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 18, 2025

Day 118 of the 121 day session

 

 

Dear friends and neighbors,

 

Budget work is a mystery unless you know the system. Here is "Budget Conference Committee 101"

 

What is Budget Conference Committee?

This is the committee that decides the final Budgets.

 

If both the House and Senate agree on every item in the budget, we simply vote to accept the Budget. But that never happens. Each body has their particular funding priorities.

·     This year the House constructed an Operating Budget with $260 million deficit.

·     The Senate's budget had a surplus buffer of about $150 million.

·     So the Conference Committee was established.

 

The Uniform Rules defining Conference Committees

If one body refuses to concur in amendments of the other it so notifies the other. If the other body refuse to recede, the presiding officer of each body appoints 3 members to sit as a Conference Committee.

The committee meets and reaches agreement on previously adopted amendments to a bill, then submits an identical report to each body. If the report is accepted by both bodies, the bill is transmitted to the governor.

 

If the members of the Conference Committee cannot agree on amendments, or if one or both bodies refuses to adopt the committee report, the Conference Committee askes for limited powers of Free Conference but only on the specific points of disagreement.

 

If the members of the Limited Free Conference Committee cannot agree, a Free Conference Committee is appointed. The previous members of the Conference Committee and Limited Free Conference Committee may not be appointed to the Free Conference Committee.

 

There are 3 members from each body appointed to the Free Conference Committee. The Free Conference Committee can offer amendments to the bill that may not have been in the previous bill. But the changes cannot be so extensive as to require a title change to the bill.

 

2025 Budget Conference Committee

It is expected that the House and Senate will have different items and amounts in their versions of the bill. Quickly dispensed with are the items that are identical. Also quickly agreed to are many items.

Then come the items that must be negotiated.

 

Meetings of the Conference Committees are very perfunctory

The negotiations are done behind the scenes. During the public meeting, the chair, which alternates each year between House and Senate, simply goes down the list of items agreed to and states “House” or “Senate”. This indicates which budget item and amount have been accepted.

 

This year the House is the chair, who is Rep. Andy Josephson. The vice chair is Sen. Lyman Hoffman. The 3 committee members from each body are 2 Majority members and 1 minority member. This year other committee members are House: Rep. Calvin Schrage, Rep. Delayna Johnson. Senate: Sen. Bert Stedman, Sen. James Kaufman.

 

For the audience watching, it means nothing unless you have a copy of the “motion sheets” which list each item under consideration. The motion sheets are sent out before each Conference Committee meeting. Motion sheets can be found here.

 

As you look at the motion sheets, the Department is top right, boxes below list the issue, then columns "House change" and "Senate change". Last column on the right is "Version Adopted". That is where the committee will say which budget they are adopting on that topic. You will note that the "Senate change" column is often blank; that's where the Senate eliminated or de-funded that item.

 

The Conference Committee has met three times to make budget decisions (May 14, 16, 18)

As you look at the motion sheets for those two days, you will see in "versions adopted" what the decision was. In some places you will see "H or S" which means the committee hasn't decided on that item yet. They will come back to it at another meeting.



They have finished all Department budgets.

In many places the higher House spending was accepted; in many places the lower or zero spending was accepted. PFD of $1000 was accepted ($685 million). BSA of $680 in the funding formula was accepted ($172.2 million). Further details can be seen in the motion sheets here. (Choose 5/18 Meeting 4 Decision for complete document.)

 

Of importance to me (any maybe you), the Conference Committee adopted the appropriation for the Child Advocacy Centers. These Centers care for children who have been physically and sexually abused. Federal funding was lost; our budget replaces the $5.5 million needed to continue their work.

Also Childcare Grants ($7.725 million), Infant Learning program ($5.7 million), Behavioral Health funding ($13.750 million).

 

If there are specific items you are interested in, check the motion sheets or ask me. My office and I would be happy to help you find the item of interest.

 

MORE Items in this Newsletter:

·     State Capital Budget is complete

·     Alaska Gas Pipeline

·     Railbelt Reliability Council Update

·     Anchorage WILDFIRE TOWN HALL, May 19, 6:30 PM

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

·     Resource Values, Permanent Fund

 

 

 

 

Capital Budget is complete

 

Passed House and Senate on May 16. 

Read Capital Budget here.

 

Total Unrestricted General Funds (state money) = $168 million

Vast majority of the $3 billion total is Federal funds.

Department of Transportation is major recipient of Federal funds. (pages 8-36 and 50-56)

 

Items increased by House and agreed to by the Senate:

·     Travel Industry Marketing fund $5 m

·     Mt Edgecumbe High School replacement of dorm windows $2.7 M

·     School Major Maintenance (first 19 projects on the list) $38 M

·     Governor’s office renovation $20 M

·     University of Alaska deferred maintenance $10 M

·     UAF Indigenous Studies Center $53 M authority to accept private contributions for the project

·     State Courts security project/building repairs $1.5 M

·     Blood Bank of Alaska $500,000

·     Alaska Marine Highway System Vessel overhaul $6.5 M

 

 

Alaska Gas Pipeline

 

Despite what any President or Governor may say, the decision to build a gas pipeline in Alaska is not up to us. The world market will make that decision.

