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State Senator District E

Senate Majority Leader

 

Senator Cathy Giessel Newsletter

UPDATES



Issues affecting

your family, community and jobs.

May 15, 2025

Day 115 of the 121 day session

Dear friends and neighbors,

 

I will be sending out a couple newsletters as things happen fast in the remaining 6 days: Budgets. Bills. Vetoes.

 

Education Funding, Potential Veto

The Governor has until 11:59 pm on May 19 to veto HB 57, education bill. After that, the Legislature will convene in Joint Session to vote on overriding the veto, requiring 2/3 vote, 40 votes.

Gov. Dunleavy tells superintendents he will veto education bill, and reduce school funding in budget, unless his policies are approved. Anchorage Daily News

 

Governor’s Education Policy Not in the Bill

These items were unacceptable for the Legislature, so they are not in HB 57:

·     Open enrollment: means “first come, first admitted”. Students could choose any school and would have to be accepted. Implications: students living in the neighborhood of the school may be shut out, as the school is filled with students from other areas. In addition, the state would cover transportation costs. Summer school enrollment could be in another city from student’s home, requiring boarding facilities be provided for the student.

·     Charter School approval by State School Board, outside of local control of local school boards.

 

Meeting with superintendents, Dunleavy threatens to veto compromise education bill. Alaska Public Media

 

Dunleavy meets with superintendents across Alaska, says he will veto education bill unless proposed policies are approved. Alaska's News Source

 

Governor's Revenue Department Refuses Audits of Oil Taxes

On Saturday, the House passed Senate Bill 183 by a vote of 31-7 (Senate passed 19-0). The bill aims to clarify the penalties for hindering the Legislative Budget and Audit Committee. This stems from the Department of Revenue refusing to cooperate with the legislative auditor since 2020 on an audit of tax assessments and settlements. Basically the Legislature has been unable to audit tax settlements, which could be missing hundreds of millions of dollars over the last several years. All of the information is confidential by law, except to the State Auditor, Constitutionally defined in Article IX, sec 14. (More details later on in this newsletter).

 

New Revenue

The Budgets (Operating, Capital, Mental Health) are severely reduced this year. We expect oil prices to be, at best, in the $64/barrel range. Some forecasts are as low as $50/barrel. (For reference: the price on 3/08/22 was $125.44 this illustrates how the price of oil has changed!)

Consequently, the Legislature has been implementing recommendations of the 2021 Fiscal Policy Working Group (more on that later in this newsletter). This was a bipartisan, bicameral working group.

Despite the "new revenue" recommendations from the Dunleavy Administration in 2021, the Governor has told us he will veto any bills with tax, fee, or fine in it.

 

Dunleavy's office claims it never drafted tax bill. Here is the bill it drafted. Reporting from Alaska

Wielechowski said he was handed a copy of the draft bill directly by the governor in 2023. The 28-page bill, marked confidential, is a highly technical document. Wielechowski said he does not like being called a liar. Wielechowski also said that Dunleavy had asked him two years ago to introduce bills to close the Hilcorp loophole, because Hilcorp would not provide its North Slope gas, and to reduce oil tax credits.

(My comment: In 2023, the Governor met with the Senate and House to present a statewide sales tax. He said he would be introducing the tax, but never did. It’s clear that the Administration recognizes the critical need for new revenue; he asked us for ideas earlier this year.)

 

Medicaid

Forty-eight percent (48%) of Medicaid services are for children. Thirty percent (30%) of Alaskans receive Medicaid benefits, many of whom are seniors. Nationally, 20% of Americans are Medicaid beneficiaries.

 

Scant proof of Medicaid mooching. Axios

There's little evidence that people are free-riding on Medicaid. 64% of adults with Medicaid work full time or part time, according to an analysis of census data by the Center on Budget and Policy Priorities. Another 32% are taking care of home or family, are ill or disabled, attend school, or are retired. 2% could not find work. And there's another 2% in an "other" category.

