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State Senator District E
Senate Majority Leader
Senator Cathy Giessel Newsletter
UPDATES
Issues affecting
your family, community and jobs.
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Legislative Day 66
March 21, 2024
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Dear Friends and Neighbors,
Education Funding
I voted to override the Governor’s veto of SB 140 (increase of education funding, additional Reads Act funding, and broadband upgrade with Federal grant funding). Thank you to the hundreds of you that wrote to me, urging veto override vote on SB 140! I tried to answer everyone of you but I couldn’t keep up so I’m using this newsletter to express my appreciation for taking the time to email me and others. Your support for the education funding plan was so wonderful!
Unfortunately the Legislature was one vote short of the 40 votes needed to override the Governor's veto. House members who voted no to the override said there's still time to craft another bill that pleases the Governor.
"The alphabet is an abolitionist. If you would keep the people enslaved, refuse to teach them to read." -Harper's Weekly, 1867
By one vote, Alaska Legislature fails to override Gov. Mike Dunleavy’s education veto. Alaska Beacon
Alaska lawmakers fail by one vote to override Dunleavy veto of education bill. ADN
Alaska Legislature fails to override Dunleavy's education veto. Alaska Public Media
Juneau lawmakers fall 1 vote short of overriding governor’s education bill veto. Alaska's News Source
Alaska lawmakers fail to override the governor's education package veto. AP News
Along with Coulombe and McKay, the other 14 House Republicans who voted to sustain Dunleavy’s veto were Reps. Jamie Allard, R-Eagle River; Thomas Baker, R-Kotzebue; Ben Carpenter, R-Kenai; Mike Cronk, R-Tok; David Eastman, R-Wasilla; Craig Johnson, R-Anchorage; DeLena Johnson, R-Palmer; Kevin McCabe, R-Big Lake; Mike Prax, R-North Pole; Dan Saddler, R-Eagle River; Laddie Shaw, R-Anchorage; Cathy Tilton, R-Wasilla; Frank Tomaszewski, R-Fairbanks; and Sarah Vance, R-Homer. Four Senators voted No to the veto override: Shower, Hughes, Myers and Wilson.
Time is running out for legislators to increase internet speeds for Alaska’s rural schools. Alaska Beacon
Alaska lawmakers see no clear path to a new school funding bill. ADN
Lawmakers look to other education options day after governor’s veto survives. Alaska's News Source
Following override fail, school district looks to tough budget choices. KDLL
Alaska legislature narrowly fails to override Governor Dunleavy’s education bill veto. Webcenter Fairbanks
In addition to losing a historic increase to the per-student formula that funds schools and money for student transportation, Alaska’s rural schools may not be able to apply by the deadline for federal grants to pay for internet speeds of up to 100 megabits per second this year — a four-fold increase over previous years.
(My comment: It is hard to do the Governor’s statement to “move on to energy” subject without the educated population that properly funded schools can provide. I want to point out the irony of the work the governor did to get no votes on the education funding. The governor has talked for the past two years about prioritizing families and making this a family-friendly state. Well, families are moving away. They're going to leave if their kids are not getting solid educations. The Governor has said, "Time to move on, time to move on and talk about energy." Well, we can't talk about energy if we don't have a population of Alaskans who are prepared to do the projects. It is very ironic that he wanted a no vote on a bill that did so much.)
SB 88 Defined Benefit Pension
I had the pleasure of speaking to the ASEA/AFSCME convention on Sunday. I reviewed the policies contained in SB 88, defined benefit pension bill. It means so much to talk and hear from our public employees that do the work every day. These are the people who plow our roads, answer the phone when you call 911 at 2:30 A.M., and answer all your questions.
SB 121 Pharmacy Benefit Managers (PBM)
Congress is trying to rein in these billion-dollar middle men in our pharmaceutical industry, who are telling you and your healthcare provider what medications you can have and how much they will cost.
Hearings on SB 121 are happening. Not surprisingly, CVS Health, Optum and Express Scripts (the largest three PBMs, and profiting $300+ billion/year) are objecting.
Astonishingly, the State's Division of Retirement and Benefits also opposes SB 121, which would require the State to mandate transparency in our contracts with the PBM. As my team and I worked on this bill, we found that the State of Alaska doesn't know the level of profits that Optum (the State's PBM) is capturing from our State treasury!
Our attorney general (AG) has joined 38 other state attorney generals to urge Congress to act to rein in PBM. These AGs recognize the cost to their states.
