Prickly Pear

 

Not everybody's on board with a Fairbanks utility's deal to source North Slope natural gas. Alaska Public Media

 

Assessment sees reduced volumes from proved resources of inlet gas after 2027. Petroleum News

Hilcorp Alaska, South Central's primary natural gas producer, began warning its utility customers last year that, while it could meet obligations under its existing contracts, it did not have firm natural gas supplies available beyond that.

 

Governor drops carbon M&M bills; could raise billions, help save PFDs. Petroleum News

Senate resources will begin hearing SB 48 Carbon Offset, on Feb 20. Foresters and credit brokers will be invited to speak, as well as one of the Alaska native corporations that have sold offset credits. SB 49 will begin around Feb. 27. Carbon Capture, Utilization and Storage (CCUS) is being proposed for Cook Inlet. Speakers will be experts from Alaska Dept of Natural Resources, as well as national experts. Both topics are complex and will take a couple of years to implement, if the Legislature finds that the proposed projects are in Alaska's best interest.

 

New York is gorging on fuel made from illicit Russian oil. Bloomberg

New York is buying an unusually large amount of gasoline and diesel from India- a country that has become a top outlet for sanctioned Russian oil.

 

Shell still taking LNG cargoes from Russia under Novatek contract. Reuters

Shell is still receiving cargoes of liquified natural gas from Russia under its long-term contract with Novatek, a Shell spokesperson said on February 2. The world's largest LNG trader agreed to a more than 20-year deal in 2015 for Novatek to supply about 900,000 tonnes per year from the Yamal LNG plant it operates in Siberia.

 

More than half of new U.S. electric-generating capacity in 2023 will be solar. EIA

Developers plan to add 54.5 gigawatts (GW) of new utility-scale electric-generating capacity to the U.S. power grid in 2023, according to EIA's Preliminary Monthly Electric Generator Inventory. More than half of this capacity will be solar power (54%), followed by battery storage (17%).

 

 

Alaska Facts

·     On this day.... Feb 9, 1969, first scheduled commercial airline flight to Deadhorse.

·     Feb. 6 remembering Bill Sheffield, former Governor of Alaska who served until 1986.

 

 

Alaska Oil Resource values

 

·     ANS crude oil price (2/8/23): $81.89

·     The current budget requires $89 to be fully funded.

·     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 (1/31/23): 501,835 bpd

 

1 big thing: Exxon's climate pitch. Axios

 

State says without new development, Cook Inlet gas demand could outpace supply by 2027. Alaska Public Media

 

Gas property tax dispute costs Kenai Peninsula Borough. Alaska Public Media

A natural gas producer with roots in Homer is going on year three of fighting the state and Kenai Peninsula Borough on the property taxes he's paying for his platform in Cook Inlet. High property assessment and resulting taxes are making it hard for him to invest in additional natural gas production there.

 

Drills confirm Arctic deposit consistency. Mining News North

Consistent high-grade intercepts from its 2022 infill drill program at Arctic confirm the continuity of high-grade copper-zinc-lead-gold-silver mineralization within this volcanogenic massive sulfide deposit within the famed Ambler Mining District in Northwest Alaska.

 

Permanent Fund 2/8/2023: $74,445,800,000

·     Value 9/30/22 : $70,625,300,300

·     Value 8/31/22 was: $73,670,500,000 

·     Value 4/30/22 was: $81,387,500,000

 

·     Principle - $59.9B

·     $51.9 B savings, royalties, other deposits

·     $8 B unrealized gains

·     (special transfers from Legislature - $4 B in 2021; $4.943 B in 2020)

 

·     ERA - $12.6 B (was $16.9B May 2022)

·     $3.5 B set aside for FY24 POMV

·     $3.9 B for FY23 Inflation Proofing

·     $ 1.7 B unrealized gains

·     $3.7 B uncommitted realized earnings

·     PFD payout from ERA, 1980-2022: $26.6 B

 

Mineral Prices

Feb. 8, 2023

Gold - $1879.30

Silver - $22.38

 

 

 

 

"To hell with politics!

Let's do what's right for Alaska!"

 

U.S. Senator Ted Stevens

(Senate service 1968-2009)

 

 

Feedback is always welcome.

Have a great week!

 

Cathy 

 

Personal Contact:

907.465.4843

sen.cathy.giessel@akleg.gov

 

My Staff:

·     Chief of Staff: Jane Conway (from Soldotna)

·     Office Manager: Paige Brown (from Girdwood)

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

·     Legislation Staff: Ryan Rivers (from Anchorage)

·     UA Intern: Jon Hough (From UAF)

 

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