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Senator Cathy Giessel Newsletter

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Legislative Day 45

February 29, 2024

 

 

Dear Friends and Neighbors,

 

Happy Leap Year!!

 

Welcome to day 45 of the 120 day legislative session.

 

Items in this Newsletter:

·     Cook Inlet Royalty Reduction

·     SB 140: Education Funding and Broadband Access Grants News

·     APFC White Paper

·     Senate Committee Meetings

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

·     Resource Values, Permanent Fund

 

 

 

 

 

Cook Inlet Royalty Reduction

 

On Friday, February 23, Senate Resources heard from the Department of Natural Resources on SB 194: Reduce Royalty on Cook Inlet Oil & Gas from the Governor. The link to the meeting is here, and the full presentation is here.

 

 

 

 

 

Senate Concurs with Comprehensive

 Education Package

Senate Bill 140 Provides School Districts, Educators, and Students with Necessary Resources to Increase Educational Outcomes

 

JUNEAU – Today, the Alaska State Senate concurred with the House changes to Senate Bill 140, effectively passing the largest increase to school funding in state history with a $680 increase to the Base Student Allocation. Senate Bill 140 will also significantly improve internet connectivity in rural Alaska, provide $10 million in additional funding for the Alaska Reads Act, and bring parity to public correspondence education by increasing funding by $14.5 million. 

 

“Over the past two sessions, we’ve heard from school administrators, principals, teachers, parents, and students about the dire circumstances they have faced. Without a substantial increase in funding, Alaska will continue to lose teachers, cut programs, and increase class sizes to untenable pupil to teacher ratios. Today, I am proud of the work we were able to accomplish to move the education pendulum, and I vow to continue working to improve our public schools,” said Senator Löki Tobin (D-Anchorage), Chair of the Senate Education Committee.

 

“The passage of SB 140 is a monumental step forward for Alaska's education system. This comprehensive bill, with its substantial increase in school funding, reflects our commitment to providing the best possible education for our students. Even though it is not perfect, it is a step in the right direction to increase education outcomes," said Senate President Gary Stevens (R-Kodiak).

 

The original version of the bill, sponsored by Senator Lyman Hoffman (D-Bethel), increased Broadband Access Grants for eligible schools from 25 Mbps per second to 100 Mbps. In 2023, 151 schools from 27 rural school districts qualified for the grants. For school districts to take advantage of the increased bandwidth grants, the legislature must have acted before the end of February.

 

“While the process seemed messy, I am grateful that rural schools will be able to access these grants this year. Coming together showcased the legislature’s commitment to rural schools,” said Sen. Hoffman, Co-Chair of Senate Finance. “As Alaskans know, especially those who are off the road system, access to technology and digital information is the lifeline that connects our communities and provides the necessary tools for school districts to educate our youngest Alaskans.”

 

"The passage of SB 140 is a result of collaborative efforts to shape a stronger future for our youngest Alaskans. With this collaborative effort between the Senate and the House, we are ensuring that our students are well-prepared for the challenges and opportunities that lie ahead. This bipartisan achievement is a testament to our commitment to excellence in education,” concluded Senator Bill Wielechowski (D-Anchorage), Senate Rules Chair.

 

 

Cost of SB 140 with add-ons

 

·     Underlying broadband legislation moves rural schools from 25 mbps to 100 mbps = $39.4 Million.

·     Base Student Allocation (BSA) increase of $680/student = $174.6 million

·     $500/student (K-3rd grade) with reading assistance need = estimated $10 million

·     Correspondence school (home school) funding = $14.5 million

·     Student Transportation increase = $7.36 million

·     Charter School coordinator in Dept. of Education = about $130,000

 

Total estimated: $246.6 million

 

 

 

With bipartisan action, Alaska House votes to increase public school funding formula. Alaska Beacon

 

Alaska House passes bipartisan education bill with historic boost in school funding. ADN

 

House passes $680 BSA increase, with other education provisions. Juneau Empire

 

What will governor do, as Senate poised to vote on historic education funding increase. Alaska's News Source

The $680 increase to the state’s base student allocation, contained in the version of Senate Bill 140 that passed the House on Thursday night, is the largest nominal bump in state history. 

