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 27, 2025

Day 66 of the 121 day session

Dear friends and neighbors,

 

I was humbled to be honored by the Key Campaign last week. They gave me this beautiful flower art piece, made by folks at Hope Community Resources art programs.

The Key Campaign appreciated my advocacy and funding for home & community based service providers in last year's budget. The work of these home & community based providers allows people with disabilities (physical, mental, or age related) to live in their homes or community facilities, rather than institutions.

 

Healthcare Services

Medicaid in Alaska provides coverage for more than 250,000 people. Almost half of them are children, with more than 40% of births paid for by Medicaid. Medicaid covers physical and mental healthcare. Annually we receive about $2.3 billion in Federal funds for our Medicaid program (78% of the cost), with the State funding about $710 million. The Medicaid program covers children in OCS foster care, seniors, disabled Alaskans, homeless persons, and incarcerated individuals. Medicaid also supplements Medicare for seniors residing in the Alaska Pioneer Homes. This help cover the cost of the many levels of care in their assisted living system as well as Alaska Psychiatric Hospital. The average cost per recipient cost varies a lot. Last year, 43% of Medicaid recipients were diagnosed with one or more chronic conditions, spending $26,499 each for care. Costs are $4,581 each for recipients without a diagnosed chronic condition.

 

Reductions are also on the table to SNAP (Supplemental Nutrition Assistance Program) that provides food subsidies to low income Alaskans. This is extremely important for seniors and disabled, but also households below the poverty level.

 

The Federal government is considering reducing support for Medicaid, meaning that Alaska may have to pick up more of the cost for this. This will seriously challenge our budget.

 

https://www.axios.com/newsletters/axios-vitals-4184b850-0986-11f0-86a5-838c65cb1425.html?chunk=3&utm_term=emshare#story3. Axios

The researchers' estimates assume $880 billion and $230 billion in broad Medicaid and SNAP cuts over 10 years, respectively, spread out evenly over the decade and proportionately among states.

 

Dept of Health (where Medicaid resides) is only behind Education in budget costs. Losing any of the 78% of federal funding for Medicaid will add huge cost. (Chart below)

Items in this Newsletter:

·     Budget Challenges

·     Energy

·     Alaska Permanent Fund Corporation Updates

·     Anchorage Delegation Town Hall

·     PFD Filing Reminder

·     Women's History Month

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

·     Resource Values, Permanent Fund

BUDGET CHALLENGES

 

When asked, Alaskans have said they don't want a state sales tax (57% no). They have said they don't want a PFD of $1000 or less (58% said no). Alaskans said "no" to spending from savings (53% said no). And Alaskans were really opposed to a state income tax (66% said no).

 

But that doesn't provide an real answer, does it.

 

We can't wait for a fairy godmother or a money-laden unicorn to show up.

 

The deficit at the bottom of the FY 25 column (the current year) is $172.5 million. There are still some employee contract negotiations to wrap up, and a few other things. Total will likely be closer to $200 million.

Senate Finance chairs are advising taking that money out of savings (CBR) to pay this shortfall. The CBR balance right now is about $2.965 billion. At a minimum, we should have $3 billion in the CBR.

The Senate Majority came into session vowing not to spend anything from the CBR but the finances have gotten so much worse that use of savings is now under discussion.

 

But look at next year (FY 26) which begins on July 1, 2025. That's a $504.6 million deficit to fill. And the numbers just get worse in FY 27 and FY 28.

Won't we get more money from our oil taxes and the new oil fields on the North Slope (Willow, Pikka)? The answer: not for several more years. Why?: because the companies can deduct a lot of the expenses they put into developing the wells and pipelines to bring the oil to market.

 

Oil no longer pays 90% Alaska's bills. Now 60% of our funds come from earnings of the investments made by the Permanent Fund.

 

When asked, Alaskans said "yes" to increasing oil taxes (61% said yes). But even more so, when asked, Alaskans throughout the state overwhelmingly said "yes" to making sure all oil companies paid a corporate income tax (77% said yes). This "S-Corporation" tax is what is being proposed in SB 92.

 

So we either reduce the size of the PFD, reduce education spending (our highest spend), reduce healthcare spending, reduce public safety, reduce road maintenance and repair, and more. We could reduce spending on disaster relief or fire suppression (forest fires) or we could reduce corrections by incarcerating less law breaking individuals.

 

https://alaskabeacon.com/2025/03/26/alaska-corrections-officials-testify-on-in-custody-deaths-mitigation-efforts/.

On average, 4,500 people are incarcerated each year in Alaska’s 13 facilities, which includes individuals under arrest and awaiting trial or sentencing, known as pretrial, and those who are serving sentences. Of those in custody, an estimated 42% of men and 60% of women are pretrial, according to state data.  

