Senate Majority Coalition Website

State Senator District E

Senate Majority Leader

 

Senator Cathy Giessel Newsletter

UPDATES



Issues affecting

your family, community and jobs.

February 22, 2024

 

Dear Friends and Neighbors,

 

Photo: Sunrise in Juneau at 6:30 AM. (Juneau is really more on Seattle time than Alaska time!)

 

Permanent Fund Corporation caution

Alaska Permanent Fund Corp. board again warns that the fund is running out of spendable money. Alaska Beacon

"Without action by the Legislature, there’s a small but growing chance that within three years, the Permanent Fund — source of more than half of Alaska’s general-purpose state revenue — won’t be able to pay for services and the annual Permanent Fund dividend. "

The first item in this newsletter provides you with the links needed to see the numbers and projections.

 

Food Security

Representative Genevieve Mina and I are sponsoring a bill that would upgrade the current long and complicated process for SNAP (Supplemental Nutrition Assistance Program) to a streamlined BBCE (Broad Based Categorical Eligibility) standard. Our bill would join 42 other states and 2 territories. It would remove the asset test to allow recipients to have a car or snowmobile to get to work or subsistence hunt, accumulate savings to become self-sufficient, and still help feed their families. BBCE is a federally funded program, however Alaska would remain responsible for 50% of the administrative costs.

 

The Senate version of the bill (SB 149) is in the Senate Finance Committee; the House version (HB 196) will be heard in the House Health and Social Services Committee today, Thursday, February 22 at 3:00pm.

 

Funding Priorities

The Senate bipartisan majority caucus has education funding as our top priority. The second priority is my SB 88, a modest defined benefit pension for teachers and other public employees. Right along with those two priorities is the lowering of the cost of energy.

 

The Senate accomplished BSA (Base Student Allocation) funding, broadband funding from the Federal government, and a modest defined benefit pension. The Senate sent education and broadband funding, along with the modest pension, to the House for them to take action. At this point, the House is deadlocked on these topics.

 

Next week I am hoping to introduce legislation that will modernize our transmission grid. This week Senate Resources heard my SB 220 that would require all natural gas storage facilities in Cook Inlet to be regulated for safety and transparent costs to consumers. The goal of that bill is to expand the gas storage we need to have reliable supply. On Friday (2/23) I am hoping to have a Transmission System bill introduced. It will provide the foundation for new, lower cost, clean energy to quickly supply the 70% of the State who are served by our current transmission system. More on that in next week's newsletter!

 

Public Comments on the Budget!

Public Testimony is currently being heard in Senate Finance on the operating, capital, and mental health budgets. Anchorage, Kenai Peninsula and the Mat-Su are all scheduled for today, Thursday February 22, at 1:30pm.

To testify, call (907) 563-9085 (from Anchorage) or (844) 586-9085 (from anywhere else).

 

Items in this Newsletter:

·     APFC January Financial Statements and Projections

·     Recent Capitol Visitors

·     National Civics Bee Announcement

·     Podcast: Iceland's Recipe for Cheap Electricity

·     CED District E Demographics

·     Senate Committee Meetings

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

·     Resource Values, Permanent Fund

APFC Projections are here. The projections illustrate the risk in future years for the Percent of Market Value (POMV) and Dividend.

(Chugach School Board Members came to visit last week.)

(Women of the 33rd Legislature with Senator Lisa Murkowski)

The Alaska Chamber is thrilled to partner with the U.S Chamber of Commerce Foundation to bring the National Civics Bee to Alaska!

It is a first-of-its-kind civics competition that encourages young Alaskans to engage in civics and contribute to their communities. We believe that informed and active citizens make for a strong country, a strong economy, and a strong workforce, and that our continued prosperity depends on the strength of all three. Through the Bee, we are promoting greater civic knowledge in Alaska and celebrating our civic pride.