As I watch the global news...

 

From Reuters:

 

Since 2021, almost all U.S. LNG projects under construction have faced price escalation or cost overruns due to supply chain disruptions, labor shortages, high borrowing costs and other factors.

 

Woodside's Louisiana LNG project price jumped by 31%, Next Decade's Rio Grande facility increased by 29% and Port Arthur Phase 1 by 18% from the original pre-FID figures, said Alex Munton, director of global gas and LNG research at consulting firm Rapidan Energy Group.

 

He noted those increases hit largely before Trump imposed tariffs on steel and aluminum. Even if the White House totally cancels country-specific reciprocal tariffs, those 25% tariffs on steel and aluminum and the 10% blanket levy remain in place putting pressure on LNG construction costs, Munton said.

 

 

 

Railbelt Reliability Council

What is it? Should I Care?

 

 

The Railbelt Reliability Council (RRC) presented to Senate Resources on Friday, May 16th.

 

The RRC was created through SB 123 in 2020.

The fundamental purpose is to do regional planning and development that creates lower cost electric energy.

 

Last year, the Legislature built on this to create the Railbelt Transmission Organization (RTO) in HB 307.

The purpose of the RTO is to remove that "wheeling rates" along our single transmission line between Bradley Lake Hydro (Kenai Peninsula) and Fairbanks. Wheeling rates are similar to road tolls; the "toll" is paid by the electrons traveling along transmission lines through the various utility regions.

The wheeling rates add huge cost to the electrons, which, from Bradley Hydro starts at 4 cents a kwh, but costs significantly more by the time it gets to Fairbanks.

 

The RRC and RTO are in place and working to unify our generation, prioritize the lowest cost electricity, deploy that lowest cost energy via a united transmission structure.

 

Its a lofty goal but we are on our way through these small steps.

 

Meeting recording here and slides here.

 

 

 

Anchorage WILDFIRE Town Hall

May 19 at 6:30 PM

Loussac Library

 

The town hall is this upcoming Monday, May 19th, 6:30 pm at the Loussac Library. 

 

Presentations will include from Anchorage Fire Department and the AFD Wildfire Division, the Office of Emergency Management, and the State and Federal Forestry.



Information about "Ready. Set. Go." evacuations, the IPAWS system (Integrated Public Alert And Warning System", and so much more will be shared.



This is going to be an extremely valuable evening for all.

 

Click here to share your concerns about wildfires.

 

 

 

Current Topics

Lawmakers have less than a week left in Juneau. Here's what to know. Alaska Public Media

 

Here's what to expect in the final days of Alaska's legislative session. Anchorage Daily News

State lawmakers have less than a week left in the 121-day legislative session. The Alaska Constitution gives them until midnight next Wednesday, May 21, to finish up their work for this year.

 

Film about Filipino nurses resonates in Alaska. Alaska Public Media

It's a theme that resonates in Alaska, where Filipinos are the largest immigrant group. They can be found at work in hospitals, nursing homes and in many jobs that are hard to fill. Filipino nurses have a long history of filling in the gaps in the nation's healthcare system that go back more than a century, when the U.S. colonized the Philippines and the military Americanized training for Filipino nurses.

(My comment: For this reason I am opposed to the immigration bans set by the present Federal government. Not only are my Filipino healthcare professionals quality clinicians and people, but there are equally great teachers coming to Alaska. The visa restrictions harm Alaska.)

 

As Alaska warms, Arctic Geese are skipping their southern migration. Alaska Public Media

Out on Izembek Lagoon, the water was flat and clear. Alison Williams, a biologist with the U.S. Fish & Wildlife Service, dipped her paddle in and steered her kayak toward the center of the lagoon, where the seagrass below runs thick.

 

Lawmakers adopt 3 bills caught in legal limbo in effort to avoid constitutional challenge. Anchorage Daily News

 

Former representative's lawsuit prompts Alaska Legislature to redo bills in session's final days. Alaska Beacon

The Alaska Legislature adopted several bills Friday in an effort to resolve a legal dispute that arose from last year’s legislative session.



Arctic Issues

Canada's military plans to be in the Arctic 'on a near permanent basis,' says commander. CBC

“We want to be in the Arctic on a near permanent basis," Boivin told CBC News in a recent interview. "The current approach to Operation Nanook puts us in the Arctic for five to six months a year. We're looking at being there 10 plus months per year."

Economy

Opinion: Alaska is leaving $100 million a year on the table. Senate Bill 92 can fix that. Anchorage Daily News

We can get well over $100 million per year by closing a loophole in our state’s tax code that primarily benefits a Texas billionaire. 

 

Opinion: Is Alaska getting shorted on oil and gas taxes? We don't know. Anchorage Daily News

I read with dismay the article published on May 7 regarding the Department of Revenue’s (DOR) refusal to disclose oil and gas tax collection information to the state of Alaska’s auditors. There is growing fear that the department has not been collecting all of the oil tax revenue the state is owed over the past several years. The concern is that massive, international corporations might be getting an illegal break at the expense of hard-working Alaskans.