 

Gov. Mike Dunleavy says bipartisan education funding bill 'falls far short'. Alaska Public Media

 

After bipartisan education bill passes Senate, Gov. Dunleavy says it 'falls far short'. ADN

 

Alaska Senate passes bill on historic education funding increase, governors says it 'falls far short'. Alaska's News Source

 

Alaska Senate passes omnibus education bill; now heads to governor. Web Center Fairbanks

 

House District 2 Rep. Himschoot celebrates bipartisan education bill, but says "there's a long way to go". KFSK

If the governor does veto the bill, the Alaska Constitution instructs legislators to meet in a joint session of the House and Senate within five days to either override or sustain the veto. 

(My Comment: The original SB 140 bill would have accepted federal grant money ($39.4 million) to increase broadband access in rural Alaska, increasing speed to 100 mbps. The House added requests from the Governor, which the Senate discussed with them and agreed to with some alterations. Cost for items added to broadband: increase BSA by $680/student ($174.6 m); $500 per K-3rd grade student for intense reading assistance (estimated at $10 m); increase public correspondence school students by equivalent to BSA ($14.5 m); added student transportation funding ($7.360 m); Charter School coordinator in Dept. of Education (probably about $130,000). Total cost for adopted SB 140 = $246.6 m.) 

 

Dunleavy demands additional concession before he'll sign bipartisan education bill. Alaska Public Media

Gov. Mike Dunleavy is demanding the Legislature quickly pass additional legislation addressing his priorities before he will sign a bipartisan education bill that passed the House and Senate by overwhelming margins earlier this month. Otherwise, Dunleavy is threatening to veto the bill.

 

Dunleavy threatens to veto public education funding bill unless legislators act on his priorities. Alaska Beacon

 

Gov. Dunleavy says he will veto education package unless lawmakers adopt his priorities. ADN

 

Dunleavy demands additional concessions before he'll sign bipartisan education bill. Alaska Public Media

 

Dunleavy threatens veto if education bill changes are not made. Alaska's News Source

 

Dinosaurs vs. unicorns in Alaska's education debate. ADN

The conversation about how to fix Alaska’s educational system boils down to a discourse between dinosaurs versus unicorns.

 

 

 

In this Rules-Based Permanent Endowment Model white paper, the APFC Board talks about their recommendations for a secure Fund in the future but also what risks exist if we continue the path forward. They recommend a single-account fund, with a POMV rule limiting annual distributions. The risk of not taking this kind of action is the probability of depleting the ERA within 3-5 years. The ERA is the account from which revenue comes for PFD and the state's budget. Every Alaskan would benefit from reading this policy paper.

 

 

 Register now for Alaska Sustainable Energy Conference pre-conference workshop series

 

Join us for a series of three FREE virtual monthly workshops hosted by ACEP, leading up to the 2024 Alaska Sustainable Energy Conference. These pre-conference workshops will take a deeper dive into specific topics that are pending or a priority for Alaska’s energy future. The workshops will be held via Zoom over two half-days each month.

 

March 5-6

Utility Decision Making: Navigating constraints, innovating for the future

 

April 2-3

Transmission and Distribution: The clean energy transitions secret weapon

 

May 7-8

Betting Big: Investing in emerging energy technology

 

Register now for the free pre-conference virtual workshop series.

 

The 2024 Alaska Sustainable Energy Conference will take place in Anchorage in May. This year’s theme is “Transforming Energy Now for the Next 50 Years,” focusing on real-world examples in Alaska and around the globe that demonstrate progress in energy transitions such as established renewable sources, advancements in energy storage and emerging technologies.

