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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.

April 24, 2025

Day 94 of the 121 day session

Dear friends and neighbors,

 

April 24 Alaska Constitution Day

On this day, April 24, 1956 , the people of Alaska voted to ratify the Alaska Constitution that had been drafted by the Constitutional Convention. The Convention had met at the University of Alaska (in Fairbanks, the only campus in those days) from November 8, 1955 to February 6, 1957. When Alaska became a state on January 3, 1959, the ratified Constitution came into effect.

The Alaska Constitution was the first and only constitution to contain an Article on Natural Resources (Article 8). The Constitutional Convention delegates understood and respected the significant importance of Alaska’s many resources as sources of revenue, but also as prized natural environment for the Alaskan people’s health and subsistence in this Arctic place. 

Read the Citizen's Guide - Click on the image.

 

 

Increase BSA by $1000/student

The veto override vote on April 22 failed to get the 40 votes needed. Alaska’s Constitution requires the highest vote requirement of all the other states. While veto overrides have successfully occurred during Governors Hickel and Knowles administrations, the Legislature is so divided during Dunleavy administration that we have not been able to override his many vetoes of funding and policy. All the news media carried stories on this topic.

Next steps: the Legislature will draft another education funding bill.



 

The Blind Men and the Elephant (an parable from India)

The Blind Men and the Elephant

I think of this parable often. 

A trap we all fall into: we see one small part of any issue, form resolute opinion based on our small view, then call people with other “views of the elephant” bad names.

 

As we think about these 6 blind men, we readily recognize that they were each correct. Their perspectives/experiences about the elephant were different but not wrong.

 

If they had the wisdom to listen to each other, consider the elements of validity of each view, and combine their views, the whole elephant might have come into view.

 

I think of this related to our bipartisan coalition in the Senate. I have learned a lot, listening to views of the “elephant” (policies, issues, needs). I learn a lot from visiting constituents at their doors during campaigns, or their input at community meetings.

 

At the end of listening and considering, I may not agree with all my Senate colleagues or constituents, but I have now understood their perspective. That's very valuable.

 

 

New Revenue

SB 92 Extend same Corporate Income Tax on all Oil/Gas Corporations in Alaska

·     This is not a new tax.

·     This is not targeting one company.

·     This is not treating S-Corporations differently/unfairly compared to C-Corporations.

 

Fact: Alaska has taxed C-Corporations since before statehood. S-Corporations were created by the Federal government just after Alaska became a state and they were taxed also – through the S-Corporation owners. That was when Alaska had a personal income tax.

 

When we repealed the personal income tax, S-Corps income was no longer taxed. This should have been corrected in 1980. Nobody thought of it because there were very few S-Corps.

 

In the early 2000s the number of S-Corps mushroomed! And in 2010, many companies came to Cook Inlet to explore for natural gas. Some were S-Corps. We should have noticed the gap in our corporate tax structure. But again, we missed it. We missed it because we were busy offering cash credits for spending by these companies. We needed more natural gas development.

 

We missed correcting this gap in corporate tax twice in the past.

This bill will only apply to an oil/gas explorer/producer or oil/gas transporter (pipeline, trucking) company. This bill will only apply if that company has taxable income of $5 Million or more.

 

The Alaska Oil and Gas Association tells us that 2 of their companies fall into these categories. I believe there could be more but that information is confidential. We know that Glenfarne, the company coming to Alaska and will own 75% of the proposed natural gas pipeline, falls into this category.

 

When SB 92 is applied to an imaginary company that profits from $1 Billion, you can see equal treatment:

·     C-Corporation: $93,990,150

·     S-Corporation: $93,530,000

Items in this Newsletter:

·     District E Community Meeting

·     Budget Challenges

·     Anchorage School District FY26 Budget

·     Alaska Common Ground: Medicaid

·     Glenn Highway Knik River Update

·     Alaska Plastic Recovery

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

·     Resource Values, Permanent Fund

District E Community Meeting

BUDGET CHALLENGES

ALL PUBLIC POLICY IS MATH.

 

Chart below - Blue bars are what the Governor wants to spend on parts of government.

 

Year 7 of Governor Dunleavy policies. The PFD (first section on the graph) is again the largest spend in his budget world. (The red bars are the Legislature's spending on each subject last year.)

