Override Veto, End of Session Today and lots more!

Senate Majority Bipartisan Coalition Website

State Senator District E

Senate Majority Leader

Senator Cathy Giessel Newsletter

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Issues affecting

your family, community and jobs.

May 20, 2025

END of session at Day 120

Dear friends and neighbors,

At 9 AM this morning, the Joint Session of the 34th Legislature voted (46-14) to override the Governor's Veto of the Education Bill (SB 57). The last time a Governor's veto was overriden was under Governor Sarah Palin in 2009.

Alaska lawmakers override Dunleavy’s veto of education bill - Anchorage Daily News

Alaska Legislature overrides Gov. Dunleavy’s veto of public school funding bill | Alaska Beacon

Alaska legislators override Dunleavy’s veto of education bill Alaska Public Media

Later, Session One of the 34th Alaska Legislature adjourned, one day before the 121 day limit.

The Operating Budget and the Mental Health Budget passed.

The Supplemental Budget (paying the debts of the FY 2025 budget) also passed, however...

Funding Nuances:

The Operating Budget and the Mental Health Budgets passed with a small buffer of about $57 million. This small amount will help cover deficits that will result if oil falls to $66/barrel.

The nuance is in the Fiscal Year 2025 Supplemental Budget which has a $200 million deficit.

This 2025 budget that was passed last year that went underwater because of the big decline in oil prices. We have to pay these bills that are due. To do that, we need to draw the $200 million out of the Constitutional Budget Reserve (CBR=savings account).

The Senate agreed to pay those bills using the CBR (vote of 18-2); the House voted NOT to pay the bills with the CBR.

The Senate proposed, in the supplemental budget, that if there weren't enough votes to use the CBR, that we would draw $100 million out of the fund balances of the Alaska Industrial Development and Export Authority (AIDEA) accounts and the remainder needed out of the Higher Education Investment Fund (HEIF).

Because the House voted not to use the CBR to pay the 2025 bills, AIDEA and HEIF funds will be used. While this will indeed pay the bills, it is not optimal. The HEIF funds the scholarship programs; it has about $300 million in it, with about $30 million used each year.

The AIDEA fund balances are unknown; those accounts are not clearly reported but there is reason to believe there are ample funds available to fund the FY 25 bills.

The Budget bills are now on their way to the Governor. The Constitution says: "The Governor "may, by veto, strike or reduce itmes in appropriation bills." (Article 2, section 15). This allows him to reduce the BSA funding (page 11, line 14). He has said that he would reduce the BSA from the $700/student increase, to a $500 increase.

If you're wondering if the Legislature could override the veto of the BSA funding, or any other veto in the budgets: Yes, we could.

Its highly unlikely to happen because it would require us to come back into session and have a 3/4 vote count to override any veto in the appropriation bills; that's 45 votes of the 60 Legislators. (The 3/4 vote to override an appropriation veto is the highest requirement of any of the US states.)

Several other bills passed during the rest of the morning and early afternoon, before adjournment at about 1:30 PM.

Now Interim Begins

My staff and I are packing up our Juneau living quarters. Some will catch the Ferry to Haines and drive the rest of the way home. Some will fly home.

I am so grateful for my staff this session!

· Jane Conway is the "go-to" person on healthcare issues; she helps other offices with these issues.

· Jane Rohr has done a magnificent job managing the office, responding to needs of constituents, and making sure we are all on-task.

· Paige has excelled at managing legislation. She monitors multiple committees in the Senate and House.

· Inti has brought expertise in Resource and Arctic issues.

Working in Juneau for 5 months out of the year is very challenging. It requires having a "second home" in another city far from our real homes and away from families. The work is incredibly intense. Juneau gets a lot of clouds and rain.

I'm grateful for these 4 people who were willing to sacrifice and do this work.

Phones will be forwarded and calls responded to, but I will not be available for meetings until after Memorial Day.

This Newsletter will continue during Interim on a TWO-WEEK CYCLE.

Next year I will continue to chair the Resources Committee and Arctic Affairs Committee. I will continue to serve as the Majority Leader for the Senate Bipartisan Coalition.