 

When: Tuesday, May 21 – Thursday, May 23

Where: Dena’ina Civic and Convention Center, Anchorage, Alaska

 

Learn more about the conference.

 

 

 

In 2023, IBM shocked the retirement world by announcing the company would reopen its defined benefit (DB) pension plan and end its defined contribution (DC) 401(k) matching contributions, a trend that also is occurring in the public sector.

 

Social Security Trustees 2023 Report indicated that the main Social Security trust fund's reserves will be depleted in 2033.

 

Polling of Americans find:

·     strong support for DB pensions

·     high retirement anxiety

·     action to safeguard Social Security

·     long-term care cost retirement coverage

 

Read this report to see details.

 

These reasons, and more, are why I am sponsoring SB 88 to join other states and private sectors who are returning to pensions for today's employees, future employees and retirees!

 

 

Senate Committee Meetings

Week of February 22-28

 

Finance

Feb 22 - Budget Public Testimony: Nome, Bethel, Kotzebue, Utqiagvik, Unalaska, and Dillingham

 

Feb 22 - Budget Public Testimony: Anchorage, Matanuska Valley, Homer, Seward, Valdez, and Kenai Peninsula

 

Feb 23 - SJR 14: Support State Seafood Industry

 

Feb 26 - Confirmation of Governor's Appointees: John Sturgeon + Brent Fisher for Alaska Mental Health Trust Authority; SB 85: Permanent Fund; Employment; Eligibility (Invited and Public Testimony)

 

Feb 27 - SB 105: Railroad Corporation Financing (Invited and Public Testimony); SB 205: AHFC Authority to Acquire Building (Invited and Public Testimony)

 

Feb 28 - Update: State Transportation Improvement Plan (STIP) by the Dept. of Transportation

 

 

Community and Regional Affairs

Feb 22 - SB 236: Grants to Disaster Victims; SCR 8: Recognizing NCSL on 50th Anniversary

 

Feb 27 - SB 161: Tax Exemption for Farm Use Land; SR 3: Chronic Kidney Disease Awareness Month

 

 

Education

Feb 26 - SB 215: Teachers: Board Certification Incentive; SJR 17: Extend Deadline for ARP-HCY Funds (Invited and Public Testimony); Presentation: Governor's Task Force on Child Care

 

 

Health and Social Services

Feb 27 - Presentation: Department of Health Response to LB&A Audit Findings; SB 240: School District Medical Assistance (Invited and Public Testimony)

 

 

Judiciary

Feb 26 - SB 166: Mental Health/Psychedelic Medicine Task Force (Invited and Public Testimony)

 

Feb 28 - HB 66: Controlled Substance; Homicide; Crimes; Sentencing (Invited and Public Testimony); SB 165: Defense of Public Officer: Ethics Complaint (Invited and Public Testimony)

 

 

Labor and Commerce

Feb 26 - SB 144: Rates: Motor Vehicle Warranty Work (Public Testimony); SB 204: Certification of Fitness: Plumbers/Electricians (Invited and Public Testimony); SB 228: Extend Board of Massage Therapists (Invited and Public Testimony)

 

Feb 28 - SB 121: Pharmacies/Pharmacists/Benefits Managers (Invited and Public Testimony); SB 115: Physician Assistant Scope of Practice (Invited and Public Testimony)

 

 

Resources

Feb 23 - SB 220: RCA Regulate Natural Gas Storage Facility (Invited and Public Testimony); SB 194: Reduce Royalty on Cook Inlet Oil & Gas (Invited Testimony)

 

Feb 26 - Presentation: Mining Industry Update; SB 243: Alaska Energy Authority Governance (Invited Testimony)

 

Feb 28 - Presentation: Alaska Industrial Development and Export Authority (AIDEA) Update; SB 220: RCA Regulate Natural Gas Storage Facility (Invited Testimony); SB 243: Alaska Energy Authority Governance (Invited and Public Testimony)

