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 20, 2025

Day 59 of the 121 day session

Dear friends and neighbors,

 

You might be wondering what I am working on.

 

Here's a summary:

I have 10 active bills underway, with 4 still under construction. My focus is on healthcare access/affordability; energy affordability; long-term fiscal soundness.

 

·        SB 28 – defined benefit retirement plan that requires public sector employees, employers and retirees to contribute to a livable retirement that is above the poverty level.

 

·        SB 32 – renewable energy regulation change to make it quicker deployment.

 

·        SB 34 – repeal the 90-day session law that we have only achieved 3 times in 20 years.

 

·        SB 47 – allows partnership between MOA and SOA on road into Chugach State Park.

 

·        SB 90 – allows 16 year old and above to access counseling for depression.

Alaska Senate bill would lower age of consent for therapy to 16. Alaska Public Media

Alaskans ages 16 and 17 would be able to consent to talk therapy under a bill introduced in the state Senate in February that would lower the age of consent from 18.

 

·        SB 91 – allows permitting of large renewable energy projects.

 

·        SB 92 – require all corporations (C corp, S corp, LLC) earning more than $5 million in Alaska to pay taxes.

 

·        SB 121 – requires insurance to reimburse healthcare providers for services. Call in for public testimony on this bill tonight (3/20) from 5 - 6pm, you need to sign up by 5:30pm. Juneau prefixes: (907) 586-9085; Anchorage prefixes:(907) 563-9085; all other numbers: 844-586-9085

 

·        SB 122 – requires insurance to give consumers choice in healthcare providers.

 

. SB 134 – requires Third-Party Administrators and Pharmacy Benefit Managers to be licensed in the state and pay an appropriate licensing fee.

 

Committees that I chair:

Senate Resources (Alaska State Legislature)

Arctic Affairs (Alaska State Legislature) 

 

I am vice chair of Health (Alaska State Legislature) 

 

The site for each of these committees connect you to meetings, bills being heard in the committee, and any bills sponsored by the committee.

Items in this Newsletter:

·     Senate Finance Meetings

·     Alaska Permanent Fund Corporation Updates

·     Upcoming Wildfire Season

·     Anchorage Delegation Town Hall

·     988 Suicide & Crisis Lifeline

·     Women's History Month

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

·     Resource Values, Permanent Fund

Senate Finance Meetings

 

03/17 Presentation: Governor's Amendments - Office of Management and Budget

Find the recording here and the slides here.

 

“Overspending”

On March 17 the Governor’s team rolled out an updated budget proposal. 

 

Supplemental Spending: The deficit for the present 2025 year is now $164.7 million. This represents costs that have been higher and oil price lower than expected. 

 

We are making the very difficult decision to fund this already-paid-out money from our savings account (Constitutional Budget Reserve (CBR)) which requires 15 Senators & 30 Reps to say “yes”.

 

See chart below

“Cut the Budget!”

Next year’s budget begins on July 1, 2025. The Governor is proposing over-spending by $1.649 Billion

 

The Governor wants to take the $1.649 Billion out of savings. Our savings is only $2.884 Billion. (Most states in our situation would focus on having about $6 Billion in savings. We are well below that amount.) 

 

The Legislature is focused on reducing the budget and NOT raiding the savings account.

 

Can't we spend Permanent Fund earnings? The Earnings Reserve Account (ERA) has about $9.1 Billion, but only $2.7 Billion is “spendable”; the rest is committed for the next dividend, inflation proof to Fund and unrealized earnings. 

 

The Legislature put a SPENDING LIMIT on the ERA, so we would have to violate that to take any more out of it.

 

Spending Cuts

Over the last 10 years we have had 2 Governors: Walker for 4 budget years, Dunleavy for the last 7.5 budget years.

 

Over the last 10 years, the State Budget DECREASED 26.4%, inflation-adjusted.

 

·     Education spending DECREASE: 25.9% over 10 years, inflation adjusted

 

·     Health (Medicaid) spending DECREASE: 19.5%, inflation adjusted

 

·     PFD spending INCREASED 41.9%, inflation adjusted.