My bills to be worked on next session:

SB 28 - Defined Benefit for public employees

SB 32 - Renewable Energy RCA approval

SB 34 - Repeal 90 Day Statute

SB 91 - Large Renewable Energy Project approvals

SB 92 - S-Corporation Tax Structure

SB 121 - 75th Percentile Insurance Reimbursement

SB 122 - Insurance Network Adequacy

SB 142 - PBM Regulation

SB 180 - RCA Rate Regulation Imported Natural Gas

SB 191 - ARR/Whittier Land Transfer

Also:

SJR 14 - A Vote by the people for Constitutional Amendment recommended by the Permanent Fund Board of Trustees to establish a Spending Cap on Earnings, and Secure Savings in the Fund.

Legislative Budget and Audit Committee will be releasing the State's Single Audit on June 30. I will report to you on those findings.

Items in this Newsletter:

· ARR Striping Work Schedule in your area

· History of the 121 Day Legislative Session

· National Civics Bee Competition!

· Chugach State Park Trail Volunteer Opportunities

· Girdwood Wildfire Mitigation Days

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

· Resource Values, Permanent Fund

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Past Newsletters

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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

Anchorage Railroad Crossing Striping Construction Notice

Below is the map of the construction locations for phase two of the construction for the 22-27b Anchorage Railroad Crossing Striping Project. Review the whole notice here.

121 Day of Session

Alaska Christian Bible Institute v. State of Alaska. The 120th day of the Second Session of the Fourteenth Legislature was May 12, 1986, but when it became obvious that neither house would complete its agenda before midnight, each house voted to stop the clock. Though the House and Senate both passed bills in the early morning hours of May 13, all bills were dated May 12, The Alaska Christian Bible Institute filed a lawsuit against the state claiming they legislature violated Article II, Section 8 by sitting into the early morning hours of May 13. Superior Court Judge Shortell ruled the constitution authorized a session totaling 121 days, and the Bible Institute appealed, arguing that Article II, Section 8 limits regular sessions of the legislature to 120 days. The state contends that the plain language of the provision authorizes a session totaling 121 days. Alaska Constitution Article II, Section 8 provides: "The legislature shall adjourn from regular session no later than one hundred twenty consecutive calendar days from the date it convenes except that a regular session may be extended once for up to ten consecutive calendar days." The day the legislature convenes is not counted. The next day is one day from the convening date.

Chugach State Park Summer Volunteering

Chugach Park Fund will be sponsoring various volunteer events in Chugach State Park to improve popular trails. This summer volunteers will get a taste of Chugach Chocolates and minors (12 and older) will be allowed to participate with adult supervision. So sign up your hard-working kids or grandkids and join in. Let’s give young people a sense of community, teamwork and accomplishment.

The following are the dates and locations.

· June 14-Gasline Trail from Upper O’Malley trailhead

· June 21-Penguin Peak from Bird Creek Valley trailhead

· June 28-Middle Fork from Glen Alps trailhead

· July 19-Rabbit Lake Trail from Rabbit Lake trailhead

· July 26-Hanging Valley from South Fork Eagle River trailhead

· September 27-Middle Fork from Glen Alps trailhead

More details and how to sign up here.

Current Topics

Republican opposition kills bill intended to fix Alaska's absentee voting problems. Alaska Beacon

Alaska election bill stalls in House committee with days remaining in legislative session. Anchorage Daily News

Wednesday is the last day of the regular legislative session, and members of the House’s multi-partisan majority said on Saturday that they lack the support needed to overcome the opposition of the House’s Republican minority in the time they have left.

(My comment: You should know that half (yes, half) of this bill is from the Republican Minority. Yet they won’t support it unless it is all their ideas only.)

Arctic Issues

Russia to earn $160 B in taxes from northern sea route by 2035, arctic region accounts for 7.5 percent of GDP. High North News

The Russian government expects resource development in the region to contribute in excess of $160bn in tax revenue to the federal budget over the next decade to 2035.

Economy

Why the consumer sentiment plunge is different now. Axios

The richest Americans — who drive aggregate spending in the U.S. — typically feel better about the economy than lower-income groups. But not anymore. Expectations have converged, with all income groups anticipating worse economic conditions, according to the University of Michigan, a warning for the health of consumer spending that was missing in 2022. "We're still seeing huge declines across income but most notably at the top of the income distribution," Joanne Hsu, head researcher of the University of Michigan survey, tells Axios in an email.