Any 6th, 7th, or 8th grade student residing in Alaska attending any public, private or home school institution is eligible for participation. To enter, students must submit an application through the portal on our website. The application portal closes on March 4, 2024. The top 20 applicants will be invited to compete at a live civics quiz event tentatively scheduled for Spring 2024. Additional information can be found here.

Participating 6th, 7th, and 8th graders will flex their civics knowledge for a chance to win recognition and cash prizes. The winner of the National Civics Bee Alaska State Finals will be invited to Washington, DC, to compete in the inaugural National Civics Bee national championship in Fall 2024.

Please share this invitation with anyone who might be interested in participating or supporting this event. Or encourage them to reach out to us for additional information.

We also have resources available to reach out to local schools and administrators. We are also looking for sponsorship partners to help cover some of the costs and provide prizes the winners and participants.

Iceland is a small volcanic island in the North Atlantic. The population of Iceland is about the same as the Municipality of Anchorage. A couple decades ago they relied on fuel oil for heat and electric generation; they had smog everywhere. But the citizens came together and realized they could change the cost of their energy by agreeing to link their disjointed transmission systems, develop their abundant hydroelectric potential and harness their geothermal resources. They now have the lowest cost of energy in Europe and have a large manufacturing industry in aluminium smelting. Listen to the podcast for even more information. Alaska could do this as well...if we could just agree on the vision!

Senate Committee Meetings

Week of February 15-21

 

Finance

Feb 15 - SB 56: AK Performance Scholarship; Eligibility; SB 141: Naming Raymond & Esther Conquest Bridge; SB 24: Public Schools: Mental Health Education

 

Feb 19 - Governor's Budget Amendments

 

Feb 19 - SB 34: Citizen Advisory Commission on Federal Areas; SB 82: Cook Inlet: New Administration Area; Permit Buyback (Invited and Public Testimony)

 

Feb 20 - University of Alaska FY25 Budget Request

 

Feb 21 - Budget Public Testimony: Juneau, Southeast, Prince William Sound, Kodiak and Statewide Offnets

 

Feb 21 - Budget Public Testimony: Fairbanks, Interior, Copper River Valley and Statewide Offnets

 

 

Community and Regional Affairs

Feb 15 - SB 179: Property Transfer Tax; Muni Telecommunication Tax (Invited and Public Testimony); SB 207: Military and Veteran Family Help Desk

 

Feb 20 - Presentation: Rural Alaska: Challenges Facing Communities and Responsibilities and Resources of Local Governments by Alaska Municipal League; SR 3: Chronic Kidney Disease Awareness Month (Invited and Public Testimony)

 

 

Education

Feb 19 - SB 215: Teachers: Board Certified Certification Incentive (Public Testimony); Presentation: Education Financial Deep Dive by Alaska Department of Education and Early Development

 

Feb 21 - Presentation: Alaska Municipal League Testimony by Municipal League Officials

 

 

Health and Social Services

Feb 15 - SB 181: Child Placement; Diligent Search (Invited and Public Testimony); SCCR 2: Disapprove EO 125

 

Feb 20 - SB 149: Food Stamp Program Eligibility

 

 

Judiciary

Feb 19 - SB 20/SJR 4: Appropriation Limit; Governor's Budget; SB 28: Workplace Violence Protective Orders

 

Feb 21 - Presentation: Update from the Children's Justice Act Task Force

 

 

Labor and Commerce

Feb 16 - SB 134: Ins. Data Security; Information Security Programs (Public Testimony); SB 166: Mental Health/Psychedelic Med. Task Force (Public Testimony); SB 191: AHFC Make/Purchase Mortgage Loans (Public Testimony)

 

Feb 19 - SB 144: Rates: Motor Vehicle Warranty Work (Invited and Public Testimony)

 

Feb 21 - SB 147: Reemployment Benefits (Public Testimony); SB 206: Workers' Compensation Stay-At-Work Program (Public Testimony); SB 183: Workers' Compensation Benefits Guaranty Fund (Public Testimony); SB 197: Residential Building Code (Public Testimony); HB 57: Emergency Medical Services: Review Organizations (Public Testimony)

