Senate Majority Bipartisan Coalition Website

State Senator District E

Senate Majority Leader

 

Senator Cathy Giessel Newsletter

UPDATES



Issues affecting

your family, community and jobs.

February 27, 2025

Dear friends and neighbors,

 

Last weekend I enjoyed a wonderful evening with the folks in Girdwood who are supporting construction of a new Little Bears Childcare Center. It was great to spend time with folks who care about children.

"Our children are the message we send to a future that we will never see."

We can be preparing them to be healthy (socially, physically, spiritually) and productive people through nurturing them today.

 

Budget Numbers

Realities:

There have been increases of $280 million over the last 10 years in prisons (corrections) and troopers (public safety). This equals nominal spending increases on prisons and troopers of 57% and 76% respectively.

 

Education, at the same time, fell by $62 million over the same 10 years, equaling a decrease of about 5%.

 

Medicaid healthcare funding is the central target in Congress. The House Republican budget writers instructed the Energy and Commerce committee to make $880 billion in cuts. The only place that much can be cut is in Medicaid. About 33% (1/3) of Alaskans depend on Medicaid assistance for healthcare. Medicaid provides a lifeline for cancer patients. Alaska's state budget will be enormously impacted if this happens.

 

Below is a video of my special order regarding the Medicaid funding on the Senate floor yesterday.

Permanent Fund

On February 20th, 2025 Devon Mitchell, the Executive Director & CEO of the APFC gave a presentation on Permanent Fund Corporation at the monthly RDC Breakfast Forum. You can watch his presentation and view the slides here.

 

Does Alaska have a revenue problem or spending problem? Alaska Beacon

The reality is that Alaska truly is unique among all 50 states when it comes to our revenue position. We have no state sales tax, no personal income tax, statutorily balanced budgets, and a huge endowment to fund government for generations to come.

On the expenditure side, Alaska has been fortunate that for much of the past 50 years, our expenses have basically been 100% covered by taxes and royalties paid from the oil industry. Alaska has partnered with the industry to develop our resources in the most economic way.

 

(My comment: This is an interesting opinion piece but misses the solution parts. Yes, our budgets have increased. Personal budgets have increased as well; it’s called inflation. If we want to continue to avoid paying for the stuff we get, it means we have to secure the Permanent Fund to increase savings and limit spending from the earnings. Earnings from the Permanent Fund pays more than 50% of the cost of schools, Medicaid for 33% of Alaskans, fully staff police services that protect us all, and a lot more state services.)

 

District E Community Meeting coming up!

More info about time and place below.

**Note New Location for South Anchorage meeting**

 

Items in this Newsletter:

·     Community meetings

·     DOT presentation to Senate Finance

·     State revenue/budget

·     ASD class sizes with budget scenarios

·     Current Topics, Stuff I Found Interesting, Arctic Issues, Fisheries, Economy, Education, Politics, Healthcare,

·     Resource Values, Permanent Fund

We want to hear from you!

 

**NEW LOCATION**

for South Anchorage meeting

**KLATT ELEMENTARY SCHOOL**

We will be in Girdwood later that same day!

Department of Transportation Presentation to Senate Finance

Our District drives around the State a lot and there's always interest in how are roads are being built. We drive to the State Fair in Palmer, dipnetting on Kenai Peninsula, to Denali with visitors, or Fairbanks for the Ice Sculptures.

 

This was a Department of Transportation presentation about their budget, how they are using Federal money and where roads are being built or upgraded.



You can find the recording of the presentation and the slides here.

The budget year CURRENTLY IN RED

The budget proposed by Governor NEXT YEAR IN BLUE

 

PFD is the first set of bars; Governor wants to double it next year.

Education is the second set of bars: Governor wants to reduce it next year.

Health is next and doesn't change much.

DOC is Dept of Corrections which needs more funding.

Etc...

Anchorage School District

Fiscal Year 2025-2026 Preliminary Budget

 

Class Sizes with Budget Scenarios

By the time you read this newsletter, the ASD Board will have met and considered the budget for the next year.

 

Budget effect on Class Sizes

The top graphic shows Class Sizes under the current funding (FY25).

The middle graphic shows class sizes with flat funding for next year (FY26).

The bottom graphic shows class sizes with funding increase of $1000/student.

 

Class size has the largest effect on student learning.

 

Above you can see the ClassYou can review the whole report here.