 

Alaska lawmakers to decide how to fund child services that advocates say are essential. Alaska Beacon

 

Republicans' proposed cuts could jeopardize SNAP users, farmers and state budgets. Anchorage Daily News

Items in this Newsletter:

·     State Board and Commission Confirmations

·     Corporate income Tax Update

·     SB 183 - Audit of Dept. of Revenue

·     Modern Retirement Plan for Alaska

·     Mental Health Awareness Month

·     Recap of Alaska Common Ground Medicaid Discussion

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

·     Resource Values, Permanent Fund

Confirmations

Today the Joint Session of the House and Senate reviewed and voted on the Governor's Appointees to the various state boards and commissions. You can watch the joint session here. The full list of appointees can be reviewed here. Below are details about the appointees who were not approved.

Medical Board Samantha Smith - Anchorage vote: 0 Yeas, 60 Nays

Though Ms. Smith's interest and passion to serve on the State Medical Board are appreciated, her appointment was not approved due to various reasons. A primary reason was her scope of practice as a Physicians Assistant (PA). The board has one seat delineated to PAs. Ms. Smith practices independently in regenerative medicine within the setting of an Anchorage chiropractic clinic. Many of the PAs in the state work in collaborative primary care settings, and often times in rural communities. Given that Ms. Smith's experience as a PA is not representative of the majority of PAs work in Alaska, she was not a good fit for this appointment.

 

Professional Teachings Practicing Commission

Kimberly Bergey - Palmer vote: 26 Yeas, 33 Nays

Ms. Bergey's service and extensive knowledge is well documented and she currently serves on the State Board of Education. Her appointment for the Professional Teachings Practice Commission was not approved because she does not meet the requirements set in statue to serve in the principal seat for the commission. AS 14.20.410 states the principal seat on the commission shall be selected from a list of three names submitted by the Alaska Principals Association. Ms. Bergey's name was not on the list submitted to the Governor by the Alaska Principals Association, and therefore does not meet the qualifications set in statute to service in the principal role.

Corporate Income Tax Alaska UPDATE

SB 92

 

President Trump is advocating, and US House is agreeing, reducing taxes on wealthiest companies and individuals.

 

"Pass-through" corporations are not taxed in Alaska. These are the wealthiest entities in Alaska.

 

SB 92 would change this.

 

SB 92 is narrow right now, addressing oil/gas and pipeline corporations. When implemented, it can be expanded to include other entities that make taxable income of more than $5 million/year for the owner/owners.

 

Right now, Governor Dunleavy and several Senators don't want any taxes on individual owners of these large, very profitable companies in Alaska. (These same Senators oppose campaign donation limits.)

 

Winners in US House draft tax bill so far. Axios

The draft legislation would extend the cuts in the 2017 tax bill, and it adds on some more breaks. Some will benefit the wealthiest, including a permanent increase to the deduction for pass-through income to 22% from 20%, plus a hike for the estate tax exemption, which would shield more inheritances from taxes.

 

What is a flow-through (pass-through) entity, types, pros & cons. Investopedia

A flow-through or pass-through entity is a legal business that passes all its income on to the owners or investors of the business. Flow-through entities are a common device used to avoid double taxation on earnings. The income of a flow-through entity is taxed only at the owner's individual tax rate for ordinary income. The business itself pays no corporate tax. Sole proprietorships, partnerships (limited, general, and limited liability partnerships), LLCs, and S corporations are all types of flow-through entities. Flow-through entities are sometimes referred to as disregarded entities because the IRS effectively ignores them.

SB 183

Audit of Department of Revenue

Tax Collections from Oil Companies

House Rules Committee - watch the recording of the committee meeting here.

Is there more to this story? Could the Dept of Revenue have something to hide by refusing to cooperate in State audits?

 

The Legislature is asking that question.

 

Governor Dunleavy has been clear - he opposes taxes, fines, or fees on businesses.

 

Dunleavy administration is blocking billion-dollar audit of oil tax disputes, legislators say. Alaska Beacon

The Alaska Legislature is moving rapidly to pass a bill that would force Gov. Mike Dunleavy’s administration to disclose reports that could show the state settling oil tax disputes for significantly less than what is owed. “Either the Department of Revenue has already compiled the information requested in the special audit for its own use and is deliberately withholding it from the legislative auditor, or it has failed to do the basic work of calculating the tax, interest, and penalties assessed for each audit cycle,” she said. “Frankly, I’m not sure which of those scenarios would be more troubling.”

