Senate Majority Bipartisan Coalition Website

State Senator District E

Senate Majority Leader

 

Senator Cathy Giessel Newsletter

UPDATES



Issues affecting

your family, community and jobs.

May 08, 2025

Day 108 of the 121 day session

Dear friends and neighbors,

 

Thank you to everyone who attended the Town Hall meeting on May 3. Representatives Kopp and Holland joined me in hearing from about 45-50 folks.

 

I love these meetings! I learn so much from you about what matters, what policies you are supportive of or concerned about.

 

Some of the topics discussed:

Public Pension – Rep Kopp and I are sponsors of a completely different, modest retirement plan that provides the retirement security of a pension with the conservative elements that assure a well-funded plan. The State Actuary said that only a remarkable event could cause funding of this plan to drop to 90%. It will provide workforce stability, which is KEY to Alaska’s economic future. The cost is actuarially estimated at about $50M/year; current public employee turnover costs > $76M/year (retention bonuses, retraining, hiring bonuses, letters of agreement, pay increases. Actuary says that employees will stay. Right now we lead the nation in job vacancies, outmigration, compromised public services. Rep. Kopp and I believe this policy will begin to repair Alaska’s sinking economic ship.

 

Resource development opponent – A gentleman believed I opposed natural resource development. As the chair of the Senate Resources committee for 9 years, nothing could be further from the truth. What I oppose is the idea that we should remove all environmental restraints on the use of our land and resources. In fact I support the State taking over regulation and oversight of our environment from the Federal government. We live here; we can protect it the best.

 

Dividend – An attendee was concerned that the dividend was going away but some people needed it. I assured her that it wasn’t going away but it sure was going to get smaller. The dividend this year is highly likely to be $1000/man,woman,child. Cost: $682 Million

Last year dividend $1420. Cost: $950 Million

In order to generate the $268 Million difference, we would have to eliminate completely the Departments of Commerce, Military/Veterans, Environmental Conservation, Governor office, Revenue, Natural Resources, Fish/Game, half of Law.

 

Budget – Folks were surprised to see that 60% of our state revenue doesn’t come from oil anymore; it comes from the earnings of the Permanent Fund. The Permanent Fund comes from the savings of Alaskans who were here between 1980 – 2019; for all those years, Alaskans got their dividend but let the state give up its dividend to put it back into the Fund. 

The price of oil has been dipping from $74/barrel to $60/barrel this week. Every change in $1.00 price = change of $35-40 Million to the state treasury. That led to the budget discussion.

The budget has been cut 25% over the last 10 years; only two things have grown and that is the Corrections budget (Jails) and the Dividend.

The Senate is drastically cutting the budget this year, to the tune of over $160 million less than the House budget. It is very painful to make these cuts but there is simply not enough money to pay for the state services we’ve come to expect.

Price of oil dropping as OPEC+ increases yet more production into the world market; our tax structure providing tax reductions on the new fields being produced; federal funding cuts. Next year will be worse, as we have scavenged extra funds from one-time sources.

 

Gas pipeline – Will it happen? I’m skeptical, its been an "idea" since the 1950 when I was a child; I'm skeptical today. Rep Kopp is optimistic, Ky brought up increasing renewable resources to replace hydrocarbons

 

Behavioral health – We need more services. Ky, Chuck and I agree. Problem – no money to increase funding.

 

Wildfire – Ky, Chuck and I agree that this is a huge concern. The budget has increased the funding for fire prevention and response. That was one of the priority items.

 

Gender change surgery for teens – Ky, Chuck and I agree that this is not something we support. I question that this issue even exists in Alaska. A mental healthcare provider talked to me after the meeting and told me that the young people she talks with understand that it’s a big decision and they aren’t ready to go there.

