Senate Majority Coalition Website

State Senator District E

 

Senator Cathy Giessel Newsletter

UPDATES



Issues affecting

your family, community and jobs.

 

 

March 16, 2023

 

 

Dear Friends and Neighbors,

 

I have a constituent meeting in Anchorage this week. It is on Saturday, March 18 at 12-2 at Cornerstone Church in South Anchorage. Stop by and tell me your thoughts!

 

We have completed a couple weeks of hearings on the Governor's Carbon Offset and Sequestration bills.

The Offset proposal would "sell" our forests as areas that are absorbing CO2 from the atmosphere, thereby creating an asset. The Sequestration proposal would use depleted gas reservoirs in Cook Inlet and the North Slope as places where CO2 could be injected and stored for 100 years or more.

 

Next week we will hear a report from Dept of Natural Resources Commissioner-designee, John Boyle, who has returned form attending CERAWeek in Houston. The discussion at that conference centered around use of Hydrogen as a fuel.

 

My work this week has been focused on SB 88 which proposes a new Defined Benefit Retirement System for Alaska. We presently offer employees a Defined Contribution Retirement Plan. The evidence indicates that it is not allowing employees to earn enough, through the stock market investment, to support themselves in retirement.

The result is valuable public sector employees leaving the State for other places with better wages and retirement programs.

The SB 88 proposal would balance the contributions of the employer and employee, sharing the risk and creating a large pool with professional investment management.

The hearings can be viewed here: March 13. March 15.

 

Items in this Newsletter:

 

·     Senate Committee Meetings

 

·     Updates on Senate Bill 52 (BSA)

 

·     Long Term Forecast of Medicaid Enrollment

 

·     TB Facts in Alaska

 

·     People Mover Press Release

 

·     Current topics, economy, healthcare, energy

 

·     Alaska History

 

·     Oil and Permanent Fund Resources

 

 

 

Senate Committee Meetings

Week of March 9-15, 2023

 

Finance Committee

March 9- Presentation: Comparing Retention Data Between Defined Benefit and Defined Contribution Employees

 

March 10- Presentation: Power Cost Equalization Endowment Fund Performance

 

March 14- Hearing SB 81 Office of Victims' Rights: Compensation

 

March 15- Presentation: Alaska Industrial Development & Expert Authority

 

 

Community & Regional Affairs Committee

March 9- AK Community Health Aide Appreciation Day- Invited and Public Testimony

 

 

Education Committee

March 13- University Textbooks/ Materials Cost- Invited Testimony

 

March 15- Presentation: Alaska State Board of Education and Early Development

 

 

Health & Social Services Committee

March 9- Bills Previously Heard/ Scheduled

 

March 14- Consideration of Governors Appointees: Commissioner-Designee Kim Koval

 

 

Judiciary Committee

March 10- Five Year Involuntary Commitments- Invited and Public Testimony

 

March 13- US President Elect. Popular Vote Compact- Invited and Public Testimony

 

March 15- Address Confidentiality Program- Invited Testimony

 

 

Labor & Commerce Committee

March 13- Retirement Systems; Defined Benefit Opt. Invited Testimony

 

March 15- Retirement Systems; Defined Benefit Opt. Invited Testimony

 

 

Resources Committee

March 10- Carbon Storage- Invited Testimony

 

March 13- Alaska Fisheries; Troll Fisheries- Invited and Public Testimony

 

March 15- Public Notice for Water Rights- Invited Testimony

 

 

Transportation

March 14- Presentation: Advanced Air Mobility by Nick Adkins

 

 

Education Funding

Increasing the Base Student Allocation

 

The Senate Education Committee passed Senate Bill 52.

Changes:

1)     The bill would increase the BSA by an additional $1,000; the new BSA total for FY24 would be $6,960.

2)     The bill would increase the FY25 BSA by an additional $348; the new BSA would be $7,308.

3)     The bill would add a requirement that the Alaska Department of Education and Early Development to adjust the BSA every year to coincide with inflation.

 

 

 

This is a very important report because it states the history and current costs of Medicaid for the State of Alaska.

In the report, you will see that more than 1/3 of Alaskans rely on Medicaid for their healthcare insurance.

Costs for this state program is going up as the Federal government withdraws the added financing during COVID.

This means that our budget will be called upon even more for funding.

 

I have summarized some of the key points, and given you the pages where you can read more.