Comprehensive Fiscal and Policy Plan for Alaska

 

History:

In 2021 the Legislative Fiscal Policy Working Group introduced their "Comprehensive Fiscal Policy Plan for Alaska." You can review the whole report here.

 

Latest Governor Idea:

The Governor requested a joint team to develop a long-term fiscal plan on May 7. (see Governor letter here). 

 

The letter uses the phrase “join me”. That is an important piece of this, since the Governor has been absent from Juneau for 95% of the last 115 days of session. It is also important because in 2021 a similar Fiscal Policy Working Group gathered, worked with the Dunleavy Administration, and made recommendations (see report here).

 

At that time Revenue Commissioner, Lucinda Mahoney, presented to the Working Group a series of policies that she testified the Governor would support.

 

The Legislature has put forth many of these ideas: single-account Permanent Fund structure, Capital Budget that effectively matches federal funding, new revenue of $500-770 million, budget reductions (more than $200 million), spending limit of constrained POMV draw and no spending from CBR, maintain CBR at least $500 million (which is way too low for prudent reserves).

 

The Governor has not supported any of them. In fact, he has actively opposed these policies from the 2021 Fiscal group.

 

Now the Governor asks the Legislature to again expend more time and energy doing this. We believe he must be at the table. He must be willing to sign his name to each item that reaches concurrence.

 

Otherwise this is just another futile exercise, with the Legislature doing the work, and Governor rejecting it.

 

Legislature approves income tax on out-of-state businesses operating online. Anchorage Daily News

 

Bill taxing certain online sales, with potential to boost education funding, passes House. Alaska's News Source

 

Alaska Legislature approves corporate tax for online business in Alaska, tied to education funding. Alaska Beacon

Senate Bill 113 would apply state corporate income tax on out-of-state businesses that operate online. The revenue-raising measure was intended to fund key elements of an education package broadly approved by the Legislature last month.

 

Clock ticks toward adjournment of 2025 Legislative Session; health insurance reform could be key accomplishment. Frontiersman

 

Dunleavy freezes most hiring, new regulations and travel as oil prices squeeze budget. Alaska Public Media

The operating budget is “bare bones,” with little new program money except for summer firefighting, with big fire season predicted because of dry conditions.

 

Alaska lawmakers to decide how to fund child services that advocates say are essential. Alaska Beacon

Programs affecting the well-being of children were among the differences that must be addressed by a conference committee composed of three members of the Senate and three from the House. 

(My comment: Some folks will vilify me for this but I offered amendments to put funding for Child Advocacy Centers into the Senate budget. I also advocated for behavioral health increased reimbursement. The loss of Federal funding is going to be felt, first by the most vulnerable. A dividend check, no matter the amount, will not make up for loss of these services.)

Modern Retirement Plan for Alaska

 

HB 78 - Alaska State Actuary assessment April 29, 2025

 

David Kershner, Principal, Consulting Actuary, Gallagher

PowerPoint presentation

Fiscal (Cost) Note

 

Current Cost of DOING NOTHING

Cost goes from $84 million in 2020 to $133 million in 2025 so far!

In 6 years, cost of doing nothing has been $677.5 million in Premium Pay for state employees to make up for low salaries and retention issues due to no Pension.

This cost does NOT include overtime and hiring bonuses which have been used abundantly. Actual costs are much higher.

Alaska House passes public pension bill, sending it to Senate. Anchorage Daily News

 

Alaska House votes to revive pension plan for state and municipal workers. Alaska Beacon

 

Opinion: Alaska public services are collapsing from chronic understaffing. Restoring public pensions will help. Anchorage Daily News

Alaska is at a breaking point. Public services are collapsing under the weight of chronic understaffing. With a staggering 17% vacancy rate in state government, every Alaskan is at risk — not in theory, but in lived experience.

May - Mental Health Awareness Month

 

National Stats:

One in six U.S. youth aged 6-17 experiences a mental health disorder each year. 

 

The peak onset of mental health conditions occurs in adolescence and early adulthood, with half of all mental health conditions beginning by age 14 and 75% by age 24.

7 out of 10 youth in the juvenile justice system have a mental health condition.

 

Alaska Stats:

It is estimated that over 8,000 Alaskan students ages 12-17 experience depression.

 

62.5% of Alaskans in this age range who have depression did not receive any care in the last year.

