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State Senator District E

Senate Majority Leader

 

Senator Cathy Giessel Newsletter

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Issues affecting

your family, community and jobs.

Legislative Day 94

April 18, 2024

Dear Friends and Neighbors,

 

Photo: A cow moose visiting the Anchorage Pioneer Home downtown on 11th Avenue.

The Alaska Pioneer Home network is unique and amazing assisted living homes.



"The Alaska Pioneer Homes system was first established in 1913 when the territory established a home in Sitka for indigent men. The age requirement of 65 years was implemented in 1915. Women were first admitted in 1950. Additional homes were opened in Fairbanks in 1967, Palmer in 1971, Anchorage in 1977, Ketchikan in 1981 and Juneau in 1988." More about the Homes.

 

Education - Correspondence

Last Friday, Alaska Superior Court ruled that provisions of Alaska's correspondence education law was unconstitutional. The judge declared the unconstitutional elements to be the individual learning plan (ILP); and the allotments of 90% of the Base Student Allocation (BSA) funding to each correspondence student. In the ruling you can read the details of the judge's finding, so I won't run through them here. Read the Court Ruling here.

 

What happens next?

The Senate education committee identified that the State Board of Education could pass emergency regulations that would return our correspondence school program to the same rules that existed before 2014. At that time there was a reimbursement for a defined amount of education expenditure, and a specific list of items that could be reimbursed. This prevented abuse of the funding and provided for transparency of the use of the monies.



In the meantime, we believe a "stay" on the ruling will be put in place until the end of this school year in May, so current students can complete their work under the current system. The ruling of unconstitutionality is not surprising but the timing is abrupt. The Senate is looking at what could be done to preserve funding for the public correspondence programs such as IDEA. There will be more to come on this.

 

Items in this Newsletter:

·     Build Your Ideal State Budget

·     SB 88 Defined Benefit Pension

·     Pharmacy Benefit Managers

·     Volunteer Events in Chugach State Park

·     Alaska Mining Day Events

·     Senate Majority Capital Budget Press Release

·     Senate Committee Meetings

·     Current Topics: Education, Economy, Minerals, Healthcare, Politics

·     Resource Values, Permanent Fund

SB 88 Defined Benefit Pension

 

It would take $1.46 million to retire comfortably, according to a recent survey of 4,588 adults released Tuesday by financial-services company Northwestern Mutual. That is up from $1.27 million a year ago. This is over $1 million more than the average survey participant’s nest egg.

 

"Younger workers, in particular, worry about what looming shortfalls will mean for benefits," said Kurt Rupprecht, partner and private-wealth adviser at K Street Financial, a Northwestern Mutual Private Client Group.

 

Millennials (those born between the early 1980s and late 1990s) sharply raised their estimates compared to before the pandemic. When they retire, millennials will expect to need $1.65 million. That is up from about $1 million in 2020. Baby boomers (born between 1946 and 1964) said they would need $990,000, up from $830,000 in 2020, according to the poll, the latest installment of which was conducted in January.

 

Take a look at the recruitment notices coming from the Alaska Department of Labor. The State is paying lots of money out in recruitment bonuses! Now consider that the individuals hired have to be put through the Public Safety Academy for several months, then be mentored by an experience officer for about a year, adding an estimated $150,000-200,000 to the hiring costs.

 

After hired, they are put into the Defined Contribution (DC) system (401K-style) that allows them to be vested at 5 years of service. These trained, 5-year experienced public safety employees can then take all the funds in their DC account and leave Alaska. They accept jobs in Washington, Oregon, California, Idaho - all states that are recruiting our trained public safety folks with higher pay and a Defined Benefit (DB) Pension. These states are getting fully trained public safety staff...at Alaska's expense.

 

It is a fact that Defined Benefit (DB) Pensions effectively retain employees. It is also a fact that DB Pensions are appealing for recruitment.

 

What does this cost? When calculating the recruitment bonuses, training, and "on-boarding" costs, and the loss of experienced staff leaving public service, a nationally renowned economist estimates the savings of about $76 million/year.