 

After the PFD, the next two sets of bars are Education and Health, the two largest spend. Both are required to comply with "formulas" that are in law. Education has the BSA (base student allocation) formula, and Health has Medicaid and public assistance formulas.

 

All public policy is math. The budget is the "lived out" priorities for our State.

 

Constitutional Requirements (Notice that it is the Legislature that is required to provide these things, not the Governor.)

 

Education: The Constitution requires that "The legislature shall by general law establish and maintain a system of public schools open to all children of the State, and may provide for other public educational institutions. Schools and institutions so established shall be free from sectarian control. No money shall be paid from public funds for the direct benefit of any religious or other private educational institution."

 

Public Health: "The legislature shall provide for the promotion and protection of public health."

 

Public Welfare: "The legislature shall provide for public welfare."

 

As you review the spending chart below, and ask for "budget cuts", I ask you to recognize that the Legislature is making cuts...and fulfilling our Constitutional responsibility to you.

 

The budget, adjusted for inflation, has been reduced nearly 25% over the last 10 years.

Anchorage School District FY 26 Budget

Anchorage School District Superintendent Jharrett Bryantt shared a letter with the public addressing incomplete or incorrect information that is circulating regarding the district's FY26 budget. You can read the full letter here.

Alaska Common Ground

Medicaid 101: What It Is, What It's Not, and What Potential Significant Cuts Could Mean for Alaskans

Tuesday, April 29th from 6 - 7pm on Zoom



Congress recently passed a budget resolution – a blueprint to guide action on budget-related legislation. It lays out a potential $880 billion in cuts to the Medicaid program nationwide; Alaska receives just over $2 billion in federal Medicaid funds per year.

 

Medicaid is federally supported health insurance administered by states. It provides medical coverage to address the healthcare needs of low-income Alaskans—including people with disabilities, children, pregnant women, adults, and seniors. It is a major component of our state’s current healthcare system and infrastructure in both urban and rural communities.

 

During this presentation, we’ll learn from our expert panelists, in plain speak, what Alaska’s Medicaid program is—and is not—as well as what a significant reduction might look like for individual Alaskans and families, healthcare providers, facilities in our communities, and on our economy.

 

The panel will be moderated by Elizabeth Ripley, President and CEO, Mat-Su Health Foundation. There will be time for Q&A.

Presenters include:

·     Lisa Aquino, CEO, Anchorage Neighborhood Health Center

·     Monique Martin, Vice President of Intergovernmental Affairs, Alaska Native Tribal Health Consortium

·     Joshua Arvidson, Chief Operating Officer, Alaska Behavioral Health

 

You can register for this event here.

REAL ID Deadline - May 7th

 

Starting May 7, 2025, U.S. travelers must be REAL ID compliant to board domestic flights and access certain federal facilities. To learn more about what is needed to get a REAL ID check out the DMV website here.

Alaska Plastic Recovery - Collection to Resume this Summer

Current Topics

Film portrays Willie Hensley as a man of his times. Alaska Public Media

 

Unanimous Assembly votes secure $1.1B financing option for Port of Alaska and construction contract. Anchorage Daily News

The Anchorage Assembly approved two measures this week that clear a path for funding and finishing a longstanding overhaul of the state’s main port facility.

 

Federal leader of Alaska's Denali Commission says she is fighting for the agency's survival. Alaska Beacon

The Denali Commission was founded in 1998 and modeled after the Appalachian Regional Commission, which was established in1965. The Denali Commission coordinates rural Alaska infrastructure and economic development planning among multiple agencies, and it disburses grants for various projects, such as water and sewer systems, telecommunications and health care facilities. Now Kitka said she has three DOGE people assigned to shadow her and the Denali Commission, putting her and her colleagues in the position of defending its existence. If the Trump administration tries to eliminate the Denali Commission now, it would not be the first time. There were similar attempts in the first Trump administration, but Congress preserved the commission then.

(My comment: Thank you, US Senator Ted Stevens, for your foresight and deep commitment to Alaska in establishing this Commission.)