 

After Medicaid expansion, 25% of adults receive services. About 45% of children receive services. (Page 3)

Total spending $2.57 billion.  Faster rate of growth in spending for state general funds is largely due to the unwinding of federal COVID emergency. (Page 4)

Projected reimbursement rates to grow on average by about 1.6% per year through FY43 – well below the expected rate of medical price inflation. (Page 6)

 

Feds cover at least 50% of the cost of most services. People qualify for Medicaid by meeting income standards and specified eligibility requirements related to age, family status and disability status. (Page 8)

In 2015 Alaska accepted Medicaid expansion for adults without dependent children who are not disabled and meet certain income requirements. (Page 13)

 

December 2017 Congress repealed health insurance coverage mandate. (Page 14)

 

The pandemic exacerbated the need for behavioral health services (page 16)

 

With the onset of the 2008 severe national economic recession, enrollment in and spending on Medicaid grew rapidly from 2009-11. (Page 22)

By 2022, 38% of Alaskans are enrolled in Medicaid all or part of the year. About 43.3% of Alaskans receive health insurance through an employer. (Page 24)

Primary factor that drives utilization of Medicaid services is one or more chronic conditions. (Page 33)

 

 

 

 

 

 

 

 

Current Topics

Months before season begins, state closes king salmon sport fishery and set-net fishery. KDLL

Parts of the Kenai River are still frozen over. But the Alaska Department of Fish and Game has already closed the early and late- king salmon runs to sport fishing- also shutting down the beleaguered Cook Inlet east side set-net fishery before fisherman can gear up.

 

Alaska Legislature approves free trapping licenses for disabled veterans. Alaska Beacon

The Alaska Legislature has unanimously passed a bill that gives disabled veterans and members of the Alaska National Guard free trapping licenses in addition to the free hunting and fishing licenses they already receive.

 

Alaska House to pause public sector pension bill debates before the Senate acts. ADN

 

Opinion: The bipartisan duo of legislators is holding the line for Alaska. ADN

 

Sorry, time-switch foes, twice-a-year clock changing endures into 2023. NCSL

I’ve gotten many emails about this over the years.

Sen. Anna MacKinnon tried, several times, to eliminate daylight savings time for Alaska.

This would be allowed by the Federal laws:

"The United States established standard time zones and DST through the Calder Act, also known as the Standard Time Act of 1918. The issue of consistency in time observance was further clarified by the Uniform Time Act of 1966. These laws as amended allow a state to exempt itself—or parts of the state that lie within a different time zone—from DST observance.”

 

However, the Chambers of Commerce around Alaska objected vigorously to any change in the time that was out of synchronization with other states. So, legislation never passed, allowing Alaska to stay on Alaska Standard Time year-round.

 

Daylight savings time (DST). Congressional Research Report

 

Alaska's monthslong food stamp backlog triggers sharp federal warning. ADN

 

Interior secretary rejects Izembek Refuge land exchange but commits to new process to get a road for King Cove. Alaska Public Media

Interior Secretary Deb Haaland on Tuesday ended the government's defense of a land exchange agreement that would have allowed the Alaska Peninsula community of King Cove to build a road to reach an all-weather airport. But she also pledged to launch a new process to get a road for King Cove.

 

Haaland wades into thorny land exchange flight in Alaska. AP News

A day after the Biden administration approved a major Alaska oil project, U.S. Interior Secretary Deb Haaland waded into another thorny battle in the state- a long-simmering dispute over building a road through a national wildlife refuge to provide health care access for a remote, and largely Indigenous, community.

 

Alaska Ryan Redington earns first Iditarod win, fulfilling a family dream. ADN

As a lifelong Alaskan, I am very proud of Ryan and his family!

 

Ballots are in the mail for the 2023 Anchorage city election. Here's how to cast your vote. ADN

Ballots for the April 4 regular Anchorage city election were mailed to voters on Tuesday.

 

 

Politics

Opinion: Political opposites agree- Proposition 14 will boost economy, help kids. ADN

 

Judge says ConocoPhillips Alaska can keep Willow oil well data secret for now. ADN

A federal judge in Alaska on Wednesday decided in favor of ConocoPhillips in a dispute with state regulators, ruling that the oil company can keep well data from its huge Willow discovery confidential for now.

 

Jesse Sumner and Kenai's Jesse Bjorkman propose new state program to certify Alaska harvested wood. Frontiersman

Mat-Su State Rep. Jesse Sumner (R-Wasilla) and State Sen. Jesse Bjorkman (R-Nikiski) have teamed up on new legislation that would allow Alaskan sawmill operators to be state-certified to produce and grade dimensional lumber for use in residential construction.

 

Alaska lawmakers propose pension plan for state workers. AP News

A proposed overhaul of Alaska's public retirement system would provide a new pension plan for state workers and is seen by supporters as a way to address concerns with recruiting and retaining employees.

 

Senators propose repealing social security cuts to public pensioners. Plan Advisor

Senators Sherrod Brown, D-Ohio, and Susan Collins, R-Maine, re-introduced the Social Security Fairness Act on Thursday. The bill would repeal the Windfall Elimination Provision and Government Pension Offset, which currently combine to reduce the social security benefits paid to retirees who collect a public pension and were not paying into Social Security while working for that public employer.