Upcoming Budget Numbers
Senate Finance had a great presentation of the revenue and budget on March 18. The presentation is only about 40 minutes long and worth viewing. (powerpoint is here)
You will see the cost of a 25/75 dividend is $914.3 million. You will hear the $867.1 million deficit created by Governor's "statutory" dividend is costing $2.3 billion. There is also a review of other expenses that we are trying to fund that matter to Alaskans.
Items in this Newsletter:
· Defined Benefit Pension & Education: Combination is a Positive Future
· Clean Energy Portfolio Standards
· DOR Spring Revenue Forecast
· CCUS Panel Discussion
· Free Health Clinic in Anchorage
· Governors Council on Disabilities + Special Education Grant
· Senate Committee Meetings
· Current Topics: Education, Economy, Minerals, Health Care, Politics
· Resource Values, Permanent Fund
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Defined Benefit Pension and Education:
Combination is a Positive Future
In his letter to the Senate, the Governor made the following statement when he vetoed SB 140:
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I am grateful that the Governor recognizes the recruitment & retention crisis. He also recognizes our obligation (under the Constitution Article 7, section 1) to provide public education for Alaska’s children. The statement above must also mean that he understands the important impact that wages and benefits mean for any employee.
SB 88 is designed to attract qualified teachers to Alaska and to retain them here by providing a modest pension. The Governor’s interest in raising education wages would combine with SB 88 to make an appealing place for any educator and their family to relocate to Alaska. Alaska is losing population. For the last 11 years, our public services are losing employees and our kids are moving out of Alaska for better opportunity in the Lower 48.
Our teachers have no social security in retirement. Alaska opted out of Social Security several decades ago because we had a great defined benefit pension back then. Presently teachers can only depend on savings in a 401-K account.
The Legislature will attempt to put increased funding for the base student allocation (BSA) into another bill. You may recall that we put the $680/student BSA in the budget last year and the Governor vetoed the amount down to $300 or so.
The Governor is insisting on teacher bonuses in the next education funding bill. He proposes a bonus of $5,000-$15,000 for 3 years. As Sen. Wielechowski pointed out, those bonuses mean that a couple could come to Alaska, teach in rural Alaska and leave Alaska with $90,000 in their pocket after three years teaching in our rural schools. Some rural schools have 50% J-1 visa teachers on staff today.
There's a better idea: Sen. Jesse Bjorkman has a "bonus" bill for teachers. SB 215 would award an incentive bonus to any teacher who achieves national certification. The certification process is very rigorous and would benefit the teacher and their students for the rest of that teacher's career. The $5,000 would help cover the costs of achieving certification.
Combining SB 215 with a Defined Benefit Pension, Alaska could recruit and, importantly, retain great teachers.
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House Energy heard HB 368 on March 14. The bill would establish clean energy portfolio standards. The powerpoint presentation is here. The bill's hearing recordings are here.
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Department of Revenue Releases Spring 2024 Revenue Forecast
Wednesday, March 13, 2024 (Juneau) – Department of Revenue (DOR) Commissioner Adam Crum is pleased to announce the release of the Spring 2024 Revenue Forecast. The forecast includes DOR’s updated outlook for oil price, oil production, and state revenues.
Unrestricted General Fund (UGF) revenue, before accounting for the operating transfer from the Permanent Fund Earnings Reserve, is forecast to be $3.0 billion for fiscal year (FY) 2024 and $2.8 billion for FY 2025, respectively.
The Permanent Fund is set to transfer $3.5 billion to the General Fund for FY 2024 and $3.7 billion for FY 2025, respectively. These amounts include funds that are available for general government spending and annual payment of dividends to Alaskan residents. The Permanent Fund operating transfer remains a large source of funding to the General Fund, contributing 54% of UGF for FY 2024, based on the Spring 2024 Revenue Forecast, and is projected to contribute a range of 54% to 62% for each of the next ten years.
In FY 2023, the Alaska North Slope (ANS) oil prices averaged $86.63 per barrel. The Spring Revenue Forecast incorporates the most current indicators from the financial markets and is based on an annual average ANS oil price. The ANS oil price for FY 2024 is projected at $84.08 per barrel and $78.00 for FY 2025, respectively. The department’s forecast assumes that annual average prices will be within a range of $69.00 to $75.00 per barrel (nominal) for the remainder of the forecast period.