 

How to make your nature walks even more restorative, according to science. NPR

There is a moment of awe that washes over you when you step into a forest. Century-old trees tower above, sunlight twinkling through them. Birds tweet. Spiders weave their elaborate webs. The smell of pine needles fill the air. Not only is "forest bathing" a magical way to explore nature, decades of research has shown that it's good for your health. It can boost your immune systemlower blood pressure and help with depression. It can also reduce the stress hormones cortisol and adrenaline and turn down the dial on your body's fight-or-flight response.

 

Alaska House approve broader list of Permanent Fund dividend exceptions. Alaska Beacon

 

Arctic Issues

The navy may revive a forgotten Alaskan base that sits half way to Russia. Task Purpose

An isolated Navy station known for brutal Alaskan winter storms and thousands of unexploded bombs might soon be reborn as a frontline base to counter Russian and Chinese advances in the Arctic.

 

As Trump eyes Greenland and Arctic resources, America's ambassadorship for the region goes unfilled. Alaska Beacon

Alaskans and others tracking America’s stance toward the Arctic are waiting to see when, or if, the new administration will offer a clear vision or plans for the region that the U.S., its allies and rivals are increasingly eying as a zone for commerce and military activity.



Economy

Permanent Fund endowment is needed to protect Alaska's fiscal future. Alaska Beacon

These past, real attempts to raid the fund demonstrate the exact reason an endowment is needed to protect the entire fund moving forward, so that future generations can enjoy the same benefits we have all enjoyed for the past four decades. Currently, it is too easy for individual legislators to introduce massive overdraw amendments. All that cash available with a mere majority vote is too tempting. The temptation will only worsen as oil prices drop.

 

Opinion: When will the real conversations about Alaska's future begin? Anchorage Daily News

It’s uncertain when or what crisis will prompt it, but eventually, some bold influencers will admit we can’t afford to pay the dividend. Hopefully, they reside in the Legislature or the governor’s office. They will also acknowledge that it’s illogical to tax some residents in order to fund unrestricted payments to the same residents and others who do not have a demonstrated need. In fact, it’s uniquely un-American. If this type of money transfer had positive economic impacts, it would have been adopted by all government entities in the United States long ago.

 

Opinion: Alaska is dying a slow death. Here's how we can change course. Anchorage Daily News

Our state is dying a slow death, and the current fiscal plan is undeniably not working. Our education system defines who we are, and second to the last in the nation is a poor definition. Serving as governor or as a legislator is exceedingly difficult as the pressures from the voters back home are intense. I know; I’ve been there. But at the end of the day, they must face the problem, and please don’t kick the can to the next governor or legislature.

 

Corporate tax update, passed by Alaska Senate, could generate millions for dividends, services. Alaska Beacon

The Alaska Senate voted 16-4 on Tuesday to approve Senate Bill 113, which clarifies that online sales to Alaskans amount to business activity within the state.

 

Merging Alaska Permanent Fund accounts would fix major flaw draining Alaska's savings and its future. Alaska Beacon

In the end, this reform is about protecting the Permanent Fund, the PFD, and Alaska’s fiscal future. The fund was created to turn a temporary resource boom into a permanent financial legacy. But that legacy only survives if we guard it against political pressure and short-term thinking. This is more than a fiscal policy debate. It’s about protecting the fund for future generations, ensuring the PFD survives, and building a system that supports long-term stability. Merging the accounts creates the discipline Alaska needs — and the legacy Alaskans deserve.

 

Tesla bowed to reality, and its stock is climbing. Axios

Tesla acknowledged yesterday that "political sentiment" may be undermining the company's financial performance and that tariffs are poised to do the same. Tesla CEO Elon Musk — the world's richest person — has become a close ally and outspoken adviser to President Trump, unleashing a backlash on the company. Tesla missed expectations on earnings and sales in the first quarter amid growing signs that some customers are recoiling from the brand.

 

Energy

News Reactor April 2025. NCSL

(My comment. It’s discouraging to see the great progress being made in other states around safe, dependable, durable nuclear power, while our state has a governor totally focused on convincing other countries to invest in a gas pipeline for which the cost isn’t known. No state would benefit more from micronuclear or small modular reactor power.)