 

After years of contentious flights, Alaska's state budget is advancing smoothly in the House. Alaska Beacon

Alaska Gov. Mike Dunleavy's proposed state operating budget is advancing through the Alaska House with few changes so far from the governor's original draft.

 

 

Healthcare News

Patients dismayed by upcoming closure of Alaska Regional Senior Health Clinic. Alaska's News Source

 

Opinion: Alaska should drop 80th percentile rule, offer public option for healthcare. ADN

 

 

Economy News

Over $4.7M of alcohol tax funds could be used to fund emergency shelter costs. Alaska's News Source

A resolution was before the Anchorage Assembly Tuesday night that would appropriate $4.7 million of alcohol tax funds to cover emergency shelter costs.

 

Alaska economic trends March issue. Labor Alaska

 

Alaska House committee set to hear public input on Permanent Fund dividend overhaul proposals. ADN

 

'Is this a bailout?' and six more questions about the weekend bank collapses. ADN

The U.S. government announced late Sunday that it would guarantee all deposits at Silicon Valley Bank, which regulators shut down Friday. Officials also revealed that they had shut down a second bank, Signature Bank of New York, and extended the same deposit protections to its customers. And the Federal Reserve announced it would create a separate lending facility to protect other banks from the ripple effects and prevent bank runs.

 

Is your money safe? What you need to know about bank failures. ADN

The recent failures of Silicon Valley Bank and Signature Bank, which catered mostly to the tech industry, may have worried you about your money. They were the second and third biggest bank failures in U.S. history.

 

Alaska's working-age population on decline since 2013 peak, and recovery chances are slim. Alaska Beacon

 

1 Big Thing: The sticky inflation conundrum. Axios

Inflation is proving stickier than is appeared not long ago. That was further confirmed in this consumer price index report.

 

 

Energy News

Don't let China control clean energy supply chain, US officials warn. Mining.com

 

What Alaska leaders, North Slope groups, conservation groups, industry and others are saying about Biden's Willow project approval. ADN

The Biden administration's Monday decision to approve the $8 billion ConocoPhillips Alaska oil project in the National Petroleum Reserve- Alaska swiftly drew both celebration and condemnation in Alaska and Outside.

 

Biden administration approves development of Alaska's Willow oil project. ADN

 

Questions about Biden's approval of Arctic drilling of Willow? We've got answers. Alaska Public Media

The Biden administration announced Monday morning that it is approving a permit for Willow. That's the $8 billion ConocoPhillips project in the National Petroleum Reserve-Alaska, the largest oil development in Alaska since the 1990s. And Sunday night, ahead of the Willow announcement, the administration said it would impose new restrictions on drilling in the NPR-A.

 

New lawsuit seeks to block development of Alaska's Willow oil project. Alaska Beacon

A coalition of environmental groups filed suit on Tuesday, seeking to halt development of the Willow oil project on Alaska's North Slope.

 

Ceraweek-Big oil on hydrogen: forget the rainbow, just make it profitable. Nasdaq

Governments worldwide need to simplify rules around hydrogen supply to attract investment and scale it up to become competitive enough to substitute fossil fuel we use in heavy industry; energy executives said this week.

 

State proposes regulations for nuclear facilities, asks public input. Alaska Public Media

The state Department of Environmental Conservation is asking for public comments on new regulations for siting small nuclear reactors, like the one the military plans to set up at Eielson Air Force Base to generate electricity.

 

 

Alaska History

·     March 7, 1988: Vern Tejas of Anchorage completed the first solo ascent of Denali.

·     March 12, 1914: President Woodrow Wilson signed into law a bill providing for a government railroad in Alaska.

·     March 14, 1929: International Airways inaugurated air passenger service between Seattle and Alaska.

·     March 5- May 3, 1923: 100 years ago, the 6th territorial Legislature met and accomplished:

1.  Establishing a $1 bounty on eagles

2.  Creating the Territorial Historical Library and Museum Commission

3.  Providing that is was unlawful to fish without a license.

 

 

Alaska Oil Resource values

 

ANS crude oil price (3/15/23): $80.28

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 (3/15/23): 492,615 bpd

 

Quoted. Axios

 

Today in energy: State tax rates for retail gasoline and diesel increased in 13 states in 2023. EIA

 

Nevada's vast lithium deposits offer economic opportunity, difficult decisions. Nevada Independant

Nevada, as with other arid parts of the globe such as Chile and Argentina, is awash with lithium. The soft, silvery white mineral is in high demand as a key component of batteries used to power electric vehicles in the transition away from fossil fuel-based economies.

 

Permanent Fund 3/15/2023: $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

Mar. 15, 2023

Gold - $1813.40

Silver - $219.98

 

 

 

 

"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)

 

Copyright © 2023. All Rights Reserved.

 

 

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