 

New revenue - income tax, s corp tax, internet sales tax. No income tax being proposed but there was wide majority support in the room for return to a state income tax. Also very supportive of the taxation of oil/gas companies who are S Corps (these don’t pay any corporate tax right now); Rep Kopp opposes any tax increases on oil companies. Internet sales tax seemed supported, does not tax Alaskans or Alaskan companies, only out of state companies (C-Corporations) selling products in Alaska; wide support for that in the room.

What is cost of cell phone ban part of the education bill – I checked and its zero; the ban is only a “suggestion” to school districts.

 

There could have been other topics that I don’t remember. It was a great meeting. We will have more of these next year.

 

Its very hard to find places to meet in our district with large groups. We need space for 75-100 people. Please let me know if you have any ideas.

 

 

Budget

Opinion: Voters may have to take the lead on Alaska's fiscal future. Anchorage Daily News

As Alaska lawmakers grapple with a looming fiscal crisis, it appears there is little hope the legislature will enact taxes to solve the problem. For more than a decade, it’s been clear that Alaska’s dependence upon oil and gas taxes to fund the cost of government is coming to an end.

 

Education

Opinion: Here's how Alaska can fund education using new revenue without creating new taxes. Anchorage Daily News

Senate Bill 113 would change the way many companies calculate their state corporate income taxes. Backers are pitching it as a tax on large, out-of-state businesses. Sen. Bill Wielechowski, D-Anchorage, told the House Finance Committee on Friday that the bill would change the state’s corporate income tax system to require businesses to pay taxes on the money they bring in from Alaska customers.

(My comment: The Alaska State Chamber opposes this internet sales tax. They are WRONG in asserting that it will tax small business. No small business is a C Corporation (IRS Tax designation).)

 

As reading scores fall, states turn to phonics -but not without a fight. Alaska Beacon

“If students can’t read by third grade, half of fourth-grade curriculum becomes incomprehensible,” she said. “A student’s likelihood to graduate high school can be predicted by their reading skill at the end of third grade.”

 

Sold a story: How teaching kids to read went so wrong. APMreports

It's an exposé of how educators came to believe in something that isn't true and are now reckoning with the consequences — children harmed, money wasted, an education system upended.

Items in this Newsletter:

·     District E Community Meeting

·     Budget Challenges

·     May Issue of Economic Trends

·     Denali Highway

·     Recap of Alaska Common Ground Medicaid Discussion

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

·     Resource Values, Permanent Fund

Chief of Staff Jane Conway celebrates 20 years working for the legislature!

 

And I celebrate 11 years of her sharing her expertise in my office!

 

Jane is such a key part of my office.

She is the go-to person for all of us on healthcare policy.

With 20 years working in both House and Senate offices, she is mentor to many staff in the building.

 

I'm very grateful for Jane, and so are all the people who rely on her knowledge and skills.

May Issue of Alaska Economic Trends

 

Federal civilian jobs make up almost 5 percent of Alaska's employment, and the military numbers are considerably larger. Alaska Trends took a comprehensive look at federal jobs, workers, wages, and spending in Alaska. Also in this issue: Alaska's housing market in 2024 was broadly a repeat of 2023. Check out the issue here.

Recap: Alaska Common Ground Medicaid 101: What is is, what it's not, and what potential significant cuts could mean for Alaskans.

 

We had a great event this week discussing Medicaid in Alaska. Our esteemed moderator and panelists imparted a lot of knowledge and insight, and we appreciate the great questions from attendees. We learned about 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 was moderated by Elizabeth Ripley, President and CEO, Mat-Su Health Foundation.

 

Presenters included:

·     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 watch the event on our website. We also put together a fact sheet with some of the information we discussed, along with additional resources.

Current Topics

NIST updates critical wildfire evacuation and sheltering guidance. NIST

NIST’s ESCAPE report is the first comprehensive guide for how to address no-notice wildfire evacuations at the community level. The latest version of the report makes improvements based on community feedback and research on recent wildfires.