 

SB 88 uses the same modern fiscal elements that other successful state pensions use. The benefits are modest; they are not the "gold-plated" benefits of the past DB Pensions. All participants (retirees, employees, and employers) will contribute more to the fund if it becomes less than 90% funded. There is no Cost of Living Adjustment (COLA). There is also no healthcare coverage for years between retirement and Medicare eligibility. At the same time, after retirement, there is the security of a livable retirement income.

 

Here's a summary of the pieces of SB 88, a modest hybrid Defined Benefit Pension bill.

 

Dr. Teresa Ghilarducci, economist, presented to the House Labor & Commerce committee on April 13. Hear her analysis of SB 88 and her comments on retirement challenges. Recording of meeting is here.

 

Being prepared for retirement in Alaska. ADN

Protecting Social Security and working for bipartisan legislation to keep Social Security solvent for the long term is a top priority for AARP. However, we know that Social Security is just one piece of retirement readiness, and not enough to rely on. And according to the Federal Reserve’s 2022 “Economic Well-Being of Households Survey,” only 31% of non-retirees thought their retirement savings was on track, down from 40% in 2021.

(My Comment: SB 88 is a modest defined benefit pension that requires full funding of the pension, with employees, retirees, and employers contributing to the fund to maintain it. It can’t run off the financial rails.)

 

 

 

 

 

 

 

**$10,000 Sign on Bonus**

State of Alaska Department of Corrections Recruiting Workshop

Every Friday 3:00 pm. - 4:00 p.m. at the

Mat-Su Job Center

877 W. Commercial Dr., Wasilla, AK

(907) 352-2500

 

Alaska State Troopers - Recruiting Event 

1st and 3rd Wednesday of each month 11 a.m. - 3 p.m. 

At the Mat-Su Job Center

877 W. Commercial Dr., Wasilla

We are hiring multiple State Trooper positions!

We are offering a $15,000 hiring bonus for persons without experience and a $30,000 hiring bonus for certified law enforcement officers who

are hired.

Base starting pay: $82,618-$106,912

CONTACT: DPS Recruiter

Trooper Steve Adams

(907) 217-3898 or steven.adams@alaska.gov

APPLY ONLINE: alaskastatetrooper.com

Pharmacy Benefit Managers (PBMs)

 

Pharmacy Benefit Managers (PBMs) decide what medications you can have and how much they cost. In addition, PBMs decide how much they will reimburse your pharmacist for the medication dispensed to you. The three largest PBMs make over $350 billion/year in profits! Hear more about this monster “middle-man” that is costing you in health and dollars. Listen to a podcast where pharmacists talk about PBMs price escalation.

Volunteer Events in Chugach State Park

 

Chugach Park Fund (CPS) is sponsoring seven volunteer events this year in Chugach State Park. CPF raises money to do various trail improvements in the park. This year the events will be in Anchorage and Eagle River, please let your family members, coworkers and friends know to come out and do some hands-on community team work.

 

The dates are:

 

6/22/2024 South Fork Rim Trail + Golden Grass

7/6/2024 Near Point (Prospect side)

7/13/2024 Hanging Valley South Fork Eagle River

7/24/2024 Hemlock Knob 

08/24/2024 South Fork Valley Trail Eagle River

08/31/2024 Wolverine Trail Prospect

09/14/2024 Junction of Hemlock Knob & Powerline

 

You can sign up here.

Senate Passes Balanced Capital Budget Based on Size and Scope of Finance Co-Chairs’ Agreement

 

JUNEAU—Today, the Alaska Senate passed Senate Bill 187, otherwise known as the capital budget. The budget totals $450 million of general fund dollars and is carefully crafted to promote infrastructure projects throughout the state, address the state’s backlog of deferred maintenance, support statewide weatherization, and increase resources for food security, among other priorities. 

 

“For many years, our capital budget has been bare bones without significant investment in infrastructure and deferred maintenance projects. With the slight uptick in revenue because of higher oil prices and prudent budgeting, the Senate was able to prioritize the state’s biggest capital needs within our financial capacity,” said Senator Lyman Hoffman (D-Bethel), co-chair of Senate Finance and developer of the Senate capital budget. 