 

With a $111M deficit, Anchorage School Board set to vote on 'devastating' budget. Anchorage Daily News

The Anchorage School Board is preparing to vote Tuesday on a budget that would slash funding for the next school year by more than $43.2 million — cutting more than 380 teacher, staff and administrative positions, ending some academic programs, increasing class sizes and eliminating all middle school and some high school sports, among other cuts.

Institute of Social & Economic Research

University of Alaska Anchorage

 

How much does Alaska spend on K-12 education?

 

On February 17th, the Institute of Social and Economic Research presented to the Senate Education committee.

 

Below is a quick summary of their presentation provided by Tim Bradner in his publication, Alaska Legislative Digest.

 

You can find a recording of the full presentation and the associated slides here.

Alaska Earthquakes

 

We have a lot of them!

Current Topics

Federal Aviation Administration withdraws from Alaska groups that work on safety. Alaska Beacon

On Feb. 5, one day before the crash of Bering Air Flight 445, the Federal Aviation Administration informed a group of Alaska air carriers that it would no longer be a member of two organizations that address safety and other issues.

 

How to rent chickens in Denver to combat egg prices and shortages. Axios

A company called Rent The Chicken offers delivery and setup of a coop on wheels, two or four young egg-laying hens, chicken feed, and food dishes for a five- to six-month rental period across the nation, including in Denver. The standard rental package locally runs $545.

 

Those battling Alaska child abuse argue state law lacks physical abuse protections. Alaska News Source

Pictures featuring children who underwent child abuse evaluations at The Children’s Hospital at Providence were shown to some state lawmakers by advocates arguing a loophole in current Alaska child abuse law lacks physical abuse protections. Dr. Sean Dugan, who oversees the Alaska CARES service, which helps children who have experienced trauma from abuse, used pictures of noticeable marks on various parts of the children’s bodies to argue to members of the Alaska Children’s Caucus what is currently considered discipline needs to be redefined as “unreasonable force.”



Arctic Issues

Joint US-Canadian grant to support Yukon Tungsten project: Possible blueprint for further arctic critical minerals funding. Wilson Center

Tungsten is a minor metal in terms of market size (est. $5 billion in 2024) and is mostly used in tungsten carbide drill bits and other applications that call for particularly hard metals or alloys. DOD is funding Mactung through Title III of the Defense Production Act of 1950, which “targets investments that create, maintain, protect, expand, or restore domestic industrial base capabilities that are critical to the Department and the American Warfighter.” Only about 8 percent of tungsten worldwide is actually used directly in defense applications, according to the International Tungsten Industry Association, but the language of the DOD award emphasizes the criticality of tungsten nonetheless, calling the metal “a critical input for military-grade steel production, aerospace components, munitions, and ground vehicle armor.” 

 

Economy

Average state tax rates for retail gasoline and diesel fuel nearly flat since July 2024. EIA

The same three states had the lowest gasoline and diesel taxes: Alaska (both at $0.0895/gal), Mississippi (both at $0.1840/gal), and Hawaii (both at $0.1850/gal). The three states with the highest gasoline taxes were California ($0.6982/gal), Illinois ($0.6610/gal), and Pennsylvania ($0.5870/gal). Those same three states also had the highest diesel taxes: California ($0.9212/gal), Pennsylvania ($0.7410/gal), and Illinois ($0.7360/gal).

 

The footnote that just might save Fed independence. Axios

The Federal Reserve Act — passed by Congress 112 years ago and amended many times since — describes clear authorities for the Fed's Board of Governors, making no mention of White House review. "The Board shall determine and prescribe the manner in which its obligations shall be incurred and its disbursements and expenses allowed and paid," says Section 10 of the law. Translation: The Fed sets its own budget. The law lays out a series of authorities held by the board, sets the structure of hybrid public-private reserve banks across the country, and empowers the Federal Open Market Committee to set monetary policy.

 

IRS deterrence effect is under fire. Axios

DOGE has started firing thousands of IRS workers, right in the middle of tax season. The move is likely to decrease the effect that restrains wealthier Americans from underreporting their taxable income. A new paper from Policy Impacts calculates that the government ends up receiving $12 in extra revenue for every $1 it spends auditing top-decile earners, thanks in large part to what the paper calls the "individual deterrence effect."

 

A tariff anecdote. Axios

There are lots of places where that price increase from the tariff can show up between the manufacturer and a consumer," Fed chair Jerome Powell told reporters last month. "Just generally, somebody has to pay the tariff," he told lawmakers at a congressional hearing. In some cases, it doesn't reach the consumer much; in some cases, it does," he added. "It depends on facts we haven't seen yet."