US pushes Korea to import Alaska LNG ahead of key trade talks. Korea Times

Korea remains cautious about gas imports from Alaska amid persistent concerns over the project’s feasibility. Due to uncertainty over the profitability of Alaska LNG imports and feasibility of the remote Arctic project, experts have advised the government not to rush into a deal with the U.S. in exchange for trade concessions.

 

AGDC faces questions form House Resources on Glenfarne selection. Petroleum News

Confidentiality was an issue for some committee members, who asked about access to agreements AGDC signed with Glenfarne. Rep. Zack Fields, D-Anchorage, asked if AGDC could provide unredacted versions of the agreements it signed with Glenfarne. He also asked if Glenfarne committed to a timeframe and asked what the terms were of those timeframes.  Richards said the agreements were confidential.

 

Opinion: Can the Alaska LNG project be coerced into existence? Anchorage Daily News

The legislature, much less the public, is not privy to the contract terms, although the Alaska Industrial Development and Export Authority (AIDEA) has agreed to reimburse Glenfarne $50 million if the project does not go ahead. Glenfarne says it might get to the final investment decision this year after spending $150 million. That would be about 0.3% of the estimated project cost. This is laughable; conventional wisdom is that spending of 5%-10% is necessary for FID on megaprojects, upwards of $3 billion in this case.

 

Sullivan claims pipeline construction could start this year. Not a chance. Reporting from Alaska

“If Asian importers were really serious about snapping up more U.S. LNG in the short term, they’d be signing deals with mature projects on the Gulf Coast that are expanding their output. Another issue is that LNG is sold by private companies, not the White House, and negotiations can last months or years. Buyers have been hesitant to commit to new contracts even with U.S. Gulf projects because inflation has driven up prices,” he wrote.

 

Sen. Murkowski makes pitch for renewable energy's value in Alaska communities. Alaska Beacon

In a political environment where the president and his administration are pushing for more fossil fuel development and scorning alternative energy, Alaska’s senior U.S. senator is defending renewable projects in the rural areas of her state.

Education

Alaska's crumbling rural school buildings. Alaska Public Media

 

'Facing an emergency': Mixed reaction from state education leaders on governor's veto of funding bill. Alaska's News Source

This marks the second year in a row Dunleavy has vetoed an education funding bill, resulting in flat funding for Alaska schools for nearly a decade. For Anchorage residents like Jeff Raun, who has three daughters within the district, the governor’s decision means another year of seeing cuts to what so many parents and students consider as vital programs. “Three years in a row, he has voted against my kids, your kids, all of our kids,” Raun said. “He’s voted against education funding, he’s voted against economy, he’s voted against our future as a state.

 

Texas poised to create the largest voucher program in the country. Governing

The Texas House voted in favor of a $1 billion school voucher program, a priority for Republican Gov. Greg Abbott. The vote comes after a group of Republican holdouts in rural districts were defeated by primary challengers Abbott backed last year. It will be the largest voucher program in the country. Opponents warn that it will lead to funding problems for public schools but the Legislature also approved a major school funding increase.

 

Education funding veto: Alaska dad group voices strong opposition as supporters say Dunleavy made right move. Alaska's News Source

As leaders from a newly-formed group of dozens of central and southeast Alaska dads speak out against Gov. Mike Dunleavy’s education funding veto last week, some supporters of the House Bill 69 veto say it was a necessary step toward improving students’ education. Leaders for the group, who call themselves Alaska Dads for Economic and Student Capacity, say they formed at the beginning of 2025 in response to how ongoing education funding concerns are impacting students. With roughly 60 members, group leaders say that through raising funds, they have been able to send members to Juneau to speak with legislators, as well as share advocacy opportunities around Anchorage.

 

Alaska Legislature votes to uphold governor's veto of significant education funding boost. Alaska Beacon

After more than an hour of speeches, members of the House and Senate voted 33-27 to sustain the governor’s veto of House Bill 69. The override vote was almost identical to the votes on the original bill, which passed the House and Senate by a combined vote of 32-25. 

 

Anchorage elementary schools at risk of not meeting mental health services goal. Alaska's News Source

A new internal report will inform the Anchorage School Board that the school district is at risk of not meeting its goal of providing mental health services in elementary schools.

