Senate Majority Bipartisan Coalition Website

State Senator District E

Senate Majority Leader

 

Senator Cathy Giessel Newsletter

UPDATES



Issues affecting

your family, community and jobs.

July 25, 2024

Dear Friends and Neighbors,

 

Two Big Things:

 

The cost of healthcare and medications is still on my radar.

On Tuesday, July 23, the US House Committee on Oversight held a hearing on Pharmacy Benefit Managers (PBMs) and their effective increase in medication costs. As I've shared before, I believe Alaskans, local governments and state government have no idea how much PBMs are pocketing in profits off Alaskans needed medication purchases. I will continue to pursue correcting this travesty and getting that money back to consumers as well as state and local governments.

Here are a couple media reports on that hearing:

·    Small Pharmacy Closures Spur Battles on PBM Practices (Bloomberg Law)

·    PBMs defend business practices — but lawmakers aren’t convinced (fiercehealthcare.com)

·    PBM Final Report - Oversight Committee 07-23-24

 

The cost of energy is on everyone's mind, as we pay montly Chugach and Enstar bills. This topic is the other priority topic on my work list.

You may have noticed Alaska regulators back Enstar’s plan to build $57 million pipeline to import natural gas (ADN).

I appreciate that Enstar is working to ensure adequate natural gas supply. Yes, it will increase in cost but that's happening regardless. As the international oil & gas consultant, GaffneyCline, told my Senate Resources Committee in May, Cook Inlet is an aged basin, with aged infrastructure, limited customer base, high cost to do work; it simply isn't appealing to a company that has to make a profit to exist.

My interest is in expanding our options. In HB 307 (expected to be signed into law next week), I made sure provisions incentivizing clean energy options were included. I want this to include wind and solar but go far beyond that to geothermal, hydro and nuclear.

Renewables are key to addressing Alaska's natural gas shortfall. ADN

 

Items in this Newsletter:

·    Permanent Fund Board Report

·    Forward & Faster!

·    Current Hot Topics, Things I Found Interesting, Education, Economy, Minerals, Healthcare, Politics

·    Resource Values, Permanent Fund

APFC Welcomes the Reappointment of Trustee Ethan Schutt to the Board

 

Trustee Ethan Schutt was reappointed by Governor Dunleavy to the Alaska Permanent Fund Corporation Board of Trustees.

 

"I am honored to continue serving on the APFC Board of Trustees," Trustee Schutt remarked. "My commitment to serving in the best interest of Alaskans - both current and future generations - remains steadfast. In working together, we ensure the growth and prosperity of Alaska's renewable financial resource."

 

Trustee Schutt will continue to serve as a Fiduciary for the Alaska Permanent Fund in one of the four public member seats, serving staggered four-year terms. He served his first term on the Board from 2020 to 2024 and has served as Chair since 2022.  

A New Fiscal Year: Committed Revenue

 

June 30th marked the end of Fiscal Year 2024. At the end of July, the preliminary, unaudited FY24 financial statements will be available online at apfc.org/report-archive.

 

July 1st marked the beginning of Fiscal Year 2025. At the start of each fiscal year, APFC commits funding for the Percent of Market Value (POMV) draw for the following year – in this case, FY26. The Permanent Fund’s investment earnings – through the POMV draw – are a significant revenue source for the State of Alaska.

 

The annual POMV draw from the Fund’s Earnings Reserve Account (ERA) provides more than 50% of total Unrestricted General Fund revenue.



The FY25 POMV draw of $3.7 billion is available to support the State’s current FY25 budget. The ERA has realized earnings of $3.8 billion available to commit for the future FY26 POMV draw.

Transition documents expose big staffing, financial problems across Anchorage city government, threatening core services. ADN

Across dozens of the summaries, core themes emerged: Keeping staff and filling vacancies is increasingly difficult, crippling the operations of some departments. Major fiscal problems, along with old and failing vehicles, equipment and software, will soon start jeopardizing basic services that residents depend on.

(My Comment: We have to get a grip on these staffing issues. That means increasing pay ranges and returning to a pension to recruit and retain employees.

Then we will move forward and faster in our economic and social well-being!)