 

Fed official talks Trump policy risk. Axios

"These days, higher tariffs and immigration policies are often discussed and thought likely to increase prices, cool aggregate demand and possibly soften employment," Musalem said.

 

Union expects at least 1,378 Alaska federal employees in probationary status to be fired. Alaska Beacon

David Owens, a national representative with the American Federation of Government Employees, said the union did not have current numbers of those already fired as of Thursday, but expects the Trump administration to fire all probationary employees. Out of the 1,378 employees, 331 are veterans, he said. 

 

New Trump economy caution. Axios

“Consumers broadly anticipate that tariff hikes will lead to higher inflation, but policy uncertainty means that their views are subject to change," UMich's Joanne Hsu said in a statement, adding that 40% of consumers surveyed spontaneously mentioned "tariffs" — up from 27% last month. They're not alone in their anxiety: Small businesses — the economy's biggest hiring machine — are marking down capital investment plans, according to an index from the National Federation of Independent Business, a lobbying group.

 

With bipartisan support, Alaska Senate panel again proposes new PFD formula. Alaska Beacon

This year, barring tax increases, there isn’t expected to be enough state revenue to pay for both a 75-25 dividend and the K-12 public school funding increase advancing through the Alaska House. Estimates by the Legislative Finance Division, which performs fiscal analysis on behalf of the Legislature, show a deficit of near $500 million in the next fiscal year with a 75-25 dividend and the proposed public-school funding increase. Some members of the Alaska House of Representatives have suggested a $1,000 Permanent Fund dividend — instead of the 75-25 split — would be needed to balance the state’s books if the proposed K-12 funding bill becomes law.

 

Hard truths about Trump budget cuts. Axios

And the only way to truly reduce the deficit is to target the very programs Trump refuses to touch — defense, Medicare, Medicaid and Social Security. They account for 86% of the budget. That's reality for a country that, across Democratic and Republican administrations, has spent taxpayer money without restraint or care about debt. This is one area where everyone is guilty.

 

Trump handcuffs. Axios

You'd need to eliminate roughly $2 trillion just to make up for the current deficit projection, plus interest on our existing debt. That'd mean massive cuts to Social Security, Medicare, Medicare and defense. There's also the question of how many times you can spend the same dollar. Trump says he wants tariffs to balance the budget — but he also wants them to eliminate income taxes. And "DOGE dividend" checks would send savings back to taxpayers instead of helping dig the country out of this hole.

 

Alaska groups express concern over federal cuts, ripple effects on tourism economy. Alaska News Source

Tourism in Alaska is a significant pillar of the state’s economy, according to the Alaska Travel Industry Association, which said that more than 3 million people visited to state last year, creating an economic output of $5.6 billion. The industry alone, it noted, was responsible for creating around 48,000 jobs that supported tourism across the state.

 

Fisheries

Empty Nets: Big Changes in a Great American Fishery. Wilson Center

"Empty Nets: Big Changes in a Great American Fishery" is the final installment of our video series on Alaskan fisheries. This mini-documentary explores the ongoing crisis in Alaska's fisheries through the voices of scientists, fishers, managers, and other community members. The interviews highlight the critical role these fisheries play in supporting local communities, the state of Alaska, and the nation, while presenting diverse perspectives on the challenges and potential solutions for the future.

 

Alaska governor proposes lifting state's longtime ban on fish farms. Alaska Beacon

Gov. Mike Dunleavy on Friday introduced a bill that would partially reverse Alaska’s 35-year-old ban on fish farms.

 

Top Alaska House legislators reject plan to allow fish farms. Alaska Beacon

“Make no mistake, the industry will recover; however, lifting a ban on freshwater finfish farming sends the wrong signal, at the wrong time. It also erodes the spirit of the current ban and provides a foot in the door for possible salmon farming in Alaska,” they said. “We need to be focusing on solutions for our fisheries that positively impact our industry, market conditions, and the bottom line for our fishermen, not legislation that distracts from that.”

 

Gov. Dunleavy's new fish farming bill would not allow salmon farming. Alaska News Source

Governor Mike Dunleavy released a video on Monday giving more detail on HB 111, which would lift a longtime ban on certain types of commercial fish farming if passed — several lawmakers have already voiced opposition to the bill.