 

What we are doing this year is denying deferred maintenance items, denying funding for services, and saying "no" to any new programs that would cost money.

 

The other options are other sources of income. Those could be in the form of different taxes, as other states have.

 

Full poll being referenced can be found HERE.

Energy

Alaska Energy Authority presented to the Senate Finance Committee on Wednesday, March 26th. You can watch the presentation here and review the slides here.

 

Watch their video about the High-Voltage Direct Current (HVDC) Submarine Cable Transmission Line project here.

Alaska's Permanent Fund RESOURCE!

 

The Alaska Permanent Fund Corporation partnered with Alaska Resource Education to create three educational videos on how the permanent fund works. Click below to watch the first video in the series and learn more about Alaska Resource Education here.

PFD Filing Deadline Reminder

The deadline to file for your PFD is Monday, March 31st at 11:59 pm. You can file here.

Women's History Month - March

Below is Senator Gray-Jackson's special order on Celeste Hodge on March 19th.

Below is Senator Tobin's special order on Bernice Joseph on March 24th.

Below is my special order on Gail Phillips on March 24th.

Current Topics

A huge iceberg broke off Antarctica. What scientists found under it startled them. Anchorage Daily News

What the team members found under the iceberg surprised them: giant sea spiders, octopuses, ice fish, corals and sponges, including a vase-shaped one that might be hundreds of years old. In total, the researchers believe they will be able to identify dozens of new species from the expedition.

 

Report on missing Native people removed from federal websites. Alaska Public Media

The final report by the Not Invisible Act Commission was a joint effort of the U.S. Justice and the Interior departments completed in November 2023. It focused on the disproportionate rates of assault and murder in Indigenous communities across the country – as well as unique issues faced by Alaska Native people. President Trump signed the law that mandated the report during his first term. In February, the report’s authors and advocates noticed that the link had been deleted from several federal websites, including the Department of Justice website. The reason for the removal wasn't immediately clear, though some federal agencies have acknowledged scrubbing material to comply with Trump's executive orders to remove "diversity, equity, inclusion, and accessibility policies."

 

Postal workers and residents rally in Anchorage to defend USPS. Alaska's News Source

 

Alaska corrections officials testify on it-custody deaths, mitigation efforts. Alaska Beacon

On average, 4,500 people are incarcerated each year in Alaska’s 13 facilities, which includes individuals under arrest and awaiting trial or sentencing, known as pretrial, and those who are serving sentences. Of those in custody, an estimated 42% of men and 60% of women are pretrial, according to state data.  

Arctic Issues

Alaska House passes resolution opposing tariffs on Canada. Anchorage Daily News

Alaska House affirms Canada's sovereignty and opposes tariffs. Alaska Public Media

Alaska House asks for cooldown in Trump-triggered US-Canada trade dispute. Alaska Beacon

Canada's leader laments lost friendship with U.S. as he visits town that sheltered stranded Americans after 9/11. Anchorage Daily News

The resolution recognizes Canada’s sovereignty, after Trump made a series of comments about annexing the nation and turning it into the U.S.’s 51st state. Reactions from Canada have threatened to escalate the trade war between U.S. and Canada that leaders say could economically harm both nations.

 

Economy

Possible NOAA layoffs alarm weather world. Axios

Nearly every private weather forecasting company relies on the raw data that NOAA's satellites, ground observation stations, computer models and other infrastructure gather and disseminate for free.

 

DOGE Social Security plan targets small fraud at possible high cost. Axios

Effective March 31, Americans won't be able to call and sign up for Social Security benefits, or make major changes to their accounts that require ID verification. They either must use the internet or visit a field office, which is not an easy option for many of the people who rely on Social Security the most.

 

Possible Postal Service changes present challenge to Alaska Bypass Mail. Alaska Beacon

Bypass Mail is an Alaska-only classification of parcel post mail that bypasses U.S. Postal Service facilities. It includes food and other products that are shipped from Anchorage and Fairbanks through private carriers to retailers off of the road system. Bypass Mail must be from a single seller to a single recipient, shrink-wrapped and moved on pallets for ease of storage, and in a minimum order of 1,000 pounds. The USPS subsidizes the service, at an estimated cost of $133 million in 2022.

 

Opinion: Understanding the costs of tariffs on Alaska. Anchorage Daily News

So if trade is good for the economy, why create a barrier? Tariffs have traditionally been used to enhance revenue, protect domestic industries from foreign competition, or even retaliate against other countries. Although Congress used to set tariff rates, it has gradually ceded authority over trade policy to the executive branch.