 

The Senate capital budget highlights include:

·     $68 million to K-12 and the University of Alaska for deferred maintenance:

·     $9 million for K-12 school construction for the top 2 schools on the school construction list, Newtok and Minto, and design and foundation funds for Nelson Island; 

·     $38 million for school projects 1-15 on the major maintenance list, including two projects for Mt. Edgecumbe High School;

·     $26.5 million for the University of Alaska for projects 1-6 on their major maintenance list.

·     $30 million for professional housing and weatherization.

·     $15 million for life and health safety. 

·     $9.7 million to leverage federal grant funding.

·     $8 million to the Department of Transportation and Public Facilities for the state’s federal harbor matching funds, and additional resources if a state-owned harbor needs emergency fixes to avoid liabilities.

·     $7.5 million for food security. 

·     $50 million for infrastructure projects across the state.

 

"The Senate's passage of the capital budget underscores our commitment to addressing critical infrastructure needs across Alaska. This budget reflects a balanced approach, prioritizing essential projects while remaining within our fiscal means,” said Senate President Gary Stevens (R-Kodiak). “I commend the collaborative efforts of my colleagues in the Senate and look forward to working with the House to ensure the timely passage of both a balanced operating and capital budget for the benefit of all Alaskans."

 

Last month, the House and Senate Finance Co-Chairs, in a collaborative effort, agreed upon a budget schedule with an exchange of the operating and capital budgets on April 12. With the passage of the Capital Budget, the Senate and House remain on schedule. The capital budget remains within the size and scope that was agreed upon by Finance co-chairs earlier this month. 

 

Senate Bill 187 will be exchanged simultaneously with House Bill 268, the state operating budget. The Senate intends to begin hearings on the House’s version of the operating budget immediately to ensure passage from the Senate in early May. 

Senate Committee Meetings

Week of April 11-17

 

Finance

April 11 - SB 187: Appropriation: Capital Budget; Reappropriation

 

April 15 - Subcommittee of the Whole: University of Alaska - FY25 Closeout

 

April 16 - SB 168: Compensation for Wrongfully Seized Game; SB 215: Teachers: Board Certification Incentive

 

April 17 - SB 151: Missing/Murdered Indigenous People; Report; SB 259: Compensation for Certain State Employees; SB 118: Critical Natural Resources; Reports; SB 236: Grants to Disaster Victims; SCR 10: Joint Legislative Seafood Industry Task Force; SB 183: Workers' Compensation Benefits Guaranty Fund; SB 189: Extend Alaska Commission on Aging

 

April 17 - HB 268: Appropriation: Operating Budget; Capital; Supplemental; HB 270: Appropriation: Mental Health Budget

 

 

Community and Regional Affairs

April 11 - SCR 13: Article II, Section 16, Constitution: Affirm Compliance

 

April 16 - HB 279: Local Boundary Commission; SB 174: Honor & Remember/Honor & Sacrifice Flags; SJR 20: Weather Observing System Station Outages; SCR 13: Article II, Section 16, Constitution: Affirm Compliance

 

 

Education

April 15 - Presentation: Alaska Vocational Technical Center; Presentation: Anchorage School District Career Academies; Presentation: Alaska EXCEL

 

April 17 - Presentation: Education Assessment Results in Alaska

 

 

Health and Social Services

April 11 - Presentation: Department of Health - Behavioral Health Roadmap for Alaska Youth; HB 371: Medical Review Organizations; HCR 15: Mental Health Month; Tardive Dysk Week

 

April 16 - HB 17: Contraceptives Coverage: Insure; Medicaid Assistance; SB 219: Prior Authority Exceptions for Health Providers

 

 

Judiciary

April 12 - SB 20: Appropriation Limit; Governor's Budget; SJR 4: Constitutional Amendment: Appropriation Limit; SB 165: Defense of Public Officer: Ethics Complaint

