Senate Majority Bipartisan Coalition Website

State Senator District E

Senate Majority Leader

 

Senator Cathy Giessel Newsletter

UPDATES



Issues affecting

your family, community and jobs.

March 06, 2025

Dear friends and neighbors,

 

I hope to meet with many of you on Saturday! I will be at Klatt Elementary in the morning and Girdwood Community Room in the afternoon (details below).

 

Education & Budget

The budget is still an ongoing Education discussion with the House. We in the House and Senate Majorities all agree that education funding in the BSA is critically needed.

(Thank you for all your emails abouat education and the budget!! I appreciate hearing from you!)

The debate is around how much various education proposals cost. Can we afford $1000/student in the BSA increase, or is $680 all that we can pay for? Or...how about a number in between, like $800?

·     $680/student in BSA costs $175 million.

·     $1000/student in BSA estimate cost $325 million

 

The House has HB 69 (version O) that will be debated on their floor today (3/6). Broad elements in the bill:

·     $1000 increase to BSA

·     No inflation adjustment mechanism

·     Makes opening charter schools easier

·     Cell phone ban in schools

·     Task force to review overall education funding

·     Report from State Dept of Education on ways to reduce administrative burdens on school districts

These pieces will likely change somewhat as amendments are accepted on the House floor, so this is by no means a finished product.

Then it will be sent to the Senate for more work.

 

The overall budget offered by the Governor has a deficit of $1.5 billion (the added costs for this year, then next year's budget). Should this deficit funding be taken out of savings (CBR)? The savings account has about $2.9 billion in it.

 

Education and healthcare are the two largest expenditures, next is corrections and public safety.

 

Sources of funding are shown in the graphic below - federal funds are the largest source; those are increasingly in question as the Federal Administration is talking about reducing Medicaid. That alone would add $1 billion to the state budget to cover the loss of those funds. The Permanent Fund Earnings is the next major revenue source at $3.7 billion this year and gradually going up, as long as we can protect the fund and inflation proof it every year. Oil is a much smaller source of revenue.

We are considering new sources of revenue. At least one of the major oil companies in Alaska doesn't pay any corporate income tax the way ConocoPhillips, Exxon and others do. This is because some companies are owned by individuals; they file with the IRS as "S corporations". These S Corp owners are taxed as personal income taxes. The problem is that Alaska has no personal income tax, so those owners of S Corps are not taxed.

 

The Senate has a proposal that would tax S Corps in a similar way under our Corporate Income Tax that all the other oil companies pay.

If this proposal is accepted by the legislature, it would mean about $186 million in the first 1 1/2 years, then about $120 million every year after that.

 

We are considering putting an internet corporate tax in place. This would affect companies like Amazon, Netflix, etc. and is estimated to amount to $20-60 million/year in revenue.

 

Another proposal would change the deduction for oil production from $8/barrel down to $5/barrel. It is estimated this proposal would equal about $300-450 Million/year in revenue.

 

We continue to debate and wrestle with this big issue.

 

 

Daylight Savings

This Sunday, March 9th is daylights savings.

Remember to adjust all your clocks to ONE HOUR LATER.

 

 

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

·     APFC presentation to LB&A

·     Canada

·     Youth mental health first aid training

·     State of AK Epidemiology bulletin

·     NCSL updates

·     AK Economic Trends March issue

·     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!

Permanent ENDOWMENT Model

 

Click on image of Trustee Paper #10 to view it.

 

The Legislative Finance Division and the Alaska Permanent Fund Corporation (APFC) gave a presentation to the Legislative Budget and Audit (LB&A) Joint Committee on the Impact of the Percent of Market Value Draw on Alaska's Budget and APFC Trustees' Paper #10, A Rules- Based Permanent-Endowment Model for Alaska.

 

You watch a recording of the meeting here and view the slides from the presentation.

Canada



Senate Joint Resolution 9: Recognizing Alaska/Canada Relationship

 

"We like Canada the way it is": As cross-border relations turn ugly, Alaskans and Yukoners work to stay friends. Northern Journal

Recent threats to start a trade war with Canada and to turn it into the 51st state of the U.S. have not landed well with the populace of the sovereign nation to Alaska’s east.

03/13 Training Opportunity: Youth Mental Health First Aid

Youth Mental Health First Aid is a full day course that teaches you how to identify, understand, and respond to signs of mental illnesses and substance use challenges among children and adolescents ages 12-18. Class covers common signs of challenges in this age group, crisis situations, and connecting to help. This training is offered via Zoom.

 

Learn more and register here.

National Conference of State Legislatures (NCSL) Updates

You can read the full report here.

You can read the full report here.

Alaska Economic Trends

 

March Trends: The number of Alaskans 65 and older has skyrocketed over the last decade and a half, continuing to rise even as youth and working-age populations have declined. You can read the whole issue here.