 

Overall the State Budget DECREASED (been cut) 26.5% in ALL departments but 5. (inflation adjusted)

 

03/19 Presentation: Three Year Budget Outlook Update by the Legislative Finance Division

Find the recording here and the slides here.

SENATE BUDGET PROPOSAL

Look at the column labeled "FY26", the budget under construction.

 

Line 6: Senate Finance Committee is proposing a BSA increase of $680/student (cost $172.7 million)

 

Line 11: maintaining a PFD of $1,420/person (cost: $979.7 million) o

 

Each year FY26, FY27, FY28 Deficit (line 15) increases.



Deficit for just FY25-26: $677.1 million

HOUSE BUDGET PROPOSAL

Look at column labeled "FY26".

 

Line 6 contains a $1000/student BSA increase (cost $275.4 million)

 

Line 11 contains a nearly Balance Budget with PFD of $570/person (Cost $406.3 million).

 

Line 15 shows result of reducing PFD (line 11) holds the yearly Deficit $50 million.

 

Deficit for just FY25-26: $222.5 million

On Tuesday, March 4th the Alaska Permanent Fund Corporation presented to the Senate Legislative Budget and Audit committee on Trustees' Paper Volume 10: A Rules-Based Permanent Endowment Model for Alaska.

 

You can find a follow up memo with more details from their presentation that addresses committee questions here.

 

Governance Recommendations

 

The office of the Governor engaged WilmerHale to conduct a targeted review of the Alaska Permanent Fund Corporation regulations and governance documents. You can read the report from the review here.

 

One of the recommendations is for future appointments to the Board of Trustees, consideration should be given to expanding the search criteria to include individuals who have the requisite finance, investment, or other business management experience and education both residing in Alaska and outside of the state.

 

Updates Regarding Wildfire Season this Year

 

As many of you know, earlier this month Rabbit Creek Community Council and Hillside Resilience Committee sent a letter to Fire Chief Schrage outlining their concerns regarding the upcoming wildfire season. Here is a link to Fire Chief Schrage's letter in response.

Women's History Month - March

March 21, 1913 - Territory of Alaska Legislature passed a bill granting women the right to vote in Alaska

 

March 23, 1981 – U.S. Supreme Court overturns state laws designating a husband as “head and master” with unilateral control of property

 

When Women Gained the Right to Practice Law

Arabella Babb Mansfield challenged Iowa’s male-only bar admissions laws in 1869 and became the first woman to gain the right to practice law in the U.S. That same yearMyra Bradwell became the first woman to pass the Illinois bar, but the U.S. Supreme Court’s 1873 decision in Bradwell v. Illinois denied her license. Her efforts, however, sparked a wave of legislative changes. Illinois adjusted its laws in 1872, with Maine and Ohio opening their legal profession to women that same year. Bradwell was later admitted to the bar of Illinois but never practiced. California admitted its first female attorney, Clara Shortridge Foltz, known as the “founder of the public defender movement,” in 1878. Women continued to fight for their right to practice law in the courts and in legislatures; by 1920, all state bars admitted women.  

 

Below is my special order on Jan Faiks on March 14th.

Below is Senator Tobin's special order on Eleanor Andrews on March 17th.

Dersu Seater - Testimony on Cell Phone Ban in Schools

Senator Wielechoski Mentee

Dersu is a student whose family lives in our district and who came to Juneau to learn about the public policy process. I was delighted to meet him.

He gave great testimony before the Senate Education Committee related to prohibiting the use of cell phones in Public Schools!

Where does your energy come from?

 

Where do your lights come from? 

If asked, a lot of kids point to the light switch on the wall. 

 

Below is a brief video about the hydroelectric dam near Homer that supplies a major source of renewable electricity for us in Southcentral, and all the way up to Fairbanks. The electrons generated at the Bradley Hydroelectric Dam travel up the transmission lines over land, supplying electricity to 75% of Alaska's population

 

We received $413 million grant from the Federal government to add a high voltage DC subsea cable from Homer to the Anchorage area, to carry those electrons. This will provide a reliable “loop” of transmission lines to redundantly carry the power to 75% of Alaskans. 