The tariff vibes are still bad. Axios

"Consumers are specifically concerned about instability, unpredictability, uncertainty around trade policy, and they broadly believe that uncertainty will generate upward pressure on inflation." The survey suggests consumers expect a large shock to their personal finances, with many reporting weakening incomes.

Trump's tariff reality. Axios

Nearly a decade of Trump trade arguments held that foreign countries, not Americans, paid the ultimate cost of a trade war. But the president and his economic team now acknowledge that tariffs are raising prices for everyone, from industrial ports to retail storefronts.

Alaska Legislature finalizes $1,000 PFD; vote expected as soon as Tuesday. Alaska Beacon

Most state services will see no new funding in final Alaska state budget draft. Alaska Beacon

Alaska Legislature sets $1,000 PFD ahead of final budget vote. Anchorage Daily News

The dividend was among the biggest items in a $5.9 billion document that will fund state services from July 1 this year through June 30 next year.

Energy

Canada eyes energy superpower status as LNG exports near. Energy Intelligence

The new slug of export capacity is welcome news for Western Canadian producers, whose stranded gas generally sells at a steep discount to other North American supply basins. This week, spot prices at Alberta's Aeco Hub wer averaging in the $1.50s per million Btu, less than half where the US benchmark Henry Hub has been trading. But RBN Energy analyst Martin King notes that regional prices have been creeping higher this spring in anticipation of LNG Canada's start-up.

TotalEnergies signs LNG deal as B.C. project's pipeline costs soar to $12-billion. The Globe and Mail

TotalEnergies of France has signed a deal to buy liquefied natural gas from the planned Ksi Lisims LNG facility in British Columbia, but the Nisga’a Nation-backed project must first await the fate of the associated pipeline whose estimated costs have soared by billions.

Education

Dunleavy vetoes compromise education funding bill, setting up override vote. Alaska Public Media

Gov. Mike Dunleavy vetoed a bill Monday that would substantially boost long-term education funding. House Bill 57 would have increased the base of Alaska’s public school funding formula, the base student allocation, by $700, increased student transportation funding and made several policy reforms.

Opinion: Gov. Dunleavy is putting public education up for sale. Here's why Alaskans must reject the voucher Trojan horse. Anchorage Daily News

Open cross-district enrollment, being championed by the governor and well-funded outside interests like Americans for Prosperity, is a Trojan horse for school vouchers. In Alaska, we already have access to school choice via the semi-annual school lottery. Vouchers are not about improving education. They are about defunding public schools and privatizing one of our most essential democratic institutions.

Decades of inaction by Alaska's leadership is leaving kids with the bill. Why are we OK with that?. Alaska Beacon

"For decades, our elected leadership at both the legislative and executive levels have neglected to look ahead and find ways to cement a sustainable future for Alaskans. Instead of working to establish and secure new revenue streams, we married ourselves to oil and mining companies that inexplicably continue to receive massive tax cuts, even as the returns of their industries decline. Instead of standing on issues like good schools, quality roads, and affordable energy, political debates are instead hogged by questions about how big of a Permanent Fund dividend one can expect.

Alaska fails federal disparity test, putting millions in education funding at risk. Alaska Public Media

That means what’s usually tens of millions of dollars in federal aid won’t count toward the state’s education contribution for the next fiscal year.

ANSEP cancels summer acceleration academy after loss of federal grant. Alaska Public Media

The loss of a federal grant has forced the University of Alaska’s ANSEP program to cancel its long-running summer academy, less than two weeks before rural students were scheduled to arrive. ANSEP, formerly referred to as the Alaska Native Science and Engineering Program, operates the yearly Summer Acceleration Academy, allowing high school students in rural communities to come to Anchorage for a five-week program in various STEM courses.

The Dunleavy Decline: a legacy that's left Alaska's students behind. Alaska Beacon

For more than a decade, Dunleavy has worked to undermine the foundation of our schools. Brick by brick, budget by budget, he has led a systematic campaign to weaken public education in our state.

Fisheries

Run forecasts and harvest projections for 2025 Alaska salmon fisheries and review of the 2024 season. Alaska Department of Fish and Game

Health Care

Alaska Legislature urges congressional delegation to oppose Medicaid cuts. Alaska Beacon

The Alaska Legislature has voted to urge the state’s congressional delegation to oppose cuts to Medicaid, as the state faces a potential annual loss of $194 million in federal spending and tens of thousands more uninsured residents.