In FY 2023, ANS oil production averaged 479,400 barrels per day. ANS oil production is expected to average 467,600 barrels per day for FY 2024 and 476,800 for FY 2025, respectively, before climbing to 641,100 barrels per day by FY 2034.
In comparison to the DOR’s Fall 2023 Revenue Forecast, which was released in December 2023, the ANS oil price forecast increased by $1.69 per barrel for FY 2024 and $2.00 per barrel for FY 2025. The ANS oil production forecast decreased by 2,800 barrels per day for FY 2024 and increased by 13,100 barrels per day for FY 2025. Driven by the revised outlook of oil price and production, the Unrestricted General Fund revenue forecast increased by $58 million for FY 2024 and $140 million for FY 2025.
The Spring Revenue Forecast is an annual update to the Fall Revenue Sources Book, providing basic information about state revenues, as well as a forecast of state revenues over the next ten years. The revenue forecast is available on DOR’s website at www.tax.alaska.gov.
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What is Carbon Capture, Utilization & Storage?
Join The Nature Conservancy in Alaska for a panel discussion exploring carbon capture, utilization and storage (CCUS).
WHEN
Thursday, March 28 from 5-7 p.m.
WHERE
West Barrel Room, 49th State Brewing, 717 W. 3rd St., Anchorage
ABOUT
TNC Alaska will be sharing new research on the process of capturing carbon and storing it underground as a means of mitigating the climate impacts of industrial activities. Panelists will respond to the research and share their own expert perspectives from Alaska and beyond.
TNC Alaska State Director and former Alaska legislator Ivy Spohnholz will lead an informed discussion on CCUS to explore:
· What is CCUS?
· Does CCUS work to reduce greenhouse gas emissions?
· What are the potential environmental and economic impacts of CCUS?
· How could CCUS work in Alaska (where, what types of projects, etc.)?
· What would Gov. Dunleavy's Carbon Capture, Utilization and Storage Act (HB50) do?
FEATURING
· Haley Paine, Alaska Department of Natural Resources
· Larry Persily, newspaper columnist
· Nathan Prisco, Alaska Center for Energy and Power
We'll be updating the event on Facebook and will send periodic reminders via email.
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The Governor’s Council on Disabilities & Special Education presents the following information from Department of Education and Early Development:
Partnering with key agents of change, the Department of Education and Early Development received the Disability Innovation Fund (DIF): Pathways to Partnerships grant.
The purpose of the grant is to increase the number of Alaskan youth with disabilities who are competitively employed through collaboration of key grant programs and partners.
Partners in this project include the Statewide Independent Living Council (SILC), the Governor’s Council on Disabilities and Special Education (GCDSE), Southeast Alaska Independent Living (SAIL), and UAA Center for Human Development (UAA CHD), and the Alaska Department of Labor and Workforce Development (DOLWD)- Division of Vocational Rehabilitation (DVR).
The grant will create an Advisory Committee to provide feedback, program overview and advisement to the grant Steering Committee.
This Advisory Committee would meet quarterly and include parents, students, and professionals. Members are anticipated to spend at least 1-2 hours during the scheduled meetings and ensure that projects are following the goals and key activities listed in the grant.
If interested, please be aware of the following introductory meeting:
Topic: Pathways to Partnership DIF Advisory Committee Meeting
Time: Mar 22, 2024 12:00 - 4:00 PM Alaska
Join Zoom Meeting
https://us02web.zoom.us/j/89210497175?pwd=a3JKOHQ5MDZUZkVnLzY3MmJKMTJSdz09
Meeting ID: 892 1049 7175
Passcode: 649903
For more information please contact:
Kerri Tanet
907-465-2830
kerri.tanet@alaska.gov
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Current Topics
Alaska dinosaur tracks reveal a lush, wet environment. Phys.Org
A large find of dinosaur tracks and fossilized plants and tree stumps in far northwestern Alaska provides new information about the climate and movement of animals near the time when they began traveling between the Asian and North American continents roughly 100 million years ago.
Economy
Why the economy can absorb bigger job gains. Axios
Immigration policy is deeply politically contentious, but a strong consensus exists among economic policymakers that the immigration increase is a key part of the labor supply surge that helped bring down price pressures last year even amid the economy's robust growth.
Experts bump Alaska oil price estimates slightly, boosting Permanent Fund dividend and budget. Alaska Beacon
The forecast, released Wednesday by the Alaska Department of Revenue, updates a fall estimate and predicts that the state of Alaska will collect $140 million more in revenue than previously expected during the 12 months that begin July 1.