 

The State of Alaska is responsible for half of that grant ($206.5 million). 

 

Clearly we don’t have enough money to pay for this right now. The Governor has talked about a Government Obligation Bond (GO Bond) to raise the money, then pay it back over time. So far he hasn’t taken any action, however. We have found about $35 million to put into the project planning at this point. But we will need to find the rest of the millions in the coming years.

 

Check out this video by the Alaska Energy Authority to learn all about it.

State Commission for Human Rights

The state Commission for Human Rights published it's first volume of their graphic novel entitled "Heroes of the Last Frontier." The novel includes chapters on Tillie and William Paul, Elizabeth Peratrovich and the 97th Regiment. You can read the full novel linked on their website here.

Current Topics

Alaska U.S. Sen Murkowski addresses challenges of federal firings, budget cuts in annual speech. Alaska Beacon

She emphasized that industries as well as the public need government services. “Our industries require people, and they depend on the essential workers who build houses, who keep us healthy, who teach and watch the kids while we work,” she said. “To bring it full circle, our opportunities also depend on functional government, the men and women who do the trawls and do the surveys, who issue the permits, who maintain the visitors facilities, who forecast the weather, and so much more.”

 

Experts says chaotic federal funding freezes are disrupting rural Alaska projects. Alaska Public Media

The Trump administration paused funding for several major federal programs back in January. Since then, the freeze has interrupted Alaska initiatives ranging from heat pump programs to major infrastructure projects that would protect communities from storm surges and tsunamis. Eight representatives from Alaska-based organizations discussed the disruptions during a joint virtual press conference on Tuesday.

 

Bill would allow baby drop boxes for Alaskans to surrender newborns safely.

The undesignated general fund estimate is about $30 million less than a prior forecast from the fall, and as a result, the state is looking at a $200 million deficit in the current fiscal year under spending previously proposed by Gov. Mike Dunleavy.

 

Anchorage lawmaker proposes 'red flag' bill to prevent gun deaths with court-ordered interventions. Alaska Beacon

Alaska has the fifth-highest rate of gun deaths in the nation, with an average of 175 people dying each year by gun, according to the U.S. Centers for Disease Control and Prevention. An estimated 70% of gun deaths every year in Alaska, or 120 people, die by suicide. House Bill 89, sponsored by Anchorage Democratic Rep. Andy Josephson, would allow law enforcement officers or household members to petition the court for a temporary protective order, to prevent someone who poses a danger to themself or others from possessing or accessing firearms.

 

Alaska domestic violence nonprofits worry federal funding uncertainty could shut down services. Anchorage Daily News

Some Alaska organizations serving victims of domestic violence fear they may have to close shelters and halt services as soon as this summer amid continued uncertainty over the federal grants that account for a large part of their funding.

 

Alaska's 141 active volcanoes 'threats are real for Alaskans,' Sen. Murkowski says. Alaska News Source

As Alaska prepares for the eruption of Mount Spurr, the state’s two senators are part of newly reintroduced legislation to add more government spending to “enable the U.S. Geological Survey (USGS) to continue to improve its volcano monitoring and early warning capabilities around the country.”

 

Blaze on Mat-Su Assembly member's property marks first wildfire of the year. Mat-Su Sentinel

A controlled grass burn by Mat-Su Assembly member Ron Bernier near his Meadow Lakes home Thursday became the Mat-Su region's first documented wildland fire of the year when state and local firefighters responded to a call and extinguished the flames, fire officials said.

 

Economy

New Alaska revenue forecast worsens state's big projected budget deficits. Alaska Beacon

The undesignated general fund estimate is about $30 million less than a prior forecast from the fall, and as a result, the state is looking at a $200 million deficit in the current fiscal year under spending previously proposed by Gov. Mike Dunleavy. 