 

Opinion: Without quality, affordable childcare, Alaskan's workforce can't work. Anchorage Daily News

Every morning across Alaska, tens of thousands of parents wake up, get their kids ready and head to work — thanks to the vital support of early childhood education and child care services. These services allow more than 50,000 Alaskans to participate in the workforce, generating an estimated $4.6 billion in earnings for our economy. That’s one in every seven workers in the state who rely on some form of child care just to get to work each day.

 

Opinion: Meals, family support, independence. What $3 million means to Alaska seniors. Anchorage Daily News

Alaska has the fastest-growing senior population in America. In order for this important group to continue living independently, avoiding costly state-funded care options, the state needs to step up. We need a $3 million increase for senior community grants so senior centers can maintain basic critical services such as meals, transportation, family caregiver support and information and referrals for older Alaskans in communities across the state.



1 fun thing: America's top state. Axios

Louisiana, Alaska, Mississippi, New Mexico and West Virginia were the bottom five.

(My comment: Alaska was 2nd from bottom!)

 

ATVs driven on public roadways must be street legal, troopers say. Alaska Public Media

“It can only be operated on roadways that have speed limits less than 45 miles an hour,” he said. “Have to have it registered with DMV. Have to carry insurance. Has to meet all of the standards that DMV has set for those vehicles.”

Arctic Issues

US eyes Aleutian military revival as Russia, China expand operations near Alaska. Alaska Beacon

Experts warn that, if Chinese nuclear-armed submarines reach the Arctic, it would significantly enhance Beijing’s second-strike capability against the United States. The shortest missile flight path to the continental US is over the Arctic. Russia’s air presence in the Bering and Arctic regions is also growing. A senior Alaskan commander told reporters in 2021 that US intercepts of Russian aircraft near or inside the Alaskan Air Defense Identification Zone had reached a post-Soviet high.

 

Alaska Legislature urges support for Alaska-Canada relationship. Anchorage Daily News

After being approved by the Senate, the resolution now heads back to the House for a concurrence vote. Lawmakers there are expected to approve the Senate’s changes, which would send a copy of the resolution to Trump, Canadian Prime Minister Mark Carney, Alaska’s congressional delegation, and others.

 

Alaska Legislature rejects call for Canada as 51st state, opposes 'restrictive trade measures'. Alaska Beacon

Senate Majority Leader Cathy Giessel, R-Anchorage, noted the amount of trade that goes across the border between Alaska and Canada. “The purpose of HJR 11 is to remind Alaskans that we have an important relationship with Canadians, those shared values of Arctic partners, our relationship as good neighbors, and keeping our partnership with Canada alive isn’t just good policy, it’s critical to the way we live,” she said.

 

Economy

When the president does and doesn't, own the economy. Axios

The U.S. economy is a mighty tanker ship, slow to turn. So much so that presidents usually don't affect its short-term course. The exception is when they take sweeping, rapid action on a massive scale.

 

Manufacturing sector shrinks again. Axios

"The most important topic is tariffs," a respondent in the food manufacturing industry said — among the anecdotes that universally suggested tariffs were hurting business. "Supplier relationships are strained by pain-share negotiations, and competitors are gaining share by importing from lower-tariff regions."

 

Where gas is really just $1.98 a gallon. Axios

Last week, Trump triumphantly announced that "Gasoline just broke $1.98 a Gallon, lowest in years," even as the average price at the pump was $3.18. Gasoline did touch $1.98 briefly in April, but not at any pump in the country.

 

How the trade war affected one container ship. Axios

Their calculations show that on a ship containing $564 million worth of merchandise, the tariffs amounted to $417 million over preexisting import costs.

To fund education programs, Alaska lawmakers look to tax Netflix and Amazon. Alaska Public Media



Opinion: Here's how Alaska can fund education using new revenue without creating new taxes. Anchorage Daily News

Senate Bill 113 would change the way many companies calculate their state corporate income taxes. Backers are pitching it as a tax on large, out-of-state businesses. Sen. Bill Wielechowski, D-Anchorage, told the House Finance Committee on Friday that the bill would change the state’s corporate income tax system to require businesses to pay taxes on the money they bring in from Alaska customers.