 

Energy

CEA, MEA talk to House Energy about Southcentral power supply. Petroleum News

Representatives from several electricity utilities talked to the Alaska Legislature's House Energy Committee about their utilities, their operations and the challenges that they face.

 

Alaska Energy Authority may scrap plans for EV infrastructure in Alaska as feds freeze funding. Alaska News Source 

Following recent executive orders signed by Pres. Donald Trump, the Alaska Energy Authority (AEA) said it may have to cancel plans to expand electric vehicle, or EV, infrastructure along the Railbelt and in other communities along the road system.

 

Education

Vote advances key education bill in Alaska House, with tight margin. Alaska Beacon

A voting error led one Alaska House of Representatives minority-caucus member on Wednesday to vote to move a public-school funding increase one step closer to passage through the Alaska House of Representatives, at a time when the House’s majority caucus has a narrow margin.

 

Alaska education funding boost nears vote of full House amid affordability concerns. Alaska Beacon

If HB 69 were to become law, the state would be expected to provide $325 million more next year for public schools, with additional increases in 2027 and 2028. 

 

ASD proposes two charter schools move into the soon-to-be-vacant Anchorage elementary schools. Alaska News Source

The Anchorage School District is recommending that Rilke Schule German Immersion School move into Lake Hood Elementary next school year and that Highland Academy Charter School move to the building that Nunaka Valley Elementary students currently occupy.

Earlier this year the Anchorage School Board voted to close the two elementary schools as part of ASD’s “rightsizing” plan. The district supports repurposing the buildings including moving charter schools into them.

 

Anchorage School Board makes broad cuts to staff, programs and sports in next year's budget. Anchorage Daily News

In a 6-1 vote Tuesday night, the board slashed funding for the 2025-26 school year by about $43 million. The cuts include more than 380 teacher, staff and administrative positions, ending the IGNITE program for gifted elementary students and eliminating all middle school sports and high school hockey, gymnastics and swimming and diving. Additionally, class sizes are set to increase by four across all grades, and some elementary schools will see their singular nurse and librarian positions reduced to half time.

 

Fairbanks proposed education cuts include over 60 teaching positions, 90 support staff. Alaska News Source

 

Health Care

1 big thing: How we live vs. how we're born. Axios

Our environment and lifestyle are about 10 times more important than our genes when it comes to longevity.

 

Overdose deaths fall. Axios

The fatal drug overdose rate fell 4% nationwide from 2022 to 2023 — but grew notably out West and up in Alaska, per new CDC data. Alaska, Oregon and Washington, splitting from the national trend, reported major increases in their fatal OD rates.

 

Alaska high schoolers are vaping less and more know it's harmful, survey says. Alaska Public Media

The number of Alaska high schoolers who say they’ve used vapes or e-cigarettes recently is declining, according to the latest data from the Alaska Youth Risk Behavior Survey. The survey shows 26% of highschoolers had vaped in the last thirty days in 2019. By 2023, that figure dropped significantly, to about 17%.

 

Measles, once eliminated in the U.S., sickens 99 people in Texas and New Mexico. Anchorage Daily News

Nearly 100 people across Texas and New Mexico have contracted measles, state officials say, escalating anxiety over the spread of a potentially life-threatening illness that was declared eliminated in the United States more than two decades ago.

Alaska Oil Resource Values

 

Alaska North Slope crude oil price (2/26/25): $71.64

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 3/08/22: $125.44

Price on 12/22/21: $75.55

ANS production (2/25/25): 486,019 bpd

 

In a major shift, Japex to priorities oil and gas investment through 2023. Reuters

Given Trump's plan to expand liquefied natural gas (LNG) exports, the company aims to gradually acquire gas assets, he said. But the Alaska LNG project, which Trump supports, is not a realistic investment proposition due to its unclear economics and large scale, he said.

 

Precious Metal Prices

February 26, 2025

Gold - $2930.57

Silver - $32.04

Platinum - $982.23

Palladium - $961.45

Rhodium - $4700.00

 

Alaska Permanent Fund

website

 

Fund value February 26, 2025 - $80,827,200,000

PFD payout from ERA, Fiscal years 1982-2024: $43.9 Billion

$100 Billion total earnings over lifetime of the Permanent Fund

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)

·     Legislation Aide: Paige Brown (from Anchorage/Girdwood)

·     Resources Committee Staff: Inti Harbison (from Anchorage)

·     Office Manager: Jane Rohr (from Homer)

 

Copyright © 2025. All Rights Reserved.

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