Current Topics

A family-owned institution for 7 decades, Lucky Wishbone earns a James Beard Award. Anchorage Daily News

The James Beard Foundation said Wednesday that the restaurant was one of six across the country to earn its America’s Classics Award. According to the foundation’s website, the award “is given to locally-owned restaurants with timeless appeal that serve quality food and are beloved by their communities.”

 

Alaska governor proposes new method for picking state judges. Alaska Beacon

The draft amendment, known variously as House Joint Resolution 12 and Senate Joint Resolution 13, would reduce the role of the nonpartisan Alaska Judicial Council in the judge-picking process.



Arctic Issues

Mass federal firings hit critical national Weather Service and NOAA offices. Anchorage Daily News

Termination letters were sent to staff in offices across the National Oceanic and Atmospheric Administration and of the National Weather Service, multiple employees told The Washington Post. It was a step current and former agency staff had been fearing for days, warning they would cause massive disruptions in the nation’s ability to guard against storms, solar flares and other natural threats.

 

In shocking first, sea ice breaks off in mid-February. The Nome Nugget

Sea ice has decreased by over 30 percent in the Bering Sea over the first two weeks in February, according to Thoman. The ice is now at its second lowest for this time of year on record. Only 2018 had less. The low sea ice could have impacts on the ecosystem. In 2018, after two winters of low ice, the Bering Sea struggled to renew its cold pool, a layer of extremely cold water that helps separate the ecosystem of the Northern Bering Sea from the Southern Bering Sea. Rick Thoman said he was concerned that without the sea ice, there might be trouble renewing the cold pool.

 

China drives 10-fold increase in container shipping at Russian arctic port. GCaptain

The increase is driven by several Chinese shipping companies making a push into the Arctic over the last several years. NewNew Shipping Line and EZ Safetrans Logistics established scheduled seasonal liner service along the Northern Sea Route connecting Russia to China. In total NewNew Shipping Line completed 17 voyages across the route last year. For 2025 Arkhangelsk expects to double arrivals again to total of at least 20 vessels. 

 

Greenland's leader says the island 'is ours' as Trump vows to acquire the territory. Anchorage Daily News

Trump said his administration was “working with everybody involved to try to get” Greenland. “We need it really for international world security. And I think we’re going to get it. One way or the other, we’re going to get it,” Trump said.

 

Economy

Alaska senators unveil oil tax increases as part of revenue measures to address growing deficit. Anchorage Daily News

The Legislature’s oil and gas analyst in 2023 said a previous tax hike proposal would likely have limited impacts on current or planned projects. But there could be downside risk on major new developments, according to an analysis by GaffneyCline. “We’ll see if that still holds true,” said Anchorage Republican Sen. Cathy Giessel, chair of the Senate Resources Committee. Giessel said another analysis would be needed on the economic impacts of the proposed tax changes. But she also stressed the dire fiscal outlook facing legislators. “It’s a huge challenge we’ve talked about — the approaching fiscal cliff. Well, now we’re standing at the edge,” she said.

 

Alaska senate leaders propose reducing oil tax credits as deficits loom. Alaska Public Media

One controversial bill would reduce a state North Slope oil production tax credit by $3 per barrel. It would also prevent oil producers from claiming more in production tax credits than they spend on capital investment in a given year.

 

Why your coffee fix has gotten so pricey - and it will only get worse. Anchorage Daily News

it’s not just coffee chains - with all the costs of labor and order customization - that have seen prices soar. Government data in January showed that the retail price of ground coffee hit a record high of $7 a pound, up from $4 in January 2020.

 

Over 100 Alaska nonprofits & tribes say DOGE federal freeze will shut them down, report shows. Alaska's News Source

In the wake of recent Trump administration-signed executive orders, nonprofits nationwide are facing the possibility of significant federal funding cuts, leaving hundreds of Alaska tribes and nonprofit organizations confused and worried. The executive orders signed by President Donald Trump that called for the freeze and elimination of federal funding on Jan. 27 were shortly thereafter rescinded by the Office of Management and Budget on Jan. 29 due to legal challenges nationwide. However, the threat still looms as some organizations are still facing a freeze, with some even experiencing funding elimination.

 

Trump firings at Juneau glacier's visitor center prompt summer tourism concerns. Alaska Public Media

Most of the staff at the Mendenhall Glacier Visitor Center were fired earlier this month, leaving city tourism leaders worried that one of Juneau’s most popular visitor destinations may reduce services, or even close for the cruise season.

 

Alaska legislative leaders urge congressional delegation to avert 'looming crisis' from deep federal cuts. Anchorage Daily News

Stevens and Edgmon warned about the “destabilizing” impacts of potential cuts to food stampsearly learning programs and Alaska’s bypass mail program; said that hundreds of federal workers in Alaska could lose their jobs; and conveyed fears that hundreds of millions of dollars in grants for energy projects in Alaska could stay frozen.