(My comment: The Alaska State Chamber opposes this internet sales tax. They are WRONG in asserting that it will tax small business. No small business is a C Corporation (IRS Tax designation).)

 

Energy

Short-term Energy Outlook. U.S. Energy information Administration

Global oil prices. We expect crude oil prices to fall over much of the forecast period. The Brent crude oil spot price averaged $68 per barrel (b) in April. In our forecast, increasing oil production outpaces annual oil demand growth, which rises by around 1.0 million barrels per day (b/d) in both 2025 and 2026, leading to the accumulation of oil inventories globally. We expect the rising inventories will result in the Brent price averaging $62/b in the second half of this year and falling to $59/b next year.

 

Trump plans nuclear power push. Axios

The White House is planning executive action soon to try to speed nuclear reactors' deployment.  One or more orders will likely lean heavily on the Defense and Energy Departments as a way to meet soaring energy demand.

(My comment: Eielson AFB micronuclear reactor could be propelled forward if the White House puts money into the effort. This would be a game changer for energy in the Interior.)

 

Education

For Alaska legislators, it's try, try, try again on big public education funding effort. Alaska Beacon

 

Alaska Legislature broadly approves compromise education bill that legislators day could survive Dunleavy veto. Anchorage Daily News

 

House education funding bill with $700 BSA increase heads to governor's desk. Alaska's News Source

 

Bipartisan vote sends $700 school funding boost to Gov. Dunleavy's desk. Alaska Public Media

 

Career academy courses available to Anchorage students next school year. Alaska Public Media

Starting next fall, 10th-12th graders can begin taking career-focused courses through the Academies of Anchorage program at each of the district’s eight comprehensive high schools. Students will be able to choose from elective courses in construction, health services, leadership in law and public service, and many more.

 

How money matters: Education funding for student outcomes. Learning Policy Institute

First, the U.S. has one of the highest child poverty rates among countries in the Organisation for Economic Co-operation and Development (OECD). Additionally, compared to peers in other industrialized nations, U.S. children living in poverty have less access to social supports such as universal health care, housing subsidies, and universally available high-quality preschool. As a result, U.S. schools carry a larger share of the responsibility—and costs—for ensuring students have the necessary supports to learn and grow.

 

Opinion: We need heroes. Alaska after-school programs are full of them. Anchorage Daily News

When we think of superheroes, we often picture capes, secret identities and world-saving powers. But if you walk into an after school program at 2:30 p.m., you’ll find a different kind — one without a costume but with just as much power to change lives. Afterschool staff are the unsung heroes of our communities, quietly shaping futures and saving the day for families, students, schools, and communities alike.

Politics

Musk Interview: DOGE here to stay. Axios

Musk insisted his transition doesn't mean DOGE was done. "DOGE is a way of life, like Buddhism," he said. "Buddha isn't alive anymore. You wouldn't ask the question: 'Who would lead Buddhism?'"

 

How Trump wants to reshape federal spending. Axios

The administration's discretionary spending proposals are a story of winners and losers. The homeland security budget proposal boosts spending by 64.9%, or $42 billion. It boosts the defense budget by 13.4%, or $113 billion. It slashes spending for the State Department and international aid programs by 83.7%, or $49 billion; Housing and Urban Development by 43.6%, or $34 billion; and Health and Human Services by 26.2%, or $33 billion.

 

Golden Age... for Trumps. Axios

President Trump warned American families this week that they may have to make do with fewer — and more expensive — holiday toys. But for Trump's own inner circle, a veritable Golden Age is well underway

 

Alaska governor's staff warns executive branch away from state Capitol in session's last days. Alaska Beacon

As the Alaska Legislature enters the last weeks of its regular session, Gov. Mike Dunleavy’s administration has warned department staff against entering the state Capitol unless they have special permission from the executive branch.