 

·     High school students with significant symptoms of depression are more than twice as likely to drop out compared to their peers.

·     Suicide is a public health problem and leading cause of death in the United States. The most recent CDC data indicates Alaska ranks #1 in suicides per capita; suicide was the second leading cause of death among Alaska residents aged 15-44 years. 

·     It is more important than ever to build a stronger mental health system that provides the care, support and services needed to help people build better lives.

 

Sustaining and supporting an individual’s ability to navigate their environment, societal relationships; adapt to changing situations, and develop healthy coping strategies, are all functions attributed to the state of our mental health.

 

Addressing complicated mental health needs with coordinated, comprehensive mental health services provides a lifeline for families and individuals who are struggling with the complex process of locating appropriate treatment protocols.

 

Alaskans must work together to overcome and eliminate the discrimination and stigma that may deter individuals from seeking consistent support and adequate mental health treatment.

Current Topics

Coldest U.S. temperatures are rising. Axios

Thirty-year average coldest temperatures are rising almost universally nationwide, a new analysis found.

 

Real IDs in full effect at Ted Stevens Anchorage International Airport. Alaska's News Source

 

Trending baby names. Axios

Olivia and Liam were the top baby girl and boy names in America last year.

 

Taking grievances to the street for 248 years. Alaska Beacon

“The bill raises issues under the First Amendment of the United States Constitution and art. I, secs. 5 and 6, of the Alaska Constitution. In particular, if challenged, there is a risk that the new crime of obstruction of free passage in public places could be found unconstitutional both facially or if applied to the protected speech of protests or demonstrations.”

 

Alaska senators vote to end daylight saving time in America's farthest-north state. Alaska Beacon

(My comment: I agree with Senators Kawasaki and Stedman. Alaska used to have 4 time zones, acknowledging our size and “sun time”. Now we do a fake, unhealthy manipulation of our circadian rhythms by pretending we control time with a clock. Nevertheless, the constant flipping of time is more unhealthy. Therefore I voted for this less-than-perfect bill.)

 

Dunleavy's hiring freeze prompts concerns about impacts to state workforce and services. Anchorage Daily News

Dunleavy on Friday issued an administrative order that instituted a hiring freeze, a ban on new state regulations and travel restrictions for state workers, citing Alaska’s dire fiscal outlook.

(My comment: Governor Dunleavy is hurrying to catch up with the Legislature. If he really cared about our state, he would have proposed a balance budget in December 2024, would have been present in Juneau during the session, and would have agreed to meet with us. He’s done none of this. Now he makes sure that the Legislature and his own administration can’t function; a failed legacy of leadership.)

 

KPB New North Korean job scams. Axios

North Korean IT workers are setting up front companies across China as part of their global operation to trick Western companies into hiring them.

 

Arctic Issues

Arctic fossils reveal world's oldest salmon and carp relatives. Phys.org

Most people picture the time of dinosaurs as a steamy, tropical world. But during the Late Cretaceous period, northern Alaska was a different kind of wild. Located far above the Arctic Circle, it endured months of winter darkness and freezing temperatures—even as much of the planet remained warm. Think sub-Arctic Canada today: cold, wet and seasonal.

 

Arctic sea ice has been hitting record lows. Scientists just lost a critical tool for studying it. Alaska Public Media

Rick Thoman, a climate specialist at the Alaska Center for Climate Assessment and Policy in Fairbanks, is among them. On Tuesday, just a couple hours after he got the news about the program cuts, he was taking a tour group past an art installation about sea ice at the International Arctic Research Center.

 

Opinion: How community support helps to keep Chugach State Park accessible. Anchorage Daily News

The Chugach Park Fund raises money for trail maintenance and improvements in the state park because state appropriations are not sufficient to maintain these public assets. The park sees 1.5 million visitors to its 500,000 acres; just 11 employees manage park operations, including campgrounds, parking lots, bathrooms, law enforcement and search and rescue. After that, there’s very little public funding left for maintaining public access on 280 miles of trail.

 

Cost estimates rising for permafrost-related damage to Alaska roads and buildings. Alaska Beacon

Permafrost thaw is expected to impose costs of $37 billion to $51 billion to Alaska roads and buildings through the middle of the century, according to a newly published study.

