Senate Majority Coalition Website

State Senator District E

Senate Majority Leader

 

Senator Cathy Giessel Newsletter

UPDATES



Issues affecting

your family, community and jobs.

February 15, 2024

 

Dear Friends and Neighbors,



Photo: Launch Alaska Managing Director Penny Gage, and Launch Alaska CEO Isaac Vanderburg.

Launch Alaska is not a rocket testing facility as is sometimes assumed. They are an innovation center, focused on equitable, resilient, prosperous communities with economic opportunities, sustainable systems, and clean energy. They help connect innovators and businesses.

 

Education

Thank you for all your feedback on the many issues like Cook Inlet natural gas, clean energy, modest public employee pension, and education.

 

In Juneau this week we are meeting with students. I am often asked how I got involved in politics. As a student in high school advanced placement history, I learned the basics. My parents were always talking about current events and were involved in the community. I wanted to major in political science at Georgetown University but my mother advised, "Oh, honey! Do something practical! Be a nurse! They will always need nurses!"

 

She was so right and (for once) I took her wise advice and earned my bachelor's in nursing at the University of Michigan Ann Arbor and master's in nursing at UAA.

 

My point in this is that our students of today are our leaders, healthcare providers, electricians, heavy equipment operators, geologists and farmers of the next years. Education is foundational. I support the neighborhood public schools, charter schools, homeschool (I did that for 12 years), and private school options.

 

I am reminded of Frederick Douglass (1818-1895) who was born to a slave mother, and, as a child slave, had a master's wife who taught him to read until forbidden by her husband. Frederick realized that reading was his escape out of slavery. Take a look at the lengths that young Frederick went to in order to hone his reading skills, which led him to be a powerful abolitionist leader and orator, even influencing Abraham Lincoln to issue the Emancipation Proclamation.

 

Support for education, including the funding required, brings us all a promising future of what this nation's founders called "an educated electorate." Free public education has always been a core value of this nation.

 

Alaska is a great state for education choice. There are no barriers to home school, charter schools, or private schools. My husband and I made use of those three options as our children were in their K-12 and college years. Our seven grandchildren are taking advantage of those choices as well in Ohio.

 

The Senate is currently negotiating with the House to reach an increased Base Student Allocation (BSA) for education of $680/student. Presently the House has only $300/student in their version of the bill.

 

I also support instating a modest pension for our teachers, who have only a 401K to rely on after retirement and no social security safety net. Relying on the stock market for your savings to cover your retirement life is major gambling. This is why I am the sponsor of a new, modest, affordable Defined Benefit system, SB 88. It is not a reinstatement of the previous gold-plated pension that Governor Dunleavy and many current legislators have.

(By the way, the Judiciary branch still participates in the original pension system; they were exempted when the expensive pension was stopped for public employees and teachers.)

 

Items in this Newsletter:

·     Advocates for the Governor's Council on Disabilities and Special Education

·     APFC Mid Fiscal Year Review

·     Senate Committee Meetings

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

·     Resource Values, Permanent Fund

Advocates for the Governor’s Council on Disabilities and Special Education (GCDSE) and the Alaska Mobility Coalition visited me to talk about priorities for the 2024 session.

The Mid-Fiscal Year Review (FY 2025) provides details about the Permanent Fund and its Earnings Reserve Account. In this Review you will see a breakdown of the Fund Value. Remember: the ERA is the only "spendable" part of the Fund.

 

Spending from the ERA can be accomplished with a simple majority of the House (21 votes) and of the Senate (11).

 

Of the $8.5 Billion in the ERA, you see that $3.7 Billion of it is committed to the budget. The Governor proposes that 50% of this money be used to fund the October 2024 Dividend (which is FY25 budget year).

 

Subtracting $3.7 Billion leaves the ERA with $4.8 Billion. Then, if the Legislature decides to "inflation proof" the Fund, that pulls another $1.4 Billion out, leaving only $3.4 Billion in the ERA.

 

In this coming year of FY 2025 (July 1, 2024 through June 30, 2025) more will be earned by the Fund investments, shared between the Corpus (non-spendable part of the Fund itself) and the ERA (spendable portion).  The FY 2026 POMV funding (5% of the Earnings) is going to be about $3.731 Billion going into the General Fund to spend on our state budget.

 

The POMV now provides more than half of the Unrestricted General Fund money for our budget.  Oil taxes are no longer the majority of state revenue to fund services.

