Vetoes, Childcare, Eat Local Foods, Reduced Policing Hours, & more!

Senate Majority Coalition Website

State Senator District E

Senator Cathy Giessel Newsletter

UPDATES

Issues affecting

your family, community and jobs.

June 22, 2023

Dear Friends and Neighbors,

[Photo: bears in our yard this week]

Governor Dunleavy vetoed half of the education funding for FY 24 (July 1, 2023 through June 30, 2024).

But wait...Here is the list of all vetoed items. In the column on the right you see the justification for each veto.

The most common reason was "Preserve general funds for savings and fiscal stability".

Some of the other vetoed items: rural public radio, Alaska Legal Service public defenders, childcare incentives, Head Start, Alaska Science & Engineering Program (ANSEP), workforce programs, replacement windows in dorms at Mt. Edgecumbe school, major school maintenance, Crisis Now mental health services and more.

The budget sent to the Governor had a surplus of ~ $34 Million at $73/barrel oil price (sustained price for the year).

The Legislature accomplished this without spending from savings or overdrawing the spending limit (POMV). It was a reasonable, responsible and balanced budget.

What about a Veto Override by the Legislature?

The Alaska Constitution sets the requirement of affirmative vote of 3/4 of the membership of the legislature to override a Governor's veto (Article 2, sec 16). (3/4 = 45 of the 60 Legislators)

A veto overrride could happen in the next Regular Session (Jan. 2024), or we could call ourselves into a Special Session with agreement from 2/3 (40) of the members of the Legislature.

Someone asked if we could change that 3/4 vote requirement, which is the highest requirement of any of the other states. We could, and Article 13, sec 1 describes that 2/3 of the membership of the Legislature (40 Legislataors) would have to vote to put that question on the next General Election ballot to be decided by the voters.

Governor's Vetoes. ADN

Tom Klaameyer, president of NEA-Alaska, the state’s largest educator union, said he is worried about the impacts the cuts will have on students and communities. In districts where contract negotiations with teachers’ unions have stalled, including the Mat-Su. Klaameyer said the governor’s veto could translate to lower pay for teachers amid intense challenges in recruiting and retention across the state.

The governor appeared to target lawmakers individually with vetoes of infrastructure projects in the districts of Republican House members who voted against the budget. The governor vetoed only projects in the districts of House members who had voted against that final deal, including road improvements and other infrastructure developments in the districts of Republican Reps. Ruffridge, Jamie Allard, Ben Carpenter, Julie Coulombe, Mike Prax, Dan Saddler, Laddie Shaw and Sarah Vance. Other capital projects in the districts of Republicans who voted in favor of the deal remained in the budget.

Governor Vetoes UA, K-12. Alaska Beacon

The governor’s vetoes included many — but not all — maintenance projects at the University of Alaska and at K-12 public schools. Unusually, the governor vetoed his own request for additional money to pay for the Alaska Native Science and Engineering Program. The governor requested an additional $4 million for the program in a spring amendment after proposing flat funding in December. Lawmakers approved $5 million, but the governor vetoed the entire amount.

Dunleavy slashes education funding boost as part of budget vetoes. Alaska Public Media

Dunleavy's 46 line-item vetoes include other cuts to education, such as $20 million for the UAA campus, $10 million for major school maintenance projects, $5 million for the Alaska Native Science and Engineering Program and $3.5 million for Head Start. Outside of education, Dunleavy cut $30 million from the community assistance fund, $10 million from state ferries, and funds for several road and harbor projects.

Governor approves state budget while vetoing funds for school districts and the university. Mat-Su Frontiersman

House Speaker Rep. Cathy Tilton, R-Palmer, said she supports the governor's decisions.

School district leaders react to Dunleavy's partial veto of proposed K-12 funding increase. Alaska Public Media

At the Anchorage School District, the state's largest, superintendent Jharrett Bryantt said he and others at the district are "extremely disappointed in the governor's decision to veto half of the much-needed public education funds. This year's historic support from the Legislature was a critical investment in the future of Alaska's schools."

Dunleavy Vetoes School Funding. Alaska Current

Governor Slashed Education Funding. Alaska Public Media

Anchorage School District "extremely disappointed". Alaska Public Media

Items in this Newsletter:

· Rural Alaska Childcare in Crisis, a film

· Eat Local Challenge! - Farmer's Markets

· SCOTUS Upholds ICWA

· Narus/Woolrich represent Alaska at National History Day

· Broadway Bound AK Student Contest

· Current Topics, Economy, Health Care, Energy

· Resource Values, Permanent Fund

· World's Largest Lithium Producers

Email me

As Alaska's child care crisis looms, some businesses opt to launch centers for their employee's kids. Alaska Public Media

While Credit Union 1 owns its Anchorage child care center, Providence helps manage it. Other businesses also have partnered with operators to get child care for their employees. The Alaska Native Tribal Health Consortium opened its child care center in 2018. Northlink Aviation is set to break ground soon on an expansion of the Ted Stevens Anchorage International Airport's southern cargo terminal that will include an on-site child care center.