 

From soup cans to airplanes, Trump's steel and aluminum tariffs could have widespread impacts on American life. Anchorage Daily News

Steel and aluminum are ubiquitous in Americans' lives. A stainless steel refrigerator holds aluminum soda cans. A stainless steel drum tumbles inside an aluminum washing machine. They’re the metals used in cars and airplanes, phones and frying pans, skyscrapers and zippers.

 

AK Permanent Fund Corporation governance study released, revealed several recommendations to policy. KSRM Radio

The review involved an analysis of APFC’s bylaws, statutes, meeting minutes, and other relevant documents, as well as interviews with current and former Board members, staff, and ad advisory group members.

 

British Columbia introduces toll measure to counter tariffs; Sullivan suggests acting against BC. Alaska Beacon

“This is not something British Columbia wants to do, but we need to have this tool if the U.S. does not back away from their unjust tariffs,” the ministry said. In addition to threatening tariffs on trade with Canada, President Donald Trump has threatened military action against the country and has said that it should be annexed to the United States in order to avoid economic consequences.

 

Opinion: There's a better way for Alaska to manage the Permanent Fund. Anchorage Daily News

In December, Gov. Mike Dunleavy unveiled his proposed 2025 budget and ten-year spending plan. His budget featured a $1.5 billion deficit that would be paid for out of savings. That’s an impressively large deficit for a governor to offer up, so you’d hope that it was part of a well-thought-out plan to put the state on stronger economic footing. Was the deficit due to much-needed increases in school funding? The reinstatement of a pension program for teachers and state employees? How about increases to account for inflation in state services? No, none of those things were included. So why the big deficit? It’s simple. Dunleavy’s largest proposed state expenditure by far is a big, fat PFD of almost $3,900 with a total cost of about $2.5 billion. And his 10-year spending plan would put the state a whopping $12 billion in debt by 2035 by paying out big, fat PFD’s each year.

 

Opinion: Alaska should take a page from Mississippi. let's spend a bigger share of our state budget on education. Anchorage Daily News

The reason the anti-BSA increase folks don’t want to do this is that Alaska is embarrassingly stingy with support for K-12 education. The national average is 20.5% of the state budget going for K-12 education, while Alaska allocated only 15% in 2023 (data from Urban Institute and KFF.org respectively). Mississippi allocates a whopping 23% of state budget for K-12 education. Just imagine what the student-to-teacher ratio could be if Alaska matched Mississippi in terms of the percentage of the state budget going to K-12 education.

 

The drama isn't over for federal workers. Axios

The onboarding process for federal employees is even more expensive than in the private sector — partly due to the cost of security clearances, and the arduous procurement process for equipment. It may cost a bit less to "re-onboard," but a conservative estimate published by former employees at the U.S. Digital Service, familiar with the inner workings of the federal bureaucracy, puts it between $120 million and $480 million.

 

Fisheries

Federal Fisheries employees in Alaska have been reinstated, but most are not allowed to work. Alaska Public Media

Most of the probationary employees fired from the National Oceanic and Atmospheric Administration have been reinstated. But most have been put on “non-duty” status, which prevents them from actually returning to work.

 

Energy

Reporter's notebook from the big energy event. Axios

Alaska Gov. Mike Dunleavy (R) told me he's had "many, many" meetings with gas buyers and investors. "Hopefully we've got some agreements that hopefully will be announced in the ... near future," he said yesterday. Dunleavy cited Trump 2.0 support, Asian energy needs, and more as reasons for optimism. It's still a very heavy lift. Alaska gas line plans have rattled around since the 1970s. The current, $44 billion pipeline-to-LNG proposal is over a decade old, and Gulf Coast exporters already have supply access and infrastructure.

 

Alaska lawmakers show renewed interest in funding maintenance of school buildings beset by 'dilapidation'. Anchorage Daily News

The Alaska Department of Education and Early Development broadly recommends that 3% of building values be allotted annually to meet capital renewal needs. Since 2020, the state has spent less than a fifth of that recommended amount annually, leading to a maintenance backlog that likely amounts to billions of dollars.