 

More states are requiring paid medical or sick leave. Anchorage Daily News

Hannah Jones credits paid medical leave with helping her survive an aggressive form of breast cancer. Her employer provided time off for chemotherapy treatments and to recover from surgery. Most importantly: Jones didn’t have to delay care for work, something doctors warned against. Paid family and medical leave allows workers time off to undergo a treatment or care for a family member or a new child. Separately, more states and cities also are requiring paid sick time, which helps people deal with shorter-term illnesses like the flu. Nineteen states plus Washington, D.C., have laws requiring paid sick time, as do 17 cities and four counties, according to the non-profit National Partnership for Women and Families.

 

Most states will not replace federal Medicaid cuts. Governing

Whether you are for the Medicaid cuts under discussion or against them, don’t expect many states to replace significant cuts in federal Medicaid funding. If any state does, it may lead to cuts in other state programs outside of health care such as corrections, environmental protection, social services, transportation, education or higher education, or possibly force some states to raise taxes. State spending on Medicaid is already the second-largest item in most state budgets (and the largest with federal funds added in).

 

Here's where you'd pay the highest state income taxes. Axios

Some states with low or no individual income tax, like Texas and Florida, are attracting lots of new residents — but could find themselves in trouble in a world with less federal financial aid.

 

Fisheries

Bill would change the makeup of the Alaska Board of Fisheries. Alaska Beacon

The measure, House Bill 125, would require that the board have designated seats to represent commercial, sport and subsistence harvesters. Two members would represent each of those sectors, and another member would represent the scientific community, under the bill’s provisions. The subsistence representatives would be nominated by the Alaska Federation of Natives, according to the bill. The science representative would be nominated by the National Oceanic and Atmospheric Administration, according to the bill.

 

Energy

Pipeline and hazardous material safety agency gutted, as Trump pushes more pipes. Anchorage Daily News

An exodus of senior officials is adding pressure to the already strained agency that oversees millions of miles of U.S. oil and gas pipelines. Five senior leaders at the Pipeline and Hazardous Materials and Safety Administration (PHMSA), including the head of the Office of Pipeline Safety, accepted a buyout offer from Elon Musk’s Department of Government Efficiency, and two other staff members decided to retire.

 

In 2024, more electricity than ever came from renewable sources. Governing

 

Education

What to know about Trump's plan to abolish the Education Department. Anchorage Daily News

Trump signs order to dismantle the Education Department while keeping some core functions. Anchorage Daily News

The Education Department has the smallest staff of any federal department. At the start of the administration, there were just over 4,100 people, but layoffs and other efforts have cut the numbers nearly in half. Its discretionary annual budget is about $79 billion. Congress also appropriates funds for student loans and grants to college students that do not go through the annual budget process. The agency does not determine curriculum or graduation requirements, nor does it administer the Head Start preschool or school meals programs.

 

What to know about Trump's order to close the education department. NCSL

Significant changes were already underway at the department before the executive order. After a “reduction in force” initiated by the department in March, nearly 2,000 workers were laid off or accepted voluntary resignation offers, which reduced the workforce from more than 4,100 staff to fewer than 2,200. According to reports, the vast majority of staff cuts occurred at Federal Student Aid, the Office of Civil Rights and the Institute of Education Sciences. Federal Student Aid, which oversees student loans and Pell grants, reportedly lost nearly half of its staff. The Office of Civil Rights similarly lost about half its staff. Other smaller, inner-agency offices, including the Office of English Language Acquisition and the Office of State and Grant Relations, lost all or nearly off their staff.

Mat-Su teacher layoffs uncertain amid ongoing state budget debate. Mat-Su Sentinel

A final decision on whether the Mat-Su School District will need to lay off teachers before next school year is pending and can’t be made until state lawmakers approve education funding — a process that could take months.

 

Politics

Republicans 'afraid' of Trump and Musk; Sen. Murkowski talks about her party and speaking out. Alaska News Source

Sen. Lisa Murkowski says Republican lawmakers are “afraid” President Donald Trump and his billionaire advisor Elon Musk will campaign against them. “That’s why you’ve got everybody just zip-lipped, not saying a word, because they’re afraid they’re going to be taken down — they’re going to be primaried, they’re going to be given names in the media,” Murkowski said during a press availability Tuesday in Juneau. “We cannot be cowed into not speaking up. It may be that Elon Musk decides that he’s going to take the next billion dollars he makes off Starlink and put it directly against Lisa Murkowksi. And you know what? That may happen. But I’m not giving up one minute, one opportunity to try to stand up for Alaska,” she said.  In one tense moment, Murkowski pushed back when asked why she didn’t leave the Republican party. “No, I can’t fix everything, and no, I am not going to be in a position and a place where I just take the strategy that I’m going to tear down, at every opportunity, the president of the United States,” she said. “That’s not constructive to the people of Alaska. I’m going to have to figure out where I can work with him, and I’m going to have to stiffen my spine and take the slings and arrows when people say, ‘Why aren’t you a better Republican? And, if you’re not, get out of the party.' You know what? Until Alaskans tell me, ‘Lisa, it’s just not working anymore,‘ I am going to give you every last breath that I have and I’m going to try to solve every little problem, and I’m not going to compromise my own integrity by hiding from my words when I feel they need to be spoken.”