(My comment: Not only has the Governor been absent from Juneau nearly the entire session, he is now prohibiting any staff from being present in person. Why? What does he fear?)

 

Health Care

Hospitals grapple with tariff fallout. Axios

The pandemic spawned more domestic manufacturing of medical gear — and an anticipated reduction in dependence on overseas suppliers. But many of the startups have since disappeared, the New York Times reported, leaving the health system once again vulnerable to supply shocks amid threats like measles outbreaks and avian flu.  The situation could be further complicated by tariffs on pharmaceuticals that could weigh particularly hard on imported generics.

 

Republicans oppose Trump health cuts: poll. Axios

A majority of Republican adults say they oppose cutting funding for health programs including Medicaid and tracking disease outbreaks, a KFF poll released Thursday found.

 

Out-of-pocket drug spending hit $98B in 2024. Axios

Prescription medicine use increased 1.7% last year, the report found. Overall, retail and long-term care prescriptions reached 7.1 billion, a nearly 1 billion increase since 2019. Prescription opioid use fell to the lowest level since 1999, and overdose deaths decreased 29% in 2024.

 

ACLU sues Alaska Department of Corrections for failing to provide adequate health care. Alaska Public Media

The Alaska Department of Corrections is the largest provider of health and behavioral health care in the state and about 4400 Alaskans are under its care. The department is legally required to provide adequate health care to people who are incarcerated. But Megan Edge with the American Civil Liberties Union, or ACLU, of Alaska said that isn’t happening.

Alaska Oil Resource Values

 

Alaska North Slope crude oil price (05/07/25): $64.31

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 (05/06/25): 476,892 bpd

 

The Trump administration's conflicting goals: unleashing Alaska's resource potential while driving down oil prices. Alaska Public Media

Since President Trump took office, the price of a barrel of oil from Alaska has declined about 10%, and the Trump administration would like the price to drop even more. The administration has called for $50-per-barrel oil as an effort to curb inflation.

(My comment: clearly the current DC Administration has never worked for the public good before.)

 

 

Experts react: At last, the US and Ukraine signed a minerals deal. Here's what to expect next. Atlantic Council

Rock paper signed. After months of getting close only to come up short—including a rocky Oval Office meeting in late February between US President Donald Trump and Ukrainian President Volodymyr Zelenskyy—the United States and Ukraine quietly struck a much-anticipated economic partnership on Wednesday. The agreement is intended to open US access to Ukraine’s natural resources, including its critical minerals, while helping to finance Ukraine’s reconstruction. What does the partnership entail? Where do Washington and Kyiv stand with each other now? And what message does the deal send to Russia? Below, Atlantic Council experts dig into the details and offer their answers.

 

"Drill, baby, drill" takes another hit. Axios

The price slide, tariff uncertainty and relatively muted demand growth are all making companies cautious. Crude production is slated to grow 1.6% from already world-leading levels in 2025 and 0.6% in 2026, it projects. EIA's latest monthly outlook again lowered their 2025 and 2026 oil price forecasts.

(My comment: Drop in oil price is hitting Alaska budget hard this year! Next will be worse. If you were here in 1986, you know what I’m talking about in possible impact.)

 

 

Oversight bill seeks to address 'serious and ongoing problem' with oil tax transparency. The Alaska Memo

Just what has happened since then, not only to the $645 million ($900 million, if we're including numbers from 2012 that have been reported elsewhere) but also in the subsequent tax years, is unknown. After halting the report under the claim of confidentiality, the Department of Revenue has since refused to work with the Legislature's auditor – a position outlined in the Alaska Constitution – to update the report, leaving legislators – and the public – in the dark.

 

Precious Metal Prices

May 7, 2025

Gold - $3387.67

Silver - $32.67

Platinum - $992.26

Palladium - $1002.01

Rhodium - $5375.00

 

Alaska Permanent Fund

website

 

Fund value May 6, 2025 - $81,897,700,000

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)

 

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