 

The concept, presented by the Governor, of spending 50% of the $3.7 Billion POMV for a Dividend is not fiscally responsible, not “conservative”, and not rational. The Senate didn’t do that last year; we allocated 25% of the POMV to a Dividend. It is our goal to do the same this year.

 

When we adequately fund snow removal, state troopers, education, permitting for resource projects, regulation of air quality, and other core services – all Alaskans benefit, regardless of their socio-economic situation.

 

Take a look at the Mid-Fiscal Year Review to see more detail on the Fund.

Is there a problem with how the Permanent Fund is structured? The Alaska Landmine

In recent legislative hearings, Legislative Finance Division (LFD) director and the Alaska Permanent Fund Corporation (APFC) executive director have separately alerted the finance committees to a potential concern. Director Alexei Painter of LFD put it most succinctly: per his division’s analysis there is a 54% chance that the state will exhaust the (ERA) and will fail to have the resources to cover state services in the next decade. 

(My comment: The Legislature has a “spending limit” that prevents overdrawing the ERA. That can be violated. The Senate refuses to do that.)

Senate Committee Meetings

Week of February 8-14

 

Finance

Feb 8 - Alaska Housing Finance Corporation Update & Overview

 

Feb 8 - SB 125: AK Housing Finance Corp: Sustain Energy (Invited and Public Testimony); SB 170: Extend Senior Benefits Payment Program (Public Testimony)

 

Feb 13 - SB 120: Extend Education Tax Credits (Invited and Public Testimony)

 

Feb 14 - SB 91: Telehealth: Multidisciplinary Care Team (Invited and Public Testimony); HB 193: Internet for Schools

 

Feb 14 - SB 132: Employment Tax for Education Facilities (Invited and Public Testimony)

 

 

Community and Regional Affairs

Feb 8 - SB 207: Military and Veteran Family Help Desk (Invited and Public Testimony)

 

 

Education

Feb 12 - Presentation: Association of Alaska School Boards Legislative Fly-In by School Board Members and Students Across Alaska

 

Feb 14 - SB 215: Teachers: Board Certification Incentive (Invited Testimony); Presentation: The State of Teaching in Alaska

 

 

Health and Social Services

Feb 13 - SB 149: Food Stamp Program Eligibility (Invited and Public Testimony)

 

 

Judiciary

Feb 12 - SB 163: Animal Adoption Records (Invited Testimony)

 

Feb 14 - Senate Special Concurrent Resolution: Disapproving EO 133; Senate Special Concurrent Resolution: Disapproving EO 135

 

 

Labor and Commerce

Feb 12 - Senate Special Concurrent Resolution: Disapproving EO 127; Senate Special Concurrent Resolution: Disapproving EO 129; Senate Special Concurrent Resolution: Disapproving EO 130; SB 197: Residential Building Code (Invited and Public Testimony); SB 183: Workers' Comp Benefits Guaranty Fund (Invited and Public Testimony); HB 57: Emergency Medicaid Services: Review Organizations (Invited and Public Testimony)

 

Feb 14 - SB 147: Reemployment Benefits (Invited and Public Testimony); SB 206: Workers' Compensation Stay-At-Work Program (Invited and Public Testimony)

 

 

Resources

Feb 12 - HB 125: Trapping Cabins on State Land; SB 118: Critical Natural Resources; Reports (Public Testimony); EO 124: Prohibiting by Regulation Live Capture, Possession, 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 (Invited and Public Testimony)

 

Feb 14 - Senate Special Concurrent Resolution: Disapproving EO 124; Senate Special Concurrent Resolution: Disapproving EO 126; Senate Special Concurrent Resolution: Disapproving EO 132; Senate Special Concurrent Resolution: Disapproving EO 134; Presentation: Alaska Food Strategy Task Force

 

 

State Affairs

Feb 8 - SB 131: Asian American/Pacific Islander Program (Invited and Public Testimony); HB 3: Gold and Silver Specie as Legal Tender (Invited and Public Testimony)

 

Feb 13 - Senate Special Concurrent Resolution: Disapproving EO 128; SB 195: State Agency Performance Improvement (Invited and Public Testimony); SB 201: Office of Information Technology (Invited and Public Testimony)

 

 

Transportation

Feb 13 - SB 105; Railroad Corporation Financing (Invited and Public Testimony); SB 199: State Land: Disposal/Sale/Lease/Restrict (Invited and Public Testimony)

Current Topics

Public safety commissioner seeks change in Alaska's missing and murdered Indigenous people response. Alaska Beacon

Alaska Department of Public Safety Commissioner James Cockrell told lawmakers on Tuesday that he doesn’t know how the state can justify the relative lack of resources it has provided to rural Alaska.