 

 

Resources

Feb 16 - Overview: Division of Agriculture; SB 171: Residency Requirements: Hunting, Trapping, Fishing (Invited Testimony)

 

Feb 19 - SB 220: RCA Regulate Natural Gas Storage Facility (Invited Testimony)

 

Feb 21 - SB 190: Big Game Hunting by Person w/ Disability (Invited Testimony); SB 168: Compensation: for Wrongfully Seized Game (Invited Testimony); SB 199: State Land: Disposal/Sale/Lease/Restrict (Invited Testimony); SB 210: Salmon Hatchery Permits (Invited Testimony)

 

 

State Affairs

Feb 20 - Presentation: UA Achieving R1 Status and What it Means for Alaska's Future

 

 

Transportation

Feb 15 - SB 105: Railroad Corporation Financing

 

Feb 20 - EO 131: Reorganizing the Alaska Marine Highway Operations Board (Invited Testimony)

Current Topics

Federal highway officials reject Alaska transportation plan, citing 24 pages of flaws. Alaska Beacon

“This really does affect our guys’ ability to go to work this summer,” said Joelle Hall, president of the Alaska AFL-CIO.  “This is thousands of jobs, thousands and thousands of jobs,” she said. The scale of the problem and potential consequences have alarmed state legislators, many of whom only became aware of the issue this week.

 

Alaska DOT discusses snow removal with lawmakers, detailing response to Anchorage storms. Alaska's News Source

Transportation and Public Facilities Commissioner Ryan Anderson told lawmakers staffing is one of the issues facing the department. Currently, Anchorage has a 19% vacancy rate for equipment operators and a 29% vacancy rate for mechanics. Anderson said for the November event the department executed three emergency contracts and the Central Region expended $950,000 with some pending expenditures.

(My comment: This is what it's costing us to have inadequate public employees filling these jobs. That’s what I’m aiming to address by putting in place a new Defined Benefit System for public employees. How many more millions do you want to see the State and local governments spend on hiring bonuses and temporary workforce? Is it time to bring back a stable Alaska workforce?)

 

Anchorage snow dumps are nearing capacity; one has already exceeded last winter's volume. Alaska's News Source

The snow pile, located on the northeast corner of O’Malley Road and Old Seward Highway, already contains more than 10,600 loads, according to DOT’s Justin Shelby. He said that’s how much snow was hauled all of last winter, and that this year it could go as high as 16,000 loads.

 

$5.6 billion Alaska transportation plan rejected by feds, putting road construction projects in jeopardy. ADN

Commissioner Anderson acknowledged that the state transportation department did not have an experienced team who had worked before on a new state transportation plan, which take months to be developed before being submitted. “We have a lot of new people,” he said.

(My comment: Notice what Commissioner said – they have “a lot of new people.” Again, the turnover and vacancy rates in the state public services is alarming and is the whole reason for my new Defined Benefit system proposal. Our skilled professionals are leaving for better pay and a secure retirement pension. DOT vacancy rate is 17.8%. This number is after deleting unfilled positions over the last few years.)

 

$5.6B in funding in limbo after feds find errors in statewide transportation plan. Alaska's News Source

Last week, the U.S. Department of Transportation notified the state that its four-year statewide transportation improvement plan (STIP) required multiple corrections to become eligible for federal funds. As a result, billions of dollars in federal grants for transportation projects are now at risk, and the Alaska Department of Transportation & Public Facilities has until March 1 to revise the plan.

 

Parting shot. Axios

San Diego's beaches were lit up with electric blue waves this week. Millions of bioluminescent plankton were showing off at Torrey Pines and Carlsbad beaches.