 

State lawmakers seek answers after report finds squalid conditions at rural public schools. Alaska Public Media

For decades, dozens of rural school districts have been asking the state for money to fix a range of serious health and safety problems. Only a small percentage of that money has come through. Southeast Island School District Superintendent Rod Morrison got a chance to be heard. He was in Juneau to testify before the powerful Alaska Senate Finance Committee when he lifted a large lightbulb from a plastic shopping bag and showed it to committee members. “You’ll see it almost caught on fire,” Morrison said, pointing out black marks on the top of the lightbulb. “This happened with six of our gymnasium lights and it’s obvious our fire suppression system was inoperable.”

 

EIA forecasts Alaska crude oil production will grow in 2026 for the first time since 2017. eia

In our March 2025 Short-Term Energy Outlook, we forecast crude oil production in Alaska will increase by 16,000 barrels per day (b/d) in 2026 to 438,000 b/d after remaining relatively flat in 2025. Two new oil developments in Alaska—the Nuna and Pikka projects—are expected to boost crude oil production in the state after decades of decline. If realized, this annual production increase will be the first since 2017 and the largest since 2002.

 

Education

'Schools have been waiting': Alaska House passes public school funding boost. Alaska Public Media

Boosting education funding was a key campaign issue for members of the Democrat-heavy majority caucus. Parents, teachers, students and community leaders have pleaded with lawmakers to increase school funding for years. The Anchorage School District last month approved a budget proposal that would lay off hundreds of teachers and staff, increase class sizes, and slash programs across the board, from language immersion to sports to elementary school gifted classes — but only if lawmakers and the governor do not approve at least a $1,000 increase in the base student allocation.

 

Alaska Senate to review education funding bill amid budget concerns. KSRM Radio

The Alaska State Senate is set to begin reviewing House Bill 69, an education funding measure that has sparked intense debate among lawmakers, educators, and the governor’s office. The bill, which passed the House with a $1,000 per-student funding increase, now faces potential revisions in the Senate amid concerns over the state’s budget deficit.

 

Politics

Murkowski says Trump is 'testing' the institutions of democracy. Alaska Public Media

'I can't tell you how many': Murkowski calls DOGE firings 'unlawful' in address to state lawmakers. Alaska Public Media Trump has frozen funding that Congress approved. He’s moved to shutter agencies created by law. He’s fired thousands of federal workers across dozens of government offices, from the Department of Veterans Affairs and the Department of Energy to the U.S. Forest Service and the National Weather Service.

Who loses if Social Security breaks. Axios

Moving fast and breaking things isn't a huge deal when the thing is a social media site. Social Security is a whole other story.

 

Americans wait months to hear on benefits. Axios

Amid staffing shortages, it's taking the agency longer to make decisions on disability benefit applications. This year, folks are waiting an average of 240 days to hear back, up from 120 days before the pandemic, according to Social Security data.

 

Affordable housing threatened as Trump halts $1 billion slated for extending the life of aging buildings. Anchorage Daily News

The program has already awarded the money to projects that would upgrade at least 25,000 affordable units across the country, and details of how it will be wound down remain unclear. A spokesperson for HUD did not respond to repeated requests for comment. But an internal document reviewed by the AP said the program is being “terminated” at the direction of DOGE.

 

Voters flood town halls with fears of Social Security cuts, putting heat on GOP over Musk and DOGE. Anchorage Daily News

Huizenga pledged throughout the meeting: “Let me just reiterate, Social Security is not being touched.”

 

Mark Carney sworn in as Canada's new prime minister as the country grapples with Trump's trade war. Anchorage Daily News

Former central banker Mark Carney was sworn in as Canada’s new prime minister on Friday, and will now try to steer his country through a trade war brought by U.S. President Donald Trump, annexation threats and an expected federal election.

 

The Federal Trade Commission's only two Democratic commissioners have been fired. Anchorage Daily News

President Donald Trump on Tuesday fired the only two Democratic members of the Federal Trade Commission, handing the remaining Republican commissioners exclusive control over the agency that oversees antitrust and consumer protection laws and serves as the U.S. government’s primary regulator of the tech industry.