 

April 15 - SB 20: Appropriation Limit; Governor's Budget; SJR 4: Constitutional Amendment: Appropriation Limit; SB 165: Defense of Public Officer: Ethics Complaint

 

April 17 - SB 134: Insecure Data Security; Information Security Programs

 

 

Labor and Commerce

April 12 - AIDEA Workforce Housing Development; SB 211: Agricultural Products/Loans/Sales

 

April 15 - SB 235: CNA Training; SB 237: Tax Credit Child Care/Utility/ House/Food

 

April 17 - Consideration of Governor’s Appointees: Commissioner, Department of Labor and Workforce: Cathy Munoz; Labor Relations Agency; Board of Public Accountancy; Workers’ Compensation Board; Alcoholic Beverage Control Board; Board of Registration for Architects, Engineers, and Land Surveyors; Board of Barbers and Hairdressers; Board of Chiropractic Examiners; Board of Examiners in Optometry; Marijuana Control Board; Board of Certified Direct-Entry Midwives; Board of Certified Real Estate Appraisers; Board of Marital and Family Therapy; Board of Massage Therapists; Board of Nursing; Occupational Safety and Health Review Board; Board of Pharmacy; Board of Psychologists and Psychological Associate Examiners; Board of Social Work Examiners; Board of Veterinary Examiners; Fishermen’s Fund Advisory and Appeals Council; State Physical Therapy and Occupational Therapy Board; Workers’ Compensation Appeals Commission; SB 152: Community Energy Facilities; Net Metering

 

 

Resources

April 12 - Consideration of Governor's Appointees: Regulatory Commission of Alaska; Board of Fisheries; SB 171: Residency Requirements: Hunting, Trapping, Fishing

 

April 15 - SJR 19: Supporting Certain U.S. Trade Policies; Presentation: Department of Natural Resources Next Generation Mineral Assessments in Alaska

 

April 17 - Presentation: Alaska Hydrogen Opportunities by Alaska Hydrogen Working Group, Alaska Center for Energy and Power, University of Alaska Fairbanks

 

 

State Affairs

April 11 - SCR 3: Housing Shortage; Public-Private Partnership

 

 

Transportation

April 11 - Presentation: Statewide Transportation Improvement Program Approval Update

 

April 16 - Consideration of Governor's Appointees: Board of Marine Pilots

Current Topics

In seismically active Alaska, plans for statewide residential building codes are on shaky ground. Alaska Beacon

Despite Alaska’s experience with earthquakes, building code coverage around the state is uneven and enforcement is spotty. The state adopted strict building codes after the magnitude 9.2 Great Alaska Earthquake of 1964, but they do not apply to residential structures that are three-plexes or smaller, according to the Alaska Seismic Hazards Safety Commission. Some local governments, like Anchorage, have codes that cover residences and enforce them; other regions do not.

 

Costal Alaska communities net $50M in federal transportation grants. Alaska's News Source

A series of grants by the U.S. Department of Transportation could make some of the Typhoon Merbok damages go away and aid in the communities’ recovery. The Federal administration announced the Alaska project recipients of transportation grants totaling $50.7 million.

 

Anchorage winter ties for second snowiest on record but hitting all-time mark unlikely. Alaska Public Media

It’s been a snowy winter in Anchorage, so snowy, in fact, that 2023-2024 will go down as at least the city’s third snowiest winter on record. But will the city see enough snow still this season to break either of those records? Not likely, at least for the all-time record.

(My Comment: I’m fine with that!! Like you, I’m looking at my emerging tulips, daffodils and crocuses! Yay! Spring!)

 

 

Economy

Peltola says her priority is Alaskans' economic prosperity. KRBD

Alaska’s lone member of the U.S. House says her chief concern is the economy and how her constituents are faring in it. 

(My Comment: This is my chief concern and priority as well. That’s why I am offering a bill to return our public employees to a modest defined benefit pension, rein in the cost of pharmaceutical medications, and create a unified transmission grid for energy.)

