Senate Majority Coalition Website

State Senator District E

 

Senator Cathy Giessel Newsletter

UPDATES



Issues affecting

your family, community and jobs.

 

 

April 13, 2023

 

 

Dear Friends and Neighbors,

 

Today is day 87 of the session!



Please take a look at "What Dividend Makes Sense?" At the community meetings in March, we talked about this topic.

 

There are lots of bills being worked on and/or moving these days. The Operating Budget is in the House but we expect it to be passed to the Senate soon. The challenge is that the budget is not fully funded. So the Senate will fix that.

 



Items in this Newsletter:



·     Medicaid Renewal Process

 

·     What Dividend Makes Sense?

 

·     Free Health Clinics in Anchorage

 

·     Senate Floor and Committee Meetings

 

·     Current Topics, Economy, Health Care, Energy

 

·     Alaska History

 

·     Oil and Permanent Fund Resources

 

 

 

 

 

What Dividend Makes Sense?

 

There are 2 positions on the Dividend:

1.  The House Majority is promoting a 50/50 Dividend

2.  Most of the Senate Majority recognizes that a 25/75 Dividend is sustainable

 

As you can see from the financial analysis below, a 50/50 Dividend prevents funding for education, public safety, roads, park maintenance, etc.

 

The Senate recognizes that we must have a plan for the future. Ignoring state services only results in more families leaving Alaska for better opportunities, business stagnation, and our workforce commuting from the Lower 48, rather than living here.

 

Please look at these fiscal facts. If you agree that we need a plan for the future, please take the time to communicate to your House Representative and Senator.

 

 

50-50 Dividend Split

“Statutory PFD”

Graph on Right

Blue – State tax revenues, mostly oil taxes

Green – funds coming from Permanent Fund

Yellow – funds taken from Savings

Red – no adequate funds to cover without extra from Permanent Fund

Dotted line – budget without Dividend

Solid line at top – budget with Dividend

 

Graph on Left

Yellow – savings account almost gone by FY 2032

Green – money from Permanent Fund almost gone by FY 2032

 

Across bottom

POMV Draw rate – 5.40% by FY26 (2 years from now) which is above the 5% Spending Limit

PFD/person – amount $2,689 in October 2023

 

Result – by FY2026 (in 2 years) we won’t have enough funds to pay the bills (see red) Would overspend money from POMV 5.40%

 

 

 

25-75 Dividend Split

25% for PFD

Same explanation for both graphs

 

Graph on Left

Budgets are fully funded, without use of savings until FY 30

 

Graph on Right

Yellow – savings account Grows!

Green – money from Permanent Fund Grows!

 

Across bottom

POMV Draw rate – always kept at Spending Limit of 5%

PFD/person – $1,304 in October 2023

 

Result – The budget is sustainable, savings grows, 5% POMV maintained

 

The 25% PFD below is the policy that I support.

 

 

 

 

 

 

Senate Floor Session

Week of April 6-12

Senate Floor Session

DATE: 04-11-2023

SB 77-MUNI PROP TAX EXEMPTION/TAX BLIGHTED PROP

Vote: 13-6; SB 77 passed the Senate.

Motion for the adoption of the bill be the effective date clause; objection is heard. Vote: 16-3. Effective date clause is passed.

SJR 10-MEDICARE REIMBURSEMENT

The resolution would encourage Alaska’s Congressional delegation and the federal government to raise Medicare reimbursement rates to meet the actual cost of care.

Vote: 19-0; SJR 10 passed the Senate.

 

Alaska Senate passes bill to allow municipal blight tax, property tax exemptions. Alaska Beacon

The Alaska Senate voted 13-6 on Tuesday to pass a bill that would apply both a carrot stick for local governments to encourage the construction and maintenance of developments.

 

Senate Floor Session

DATE: 04-12-2023

SB 55-EXTEND STATE MEDICAL BOARD

The bill would reset the termination date of the State Medical Board to June 30, 2031, and the termination date of the Board of Certified Direct-Entry Midwives to June 30, 2027.