 

Examining viruses that can help 'dial up' carbon capture in the sea. Physics Organization

Mapping microbial metabolism genes, including those for underwater carbon metabolism, revealed 340 known metabolic pathways throughout the global oceans. Of these, 128 were also found in the genomes of ocean viruses. "I was shocked that the number was that high," said Matthew Sullivan, professor of microbiology and director of the Center of Microbiome Science at The Ohio State University.

 

 

Education

Hundreds attend ASD's alternative school and program expo. Alaska's News Source

The Begich Middle School cafeteria was jam-packed Saturday morning as 40 different alternative school program booths lined up back-to-back around the room during the Anchorage School District’s third annual Alternative School and Programs Exposition.

 

If we want to improve Alaska's schools, we need to invest in them. ADN

In a state with a huge outmigration problem, raising the BSA signals to our youth that Alaska is worth returning to and raising the next generation of Alaskans and makes us competitive with other states for a desirable workforce and not just in education. Our state is overwhelmed with vacancies in both the public and private sectors.

 

A high cost of living and lack of a pension strain teachers in Alaska. Would bonuses help keep them? AP News

The state Senate passed a bill to reinstate pensions — nearly 20 years after lawmakers closed the system — but its prospects are unclear. Majority House Republicans proposed legislation that includes Dunleavy’s bonus plan, charter provisions and a roughly $80 million increase in aid to districts through the formula — an amount many lawmakers consider inadequate. It faced early opposition on the House floor Monday, with lawmakers deadlocking in an initial vote on whether to bring it up for debate. Some lawmakers said provisions of the bill weren’t sufficiently vetted.

 

Senator Löki Tobin interviews two teachers, talking about the financial cost to being a teacher. PODCAST

 

 

Economy

Women's work; Share of U.S. workers in select occupation categories, by gender. Axios

Structural barriers mean women are more likely to be caring for children or others at home (part of the whole expectations thing) and often need greater flexibility — which often pushes them out of more demanding, less flexible (and often higher-paying) professions.

(My Comment: And this is why pensions are so important for women — we are paid less, we take time off to care for others, and we live longer. Oldest living American is a 116 year old woman. Oldest living person in the world is a 116 year old French woman who is 6 months older than the 116 year old American woman. Women are much more likely to face retirement poverty.)

 

Silver tsunami. Axios

“Today's 65-year-olds are redefining a milestone long associated with retirement parties and the end of productive years. They are wealthier and by many measures, healthier, and expected to live another 20 years." 

 

Permanent Fund trustees ignore public comments opposing plan to borrow billions. Dermot Cole Reporting from Alaska

Largely ignoring the substance of the public comments they received on a proposed strategic plan, the six-member Permanent Fund board of trustees pushed ahead with a proposal promoting the idea of borrowing billions to make more billions.

 

Alaska Permanent Fund Corp. board again warns that the fund is running out of spendable money. Alaska Beacon

Without action by the Legislature, there’s a small but growing chance that within three years, the Permanent Fund — source of more than half of Alaska’s general-purpose state revenue — won’t be able to pay for services and the annual Permanent Fund dividend.

 

Alaska Permanent Fund Corp. leaders approve proposal to borrow up to $4 billion for investments. Alaska Beacon

The leaders of the $76 billion Alaska Permanent Fund voted unanimously on Friday to adopt a strategic plan that calls for borrowing up to $4 billion in order to increase the amount of money available for investments. Friday’s vote has limited effect: The borrowing could take place only if the Alaska Legislature and Gov. Mike Dunleavy change state law to allow it.

(My Comment: We are failing to fund education, assisted living, mental health, upgraded transmission lines for energy, but we can borrow $4 billion to invest? I’m baffled with the direction the Dunleavy Administration is taking us.)

 

 

Energy

The domino effect that could tank Alaska's economy. ADN

 

 

Politics

As Alaska pays millions to fix food stamp backlog, lawmakers suggest systemic fixes. Alaska Beacon

Senate version, Senate Bill 149, received its first committee hearing on Tuesday. Giessel said the change would streamline administration and suggested it may help keep the state out of future backlogs. She acknowledged that it would come with costs, but reminded the Senate Health and Social Services Committee that the state is already paying millions to fix a problem it could be preventing.