 

 

State Affairs

Feb 22 - SB 18: Allow Electronic Drivers' Licenses and ID (Invited and Public Testimony); SB 208: Vehicles: Register; Transfer; Insurance; License (Invited and Public Testimony)

 

Feb 27 - SB 223: Assistant Adjutant General Appointment (Invited and Public Testimony); SB 185: Establish AK Military Affairs Commission (Invited and Public Testimony)

 

 

Transportation

Feb 22 - EO 131: Recognizing the Alaska Marine Highway Operations Board (Public Testimony); SSCR 8: Disapprove EO 131

 

 

Current Topics

USDA releases bids to purchase Alaska seafood. Alaska Business

The purchase consists of more than 1.4 million cases of canned Alaska pink salmon, 300,000 cases of canned Alaska sockeye salmon, and 15 million pounds of Alaska pollock fish sticks and fillets. Each case of salmon consists of 24 cans, regardless of size. All of the pink salmon will be in “tall” cans that contain 14.75 oz, and the sockeye salmon will be split between the 14.75 oz “talls” and the smaller 7.5 oz “halves.”

 

Murkowski calls proposed endangered listing for Alaska king salmon 'wrongheaded'. Alaska Public Media

The Wild Fish Conservancy filed a petition with NOAA Fisheries in January, but Murkowski says the organization has missed the mark.

“They are attempting to utilize a very legitimate law, the Endangered Species Act, for what I would consider to be a very wrongheaded purpose,” Murkowski said by phone. “And that is to basically stop our wild fisheries.”

 

Basin-wide shift in bowhead whale migration in the Pacific Arctic. AGU Publications

Departure from the western Beaufort Sea shifted 45 days later over the 12-year period. Summer presence increased at both sites, suggesting feeding areas within the Chukchi Sea are becoming more favorable. Likewise, findings from the Bering Strait suggest that some whales are remaining north of the Bering Strait for the winter instead of in the Bering Sea. 

 

New data can help better understand glaciers. Phys.Org

This innovative dataset, featured in Earth System Science Data, offers an important tool to understand better the mechanisms behind glacier calving, or the breakup of icebergs, which can help to enhance our understanding of the climatic drivers behind glacier loss in Svalbard and the Arctic.

 

 

Economy

Peltola counts Federal Trade Commission (FTC) action against supermarket merger as a win for bipartisanship. Alaska Public Media

Congresswoman Mary Peltola leaned into unity in her annual address to the Alaska Legislature Monday. She pointed to a new federal action against supermarket consolidation as a win for the state, for her efforts and for what she sees as the Alaska model of bipartisanship.

 

In speech to state legislators, Alaska's Peltola praises effort to stop grocery-store merger. Alaska Beacon

The proposed supermarket merger is intensely unpopular in Alaska. Kroger owns Fred Meyer stores. Albertsons owns Safeway and Carrs. Peltola, a Democrat, has rallied Alaska opposition, amplifying local concerns that combining the major grocery chains would bring higher food prices and eliminate union jobs. She and the state’s U.S. senators wrote letters to the FTC opposing the merger. Peltola said she also met with the FTC chair and conveyed what Alaskans told her.

(My Comment: This is good news for Alaska! The Legislature sent a letter to the FTC in October, opposing this merger.)

 

 

Energy

Developers say proposed wind farm project could help power Anchorage, reducing strain on gas. ADN

Developers of a huge wind farm proposed for construction near Anchorage say it could help provide a much-needed boost to the area’s energy needs, and will be most productive when it’s most needed, when temperatures drop and demand for energy soars.

 

Unalaska weighs energy options as geothermal project requests new terms. Alaska Public Media

The City of Unalaska signed an agreement in 2020 to purchase power from Ounalashka Corporation/Chena Power, LLC, a partnership between Unalaska’s Native corporation and the team behind Chena Hot Springs. OCCP originally said it could bring a geothermal power plant online by 2023, but difficulties securing investors have led them to push that date to 2027.