Alaska continues to rank among worst states for child well-being, report finds. Alaska Public Media

Alaska ranks among the worst states for overall well-being of children. That's the finding of a report by the Annie E. Casey Foundation, a national charity focused on child welfare.

Mapped: Soaring child-care costs. Axios

Child care costs: New data show how deeply families have struggled to stay afloat while working and paying for child care. The average annual national cost of child care for one child in 2021 was $10,600- more than one-third of a single parent's income, according to yesterday's report from the Annie E. Casey Foundation.

For Immediate Release:

June 15, 2023

Press Contact:

Nikki Stoops

nstoops@nativefederation.org

SCOTUS Upholds ICWA

Anchorage, Alaska – Today, the U.S. Supreme Court ruled Native families have a right to raise our children in our traditions, Native children have a right to their culture, and Alaska Natives and American Indian tribes have a right to persevere — based on our political classification — under the U.S. Constitution.

In a 7-2 decision, the Court upheld the Indian Child Welfare Act. Justices Clarence Thomas and Sam Alito dissented. Justice Amy Coney Barrett wrote the opinion for the majority in Brackeen v. Haaland, stating the Court rejected all the challenges to ICWA "some on the merits and others for lack of standing.”

Chad and Jennifer Brackeen, alongside other non-Native prospective adoptive couples, and states, challenged the constitutionality of ICWA. They argued it violated the U.S. Constitution by discriminating on the basis of race and forcing the states to carry out federal mandates for placing Native children who were removed from their homes. The Court rejected these arguments, citing over a century of precedent that classifies Alaska Natives and American Indians as a political versus racial group.

Congress enacted ICWA in 1978 after it found that hundreds of thousands of Indian children had been removed from their homes, sometimes by force. The law established minimum federal standards for removing Native children from their families and required state courts to notify tribes when an Indian child is removed from his or her home. ICWA also implemented a framework for foster and adoption placements, which requires first preference be given to a member of the child's extended family, then other members of the tribe, and if neither of those is available, a home with a different tribal family. That placement preference was at issue in Brackeen.

“Like most Alaska Native and American Indian tribes from across the country, we have been anxiously awaiting this decision,” said AFN President Julie Kitka. “The wait is over, and the victory is ours. Our ways of life will continue through our children.”

###

Two students at South Anchorage High School, Jeremy Narus and Rowan Wollrich, created a poster board display about the history of the Permanent Fund. Their project was selected for display at the Smithsonian's Museum on Natural History on Flag Day, June 14, 2023. A Legislative citation for the boys says, in part:

"The members of the Thirty-Third Alaska State Legislature congratulate Jeremy Narus and Rowan Wollrich for their exceptional efforts on their National History Day project “The Permanent Fund: A Living History.” On Friday, April 17, 2023, Rowan and Jeremy secured a spot to compete in the National History Day Competition held on June 11, 2023, at the University of Maryland for their project, a poster board display detailing the history and longevity of the Alaska Permanent Fund Corporation. The two students dug deep into the historical records and documents, and even conducted personal interviews with Alaska policymakers."

We are so proud of Jeremy and Rowan, and look forward to seeing what they do in the future.

Read the Press Release

The Alaska Center for the Performing Arts (ACPA) is excited to welcome the 2023/2024 Broadway series. The first production will be HAMILTON. In an effort to share Broadway with all of Alaska, the ACPA in partnership with sponsors and the Gilder Lehrman Institute, created a competition for students in grades 7-12 to win tickets to HAMILTON. Click here for more info!

Current Topics

Fairbanks Police Department Reduces Patrol Hours. Alaska Public Media

A worsening staffing shortage at the Fairbanks Police Department is forcing a scheduling change. There aren’t enough officers to cover all shifts, and the situation is driving tough choices and measures to boost hiring and retention. The Fairbanks Police Department plans to reduce patrol hours beginning Aug. 1.

(My comment: Unbelievable! They just recently increased hiring bonus from $20,000 to $60,000. Why can't Alaska recruit and retain public employees. (Hint - Other states have a Defined Benefit public pension. That's where Alaskans are moving.)