(My Comment: The forecast document can be found here: Alaska Department of Revenue - Tax Division While I agree with my colleague, Sen. Click Bishop, about snow removal and deferred maintenance, there is an abundance of other critical needs: mental health care access, upgrade to our electric transmission system that 75% of the State residents depend on — just to name two items. A larger PFD is not a priority. Most of that money goes to Hawaii, Amazon, and the IRS. We are hurting ourselves when we prioritize the dividend.)
Candy-flation. Axios
(My comment: time to buy chocolate stock!)
Energy
With a sharp jump in renewable power by 2040, Alaska Railbelt could save $1.3B in costs, Energy Department says. ADN
A sharp expansion in wind and solar power could save electric ratepayers along the Alaska Railbelt more than $1 billion by 2040, by replacing costs associated with natural gas and other fossil fuels that provide most of the region’s energy, the Department of Energy reported in a new cost analysis.
Competing visions on Houston. Axios
Mining and mineral markets. "The conference represents the reality that metals and mining have become part of the energy complex because of energy transition demand," Yergin said. "For all parts of the energy industry — whether you're in renewables, whether you're an oil and gas, whether you're in technology — you recognize that this will be a very momentous election in terms of the energy trajectory."
Healthcare
Another dangerous amoeba has been linked to neti pots and nasal rinsing. Here's what to know. ADN
For years, scientists have known people who use neti pots can become infected with a brain-eating amoeba if they use the wrong kind of water. On Wednesday, researchers linked a second kind of deadly amoeba to nasal rinsing.
CVS to pay Alaska $10M in settlement for role in opioid crisis. Alaska Public Media
Alaska reached a settlement with CVS on March 7, for the role the company played in the opioid crisis in the state. CVS settled the complaint and did not admit wrongdoing. Once the settlement is final, the state will receive $10 million over 10 years.
What actually makes us happy. Axios
More than 1 in 3 Americans are lonely, per a Harvard study. That rises to 61% when looking at younger people, and 51% among mothers with young children.
No quick pay fix for providers. Axios
Physicians, medical equipment vendors and other providers looking for relief from Medicare payment cuts will likely have to wait until after the election now that congressional leaders dropped health care provisions from the next government funding deal.
(My comment: Medicare reimbursement is less than Medicaid in Alaska. Congress needs to increase reimbursement. Alaska seniors struggle to find healthcare services.)
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Alaska Oil Resource Values
Alaska North Slope crude oil price (3/20/24): $85.55
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 (3/20/24): 477,751 bpd
This month in history: Cook Inlet natural gas supply goes short. Petroleum News
When the sale to Agrium was completed in September 2000, Unocal said its Alaska oil and gas business unit would continue to supply natural gas to Agrium "from certain Cook Inlet fields and other sources pursuant to a 1998 agreement - ". Agrium said in December: "The indicated gas supply from Unocal to the Kenai, Alaska, facility will be insufficient to operate the facility past the end of 2005."
(My Comment: The Cook Inlet natural gas shortage is a repeat of 20 years ago, and 10 years ago. We need to stop going around in circles, diversify the energy supply, upgrade our transmission grid, and lower costs of energy.)
Railbelt electric utilities support intent of targets for future energy sources. Petroleum News
Given the critical importance of the transmission system to the future of reliable, affordable and diverse energy supplies in the Railbelt, Estey strongly urged the Legislature to provide the necessary matching funds for a recently awarded $206-million Department of Energy grant for building a second transmission line from the Kenai Peninsula to the Anchorage region. The state has recently applied for a further federal grant for upgrading the transmission line from Southcentral up to Fairbanks, she said. Estey characterized the federal funding as a once in a generation opportunity.
(My Comment: 75% of Alaska’s population depends on our transmission grid for electric power. Alaska received the 5th largest Federal grant for upgrade to our transmission grid — $206.5 million. We need to match that with another $206.5 million. We could easily do this by reducing the dividend by a third. A $1000 dividend costs the state $650 million.)
Japan's declining gas demand will leave utilities with persistent LNG oversupply through 2030. Institute for Energy Economics and Financial Analysis
Once the largest global importer of liquefied natural gas (LNG), Japan’s demand for the fuel has fallen rapidly in recent years. As a result, the country’s gas and power utilities face a surplus of LNG purchase commitments and are increasingly focused on marketing and selling the fuel abroad, according to a new report from the Institute for Energy Economics and Financial Analysis (IEEFA).