 

 

Education

Bishop disputes feds' claim that Alaska didn't fund schools equitably during pandemic. Alaska Public Media

State education officials continue to dispute the federal government’s claim that Alaska didn’t fund schools equitably during the pandemic.

 

Funding and staffing emerge as challenges for Anchorage School District's planned career academies. ADN

As the Anchorage School District prepares to launch a major curriculum change for high school students beginning next year, administrators say they’re unsure how they plan to fund and staff for the proposed career track initiative.

 

Judge rules Alaska correspondence school reimbursements unconstitutional. ADN

 

Alaska judge strikes down state's cash payments to families using correspondence school programs. Alaska Beacon

 

Alaska judge finds correspondence school reimbursements unconstitutional. AP News

 

Judge rules state's correspondence homeschooling reimbursements unconstitutional. Alaska's News Source

 

Biggest Anchorage K12 private school enrolled all students in public correspondence to qualify for $3,000 reimbursement. Dermot Cole Reporting from Alaska

 

Judge strikes down private education allotments Dunleavy pushed in 2014, upending push for school vouchers. Dermot Cole Reporting from Alaska

An Anchorage Superior Court judge ruled Friday that correspondence schools that reimburse parents and guardians for their children’s education-related expenses are unconstitutional.

 

Alaska parents and legislators scramble for answers after judge rules homeschool allotments are unconstitutional. ADN

 

A judge has thrown out a key part of Alaska's homeschool system. Here's what to know. Alaska Public Media

 

Lawmakers react to judge ruling state's correspondence homeschooling reimbursements unconstitutional. Alaska's News Source

 

Alaska correspondence students to 'finish out the year' while officials grapple with ruling. Alaska Beacon

 

History behind the ruling: How private, religious schools continued receiving state reimbursement money for years. Alaska's News Source

Thousands of Alaska students face uncertainty about their education after a court decision.

(My comment: The "allotment" system is 10 years old. Homeschool option in Alaska is multiple decades older in existence than the "allotment" system.)

 

Dunleavy argues homeschool allotments are an 'indirect benefit' to private schools. Lawmakers Disagree. Alaska Public Media

 

Ruling on use of public funds for private, religious education expenses leads to mixed reviews by lawmakers. Alaska's News Source

 

Dunleavy flip-flops on Alaska's Constitution's clear ban on public funds for private schools. Dermot Cole Reporting from Alaska

The plaintiffs say they brought the suit after noting an uptick in private schools advertising that parents could use their correspondence school allotments to pay for classes or tuition. Public correspondence schools monitor the students’ progress and must approve expenses to be reimbursed.

(My Comment: We actually don’t know how many students are being homeschooled using state funds. The estimate is 18,000 to 22,000. Then-Senator Dunleavy put a prohibition on data collection in the provision that he inserted into a very large education bill.)

 

Governor Dunleavy discusses education funding. Talk of Alaska

Dunleavy veto of a bipartisan education bill and a failed override has left education funding in limbo while the legislature works on operating and capital budget plans. What does the governor think of those budgets and what would he agree to for an education spending plan? Governor Dunleavy joins us on this Talk of Alaska.

 

 

Fisheries

Peter Pan Seafoods announces it will cease operations. Alaska Public Media

Peter Pan Seafood Co., the state-backed processing company that has faced dire financial troubles recently, announced Friday it was ceasing operations.

 

 

Politics

Lawmakers still at odds over education funding, PFD amount as operating budget deadline looms. Alaska's News Source

 

Alaska Senate Majority discusses budget process at press availability. Web Center Fairbanks

 

Alaska House adds funding for school meals and marketing as budget amendments continue. Alaska Beacon

Senate leaders said on Wednesday that they are worried that the Legislature’s spending plan—operating budget, capital budget and other costs—may cost more than the amount of money available to lawmakers this year. That may result in later cuts to the operating budget, including the proposed $2,200 per-person Permanent Fund dividend, or the capital budget under consideration in the Senate.

(My comment: Every $1,000.00 PFD costs $650 million.)