 

Keep the fires going: What the kingdom of Denmark's leadership means for the Arctic Council. Center for Maritime Strategy

 

Sheefish habitat is expanding, study finds. The Arctic Sounder

Sheefish can be found as far north as Point Hope and as far south as Shishmaref, a significant increase over what was previously thought to be their range. And there’s a reason for it. “We think basically climate change, global warming, where you have these longer summer seasons, where fish have more time to move up and down the coast before they overwinter in Hotham Inlet,” Fraley said. “So they just have more time to explore along the coast and check out these new habitats. ”

 

Economy

Dunleavy's office claims it never drafted tax bill. Here is the bill it drafted. Reporting from Alaska

Wielechowski said he was handed a copy of the draft bill directly by the governor in 2023. The 28-page bill, marked confidential, is a highly technical document. Wielechowski said he does not like being called a liar. Wielechowski also said that Dunleavy had asked him two years ago to introduce bills to close the Hilcorp loophole, because Hilcorp would not provide its North Slope gas, and to reduce oil tax credits.

(My comment: In 2023, the Governor met with the Senate and House to present a statewide sales tax. He said he would be introducing the tax, but never did. It’s clear that the Administration recognizes the critical need for new revenue; he asked us for ideas earlier this year. Yes…he is afraid to offer them himself.)

 

Legislature approves income tax on out-of-state businesses operating online. Anchorage Daily News

 

Bill taxing certain online sales, with potential to boost education funding, passes House. Alaska's News Source

 

Alaska Legislature approves corporate tax for online business in Alaska, tied to education funding. Alaska Beacon

Senate Bill 113 would apply state corporate income tax on out-of-state businesses that operate online. The revenue-raising measure was intended to fund key elements of an education package broadly approved by the Legislature last month.

 

Alaska Senate approves austere budget with $1,000 PFD ahead of final negotiations. Anchorage Daily News

 

Alaska Senate approves budget with $1,000 PFD amid warnings of lean times to come. Alaska Public Media

 

Alaska Senate Approves pared-down budget draft while warning of 'coming storm' in state finances. Alaska Beacon

“The Senate Finance chairs believe that the state is facing some very strong headwinds in future budgets,” said Sen. Lyman Hoffman, D-Bethel and the lead author of the Senate’s draft budget. Right now, the Senate’s $5.8 billion budget proposal has a small surplus when combined with all other spending bills and the state’s spring revenue forecast. But that surplus is almost certainly an illusion, Hoffman said. The federal government is cutting the amount of money it sends to states, oil prices are below what was forecast in March, labor contracts will increase in costs, and this year’s budget uses one-time funding sources that won’t be available next year.

 

What is a flow-through (pass-through) entity, types, pros & cons. Investopedia

A flow-through or pass-through entity is a legal business that passes all its income on to the owners or investors of the business. Flow-through entities are a common device used to avoid double taxation on earnings. The income of a flow-through entity is taxed only at the owner's individual tax rate for ordinary income. The business itself pays no corporate tax. Sole proprietorships, partnerships (limited, general, and limited liability partnerships), LLCs, and S corporations are all types of flow-through entities. Flow-through entities are sometimes referred to as disregarded entities because the IRS effectively ignores them.

 

Winners in the draft tax bill so far. Axios

The US House draft legislation would extend the cuts in the 2017 tax bill, and it adds on some more breaks. Some will benefit the wealthiest, including a permanent increase to the deduction for pass-through income to 22% from 20%, plus a hike for the estate tax exemption, which would shield more inheritances from taxes.

 

U.S. slashes tariffs in China thaw. Axios

The U.S. and China will slash their tariffs on each other for 90 days, Treasury Secretary Scott Bessent announced. It's the relief global businesses and investors hoped for, after the trade war brought commerce to a near-halt and sent economies hurtling toward recession. The U.S. will lower tariffs to 30% during the pause, while China will cut its tariffs to 10%.

 

Fewer people want to work in the U.S. Axios

Immigrants make up 40% of home health aides and 26% of physicians and surgeons, according to data cited by the Niskanen Center. These jobs will still be in demand regardless of an economic downturn. Employers are concerned about the possibility of more staffing challenges as immigration restrictions tighten in the Trump administration.