(My Comment: If we were now building a $45 billion gas treatment plant on the North Slope, a pipeline to Nikiski, and an export facility, all to supply Japan, we would be in a pickle right now. Global demand has changed.)
Precious Metal Prices
March 20, 2024
Gold - $2207.86
Silver - $25.81
Platinum - $928.30
Palladium - $1061.75
Alaska Permanent Fund
website
Fund value March 20 - $79,476,300,000
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
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March Update from AHF!
As we welcome the first signs of spring, this month brings a critical health focus to the forefront; March is a Colon Health Awareness month. It's a time to shine a light on the importance of proactive colon health management and cancer prevention strategies. To support this cause, we are featuring an article "Marching Against Colon Cancer: Prevention, Symptoms, and Lifestyle Tips," aimed at providing you with essential knowledge on how to reduce your risk and recognize early symptoms.
Health Fairs Happening in March
March health fairs, which feature health education and affordable comprehensive blood tests, are listed below. See the entire schedule and pricing at www.alaskahealthfair.org, with more events being added as arrangements are made. Schedule an appointment online or simply walk-in at any of our events:
· Juneau – 3/22/2024, 8:00am – 1:00pm, Juneau Community Health Fair – Day 1, Thunder Mountain School, 3101 Dimond Park Loop, Juneau, AK 99801
· Juneau – 3/23/2024, 8:00am – 1:00pm, Juneau Community Health Fair – Day 2, Thunder Mountain School, 3101 Dimond Park Loop, Juneau, AK 99801
· Glacier View – 3/23/2024, 9am – 1pm, Glacier View Community Health Fair, Glacier View School Mile 104 Glenn Hwy., Sutton, AK 99674
· Fairbanks – 3/26/2024, 8am – 1pm, Fairbanks Office Draw, 725 26th Ave., Suite 201, Fairbanks, AK 99701
· Dillingham – 3/27/2024, 7:00AM – 12:00PM, Dillingham Community Health Fair, Dillingham High School Gym, 306 West D St., Dillingham, AK 99576
· Nenana – 3/29/2024, 8am – 1pm, Nenana Community Health Fair, Nenana City Schools, 610 E. 6th St., Nenana, AK 99760
Affordable Blood Tests Available at All Events
27 panels - Comprehensive Blood Chemistry Screen: covers infection, anemia, liver disease, clotting ability, kidney and adrenal function, liver function, bone disease, tissue disease or damage, heart function, liver function, muscle function, coronary heart disease, & more - $45
Thyroid Screen - $35
Prostate Disease Screen - $25
Vitamin D Screen - $50
A1C diabetes - $25
Blood Typing - $20
We are reaching out to you with an important update regarding the pricing of our blood tests.
For over 44 years, AHF has provided health education and affordable blood screenings across Alaska. Despite the rising costs, we have kept our prices unchanged for more than a decade. However, now we find ourselves at a juncture where a price adjustment is necessary to sustain our services. Here’s what you need to know:
· Prices will remain unchanged for this spring health fair season. We encourage you to take advantage of the current rates.
· The price adjustment will take effect starting in August 2024.
· We will do our best to keep any price increases to a minimum, to continue providing Alaskans with access to affordable, comprehensive blood screenings.
About Alaska Health Fair, Inc.
Alaska Health Fair is a nonprofit organization providing health education and affordable blood screenings. It has been a trusted resource for the Alaska community since 1980. Every year, thousands of Alaskans attend AHF events in Anchorage, Fairbanks, Juneau and many other communities. With questions please call (907) 278-0234 Anchorage/Statewide, (907) 374-6853 Fairbanks, or (907) 723-5100 Juneau.
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Alaska History
-Mar. 3, 1973: First Iditarod Sled Dog Race
-Mar. 7, 1988: Opening of World’s Winter Special Olympics, largest sporting event ever held in Alaska
-Mar. 7, 1984: First successful solo winter ascent of Mt. Denali completed by Vern Tejas
-Mar 7, 1919: Sonny Linder won the first Yukon Quest
-Mar. 9, 1942: Troops arrived in Dawson Creek to build Alaska Highway
-Mar. 10, 2024: Daylight Saving Time begins
-Mar. 12, 1914: Alaska Railroad authorized
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