Dunleavy Removes University Energy Researcher. Northern Journal

Alaska Republican Gov. Mike Dunleavy has removed the university researcher who was helping lead his energy task force. Gwen Holdmann, a senior researcher at the Alaska Center for Energy and Power and an associate vice chancellor at University of Alaska Fairbanks, was notified earlier this month that she’d been removed from Dunleavy’s Energy Security Task Force.

Holdmann was one of two subject matter experts serving as a vice chair of the task force.

(My comment: Removing the smartest person in the room is usually not a good idea if productive ideas and work need to be done.)

How to survive your very real jet lag. Axios

Arts council asks Alaskans to pick a new license plate while DMV rolls out broader changes. Alaska Beacon

The Alaska Council on the Arts is asking Alaskans to pick a replacement for Alaska's aurora-themed license plate, one of three default options at the Alaska Department of Motor Vehicles since 2017. The winner of the design competition will be announced August 26 at the Alaska State Fair.

Heat Pumps in Alaska- Webinar and FAQ. Alaska Environment

Middle-school score plummet. Axios

The decline in U.S. 13-year-olds' math scores last year was the biggest in 50 years, from federal data out today. Enrollment in algebra dropped from 34% or 13-year-olds in 2012 to 24% in 2023. Fewer students said the frequently read for fun, which is associated with higher achievement. (My comment: This is why we need to financially support education, schools and our teachers. Our kids can't do better (making up for pandemic losses) with less resources.)

Economy

Future of Port of Alaska discussed at work session. Alaska's News Source

It's the front door to the state from the sea, a vital part of the lives of nearly everyone in Alaska. But there's a problem. The port is aging. If major revitalization isn't done to the Port of Alaska, major portions of the dock will be taken out of service in as soon as seven years, Port Director Steve Ribuffo said.

More States Use Tax Dollars to Help People Pay for Private School. Governing

So far this year, at least 10 states have implemented or expanded programs for vouchers and other state private education subsidies, according the Chalkboard Review, an education-focused website. The state are: Arizona, Florida, Idaho, Indiana, Montana, Nebraska, Oklahoma, South Carolina and Utah, along with a pilot program in Tennessee.

Port of Nome $600 Million+ Expansion. MilitaryTimes

A $600 million-plus expansion makes Nome, population 3,500, the nation’s first deep-water Arctic port. The expansion, expected to be operational by the end of the decade, will accommodate not just larger cruise ships of up to 4,000 passengers, but cargo ships to deliver additional goods for the 60 Alaska Native villages in the region, and military vessels to counter the presence of Russian and Chinese ships in the Arctic.

One sign of America's dwindling savings cushion. Axios

The share of Americans who can't cover a month of basic expenses with savings has been steadily increasing this year- it now sits near the high point of the three-year series.

Fisheries

Invasive pike can use Cook Inlet to travel between freshwater systems, research finds. Alaska Public Media

Researchers have found concrete evidence that the fish could use the ocean to move between freshwater habitats, introducing new questions about where those fish can travel and what scientists can do to keep their numbers under control.

"We can go fishing": appeals court says Southeast Alaska troll fishery can open this summer. Northern Journal

A federal appeals panel issued a last-second ruling Wednesday that will allow this summer's Southeast Alaska troll chinook salmon fishery to open as scheduled July 1- reversing a lower court ruling that would have kept the $85 million industry off the water.

Politics

White House Hopefuls Face Low Barriers to Entry. Governing

There was a time when voters had to choose only among a half-dozen or so candidates. There's almost no downside to running these days.

Supermajorities in state capitols push controversial policies to the edge. ADN

By at least one measure, political power is at its highest mark in decades. That's because Republicans or Democrats hold majorities so large in 28 states that they could override gubernatorial vetoes without any help from the minority party.

Video raises new questions about governor's oversight of aide. Alaska Public Media

Alaska Gov. Mike Dunleavy's office says it didn't review an incendiary video address prepared by the adviser he out in charge of the state's new Office of Family & Life.

Health Care

Opioid Settlement Payouts to States. Alaska Beacon

Legal and political experts watching the settlements say the lack of transparency may have to do with political leverage. State attorneys general have touted these deals as achievements in glowing press releases.

[My comments: For Alaska, this will be $58 million over 18 years. That’s 3.2 million a year….with small percentages going to municipalities. That seems pretty small given the enormity of the problem.

The Governor’s office tells me: "Governor Dunleavy has put forward SB 133/HB 171 ( which would establish the Opioid Settlement Investment Fund and the Opioid Remediation Fund. Under the framework proposed in SB 133/HB 171 – the Department of Revenue would manage the funds and the Division of Public Health would handle the administration and award of opioid settlement distributions. In accordance with settlement terms and the attached Governor’s Advisory Council on Opioid Remediation Recommendations, the Division of Public Health would create a “Opioid Remediation steering committee” to provide guidance including evaluation of applications for funds.