 

Bill supporting development of nuclear energy wins passage in Kentucky Senate. AP News

The Kentucky Senate voted overwhelmingly Monday to lay the foundation to attract nuclear energy projects to a state where coal has dominated and fueled the economy for generations.

 

 

Politics

Lawmakers, advocates move to reignite an Alaska Children's Caucus. Alaska Beacon

The caucus is still in nascent stages, but Senate co-chairs Sen. Löki Gale Tobin, D-Anchorage, and Sen. Cathy Giessel, R-Anchorage, and the House co-chairs Rep. Mike Cronk, R-Tok, and Rep. Maxine Dibert, D-Fairbanks, have an open invitation to all members of the Alaska State Legislature to join.

 

Alaska Senate approves permanent extension of senior benefits program and three other bills. Alaska Beacon

The Alaska Senate voted without dissent on Wednesday to permanently extend a state program that pays up to $250 per month to poor Alaskans over 65 years old.

 

Senate advances bills to extend senior benefits, boost civil legal aid for low-income Alaskans. ADN

Senate Bill 170 passed unanimously from the Senate along with three other bills, including a measure that boosts free civil legal aid for low-income Alaskans, which is often used in domestic violence cases.

 

Alaska state senators show the courage to lead. ADN

On Feb. 2, the Alaska Senate acted in a manner that should inspire all Alaskans and tamp down the cynicism we often feel toward elected leaders when we believe they have ducked a hard conversation, a tough vote, or a difficult compromise for the greater good of our state. They passed Senate Bill 88, a public employee retirement bill that provides a modest pension to state employees. The matter is now before the House of Representatives.

 

Income tax bill voted down in House committee. Alaska's News Source

In a vote of 4-3, the House Ways and Means Committee voted down a bill Monday that would have implemented an income tax in Alaska.

 

Anti-ranked choice voting initiative clears first hurdle on way to November ballot. Alaska Public Media

A ballot measure to repeal Alaska’s ranked choice voting and return to a partisan primary has cleared an initial review.

 

Ballot measures on ranked choice repeal, minimum wage increase likely to go before Alaska voters. ADN

Two citizen-backed initiatives will likely appear on the general election ballot in November, including one seeking to repeal Alaska’s voting system, state election officials said Tuesday.

 

Initiatives targeting minimum wage, ranked-choice voting eligible to appear on ballot. Alaska's News Source

Individual initiatives related to Alaska’s minimum wage and open primary election system will likely appear on the November general election ballot.

 

Minimum wage increase, ranked choice repeal have enough signatures to be on ballot. Alaska Beacon

Two citizen-backed initiatives will likely appear on the general election ballot in November, including one seeking to repeal Alaska’s voting system, state election officials said Tuesday.

 

 

Healthcare

Burnout worse for women health workers. Axios

Burnout pushes some exhausted health care workers out of the industry, and it can also increase the risk of medical errors that put patients in danger. Women account for about three in four health care jobs in the United States.

(My comment: I spent multiple years working as an RN in a hospital unit during the pipeline construction. I know the demands, mental and physical, on nurses and nurse aides in our hospitals. I also know, first hand, that women are paid less than men in nearly all job categories, women take time off from professions to care for family members, and women live longer than men. A nursing shortage? Improved wages, working conditions, support: these will turn the nursing shortage around.)

 

Alaska lawmaker says systematic changes to food stamps program will reduce backlog, save money. Alaska Public Media

“It’s less than $300,000 a year. But, it will serve a huge population of our state. And as I said before, the state is already appropriating millions … $4.5 million in the next two fiscal years, to make up for the SNAP problems that we’ve had. So we actually save money.” 