 

Alaska lawmakers see public sector pension reform over persistent opposition. Anchorage Daily News

“There is one constant theme, and that is high turnover, high vacancies, loss of institutional knowledge, loss of training dollars, and an inability to effectively deliver services because they’re constantly in a training mode,” Kopp said.

 

Trump plans tariffs on Mexico and Canada for Tuesday, while doubling existing 10% tariffs on China. Anchorage Daily News

President Donald Trump plans to impose tariffs on Canada and Mexico starting March 4, in addition to doubling the 10% universal tariff charged on imports from China.

 

Opinion: the reality is we can't fund Alaska's needs and also pay large PFDs. Anchorage Daily News

After years of paying large PFDs, the Legislature faces a stark reality: It is impossible to pay a large PFD and meet our constitutional responsibility of funding public schools.

 

How many Alaska feds were fired? lacking data, lawmakers crowd-source for anecdotes. Alaska Public Media

In a letter to the state's congressional delegation, Senate President Gary Stevens, R-Kodiak, and House Speaker Bryce Edgmon, I-Dillingham, say the two Trump administration priorities “endanger the economic prosperity and social well-being of Alaskans.”

 

Trump administration firings at Alaska parks and forests threaten tourism, industry representatives say. Anchorage Daily News

 

Alaska Permanent Fund has good chance of failing to fund services and PFD in next decade, forecasts show. Anchorage Daily News

The Permanent Fund’s board has long urged lawmakers to convert the fund’s two-account structure into an endowment model to ensure its long-term sustainability. Legislators have started discussing amendments to the Alaska Constitution to follow the board’s recommendations.

 

Trump's trade war draws swift retaliation as Mexico, Canada and China impose tariffs on the U.S. Anchorage Daily News

President Donald Trump launched a trade war Tuesday against America’s three biggest trading partners, drawing immediate retaliation from Mexico, Canada and China and sending financial markets into a tailspin as the U.S. faced the threat of rekindled inflation and paralyzing uncertainty for business.

 

UAA professor: Alaska 'uniquely vulnerable' to tariff's impact. Alaska News Source

“Even today, if we need to rally military defense it’s the Canadians that join us. The Chinese and Russian vessels and aircraft that have bumped along our borders, the Canadians have responded, as well,” Giessel said during Thursday’s special committee. “This is actually a special opportunity for us to really again recognize the partnership that we have with Canada.”

 

Fisheries

NOAA firings hit crucial Alaska weather service, fishery research. Anchorage Daily News

Alaskans were among the hundreds of National Oceanic and Atmospheric Administration employees who began receiving firing notices this week, a blow to an agency that provides everything from weather forecasts to fisheries management to cutting-edge climate science in Alaska. The cuts — part of a broader effort by the administration of President Donald Trump to drastically slash the federal workforce — came after other agencies, including the National Park Service, had abruptly fired probationary workers in recent weeks.

Energy

Thieves keep taking copper form utility equipment in Anchorage. Anchorage Daily News

“Thieves are compromising the safety and security of the public and our crews by tampering with our infrastructure. Serious injury or death can result from wires being cut in critical places.” 

 

Trump Administration 'working on a gigantic natural gas pipeline in Alaska': Sen. Sullivan reacts to President's address to Congress. Alaska's News Source

“The President laid out a common sense agenda that he’s already implementing in a huge way. [He talked] a lot about the border, securing the border... a lot about big things, big things for America,” Sullivan said. “I got to tell you because I worked this really hard with Governor Dunleavy... the fact that the President of the United States was highlighting the Alaska LNG (liquefied natural gas) project as one of the biggest things he wants to get done for the country was huge for our state, huge for our country and it was really really exciting to be in there when he talked about this project,” he added.

Education

'There's a log of uncertainty': UAF Chancellor speaks on DEI policy change UA Board of Regents voters to scrub DEI language, including 'diversity' and 'affirmative action'. Alaska's News Source

 

'Alaska Native' removed from Alaska Native Science and Engineering Program website. Alaska Public Media

The Alaska Native Science and Engineering Program has removed the phrase “Alaska Native” from its website. The award-winning University of Alaska program is now referred to only as its acronym, ANSEP.

 

Opinion: For better student outcomes, let's fund our schools like we fund our prisons. Anchorage Daily News

From fiscal years 2017 through 2025 we have not increased the BSA. Over the same period, the governor’s own budget has grown from $25 million to $32 million — an increase of 28%. Likewise, from 2017 to 2025, our budget for prisons has grown from $286 million to $451 million — a staggering 58% increase.