 

Opinion: How school funding failures are hurting Alaska's military families. Anchorage Daily News

I find myself grappling with a profound sense of instability — not just from the inherent uncertainties of military life, but from the fallout of decisions made by Alaska state legislators. I received the disheartening news that I am being displaced from the teaching position I love.

 

Opinion: Enough is enough. Alaska students need funding now. Anchorage Daily News

 

Opinion: In Alaska, we see who's failing our kids - and we won't forget. Anchorage Daily News

 

Opinion: A poem for Gov. Dunleavy. Anchorage Daily News

 

Fisheries

Alaska Sen. Murkowski and other US lawmakers seek guest worker visa exception for seafood industry. Alaska Beacon

Alaska U.S. Sen. Lisa Murkowski and other coastal senators have proposed new legislation to exempt seafood processing companies from a cap on the number of international workers they can hire through the temporary H-2B visa program.

(My comment: Opponents of increased BSA (school funding) say that we don’t need/want this for various reasons. Yet because of declining school programs, increased class size resulting in kids left behind, etc, we are losing our young people and families with children. Why does this matter?: the fishery jobs, tourism jobs and others used to be get jobs for high schools students and new graduates earning tuition for post-high school education. Now…those young people are gone.)

 

Politics

2025 Administrative actions: key executive orders and policies. NCSL

 

What is the SAVE Act, and what are its potential impacts in Alaska? Alaska's News Source

Under federal law, everyone registering to vote must swear, under penalty of perjury, that they are a citizen. While voting by noncitizens is already illegal and punishable by severe criminal penalties, the SAVE Act would require anyone registering to vote to provide documented proof of citizenship.

 

Opinion: The SAVE Act will make it more challenging to vote in Alaska. Anchorage Daily News

Alaska Deputy Attorney General John Skidmore said that every year the state gets a few allegations of illegal voting and has charged about five cases in as many (five) years. “If you think about all of the folks across the state that vote in any given election, to have this few charges filed means by and large, it’s not something that we find happens,” Skidmore said.

 

Health Care

Arkansas PBM law could spur lookalikes. Axios

With Congress gridlocked on PBM legislation, more states are taking the lead in addressing industry practices that critics say drive up costs and are pushing independent pharmacies out of business. Large PBMs often are vertically integrated with insurance carriers, and critics say they're capable of funneling the majority of volume and profits directly to insurers and employers. Last week, Arkansas Gov. Sarah Huckabee Sanders (R) signed a first-in-the-nation law barring PBMs from owning pharmacies in that state.

 

Walgreens to pay workers' tuition. Axios

Walgreens is rolling out a new tactic to replenish its ranks of pharmacists: paying for current employees' college prep to better position them for pharmacy school. Long hours, burnout and tuition costs are hindering pharmacy chains' ability to fill workforce gaps, even as they position themselves to offer more services and patient monitoring.

Alaska Oil Resource Values

 

Alaska North Slope crude oil price (04/23/25): $68.51

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 (04/22/25): 485,432 bpd

 

EIA forecasts lower oil demand, lower Brent prices in 2025, '26. Petroleum News

Following the OPEC+ announcement, and an April 2 Executive Order from President Trump announcing 10% tariffs on imports from all countries, with higher rates on some, Brent dropped 14% to $66 per barrel on April 7. "We expect that prices for crude oil and other commodities will continue to experience significant volatility as market participants assess the effects of trade policies," EIA said.

 

Felix eyes Alaska Antimony mine in 2025. North of 60 Mining News

Felix Gold Ltd. April 15 provided an outline of its plans to begin antimony production on its Treasure Creek project in Alaska's Fairbanks Mining District by the end of the year. This could be good news for the U.S. Department of Defense, which is looking for secure domestic supplies of antimony following China's ban on exports of this strategic metalloid to the United States.



Precious Metal Prices

April 23, 2025

Gold - $3322.69

Silver - $33.80

Platinum - $991.03

Palladium - $973.81

Rhodium - $5375.00

 

Alaska Permanent Fund

website

 

Fund value April 21, 2025 - $79,971,600,000

PFD payout from ERA, Fiscal years 1982-2024: $31.3 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)

 

Copyright © 2025. All Rights Reserved.

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