 

Social Security Administration will require in-person identity checks for millions of people. Anchorage Daily News

Beginning March 31st, people will no longer be able to verify their identity to the SSA over the phone and those who cannot properly verify their identity over the agency’s “my Social Security” online service, will be required to visit an agency field office in person to complete the verification process, agency leadership told reporters Tuesday.

(My Comment: How many SSA offices does Alaska have, where seniors will be required to appear in person?)

 

Health Care

Doctors may be in trouble. Axios

Doctors, including the AMA, really want Medicare payment reform — generally. But any effort to decrease the disparity between primary and specialty care payments that resulted in a significant reduction of payment for certain specialities would likely meet fierce resistance from the industry. Specialists tend to make tens of thousands — if not hundreds of thousands — more dollars per year than primary care physicians.

 

Uncommon bedfellows. Axios

“Those physicians have an inherent conflict of interest: They are in effect setting their and their colleagues' pay," Emanuel recently wrote of the RUC in The Atlantic. "It is clear that primary-care physicians deliver life-saving care — and deliver it efficiently. But their compensation does not reflect this utility," he added.

 

Bill for Nebraska epinephrine injector cost cap, severe allergy response plans advances. Nebraska Examiner

Lawmakers took a step Wednesday to cap the out-of-pocket cost for epinephrine injectors and ensure Nebraska schools and licensed child care programs have policies to respond to allergic reactions.  Legislative Bill 457, from State Sen. Eliot Bostar of Lincoln, advanced 31-0 to the second stage of debate. It would limit out-of-pocket costs for medically necessary epinephrine injectors, including EpiPens, to no more than $60 for a two-pack, regardless of the type.

 

Alaska insurance director warns of health premium increases with federal funding in jeopardy. Anchorage Daily News

A reinsurance program pioneered by Alaska to lower the state’s marketplace insurance rates is on the chopping block, having been identified for scrutiny by the Trump administration, according to Alaska’s insurance director. If it is eliminated or the funding for it is zeroed out, Alaska would lose up to $140 million in annual federal funding to lower the cost of health insurance, according to Alaska Division of Insurance Director Lori Wing-Heier, who implemented the reinsurance program in 2017 — leading 18 other states to follow suit.

 

States take on private equity. Axios

While Congress and the Federal Trade Commission have increased scrutiny of the deals, especially involving hospitals, federal policymakers have been reluctant to bestow more government power over business transactions. States, meanwhile, are increasingly concerned about a growing number of providers being controlled by out-of-state for-profit companies.

 

Alaska Native Tribal Health Consortium leader working toward hospital ownership. Alaska Beacon

“But we’re at a breaking point,” Singh said. “Our patients have increased by 70,000 since the doors first opened, yet the doors haven’t expanded.”

Alaska Oil Resource Values

 

Alaska North Slope crude oil price (03/19/25): $73.18

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 (03/18/25): 483,270 bpd

 

New forecast projects growing state deficit from reduced oil revenue. Anchorage Daily News

The Legislature is facing a $650 million shortfall over two fiscal years based on status quo spending. Senators have started discussing new revenue measures to help bridge the state’s fiscal gap.

 

Tower Hill outlines 2025 Livengood plans. North of 60 Mining News

Lying along a paved highway about 70 miles north of Fairbanks, the Money Knob deposit at Livengood hosts 704.5 million metric tons of measured and indicated resources averaging 0.6 grams per metric ton (13.62 million oz) gold.



What to watch when oil execs huddle with Trump. Axios

President Trump will meet with oil and gas executives this week, per a major lobbying group and news reports. The industry — which cut lots of checks for his campaign — is greeting the Trump 2.0 agenda with both enthusiasm and concern. Execs are pleased with the deregulatory push, LNG project support, plans for expanded leasing and more.  But they're worried about tariffs' effect on demand, prices, and supply chain costs.

 

Precious Metal Prices

March 19, 2025

Gold - $3067.71

Silver - $34.10

Platinum - $1014.42

Palladium - $995.75

Rhodium - $5600.00

 

Alaska Permanent Fund

website

 

Fund value March 19, 2025 - $81,929,000,000

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