Current Topics

Social Security - Americans' views of its Future. National Institute on Retirement Security

87% of Americans support Social Security and say Congress should act now to solidify Social Security

Webinar and Report

 

 

The curious case of Gov. Dunleavy's blood bank veto. ADN

Among the many line-item vetoes issued by Gov. Mike Dunleavy in his signing of Alaska’s capital budget, the half-million dollar reduction in funding for the Blood Bank of Alaska barely registers.

 

An expansion underway at the Alaska Native Heritage Center includes a new healing garden and a subsistence kitchen. Alaska Public Media

The Alaska Native Heritage Center in Anchorage finished up the final touches of a major renovation on Tuesday. The center now has four new exhibits, and a remodeled main building adorned with sealskin lamps, a mural modeled after porcupine quills and a custom carpet by an Alaska Native artist. 

 

At 71, a longtime Northwest Arctic leader wins the World Eskimo-Indian Olympics sportsmanship award. ADN

With the confidence of a seasoned athlete, Reggie Joule soared above the seal blanket at the Big Dipper Ice Arena in Fairbanks. Sticking to his longtime blanket toss style, Joule went for a backflip, and the crowd roared in response.

(My comment: Reggie deserves the award and recognition as a great leader.)

 

Oil patch insider: Feige appt. trustee; Interior wants to take away more; Huber gone. Petroleum News

(My comment- Great addition to the Trust Board! Congrats to Corri and the Board!)

 

 

Stuff I Found Interesting

1 fun thing: America's favorite flavors. Axios

(My comment - Alaska? Green tea??? I want a recount of that ranked-choice voting.)

 

The unicycling world championships are coming to Minnesota. Axios

The International Unicycling Federation World Championship and Convention, known as Unicon, is returning to the United States for the first time in 22 years.  An estimated 1,200 unicyclists hailing from places as distant as Australia and Japan will spend the next 12 days competing across six disciplines for world titles and records.

 

 

Economy

Alaska demographers predict population drop, a switch from prior forecasts. Alaska Beacon

We’ve now had 11 straight years of negative net migration, and it’s just pushed that 30-year average down enough that our natural increase, which is just births minus deaths, can’t make up for the losses in net migration once we get about 10 years out in the projected period,”

 

The 401(k) rollover mistake that costs retirement savers billions. The Wall Street Journal

Workers miss out on billions in investment gains by pulling retirement savings out of the stock market after switching jobs—often without meaning to.

 

 

Fisheries

Federal appeals court appears unlikely to halt Southeast Alaska king trolling for now. Alaska Beacon

In closely watched oral arguments on July 18, a three-judge panel of the 9th U.S. Circuit Court of Appeals indicated that it is unlikely to grant an environmental group’s petition for an order that could halt — at least temporarily — a valuable Southeast Alaska king salmon fishery.

 

 

Politics

Statewide Initiative would restore Alaska campaign finance limits. Alaska Public Media

The 9th Circuit’s decision in Thompson v. Hebdon struck down a $500-per-year contribution limit on Alaska legislative races, saying it restricted free speech. The court provided a road map to reconfigure campaign limits so they are adjusted for inflation, but the state Legislature didn’t do that. So, candidates today can now receive unlimited direct donations from anyone, even outside of Alaska. That happened in the 2022 governor’s race, when some wealthy donors gave more than $100,000 apiece to candidates.

 

The rest of the country should learn from Alaska's ranked-choice voting experiment. Seattle Times

 

Ranked-choice repeal measure awaits signature count after Alaska judge's ruling. Alaska Beacon

An Anchorage Superior Court judge on Friday disqualified 27 signature books filled out by Alaskans hoping to repeal Alaska’s ranked-choice voting system, leaving it unclear whether the issue has enough support to advance to a November vote. The Alaska Division of Elections must recount the signature totals by Wednesday, Judge Christina Rankin said in a 95-page order analyzing allegations that signature-gatherers violated state law while gathering support for the repeal measure.

 

Alaska election officials to recalculate signatures for ranked vote repeal measure after court order. AP News

The new ruling Friday focused on challenges to the sponsors’ signature-collecting methods that were the subject of a recent trial. Rankin set a Wednesday deadline for the division to remove the signatures and booklets she found should be disqualified and for the division to determine if the measure still has sufficient signatures to qualify for the ballot.