Vote: 20-0; SB 55 passes the Senate.

Motion for unanimous consent be given to have the vote on the bill be the vote on the effective date clause; without objection, the effective date clause was adopted.

 

Senate Committee Meetings

Week of April 6-12

 

Finance

April 12- Permanent Fund Dividend; POMV Split- Invited Testimony

 

April 12- Bills Previously Heard/ Scheduled

 

April 13- Increase Base Student Allocation- Invited Testimony

 

April 13- Increase Base Student Allocation- Public Testimony

 

April 14- APPROP: Capital/ Supplemental Budget

 

 

Education

April 12- Consideration of Governor's Appointee: James Field

 

April 14- Financial Literacy Course in Schools

 

 

Health & Social Services

April 11- SB 106, SB 24, SB91

 

April 13- Bills Previously Heard/ Scheduled

 

 

Judiciary

April 12- Workplace Violence Protective Orders- Invited Testimony

 

 

Labor & Commerce

April 10- Owner & Contractor Controlled Insurance- Invited and Public Testimony

 

April 12- Profession of Pharmacy- Invited and Public Testimony

 

 

Resources

April 12- Consideration of Governor's Appointees: Board of Game

 

April 14- State Ownership of Submerged Lands- Invited Testimony

 

 

State Affairs

April 13- Pay for AK Defense Force- Public Testimony

 

 

Transportation

April 11- License Requirements: Comm. Drivers - Public Testimony

 

April 13- License Requirements: Comm Drivers - Public Testimony

 

 

Current Topics

Airline passengers could be in for a rougher ride, thanks to climate change. Alaska Public Media

 

North Dakota wants to lead the nation on rare earth production. Governing

The U.S. Department of Energy last week announced $16 million in funding to establish domestic supply chains of rare earth elements and critical minerals, aimed at reducing our dependence on foreign sources for these important materials. Rare earths are essential in the manufacture of modern electronic devices including applications in national defense and clean energy technologies. Half of the $16 million will support research conducted by the Energy and Environmental Research Center (EERC) at the University of North Dakota in Grand Forks where they will be looking at ways to recover and refine rare earth elements from coal mine waste. 

 

Alaska population dipped last year, Census Bureau finds. Alaska Public Media

More people moved out of Alaska than into the state last year, but other population factors nearly offset the loss, according to new figures from the U.S. Census Bureau.

 

DNR Gives Graphite One Winter Trail Permit. Nome Nugget

Graphite One, based in Vancouver, has done exploration work on a graphite deposit that is thought to be the largest in the United States. The company could be years away from applying for permits to begin mining operations, but it has been ramping up its exploration efforts in recent years. The plan to mine includes eventually building an industrial access road to the site. The winter trail follows the general route of that road.

 

Department launches new effort to support Alaska's refugees and legal aliens. Alaska Labor

 

It's spring and Juneau's bears are waking up hungry. Alaska Public Media

 

Anchorage snow is costly for some businesses and a boon for others. Alaska's News Source

With over 100 inches of snow recorded for the season, snow plowing and hauling have been big budget items.

 

 

Fisheries

In unprecedented move, federal council takes no action on Cook Inlet salmon plan. Alaska Public Media

A federal council made the unprecedented decision to take no action on choosing a new fishing management plan for Cook Inlet commercial salmon fishing Friday, after it said it was left with no good options on a tight, court-ordered timeline.

 

 

Politics

Proposal is a fiscal plan, but not a good one. Juneau Empire

 

Alaska Gov. Dunleavy creates task force to address child care shortage. Alaska Beacon

 

How much could younger voters affect future election outcomes? Governing

Millennial and Gen Z Americans will be the majority of the electorate in 2028. But predicting which party will benefit will be challenging. These young voters care more about policy than party, according to experts.

 

 

Economy News

States get hit as market swings. Axios

 

Inflation expectations are on the rise again. Axios

For months, consumers have been steadily marking down near-term inflation expectations, a sign of confidence in the Fed's war on price pressures. That changed in March.