 

Empty Anchorage schools open bidding for their building at school board meeting. Alaska News Source

Representatives of several different Anchorage charter schools gave public comment at Tuesday’s school board meeting, imploring the board to grant them the buildings of the recently closed Nunaka Valley and Lake Hood elementary schools. One of the items on the agenda was a recommendation from the district for Highland Academy Charter School to occupy the Nunaka Valley building, and for Rilke Schule German Immersion School to occupy Lake Hood. The school board would have to approve and authorize the superintendent to begin moving forward with that process.

 

Politics

Trump's new world order. Axios

The international order forged after World War II is imploding, squeezed on all sides by the return of strongmen, nationalism and spheres of influence — with President Trump leading the charge. Trump is openly scornful of international institutions and traditional alliances. Instead, he sees great opportunity in a world dominated by superpowers and dictated through dealmaking.

 

Fighting inevitability. Axios

If anything, it's worse now for Republicans than it's ever been, as more and more of their voters include the low-income working class people who depend on Medicaid (and more hospitals benefit from expanded Medicaid coverage). The program covers 1 in 5 Americans, including low-income people, people with disabilities and millions of children. It also accounts for a fifth of all health care spending and more than half of long-term care spending, per KFF.

 

Washington now 'largely aligns' with Moscow's vision, Kremlin says. Anchorage Daily News

“The new administration is rapidly changing all foreign policy configurations,” Kremlin spokesman Dmitry Peskov told state television on Sunday. “This largely aligns with our vision.”

 

Health Care

Alaskans say Medicaid cuts considered by US House could be 'catastrophic'. Anchorage Daily News

“This is a question: How much do all Alaskans sacrifice to provide effective government services to support our social and economic network in this state?” said Senate Majority Leader Cathy Giessel, an Anchorage Republican.

 

The U.S. House budget calls for health care cuts. Murkowski says they'd be 'devastating' to Alaska. Alaska Public Media

“Our assessment of it is that the impact, once again, to Alaska, if we see the kinds of cuts that are being floated over on the House right now, could be devastating to Alaska,” she said. “So I'm doing my homework on it and getting good, solid numbers, but I am, I'm alerting folks that this could be very problematic for us.”

 

Alaska legislators predict dire effects if Congress cuts Medicaid funding. Alaska Beacon

The House’s resolution is the first step toward a budget plan that calls for $4.5 trillion in tax cuts and $2 trillion less in federal spending over a decade. Alaska Congressman Nick Begich III joined fellow Republicans in support of the resolution, which passed 217-215.

 

HHS move to kill public comment roils providers. Axios

The transparency policy Kennedy is undoing dates to 1971 and requires open comment periods for HHS rules on public property, loans, grants, public benefits or contracts. It layered new obligations on HHS beyond those laid out in statute, requiring the department to notify health providers, patient advocates and other stakeholders when it was making policy changes and seek their comment before finalizing plans, with minimal exceptions.

 

As GOP eyes Medicaid cuts, Trump tries to avoid the political third rails. Anchorage Daily News

Social Security, Medicare and Medicaid represent more than 40 percent of the federal budget - and a major focus of the Trump administration’s operation to cut government spending, with billionaire entrepreneur Elon Musk saying that the three programs represent major sources of waste, fraud and abuse. Republicans also concede that Medicaid, the safety-net health program that provides coverage to more than 70 million lower-income Americans, is likely to face the brunt of potential cuts under a House budget resolution that passed last week and instructs GOP lawmakers to find $880 billion in federal savings.

 

Republicans once maligned Medicaid. Now some see a program too big to touch. Anchorage Daily News

Every time a baby is born in Louisiana, where Republican House Speaker Mike Johnson handily won reelection last year, there’s more than a 60% chance taxpayers will finance the birth through Medicaid.

(My comment: In Alaska, there’s a 43% chance that newborn birth was funded through Alaska Medicaid.)

Alaska Oil Resource Values

 

Alaska North Slope crude oil price (03/05/25): $68.95

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 (03/04/25): 478,942 bpd

 

Burnswick builds Greenland lithium portfolio. North of 60 Mining News

Brunswick Exploration Inc. Feb. 18 outlined its 2025 summer exploration plans in Greenland, which include the expansion of its Paamiut lithium project – an underexplored property with historical reports of lithium mineralization – and planned exploration at the recently discovered Ivisaartoq spodumene-bearing pegmatite trend, the first confirmed lithium discovery in the country.



Number of the Day: 13.49 million barrels. Axios

(My comment: Equals lower revenue for Alaska. As the US continues to be a huge petroleum producer, prices will remain low. We have depended on high oil prices to pay for prisons, police, schools. Now the Permanent Fund earnings on investments pay the bills for Alaskans.)

 

Precious Metal Prices

March 5, 2025

Gold - $2933.92

Silver - $32.88

Platinum - $983.43

Palladium - $976.42

Rhodium - $4875.00

 

Alaska Permanent Fund

website

 

Fund value March 5, 2025 - $81,915,800,000

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

$91 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