State Senator District E

 

Senator Cathy Giessel Newsletter

UPDATES

Issues affecting

your family, community and jobs.

 

 

February 23, 2023

 

 

Dear Friends and Neighbors,

 

Photo: (l to r) Rep. Mina, me, Sen. Lisa Murkowski, Sen. Grey-Jackson, Sen. Tobin, Sen. Merrick. In State Capitol, Feb. 22.

 

First, thank you so much to all of you who have written comments on bills or other policies under consideration. Your input is critical to shaping our future.

 

It was delightful to talk with all the folks who came to the Community Meeting in Girdwood last Saturday. I loved the questions and the comments/advice you offered!

Here's some things I heard:

·     need for child care,

·     need for affordable housing,

·     need for balanced budget,

·     need public services to be staffed and doing the job (snow plowing, food stamp distribution, permitting, etc),

·     don't need big highway overpass/exchange to be paid for and built at intersection of Seward Hwy and Alyeska Hwy

 

The Governor submitted a $400 million supplemental budget request for the current year. About $70-80 Million of that is shortfall in state agencies due to overtime and contracting out of state services due to the extremely high vacancy rate in state jobs.

 

My office has turned in the capital expenditure requests submitted by Senate District E. I can't predict how much money we will have for the Capital Budget but our projects have been submitted.

 

 

Items in this Newsletter:

 

·     Senate Committee Meetings

 

·     IRS Guidance on Dividend

 

·     Current topics, economy, healthcare, energy

 

·     Oil and Permanent Fund Resources

 

·     Alaska History

 

 

 

Senate Committee Meetings

Week of Feb 16-22, 2023

 

Finance Committee

February 16- Capital Markets & Permanent Fund Sustainability

Callan is the independent financial consultant to the Alaska Permanent Fund Corporation (APFC). They share an overview of the APFC with the Senate Finance Committee.

To summarize: The 5% of Market Value (POMV) draw from our Earnings Reserve Account (ERA) equates to a 4.75% draw. The likelihood or adequate funds being available for the POMV draw is 50%.

Callan urged that the Legislative NOT increase the POMV draw (found in the recording at 9:54 time).

They found that the APFC has balanced risk efficiently and very well. The mix of investments can be found on graphs pages 21 & 22. Callan compared APFC allocation compared to peer funds on slide 26 & 27.

At time 10:09, discussion turned to the POMV draw and long-term effects of over-drawing the ERA. In addition, the subject of inflation proofing, combining the ERA into the corpus of the Permanent Fund (protecting it all from spending) and how the earnings are affected by sale of assets.

 

February 20- Overview of Governor's Budget Amendments

 

February 21- Fiscal Position with Governor's Budget Amendments

 

 

Community & Regional Affairs Committee

February 16- Overview: Alaska Office of Broadband

I know that folks in the Rabbit Creek area, particularly higher up on the mountain, have poor-none in terms of internet connectivity. The federal money will be targeting rural Alaska but also including areas of Anchorage. Yay!! The Broadband Office is targeting a minimum of 25 mbps download and 3 mbps upload.

 

February 23- Limitations on Firearms Restrictions- Invited and Public Testimony

 

 

Education Committee

February 20- Overview University of Alaska by President Pat Pitney

 

February 22- Civics Education Testimony; Public Schools Mental Health Education Testimony

 

 

Health & Social Services Committee

February 16- Repeal Certificate of Need Program

 

February 221- Five-Year Involuntary Commitments Testimony

 

 

Judiciary Committee

February 17- Presentation: Public Defender Agency Overview

 

February 22- Consideration of Governor's Appointees: Alaska Police Standards Council

 

 

Labor & Commerce Committee

February 17- Workforce Challenges in Alaska

 

February 20- 80th Percentile Presentation

 

February 22- Workforce Challenges from the Oil and Gas Resource Development and Tourism Industry

 

 

Resources Committee

February 17- National Petroleum Reserve in Alaska

 

February 20- Presentation: Carbon Offset: Forestry Panel

 

February 22- Presentation: Carbon Offset: Financial Questions

 

 

Transportation

February 16- Electric-Assisted Bicycles

 

February 21- Presentation: Roads, Highways and Bridges

 

 

Joint Session with the House

February 17- Address by Mary Sattler Peltola, U.S. Representative

Journal Supplement of Rep. Peltola's Address

 

 

February 22- Annual Address by Lisa Murkowski, U.S. Senator

 

 

 

 

Current Topics

A major Girdwood housing proposal is dead. Now, the Alaska resort community wants to figure out its own solutions to its housing crisis. ADN

Local control is embedded in the Alaska Constitution. Girdwood now has the opportunity to exercise that local control in shaping housing in their community.