 

Dunleavy makes first official Yukon visit, signs Alaska Highway maintenance agreement. Alaska Beacon

The Yukon government has estimated that the full cost of the project may be up to CAD $500 million ($370.37 million USD).  The highway memorandum signed Friday was part of a five-year agreement between Alaska and the Yukon to “work together on matters of joint concern and mutual interest” and share information on common issues.

 

Land coverage changes across Greenland dominated by a doubling of vegetation in three decades. Nature.com

Besides the vastly decreased ice cover, we find a doubling in total areal coverage of vegetation, a quadrupling in wetlands coverage, increased meltwater, decreased bare bedrock and increased coverage of fine unconsolidated sediment. 

 

Blaze pink may become an official hunter safety color in South Dakota. South Dakota Searchlight

“The answer is very simple: It’s safety,” Bahmuller said. “Blaze pink is not a color that occurs naturally in nature.”

 

 

Education

Gov. Dunleavy touts educational experience while defending his stance on the BSA and teacher bonuses. Alaska's News Source

“At my school, I’m to the point where I get to choose: Do I heat my school, or do I pay my teachers?” Alaska Association of School Business Officials president Heather Heineke said to lawmakers Monday during a Joint House and Senate Committee meeting.

 

Governor addresses education policy reforms. Frontiersman

A legislative attorney has said that the Governor’s proposed teacher incentive could raise legal challenges under the State Constitution because it treats teachers differently based on geographic location and it could also interfere with collective bargaining power of educator unions.

 

What will it take to reopen the Bettye Davis East High Swimming Pool? Alaska's News Source

The pools in Anchorage high schools are owned and operated by the Municipality of Anchorage, not the Anchorage School District. They’re considered a community asset, but the community hasn’t had access to the East pool for a long time. Reeves said the pool needed some repair work after the 2018 earthquake and has had some minor maintenance issues as well, but the primary reason it’s still closed is a lack of lifeguards. This means community members have to look elsewhere to swim, just like East High’s swim team.

 

Legislators begin negotiations on education package as Dunleavy pushes for more charter schools. ADN

A six-member legislative negotiating team began closed-door discussions on Tuesday and held its second meeting on Thursday. Its members include Democratic Senators Bill Wielechowski, Löki Tobin and Lyman Hoffman, and Republican Representatives Craig Johnson, Jesse Sumner and Jamie Allard. The Democrat-dominated 16-member House minority caucus does not have a seat at the table, and neither do Bush Caucus members of the House majority, who represent rural Alaska — without whose support the majority will likely fail to advance its priorities.

 

With education reform locked in negotiations, Alaska lawmakers seek school internet speed increase. Alaska Beacon

Dozens of rural Alaska schools are at risk of not gaining access to faster internet access because of legislative deadlock over a wide-ranging education bill. While legislators say they’re optimistic about the progress of the bill, known as Senate Bill 140, their actions indicate something else. On Thursday, the House Finance Committee heard a standalone bill to raise the ceiling on internet speeds in Alaska’s schools, an attempt to make statutory change before it is too late for schools to get grants to pay for it.

 

Gov. Dunleavy points to national study in his push to expand Alaska charter schools. It's drawing scrutiny from lawmakers and school officials. ADN

But the studypublished in November, is drawing scrutiny from Alaska lawmakers, school officials and researchers — including many who are pushing to increase the state’s Base Student Allocation — who expressed concern that that national study could have an outsized impact on state education policy despite its small sample size and other limitations.

 

Alaska's children deserve better than this. ADN

The Anchorage School District is on life support, and judging by the public testimony I heard about Senate Bill 140, so are the rest of the districts in the state.

 

 

Ecomony

Inflation's bumpy ride to normal. Axios

"[T]he path toward inflation normalization is likely to be prolonged, with ups and downs along the way," economists at TD Securities wrote.  Overall CPI rose 3.1% in the 12 months through January, a smaller increase than the 3.4% rise the prior month.