 

As millions wait on food stamp approvals, feds tell states to speed it up. Stateline

Lawmakers also are taking aim at the problem. Senate Majority Leader Cathy Giessel, a Republican, has sponsored a bill that would expand eligibility for food stamps and streamline the verification process, a standard that has already been adopted by 41 states. The measure would eliminate restrictions on recipients’ savings and assets, while expanding eligibility to those making 200% of the federal poverty level, up from 130%.

 

The doctor will fee you now. Axios

Making it easier to access your doctor online is generally seen as a good thing — until it becomes a bit too much. Patients aren't always good at differentiating between what they should be emailing their doctor about and what can wait.

 

A first for drug affordability boards. Axios

Colorado's prescription drug affordability board on Friday agreed to set a payment limit on Amgen's arthritis and psoriasis drug Enbrel.  It's the first time any of the drug affordability boards set up by several states in recent years has moved to cap a medicine's price.

 

Surge in youth antidepressant scripts. Axios

Antidepressant prescribing to youths rose 63.5% during the pandemic, with adolescent girls accounting for some of the sharpest increases. It's further evidence of a youth mental health crisis characterized by depression and anxiety brought on by social isolation, concern about the future and financial and other stressors. But a shortage of mental health workers and the shift toward telehealth and remote prescribing may have contributed to a prioritization of drug treatments over therapy.

 

 

Alaska Oil Resource Values

 

Alaska North Slope crude oil price (2/28/24): $82.39

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 (2/28/24): 482,522 bpd

 

Chugach Electric community solar energy farm plan approved by RCA. Petroleum News

The Regulatory Commission of Alaska has approved a plan for Chugach Electric Association to build a community solar energy farm in Anchorage and to operate it as a three-year pilot project. The four-acre, 500-kilowatt farm would have 1,280 solar panels and be located at the utility's Retherford Substation in south Anchorage.

 

Santos CEO Gallagher hints at possibility of first oil in 2025 vs 2026. Petroleum News

Pikka, which is west of the central North Slope, is a low carbon-intensity project that will be net-zero scope one and two emissions from first production, Gallagher said in his Feb. 21 presentation.

 

Necessary questions about the Cook Inlet gas monopoly. ADN

In addressing the Cook Inlet natural gas supply problem facing Southcentral Alaska, one unmistakable feature of the production structure is that only one company (Hilcorp) controls roughly 90% of the production. This implies no judgment regarding the capability or integrity of Hilcorp. But Hilcorp’s historical prowess is taking over old fields and boosting production, rather than developing new ones. For instance, it bought BP’s share of Prudhoe Bay. And Hilcorp originally entered the Cook Inlet market by purchasing Marathon’s assets there. So there is no question that the lack of diversity in Cook Inlet producers eliminates the abundance of opinions that is often useful in solving problems.

 

Alaska natural gas promoter floats new plan: Send North Slope gas to Southcentral first. Alaska Beacon

The Alaska Gasoline Development Corp., the state government entity promoting the long-desired North Slope natural gas project, is characterizing the new plan as a way to address looming shortages of deliverable gas to the state’s most populous region.

(My Comment: This is not a “new plan”. This is a rerun of an alternative reviewed in 2012-13. It will require substantial State subsidy to finance.)

 

 

Precious Metal Prices

Feb. 28, 2024

Gold - $2047.67

Silver - $22.68

Platinum - $896.43

Palladium - $974.23

 

Alaska Permanent Fund

website

 

Fund value February 28 - $77,032,600,000

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 21, 1924. First airmail delivery in Alaska, Fairbanks-McGrath

 

·     Feb 24, 1957. First commercial airline flight, Europe to Orient via Anchorage

 

·     Feb 26, 2008. Alaska oil closes above $100/barrel

 

·     Feb 26, 1981. Pope John Paul II in Anchorage

 

·     Feb 27, 1923. President Harding established National Petroleum Reserve-4 on North Slope.

 

·     Feb 28, 1967. First winter ascent of Denali. 

 

 

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