 

U.S. Senate passes resolution to designate Feb. 16 as National Elizabeth Peratrovich Day. ADN

Elizabeth Peratrovich has an amazing life story of courage and perseverance.

 

2 tribes withdrawing from lawsuit against proposed Ambler Road. ADN

Two Alaska Native tribes said this week that they are leaving a lawsuit that seeks to stop construction of a state-proposed 200-mile industrial road through the wilderness that would reach a valuable mineral district in Northwest Alaska.

 

After Alaska Air planes bump runway, a scramble to "pull the plug". ADN

This illustrates the importance of the correct math and not totally relying on calculators.

 

 

Politics

Republican backer chosen to oversee Alaska elections. ADN

The Director of our Division of Elections should be a very non-partisan person whose professional focus is on fair, accurate, accessible elections for all Alaskans.

It is distressing to see an apparent partisan being appointed to this critical policy position.

 

Dahlstrom defends as fair pick for top Alaska elections role. AP News

 

Alaska childcare crisis more acute than ever, legislators hear. ADN

"Alaska's childcare crisis is more acute than ever, and the end of federal COVID-19 relief has created a looming fiscal cliff, according to providers and parents. The state has long had a fragile childcare sector. The number of providers has dropped by more than 11% since 2021, waitlists for places can extend into years, and low wages for employees- averaging around $13 an hour- are contributing to a serious shortage of workers, providers say."

This is a serious issue that even our State Chamber of Commerce identifies as a priority.

 

Launch of campaign to repeal ranked choice voting draws a crowd in Anchorage. Alaska Public Media

 

At the Alaska Capitol, Rep. Peltola encourages bipartisanship. Alaska Beacon

Speaking in the state Capitol on Friday Rep. Mary Sattler Peltola. D-Alaska, praised the bipartisan coalitions that control the state House and Senate, saying she's frequently asked about "the Alaska model" of bipartisanship.

"It's strange," she said, "to hear something we take for granted here at home is so foreign in the rest of the country. But it's also so inspiring because it gives me faith that for all the challenges Alaska faces, we're doing something right- we've sparked the interest of Americans who are tired of a broken system in D.C. that too often highlights gimmicks over policy.

 

 

Healthcare News

1 big thing; Medicare truth bomb. Axios

To stop Medicare's finances from imploding as soon as 2028, Congress has only three real options: raise taxes... cut benefits... or cut payments to the health-care industry.

 

New study provides snapshot of increase in maternal deaths in Alaska. Alaska Beacon

This is why I'm such a strong supporter of extending the postpartum benefits to one year. This will not serve only physical health but also mental health, as women experience the dramatic changes that come in the postpartum time.

 

 

Economic News

States with the highest property taxes.

 

Food Banks in Alaska are struggling amid nutrition assistance crisis. Alaska Beacon

 

 

Energy News

CCUS: 2023 will be a milestone year. Wood Mac

 

Report on the Goals and Objectives for Arctic Research. Arctic.gov

 

Alaska native supporters of Willow oil project push for approval in D.C. ADN

As a decision from the Biden administration on the Willow oil development project nears, a group of North Slope leaders traveled to Washington D.C., this month to advocate for its approval, emphasizing that their communities stand to gain billions if it is developed.

 

Alaska House votes unanimously to support Willow oil project. Alaska Beacon

 

 

This Week in Alaska History

·     Feb 16: Elizabeth Peratrovich Day- Alaskans honor Tligit civil rights activist Elizabeth Peratrovich who is remembered for her role on the passage of Alaska's Anti-Discrimination Act of 1945 (the first legislation of its time in the U.S.).

·     Feb. 19, 1989: Roxy WRIGHT- Champaigne became the first woman to win World Champion Sled Dog Race.

·     Feb. 20, 1899: First passenger train to White Pass

·     Feb. 21, 1924: Ben Eielson made first airmail delivery in Alaska, Fairbanks to McGrath.

 

 

Alaska Oil Resource values

 

·     ANS crude oil price (2/22/23): $77.48

·     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 (2/22/23): 491,198 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 2/22/2023: $76,990,000,000

·     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. 22, 2023

Gold - $1826.60

Silver - $21.58

 

 

 

 

"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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