 

For third year, Alaska's top-paid public executive is the gas pipeline boss. Alaska Beacon

The head of the state corporation in charge of a long-planned trans-Alaska natural gas pipeline is once again Alaska’s top-paid public executive. Frank Richards, president of the Alaska Gasline Development Corp., received $479,588 in compensation during 2023, according to the latest version of the state’s annual executive compensation report, released in January.

 

 

Energy

Amazon, United stake hydrogen startup. Axios

Technology could help unlock naturally occurring underground hydrogen as a new source of clean power. Created when iron-rich rocks come into contact with water, naturally occurring deposits of hydrogen have been found all over the world, often when some of the hydrogen leaks out to the Earth's surface.

 

Alaska politicians contemplate first statewide borrowing request since 2012. Alaska Beacon

Alaska lawmakers are considering whether to ask voters for permission to borrow money for major upgrades to the state’s electrical grids, they said this week.

 

Green energy advocates say Anchorage utility "freezing our" efforts for gas-saving price structure. Alaska Beacon

A green power advocacy group says Anchorage’s electric utility is thwarting its efforts to propose an energy-saving payment scheme for customers, and it’s asking state regulators to step in to force the utility to hand over detailed data.

(My Comment: This is Alaska; blocking itself from prosperous future. Solar and wind will never be baseload for Arctic energy. Hydro will fill baseload need; Nuclear will fill baseload need. When one group demands priority, Alaska fails again.)

 

How serious is Alaska's natural gas crisis really? ADN

A recent cold snap in Southcentral Alaska raised the profile of a looming problem for the region: Natural gas from Cook Inlet powers a big chunk of Alaska, including Anchorage, the Kenai Peninsula and the Mat-Su – but energy companies say that gas won’t be available for much longer. How is that possible, in a state that has enormous gas reserves? And what does that mean for future energy bills?

 

Cold winter underscores Alaska's need for reliable hear and power. ADN

During the coldest week of winter, Cook Inlet Natural Gas Storage Alaska (CINGSA), a gas storage system managed by Enstar, started experiencing issues with a portion of its reservoir network, compromising its ability to supply a full complement of gas to utility customers throughout Southcentral Alaska. In the recent cold snap, hydro, wind, and solar accounted for less than one-seventh of our power.

(My comment: Alaska will always need “baseload”, which is the source of power that is constantly available. Wind and solar are episodic. Hydro, nuclear and natural gas are baseload, always on duty. The opinion writer was in error to imply that hydro is not reliable; in fact, Bradley Lake Hydroelectric is a 120-megawatt facility that generates about 10 percent of the total annual power used by Railbelt electric utilities at some of the lowest-cost power to more than 550,000 Alaskans. We need more hydro projects around the state. Small modular reactors (nuclear power) is being trialed at Eielson Air Force Base in the next couple years and would be a game-changer for Alaska.) 

 

 

Politics

Alaska governor says he'd like to send troops south to aid Texas, but cost is a hurdle. Alaska Beacon

Gov. Mike Dunleavy told reporters on Wednesday that he’d like to answer Texas Gov. Greg Abbott’s request for National Guard soldiers to support a state-run effort along the Mexico border, but he’s not sure the Alaska Legislature will approve the cost.

 

Ranked choice repeal group appeals big fine for violating Alaska campaign finance laws. Alaska Beacon

Supporters of a campaign seeking to turn back the clock on Alaska’s voting system laws are appealing more than $90,000 in fines levied by the Alaska Public Offices Commission. The appeal alleges that Alaska’s campaign finance regulator made mistakes when it fined the four for their participation in a system that sent campaign money through an organization registered as a church in Washington state.

(My Comment: When Alaskans voted to hold open primary elections they said they wanted to be heard. It removes the control of political parties. An open primary means that all the candidates are on one ballot; no longer are republican candidates on one ballot, and democratic candidates on another ballot – forcing voters to choose one ballot or the other. Now voters can choose a republican for one position, a democrat for another position, and a non-partisan person for another position. I support open primaries. In addition, voters said that they want more power in the general election. They want to be able to vote for their favorite person, but if that person doesn’t get over 50% of the vote, they want to be able to choose their 2nd favorite candidate. That’s what the instant runoff/ranked choice vote general election does. The result? Alaskans elected a far-right-of-center Republican Governor; a moderate Republican US Senator; and a moderate Democrat US Congresswoman. Districts elected people that most accurately represented their voters (far-right-of-center districts, moderate republican districts, moderate democrat districts). This new election system is working well for Alaska. I support this.)