 

Opinion: Don't turn the PFD into a needs-based program. Anchorage Daily News

(My comment: Actually the means-testing is an acknowledgement of what is happening now with the Dividend. Its cited by Legislators regularly in advocating for larger Dividends – “Low income folks in my district need the dividend”. We have lots of means-tested programs in place right now which would guide and oversee a means-tested dividend: food stamps, housing assistance, heating assistance, etc).

 

Stock market round trip. Axios

the S&P 500 is up slightly for 2025 after having been down double digits as recently as April 8. Fueled by tariff panic, the S&P touched bear market territory that day, 20% off its recent highs. Then Trump paused his stiffest tariffs, sparking what has nearly been a bull market rally since.

 

Energy

Anchorage officials want to turn your garbage into electricity. Alaska Public Media

He provided a visual for what that looks like monthly: “We bring in the BP building every month here, smash it up with that heavy equipment, and we cover it with dirt.”

 

What's next after a big day for small reactors. Axios

A big question now that Ontario officials are really, truly going ahead with building a small modular reactor is whether this marks a turning point for the tech. The project approved yesterday will be the first SMR in a G-7 nation, and backers called it a pivotal moment for the power source that faces several deployment hurdles.

 

Catch up quick on policy: nukes and NOAA. Axios

South Carolina's GOP Gov. Henry McMaster has a blunt warning for Congress: don't screw up revival of a major nuclear effort in my state. He fears that budget reconciliation talks will scuttle federal financing needed for efforts to complete two large unfinished reactors at V.C. Summer Nuclear Station. "[W]ithout the existing federal tax credits and loan programs for nuclear power that make financing new nuclear power generation possible, our efforts to finish V.C. Summer are dead. And Congress is on the edge of eliminating them in budget reconciliation."

 

Alaska is upholding our end. Congress must protect federal energy commitments. Alaska Beacon

Renewable energy investments build real projects in Alaska, generating savings for ratepayers and building our energy security. That’s why, as former Republican and Democratic Alaska legislators, we went to bat for policies and investments that helped develop our state’s vast renewable resources.

 

Opinion: Taiwan, Japan and South Korea aren't sold on the Alaska LNG project. Anchorage Daily News

It does not appear that the Asian countries are clamoring to sign on. Despite the Trump administration’s threats of tariffs if they do not, international schmoozing by the Dunleavy administration and rising energy demands, not a single country has committed to buy.

 

Alaska commission proposes $49,000 fine against Hilcorp for Cook Inlet violations. Alaska Beacon

Hilcorp, a privately held independent based in Texas, has become one of the two biggest oil producers in Alaska. The company gained that position after taking over fields and assets previously held by BP Exploration (Alaska) Inc. BP left Alaska in 2020.

(My comment: This fine is trivial for Hilcorp. I believe this company annual profits exceed $1 Billion; they pay no corporate income tax to Alaska but harvest huge revenues from our resources. The Governor and many Republican House and Senate members don’t want to impose the corporate income tax on them, or institute campaign contribution limits.)

 

Gas line construction in 2026? More hallucination than optimism. Reporting from Alaska

On Monday, Gov. Mike Dunleavy told the Hudson Institute, a right-wing think tank in Washington, D.C. that construction of the Alaska LNG pipeline could begin in 2026. A final investment decision is expected this fall and “quite possibly you would have potential construction here in a year, year-and-a-half.”

(My comment: I wish we could find just $5.5 million to fund Child Advocacy Centers in Alaska. If only the Governor were focused on functional government here, rather than his next job in DC.)

 

Education

Gov. Dunleavy tells superintendents he will veto education bill, and reduce school funding in budget, unless his policies are approved. Anchorage Daily News

 

Meeting with superintendents, Dunleavy threatens to veto compromise education bill. Alaska Public Media

 

Dunleavy meets with superintendents across Alaska, says he will veto education bill unless proposed policies are approved. Alaska's News Source

 

School superintendents call on Dunleavy to approve education funding compromise. Reporting from Alaska

Alaska school superintendents said Thursday that Gov. Mike Dunleavy told them he would veto a bipartisan education bill, and potentially reduce school funding in the budget, unless the Legislature approves his education policy priorities.