 

Senate lawmakers reject Gov. Dunleavy's executive orders with resolutions of disapproval. Alaska's News Source

Stevens said he thinks at least half of them should be withdrawn.

 

In speech to Alaska legislature, Murkowski shows she's outside Trump's grip on GOP. Alaska Public Media

“As the elections approach, there’s going to be pressure to show whether you’re with the Republicans or with the Democrats, with probably very little in between,” she said. “So let’s show the country that sure we’ve got our differences — we will always have our policy differences — but we can figure out ways to work through them.” Murkowski’s moderation aggravates the Alaska Republican Party. The party has censured her, and Trump endorsed her right-wing opponent in the 2022 election. But for her annual address to the Legislature, Murkowski didn’t budge from the center. Murkowski offered high praise for Congresswoman Mary Peltola, even though Peltola is a Democrat and she’s running for re-election this year. Murkowski credited her (and Sen. Dan Sullivan) with helping to close a loophole that allowed Russian seafood into the American market.

 

Alaska public school funding bill is in limbo after failed vote. Alaska Beacon

It’s unusual for three legislators to break from the majority on a critical bill, but Tilton said that because the House majority doesn’t have a binding caucus — which requires members to vote together on procedural matters — that legislators are permitted to “vote their conscience.”

 

Sweeping education bill in limbo after split vote in Alaska House. ADN

Twenty House Republicans voted in favor of hearing a proposal that sought to attach a funding increase for public schools with measures that the GOP supports, including sending more public funds to homeschooled students and increasing the number of public charter schools in the state. Twenty other representatives voted no. That left the divided chamber in a familiar place: limbo. “To stop now is to surrender and I am not prepared to surrender,” said Rep. Craig Johnson, an Anchorage Republican, waving a white sheet of paper in the air as he called on House members to reconsider their position on a proposal he has championed.

 

Following failed vote, education bill faces uncertain future. Alaska's News Source

SB140 is the House Rules Committee’s re-write of a Senate school internet funding proposal. While that issue remains in the substitute bill, so does a $300 per student funding increase to the state’s Base Student Allocation or BSA. Also in the bill, some of Gov. Mike Dunleavy’s priorities, including teacher bonuses and granting the State School Board new charter school authority. Opponents have said they would like to see the BSA closer to $1,400.

 

Alaska legislators give closer look at bill aimed at storing carbon emissions underground. Alaska Beacon

Combined with generous federal subsidies, the bill could enable everything from enhanced oil recovery using carbon dioxide to the sequestration of emissions from new coal-fired power generation to removing carbon dioxide directly from the air. According to a consultant hired by the state, a carbon capture framework could even make it economic for the state to export North Slope natural gas not as gas but as hydrogen or ammonia, with the carbon dioxide from processing sequestered underground. 

 

Gov. Dunleavy proposes tax breaks for the private sector to address Alaska's high cost of living woes. Alaska Beacon

The Alaska Affordability Act, now Senate Bill 237, would allow businesses to claim up to a 50% tax reduction on eligible expenditures related to child care, energy, housing development and food security. His administration identified those as the greatest expenses for most households.

 

 

Healthcare

In-network care jumped after surprise bills ban. Axios

In-network care for specialties that were among the most common sources of surprise bills — including anesthesiology, emergency medicine, pathology and radiology — increased 4.7% to 88.2%.

Alaska Oil Resource Values

 

Alaska North Slope crude oil price (2/21/24): $82.43

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 (2/21/24): 474.216 bpd

 

 

 

 

Precious Metal Prices

Feb. 21, 2024

Gold - $2039.20

Silver - $23.07

Platinum - $899.96

Palladium - $995.50

 

Alaska Permanent Fund

website

 

Fund value February 21 - $78,400,700,000

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)

 

 

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