 

Gov. Dunleavy casts doubt on future of Senate-passed public-sector pension bill. Alaska Public Media

The proposal passed the bipartisan-majority Senate in late January. If signed into law, many employees of state and local governments, including teachers, would have the option to switch from the existing defined-contribution retirement plan to a pension plan. Proponents pitch it as a way to improve hiring and retention.

 

Alaska legislators hear vocal opposition to Dunleavy plan to eliminate boards overseeing midwives, barbers and massage therapists. ADN

Members of the affected professions have raised concerns that they will no longer be regulated by their peers; state employees would be too overworked or not knowledgeable enough to regulate their fields; and there has been frustration about a lack of notice that the three boards were on the chopping block.

 

 

Healthcare

Alaska GOP legislator's child care bill advances toward a final House vote. ADN

Alaska’s beleaguered child care sector has long struggled with long waitlists, low wages and high tuition costs. House Bill 89 was introduced last year by Anchorage GOP Rep. Julie Coulombe as a way to give corporations child care tax credits, and to subsidize tuition costs for more children.

 

Bill would relax food stamp income eligibility requirements for Alaskans. Alaska's News Source

Alaska senators gathered public testimony Tuesday in Juneau on a bill that would relax certain eligibility requirements for receiving federal food assistance, including increasing the income limit and doing away with an asset test.

 

What is Alaskapox? Recent death brings attention to virus seen in small animals. AP News

For nine years, Alaska health officials have been aware of an unusual virus causing rare, relatively mild illnesses in the Fairbanks area. But a recent case in another part of the state — this one resulting in a man’s death — has brought new attention to the so-called Alaskapox virus.

Alaska Oil Resource Values

 

Alaska North Slope crude oil price (2/14/24): $81.24

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 (2/14/24): 478.931 bpd

 

 

Alaska commission fines Hilcorp $452,100 for violations at North Slope oil sites. Alaska Beacon

The agency that regulates oil and gas wells in Alaska has assessed a $452,100 fine on Hilcorp for rule violations on the North Slope. The Alaska Oil and Gas Conservation Commission, in an enforcement order issued on Tuesday, cited Hilcorp for unauthorized injections into various parts of the Prudhoe Bay Unit, which encompasses several satellites. The company has operated Prudhoe Bay, including its satellites, since 2020, when it acquired BP’s remaining Alaska assets as the latter company exited the state.

 

Alaska legislators warned of energy supply gap as large-scale imported gas likely not available until 2030. ADN

 

Catch up fast on oil and gas: Markets, banking, ESG, sanctions. Axios

"The U.S. Treasury Department said on Thursday it had put sanctions on three entities based in the United Arab Emirates (UAE) and one tanker registered by Liberia for violating a cap placed on the price of Russian oil by a coalition of Western nations."

 

Nuclear reactor restarts in Japan have reduced LNG imports for electricity generation. EIA

After the 2011 Fukushima Daiichi accident, Japan suspended operations at all of its remaining 48 nuclear power reactors by 2013 and relied almost exclusively on imported natural gas to replace the lost electricity generation. In 2015, Japan allowed its first nuclear power reactor to resume operations. As of December 2022, 11 gigawatts (GW) of Japan’s nuclear capacity have returned to service, which reduced liquefied natural gas (LNG) imports for electricity generation.

 

Bill to provide free access to Cook Inlet seismic surveys moves forward. Alaska Public Media

bill aimed at increasing oil and gas production in Cook Inlet took a step forward Monday. The proposal advancing out of the House Resources Committee would provide companies and researchers free access to seismic survey data used to locate oil and gas deposits in Cook Inlet.

 

 

Precious Metal Prices

Feb. 14, 2024

Gold - $2004.43

Silver - $22.56

Platinum - $907.27

Palladium - $977.18

 

Alaska Permanent Fund

website

 

Fund value February 14 - $77,868,200,000

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



Alaska History

 

·     Feb. 9, 1969: First scheduled commercial airline flight to Deadhorse

 

·     Feb 16, 1968: ARCO and Humble Oil announced a discovery of oil at Prudhoe Bay.

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)

 

 

Copyright © 2024. All Rights Reserved.

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