 

Help for child victims of sex abuse, other child services may lose funding in Alaska budget crunch. Alaska Public Media

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.

 

What loosing billions in federal grants means for universities, and the nation. Alaska Public Media

In the past four months, the total, at universities across the U.S., is about $11 billion. The cuts affect things like cancer research, diabetes treatments, new wearable technology, farming solutions and studying domestic violence: research across nearly every discipline and subject. More than two dozen universities have been affected.

 

Energy

The U.S. nuclear base hidden under Greenland's ice for decades. The Wall Street Journal

The base was part of an ambitious and clandestine Pentagon plan, known as Project Iceworm, to build a network of nuclear-missile launch sites beneath the Arctic ice. The underground site, which was designed to store 600 medium-range ballistic missiles, reveals the extent of U.S. involvement in Greenland going back over half a century. 

 

Politics

The price tag for Trump's June military parade could reach $45 million. Anchorage Daily News

A massive military parade and festivities planned in Washington next month will cost an estimated $25 million to $45 million and will involve dozens of warplanes, hundreds of Army vehicles and thousands of soldiers from across the country sleeping in downtown government office buildings, an Army spokesperson said Thursday. The parade, to commemorate the U.S. Army’s 250th anniversary, will be held June 14, the same day as President Donald Trump’s 79th birthday.

 

Republican tax bill on track to add more than $2.5 trillion to U.S deficit. Anchorage Daily News

The Republican tax proposal emerging in the House of Representatives would add more than $2.5 trillion to the federal deficit over the next decade, according to nonpartisan estimates and budget experts. That fiscal hit has triggered criticism from House conservatives, who have at times vowed to vote against legislation that adds to the national debt, which is already over $36 trillion. But House Speaker Mike Johnson (R-Louisiana) may have trouble reducing the bill’s price tag, as that would require either making fewer tax cuts or steeper spending cuts in ways unpalatable to his conference.

 

Sky high nuke bill. Axios

The U.S. will spend an estimated $1 trillion maintaining and upgrading its nuclear weapons over the next decade — more per year than we spend on the State Department, NASA and the CDC combined, from a new Congressional Budget Office estimate.

 

Health Care

Sweeping Medicaid overhaul approved. Axios

If the legislation isn't significantly changed, Medicaid enrollees ages 19-64 would have to show they're working or participating in community engagement for 80 hours per month to continue receiving benefits.

 

Overdose deaths drop to pre-pandemic level. Axios

The drop in overdose deaths is partly due to the wider availability of naloxone, which reverses an opioid overdose, per CBS News. Narcan, the best-known version of the drug, was made available over the counter in 2023. It is standard issue for first responders and available in other public places.

 

14,000 Alaskans could loose health insurance with Medicaid work requirement. Alaska Public Media

 

As Alaska lawmakers ask Congress to protect existing federal health care programs, Begich remains noncommittal. Anchorage Daily News

 

As Republicans weigh Medicaid work requirements, Georgia offers a warning. Anchorage Daily News

An estimated 14,000 Alaskans, and millions of Americans, would lose their health insurance from one feature of the Republican budget reconciliation bill now pending in Congress. That element is a requirement that certain Medicaid recipients prove that they worked at least 80 hours each month. “It’s going to be creating this administrative bureaucracy and devastating amount of poor people who, despite being eligible, are going to lose coverage so that Congress can fund tax cuts for the wealthiest.”

 

Alaska Legislature urges DC lawmakers to extend health insurance subsidies. Alaska Public Media

 

Tribal leaders say cuts to federal health programs could harm Native Americans. Alaska Public Media

As many as 23,000 Alaskans would see their health insurance premiums rise, in some cases by four or five times, if Congress doesn’t act, said Rep. Genevieve Mina, the Anchorage Democrat who introduced House Joint Resolution 9.

 

 

Alaska Oil Resource Values

 

Alaska North Slope crude oil price (05/15/25): $67.78

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 (05/15/25): 472,078 bpd

 

Northern Star grows Pogo gold reserves. North of 60 Mining News

Northern Star Resources Ltd. May 15 reported a 40% increase in the amount of gold in reserves at its Pogo mine in Alaska. According to the new calculation, Pogo now hosts 9.13 million metric tons of proven and probable reserves averaging 7.2 grams per metric ton (2.13 million ounces) gold.

 

The science behind mining for riches on the deep-sea floor. The Wall Street Journal

Explorers have dreamed of harvesting deep-sea metals since the 1870s, when the British scientific ship HMS Challenger pulled up mineral-laden rocks on its round-the-world voyage.

 

 

 

Precious Metal Prices

May 17, 2025

Gold - $3215.50

Silver - $32.50

Platinum - $1007.66

Palladium - $996.62

Rhodium - $5375.00

 

Alaska Permanent Fund

website

 

Fund value May 14, 2025 - $82,655,200,000

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

Over $100 billion total earnings over lifetime of the Permanent Fund

 

 

"COURAGE is not simply one of the virtues,

But the form of every virtue at the

testing point, which means

at the point of highest reality."

                          C.S. Lewis

 

 

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