 

Sen. Sullivan supports Trump, downplays federal budget chaos, in speech to Alaska Legislature. Alaska Beacon

Sullivan embraces Trump, says DOGE cuts are hard but necessary in speech to Legislature. Alaska Public Media

'Difficult choices': Sen. Sullivan defends DOGE cuts during annual state legislative address. Alaska News Source

'You work for us not Trump!' Demonstrators show up for U.S. Sen. Sullivan's address to legislators. Alaska Beacon

State Sen. Forrest Dunbar, D-Anchorage, asked whether Sullivan would oppose cuts to Medicaid, Medicare and Social Security, and asked the senator to answer “yes or no.” Sullivan refused, but his answer implied that he’s open to cuts. “Almost one-third of Alaskans … are on the rolls of Medicaid now. We, I think, accept that. Some see it as a good. I don’t see it as a good. I think our goal should be to increase our private-sector economy and increase the opportunities for people to move off Medicaid and get private-sector insurance,” Sullivan said. (The share of uninsured Alaskans fell over the past decade, after Medicaid eligibility was expanded, from 14.5% in 2015 to 10.5% in 2023.)

(My comment: Sadly its not that easy. How great if there were jobs available for entry level, single moms, rural folks! And how great would it be if those jobs came with employer provided health insurance! Private sector employers are facing increase insurance costs that are beyond unaffordable, and where it is provided, the employee copay often exceeds the cost of rent and food put together!)

 

Opinion: Is darkness descending? Anchorage Daily News It’s easy to feel things going that way these days. However, let’s remember that America has withstood political shocks before and survived. The Civil War is the prime example although its effects are still being felt. 

 

A federal lawsuit says the Trump administration has unlawfully shuttered the Voice of America. Anchorage Daily News

A lawsuit accuses the Trump administration of unlawfully shutting down the Voice of America and asks a federal court to restore the outlet that for decades has supplied news about the United States to nations around the world — including many that lack a free press of their own.

 

Health Care

Another Optum business change. Axios

OptumRx is changing the way it pays pharmacies, reimbursing them more for branded drugs and less for generics, the company announced.  Drug supply middlemen like Optum are facing more criticism for using anticompetitive tactics that steer business to their own affiliates and can disadvantage independent pharmacies.

(My Comment: OptumRx and the other 2 big PBMs have been shortchanging pharmacies for generic medication reimbursements for years! This is costing consumers and putting pharmacies out of business. I’m continuing to try to change that.)

 

Robot Therapy. Axios

AI can't effectively substitute for a human therapist because "a therapeutic relationship is about ... forming a relationship with another human being who understands the complexity of life,”

(My comment: During COVID the challenge was isolation. Now the challenge is still isolation from fellow human beings.)

 

Opinion: As a family physician in Alaska, I see firsthand that Medicaid isn't a handout. It's a lifeline. Anchorage Daily News

In Alaska, nearly 250,000 adults, children, people with disabilities and pregnant individuals rely on Medicaid to access essential health care services that they otherwise wouldn’t be able to afford. Proposals to implement cuts and other structural changes to Medicaid would have grave consequences for patients and families in Alaska.

 

Speaking of Medicaid cuts. Axios

The researchers' estimates assume $880 billion and $230 billion in broad Medicaid and SNAP cuts over 10 years, respectively, spread out evenly over the decade and proportionately among states.

Alaska Oil Resource Values

 

Alaska North Slope crude oil price (03/26/25): $75.72

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 (03/25/25): 483,023 bpd

 

 

Wall Street braces for oil in $60s range on tariff, OPEC+ Risks. Bloomberg

“We expect Brent to stay above $70 a barrel in coming months,” but “we no longer see $70 as the price floor,” head of commodities research Daan Struyven wrote. Brent futures are currently hovering around $71.

(My comment: Every $1 in oil price = $35 in revenue for Alaska. Either up or down.)

 

Record gold prices could mean a banner year for Alaska Mines. Alaska Beacon

A year ago, Alaska’s miners were selling gold at what seemed like a great price: around $2,200 per ounce. Today, that number sounds like a steal. After a historic surge in value, gold is now selling at an all-time high: more than $3,000 an ounce, or an increase of some 35% since the beginning of 2024.  

 

Precious Metal Prices

March 26, 2025

Gold - $3037.32

Silver - $33.92

Platinum - $987.31

Palladium - $998.36

Rhodium - $5525.00

 

Alaska Permanent Fund

website

 

Fund value March 19, 2025 - $82,136,500,000

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

Over $100 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)

 

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