 

Pushing China to play ball. Axios

During COVID, China agreed to a plan to help poor countries that could no longer repay their debts. Now, pressure is building on Beijing to keep its word.

 

To help state budget, legislator proposes income tax: $20 for most Alaskans, more for those with upper incomes. Alaska Beacon

House Bill 156 would tax Alaskans 2% of any annual income above $200,000. If someone makes less than that amount, they’d pay $20. Any income tax could be automatically deducted from that year’s Permanent Fund dividend.

 

 

Healthcare News

Hospitals' off-site fees draw lawmakers' scrutiny. Axios

More than two years after Congress acted to shield patients from surprise medical bills, lawmakers are turning to another source of costs: the fees that hospitals tack on for services provided in clinics they own.

 

Alaska would be better off without the '80th percentile rule'. ADN

 

 

Energy News

EVs face many barriers in Alaska, but experts say the time to act is now. Alaska Beacon

As the electric vehicle market is booming nationally, Alaska is struggling to keep up. With the remoteness of much of Alaska and the state's many separate power grids, creating charging infrastructure for electric vehicles has proven to be difficult.

 

 

Alaska History

·     Just west of the Ted Stevens International Airport in Cook Inlet lies Fire Island. The island was home to a Dena'ina village and fish camps until the 1930s. Today, the island is host to a wind farm, owned by Cook Inlet Region, Inc.

 

·     On April 8, 1980, Governor Hammond signed SB 161, establishing the Alaska Permanent Fund Corporation. This bill provided the mandate to safeguard the principle and prudently manage the investment of the Permanent Fund for the maximum risk-adjusted return. This important moment in Alaska's history highlights the vision and perspective of those who worked tirelessly to protect our vital financial resources, setting the state on a course to support generations of Alaskans. On April 8, 1980, Governor Hammond signed SB 161, establishing the Alaska Permanent Fund Corporation. This bill provided the mandate to safeguard the principle and prudently manage the investment of the Permanent Fund for the maximum risk-adjusted return.

 

·     Over one hundred years ago the Territorial Legislature of Alaska was faced with the problem of providing access to the mostly undeveloped lands of the Great State of Alaska for settlement and other purposes; and ensuring a legal way for the settlers & public to access said lands, both then and in the future.

 

·     On April 6, 1923, one hundred years ago today, the Territorial Legislature enacted Chapter 19, SLA 1923; which accepted the 1866 federal offer granting rights-of-way across unreserved public lands. This acceptance of the federal offer created the first RS 2477 rights-of-way (section-line easements) on section lines; which in turn provided that means of legal access across undeveloped parts of this Great State for settlement and other purposes. 

 

 

Alaska Oil Resource Values

 

ANS crude oil price (4/12/23): $86.45

The current budget requires $89 per barrel 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 (4/12/23): 470,178 bpd

 

Why did OPEC cut oil production? Key reasons explained. Reuters

Here are some of the reasons why OPEC+ is cutting oil production again.

 

Analysis of the oil tax bill is missing. ADN

 

Ringfencing likely to be removed from SB 114 in Senate Finance CS. Petroleum News

Senate Bill 114, the Senate Rules Committee legislation making changes to the state’s oil and gas tax regime, had its first hearing in Senate Finance on March 31. Sen. Bill Wielechowski, D-Anchorage, chair of Senate Rules, presented the bill, which has three main provisions.

 

 

Permanent Fund 4/12/2023: $76,741,400,000

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 - $61.7B

$52.1 B savings, royalties, other deposits

$9.6 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

$4.2 B for FY23 Inflation Proofing

$ 2.2 B unrealized gains

$4.0 B uncommitted realized earnings

PFD payout from ERA, 1980-2022: $26.6 B

 

Mineral Prices

April 12, 2023

Gold - $2017.40

Silver - $25.49

 

 

 

 

 

 

"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 (sometimes ski-bum in Girdwood)

·     Resources Committee Staff: Julia O'Connor (from Juneau)

·     Legislation Staff: Ryan Rivers (from Anchorage)

·     UA Intern: Jon Hough (From UAF)

 

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