The current members of the Governor’s Advisory Council on Opioid Remediation can be found here.

The factsheet describing the GACOR can be located here.

Medicare surge to drive health care spending past $7 trillion. Axios

The aging population and federal policy changes will combine to make Medicare experience the highest rate of growth among the major payers, rising 7.5% annually between 2022 and 2031. Program outlays will rise in part due to the way the IRA created a $2,000 cap on Medicare Part D enrollees' out of pocket spending. The growth rate will slow later in the decade, as the effects of drug price negotiations with manufacturers and inflation rebates begin to kick in. The forecast shows Medicare experiencing the highest hospital spending growth, ranging from 7.8% to 8.1% annually from 2025 to 2029 as the last of the baby boomers age into the program and enroll.

Suicides among youth reaches 20-year high. Axios

Youth mental Health Crisis and Suicide. This is why I'm offering legislation to lower the age of consent for mental health services to age 16 in Alaska. These are the latest numbers to show how the youth mental health crisis might be colliding with the rise in gun violence in the U.S. The data showed suicide rates among the 10-24 age group reached a 20-year-high in 2021.

Visualizing the Worlds Largest Lithium Producers.

Elements Visual Capitalist

Ideas for Congress on Minerals. Axios

"Without a plan, the United States faces serious risks to its economy and national security, not to mention an accelerated clean energy transition.”

Alaska Oil Resource Values

Alaska North Slope crude oil price (6/21/23): $76.97

FY24 budget (begins 7/1) is fully funded at forecast $73/barrel oil.

Price on 9/30/22: $86.91

Price on 6/29/22: $116.84

Price on 3/8/22: $125.44

Price on 12/22/21: $75.55

ANS production (6/21/23): 454,475 bpd

Hilcorp looks at shallow gas at Granite Pt, estimates 40-100 bcf. Petroleum News

Hilcorp Alaska has applied to the Alaska Oil and Gas Conservation Commission for definition of a gas pool at its Granite Point field in Cook Inlet, and for pool rules for development of that gas pool.

DNR grants 22-mile Pikka Sales Oil Pipeline right-a-way to Santos subsidiary. Petroleum News

Oil Search (USA) Inc. sent RCA copies of the final approval of the right-a-way lease for the Pikka Sales Oil Pipeline that the company has received from the Alaska Department of Natural Resources. The non-exclusive right-a-way lease was signed May 24, granting the ROW lease to Santos Ltd. subsidiary Oil Search (USA) for the pipeline that will transport sales quality oil from the Nanushuk Processing Facility.

GeoAlaska files 2023 plan, will use non-intrusive subsurface geophysical measurements. Petroleum News

Anchorage-based GeoAlaska LLC filed a revised plan of exploration with Alaska's Division of Oil and Gas for Mount Augustine. Mount Augustine is an active stratovolcano on Augustine Island in Cook Inlet a little over 68 miles southwest of Homer. Mount Augustine with its shallow magma chamber is believed to have geothermal potential.

Chugach Electric Signs Shared Services Agreement With Hilcorp Alaska. KSRM

Chugach Electric Association, Inc., has signed a shared services agreement with Hilcorp Alaska, LLC (Hilcorp) that will result in improved operational efficiencies and provide significant cost reductions associated with the operation of the Beluga Power Plant and the Beluga River Unit (BRU) gas field.

Ideas for Congress in minerals. Axios

"Without a plan, the United States faces serious risks to its economy and national security, not to mention an accelerated clean energy transition."

Norway moves to open its waters to deep-sea mining. Reuters

The Norwegian government on Tuesday proposed opening its waters to deep-sea mining despite opposition from green campaigners and some countries, as it seeks to shift from a reliance on hydrocarbons to new sources of economic activity. Norway, whose vast oil and gas reserves made it one of the world's wealthiest countries, has taken a leading role in the global race to mine the ocean floor for metals that are in high demand as countries transition away form fossil fuels.

Alaska Permanent Fund

The financial statements for the Alaska Permanent Fund as of May 31, 2023, show the Fund's total value was $76.1 billion.

The Principal total includes:

• $52.2 billion in permanent savings contributions

• $ 9.1 billion in unrealized gains

The Earnings Reserve Account total includes:

• $4.8 billion of uncommitted realized earnings

• $3.5 billion for the FY24 POMV draw

• $4.2 billion for FY23 Inflation Proofing of the Principal

• $2.2 billion in unrealized gains

PFD payout from ERA, 1980-2022: $26.6 B

2023: $2.2 B