 

Alaska House votes down constitutional guarantee for Permanent Fund dividend. Alaska Beacon

Members of the House voted 37-3 to discharge a proposed formula change from the House Finance Committee without a hearing, bringing it one step closer to a vote. 

 

Nonpartisan open primaries let Alaskans choose values over party. Sightline Institute

More than half of Alaska’s primary voters in 2022 took the opportunity to split their tickets between major party, independent, and third-party candidates. Alaska has the highest share of independent voters in the country, and the nonpartisan open primary allowed them to vote for unconventional combinations of candidates. The nonpartisan open primary, combined with the ranked choice general election, may help preserve Alaska's status as one of a handful of states not controlled by a single political party.

 

Alaska Senate passes capital budget with focus on school maintenance and housing. ADN

The Alaska Senate advanced the $3.9 billion capital budget, which has an emphasis on school maintenance and housing, to the House on Friday.

 

Schools, university and projects across Alaska are set to receive money from new budget bill. Alaska Beacon

 

Alaska House rejects constitutional amendment guaranteeing formula-based PFD. Alaska Public Media

Recorded floor speech speaks wisdom into this subject.

(My Comment: Constitutional Amendment to put PFD in Alaska’s Constitution (HJR 7) – a floor speech by a House Fiscal Conservative (why this is a bad Idea). Mercifully, his speech helped House members to think clearly and reject the bill.)

 

House and Senate trade budgets by agreed upon deadline, PFD debate heats up. Alaska's News Source

 

Operating budget passes State House; Senate approves state capital budget, mostly for construction. Frontiersman

(My Comment: How this works: Each year, on Dec. 15, the Governor submits his suggestions for the Alaska budget for the next year. The House crafts their version of the Operating Budget first, then sends it to the Senate. At the same time, the Senate writes its' version of the Capital Budget. Then they trade budgets; the House adds their projects to the Capital Budget and the Senate adjusts the Operating Budget so that it balances. Agreeing to trade budgets by April 12, this year, on Friday the Senate passed its version of the Capital Budget and handed it off to the House as the House gave the Senate its version of the Operating Budget.)

 

 

Healthcare

House committee advances bill to require overdose-reversing drug in Alaska schools. Alaska Beacon

A proposal to require Alaska schools to keep opioid-overdose-reversing drugs on campus advanced out of the House Education Committee on Monday.

Alaska Oil Resource Values

 

Alaska North Slope crude oil price (4/17/24): $87.82

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 (4/17/24): 472,081 bpd



Energy is charging up inflation. Axios

Rising energy prices helped push up overall consumer inflation last month.

 

The Cook Inlet gas crunch. Alaska Public Media

More than 70% of Alaskans live in the communities along the road system stretching from Fairbanks, through Anchorage, to Kenai, known as the railbelt.

(My Comment: Yes, Railbelt Transmission Grid unification. (SB 257)

 

Alaska's carbon storage bill, once a revenue measure, is now seen as boon for oil and coal. Alaska Beacon

Revenue-raising provisions have been stripped out, and backers now say it’s a way to increase oil production and burn more coal while cutting emissions of carbon dioxide, a leading greenhouse gas.

 

 

Precious Metal Prices

April 17, 2024

Gold - $2381.10

Silver - $28.46

Platinum - $954.09

Palladium - $1064.00

 

Alaska Permanent Fund

website

 

Fund value April 17 - $78,856,800,000

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



Alaska History

 

-Apr. 11, 1942: Troops began construction of Pioneer Road for Alaska Highway, Ft. Nelson, B.C.

 

-Apr. 17, 1878: Sheldon Jackson College opened in Sitka

 

-Apr. 17, 1824: Treaty of St. Petersburg signed by U.S. and Russia

 

-Apr. 19, 1867: Congress approved Alaska Purchase

 

-Apr. 23, 1917: First winner of Nenana Ice Classic

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)

·     Office Manager: Paige Brown (from Anchorage/Girdwood)

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

·     Legislative Analyst: Angela Rodell (from Juneau)

 

 

Copyright © 2024. All Rights Reserved.

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