 

Some Alaska Republican candidates pledge to withdraw if they aren't atop GOP votes in primary. Alaska Beacon

A proposed ballot measure seeks to repeal ranked choice voting. If approved by voters in November, in future elections, voters would choose only one candidate in the general election, instead of ranking multiple candidates. The state’s open primary system would also be eliminated, and political parties would be able to limit who can vote and who can run in primaries.

 

Do you support public safety in Alaska? You might be surprised by who doesn't. ADN

AFP (Americans for Prosperity) has a long record of advocating for defunding the police and public safety across the country, so it’s not surprising that it’s happening in Alaska, too. One of AFP’s position papers even says police officers should be exposed to personal liability lawsuits for their work as officers.

 

 

Healthcare

Tick-spread illnesses are on the rise in Canada. Are surveillance, awareness efforts keeping up? CBC News

For years, medical experts have warned a rising number of Canadians are being exposed to ticks carrying an array of dangerous pathogens. Lyme disease is the most familiar — and by far the most common — but there's growing concern about lesser-known threats as well, from various bacterial infections, to the rare Powassan virus.

(My comment: Alaskans travel a lot. Important to be aware of ticks, and even their potential movement this far north.)

 

Dental Health Among young Alaska children improved. Alaska Beacon

Among children 3 and younger, tooth decay prevalence is down, as is consumption of sugary beverages, while visits to dental offices for checkups are up, according to the report cited in a bulletin released by the Alaska Division of Public Health’s epidemiology section last week.

(My comment: Dental health is foundational to lifelong health. This improved dental care is great news. )

Alaska Oil Resource Values

 

Alaska North Slope crude oil price (7/23/24): $81.60

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 (7/23/24): 433,113 bpd

 

BP Energy Outlook predicts rising demand coupled with carbon emission concerns. Petroleum News

In a July 7 presentation Spencer Dale, BP chief economist, commented that the world is in what might be called an energy addition phase, in which the use of low carbon energy and traditional fossil fuels are both rising, in response to growing energy demand. Thus, although the implementation of renewable forms of energy generation, in particular wind and solar power, is increasing rapidly, carbon emissions are continuing to rise.

(My comment- Data farms are going. To create huge energy demand. This is where micro reactors come in to provide that dependable, clean power. Nuclear energy is our future solution.)

 

1 big thing: Heat, AI help spike golbal power demand. Axios

Generative AI is adding to data centers' surging energy needs.  IEA notes that data centers could account for 3% of global electricity thirst by 2026, up from 1%-1.3% in 2022. But they acknowledge lots of uncertainty here and say better data is needed. EVs, for their part, should account for 1.5%-2% of demand in 2026, up from 0.5% in 2022.

 

Stunning stat: Almost 29 years. Axios

That’s the average time for U.S. mining projects to move from discovery to production — the second-longest in the world, per new S&P Global analysis.

 

LNG demand growth hinges on Asia. Thinking

Historically, Japan has been the largest LNG importer. However, in recent years it has competed with China for the top spot. Japanese LNG imports are in structural decline. Imports hit a high of 122bcm in 2014 and have fallen every year since, falling to 90bcm in 2023. A key driver behind this has been the return of nuclear capacity following the Fukushima disaster in 2011. Japanese nuclear power generation has grown 166% since 2017 to 77.5TWh in 2023.

 

U.S. wholesale natural gas spot prices fell to record lows in first half 2024. US Energy Information Administration

 

 

Precious Metal Prices

July 24, 2024

Gold - $2384.73

Silver - $28.12

Platinum - $953.29

Palladium - $950.50

Rhodium - $4600.00

 

Alaska Permanent Fund

website

 

Fund value July 22, 2024 - $81,485,400,000

PFD payout from ERA, Fiscal years 1980-2023: $29.7 Billion

Cost of PFD in Oct. 2022: $2.2 B

Cost of PFD Oct. 6, 2023: $881.5 Million



 

Click here to see list of accomplishments from the 33rd Alaska State Legislature Senate Majority.

 

Click here to view my webpage. It has links to all previous newsletters.

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)

·    Office Manager: Paige Brown (from Anchorage/Girdwood)

·    Resources Committee Staff: Julia O'Connor (from Juneau)

·    Legislative Analyst: Angela Rodell (from Juneau)

 

 

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