 

Opinion: The school funding bill is a victory for compromise and public education. Th governor should let it stand. Anchorage Daily News

(My comment: Yes, he should let it stand – if he cared at all about the future of our state. I would suggest that his behavior indicates more interest in gaining accolades from his hero, the current US president.)



Politics

The Trumpification of mental health. Axios

What was formerly the Substance Abuse and Mental Health Services Administration has reportedly had its funding slashed and is being rolled into a new umbrella organization called the Administration for a Healthy America.

 

House Republicans are backing off some Medicaid cuts as report shows millions of people would lose health care. Anchorage Daily News

US House Republicans appear to be backing off some, but not all, of the steep reductions to the Medicaid program as part of their big tax breaks bill, as they run into resistance from more centrist GOP lawmakers opposed to ending nearly-free health care coverage for their constituents back home.

 

Trump's "flying palace". Axios

The Trump administration is preparing to accept a super luxury Boeing 747-8 jumbo jet from Qatar's royal family. The jet is intended for President Trump's use as Air Force One. When he leaves office, ownership is to be transferred over to the Trump presidential library foundation, Karl and Faulders note of the gift's proposed terms.

 

Trump's trillion-dollar trip. Axios

Trump clearly sees the Gulf as a place where there's big money to be made, for the U.S. and for businesses like his. The Trump Organization announced a new luxury real estate deal in Qatar just two weeks before the trip, and has projects in Jeddah, Dubai and Oman.

 

Keep scrolling! Pricey gift. Axios

The $400 million jumbo jet President Trump plans to accept from Qatar is worth 100 times more than every other presidential gift from a foreign nation combined since 2001.



Health Care

Pharma shipments surge as Trump tariff threat looms. Axios

Imports from Ireland, a manufacturing hub for pharma giants like Pfizer and Johnson & Johnson, not only hit a record in March, but were double the previous high.

 

Pharma's perfect storm. Axios

White House is also revisiting a policy from his first term that would force drugmakers to accept lower prices for prescriptions that are pegged to what's paid abroad. The pharmaceutical industry estimates it could lose as much as $1 trillion over a decade from just the so-called international reference pricing policy, per Bloomberg. Then, there's anticipated higher costs and supply chain kinks from the new duties.

 

Pharmacy turbulence continues. Axios

Michigan Attorney General Dana Nessel sued pharmacy benefit managers Express Scripts and Prime Therapeutics, alleging they engaged in anticompetitive behavior that crippled independent pharmacies and created pharmacy deserts in half of Detroit. It's a pattern that's been cited in an other lawsuits against the companies, Fierce Healthcare reported.

 

Scant proof of Medicaid mooching. Axios

There's little evidence that people are free-riding on Medicaid. 64% of adults with Medicaid work full time or part time, according to an analysis of census data by the Center on Budget and Policy Priorities. Another 32% are taking care of home or family, are ill or disabled, attend school, or are retired. 2% could not find work. And there's another 2% in an "other" category.

Alaska Oil Resource Values

 

Alaska North Slope crude oil price (05/14/25): $69.07

FY26 budget (beginning 7/1) is fully funded at a

forecast of $64/barrel of oil.

Price on 9/2024: $63.63

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

Price on March 2020: $12.29

ANS production (05/13/25): 479,772 bpd

 

Alaska Senate advances measure requiring greater oversight of oil and gas tax data. Anchorage Daily News

The information requested by the auditor includes additional taxes, interest and penalties paid by oil and gas companies each year. Between 2006 and 2011, the total tax and interest assessed by the Department of Revenue added up to $1.3 billion. Gov. Mike Dunleavy took office in late 2018. Curtis said the Department of Revenue stopped providing that information in the format requested around 2019. Instead, the agency has provided a “data dump” that lawmakers say is unusable.

 

Exclusive - An AI-Driven minerals find Down Under. Axios

A startup using AI to guide geologic exploration believes it has found a major Australian deposit of indium, a rare metal used in solar panels, LCD screens and semiconductors. In this case, it means finding indium outside of China, currently the biggest supplier, as the U.S. and other nations scramble to diversify sourcing.

 

Precious Metal Prices

May 14, 2025

Gold - $3186.11

Silver - $32.32

Platinum - $996.08

Palladium - $989.11

Rhodium - $5425.00

 

Alaska Permanent Fund

website

 

Fund value May 13, 2025 - $83,052,300,000

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