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Senate Majority Bipartisan Coalition Website
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State Senator District E
Senate Majority Leader
Senator Cathy Giessel Newsletter
UPDATES
Issues affecting
your family, community and jobs.
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Dear friends and neighbors,
Alaska Permanent Fund value, reported by the APFC (the Corporation that manages it) at the end of July, 2024, is found in the "Resource Values" section of this newsletter.
But far more detail is available on the APF Corporation website. I've captured some screen shots of the website that help explain the Fund. Those details are further down in this newsletter.
The Fund provides more than 55% of the money we use to run the state (excluding federal monies). It's really important that Alaskans understand how the Fund works.
We need to make a change in the Alaska Constitution to modernize the Fund. The Permanent Fund was created in 1976 by a vote of Alaskans. A lot has changed in monetary management in the last 48 years.
There are two accounts in the Permanent Fund.
One account is the "Principal" or main account. This money cannot be spent except by a constitutional amendment vote of Alaskans.
The second account is the Earnings Reserve Account (ERA), holding the earnings from the Principal that could be spent for Dividends. In 2018, for the first time, some of the ERA funds were used to pay for government. The ERA can be spent with a majority vote (50% + 1) of the Legislature.
By combining these two accounts into one Permanent Fund, we can limit spending from the Fund and ensure that the Fund is around for our grandchildren's grandchildren.
See more in the Permanent Fund section below.
The future of the Permanent Fund. Talk of Alaska
Podcast: Amid concerns over its long-term stability, Permanent Fund managers are proposing changes to the fund’s structure they say will protect it for the future. What are they advocating for and how do current and former lawmakers feel about the proposals?
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My husband and I celebrated 50 years of marriage a couple weeks ago. Our 3 kids (and a daughter-in-law) surprised us with a visit to celebrate with us.
All 3 of our kids moved to the Lower 48 due to limited career opportunities here. So it was really a blessing to have all 3 kids home again!
Lots of "remember when" moments and laughter.
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Bills going into law:
Homeschool correspondence, healthcare, mental health laws signed by governor. Alaska's News Source
Bills that Governor Dunleavy signed into law:
· directs Alaska’s Board of Education and Early Development to write temporary correspondence regulations, establishing compliance with the state constitution. It also requires the education department to begin monitoring spending allotments.
· Amended to add requiring opioid-overdose-reversing drugs in Alaska schools
· Access to mental health services options by allowing Associate Counselor licensure, which supporters say is a pathway toward full accreditation as Licensed Professional Counselors in Alaska.
· National license for physical therapists, audiologists, and speech-language pathologists
· Subscription healthcare at certain clinics.
Alaska education department will compile data on correspondence schools under new law. ADN
Alaska’s education department will begin collecting information on how families spend funds they receive through state-sponsored homeschooling programs.
Legislation becomes law to expand access to SNAP benefits. Alaska Senate Majority
On August 30, House Bill 344 became law without the Governor's signature. Governor Dunleavy sponsored the bill, which allows the Alaska Department of Health to apply for a waiver from the federal government to establish a demonstration project that uses Medicaid funding in unique ways, including supporting workforce development and food security.
Expanded access to food stamps, health care becomes law in Alaska. Alaska Beacon
New Alaska law increases SNAP eligibility. The Center Square
Alaska bill making church and synagogue vandalism a felony is signed into law. Alaska Beacon
Two Ruffridge bills become law. KSRM
Representative Justin Ruffridge announced last week that HB 309 and HB 371 became laws.
Bill adding more Indigenous languages to Alaska's official list becomes law. Alaska Public Media
A bill adding more Indigenous languages to Alaska’s official list became law on Friday without the governor’s signature.
Bills vetoed by Governor:
House Bill 88
"An Act relating to work quotas for employees at warehouse distribution centers; and providing for an effective date."
See the veto message here
Senate Bill 127
See the veto message here
SB 127 requires vehicle rental platform companies, such as Turo and Getaround, to collect the existing state vehicle rental tax and remit the tax to the Dept of Revenue on behalf of the vehicle owners. The bill was requested by the Department of Revenue. The Dept. says that vehicle owners owe the rental excise tax now, under existing law, but there is no requirement for the vehicle rental platform companies to collect and remit the excise tax.
(My comment: I wonder if the Governor is aware that this is not a new tax, or a new industry. I wonder if the Governor knows that his own Dept of Revenue requested this bill to fill a gap in existing law. This is a very puzzling veto.)
Items in this Newsletter:
· Permanent Fund Changes Needed and Why
· Expanded Access to SNAP Benefits Becomes Law
· Healthcare Bills Signed Into Law
· Trends Magazine September Issue
· Current Topics, Stuff I Found Interesting, Economy, Education, Politics, Healthcare
· Resource Values, Permanent Fund
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The problem we face right now is that the Earnings (called Statutory Net Income, SNI) are not keeping up with the demands on the ERA.
Spending from the ERA is limited to 5% of Market Value (called Percent of Market Value or POMV). The Legislature put this spending limit on the ERA in 2018, the same time that we had to begin to spend some of the Earnings to pay for government.
The earnings of the Permanent Fund were only used to give out Dividends for all those years since 1980. That's nearly $30 Billion from 1980 through 2023. This year another $914.3 Million is going out in Dividends, plus a possible "energy rebate", bringing that total to nearly $31 Billion.
Oil taxes are no longer paying for Alaskans' needs and wants. Alaskans stopped paying individual income taxes in 1979. Other states fund their government (schools, police, roads, etc) through income taxes and sales taxes. But Alaska has relied on taxing the oil companies as their sole source of funding government services...until 2018 when oil production decline, and price decline, finally caught up with us. That's when we first used a portion of the POMV to pay for government.
The ERA funds are now asked to cover the ever-increasing Dividends and cover inflation proofing of the Fund Principal. It can't do all that. Investment returns to the Fund are going well, but not all the increasing value is "realized".
Below are two videos that explain this. While these were created for our young people, they are useful for everyone.
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After watching the videos, you can get into more depth by reading this next Understanding Our Fund. It will explain that the ERA can't continue to meet the 3 demands on it
· Pay a Dividend
· Fund State revenue needs
· Inflation Proof the Principal
Here is an Infogram - Why Alaskans Should Care
The Infogram covers the Funds earnings, where the money is distributed and how Inflation Proofing plays into it.
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Why am I telling you all this?
Alaskans are going to be asked to make some changes to our Constitution to keep the Fund working.
This next document explains why we have to merge the ERA and the Principal into one Fund. Slides 5 & 6 take some studying but I think the other slides are pretty self-explanatory. Understanding Our Fund - Education (July 2024)
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Legislation Becomes Law to Expand Access to SNAP Benefits
House Bill 344 also allows schools to provide healthcare services to more students.
Anchorage—On August 30, House Bill 344 became law without the Governor's signature. Governor Dunleavy sponsored the bill, which allows the Alaska Department of Health to apply for a waiver from the federal government to establish a demonstration project that uses Medicaid funding in unique ways, including supporting workforce development and food security.
During the 2024 legislative session, HB 344 was amended to expand access to the Supplemental Nutrition Assistance Program (SNAP) by increasing the income limit from 130 percent to 200 percent of the Alaska poverty standard. The amendment was based on House Bill 196, sponsored by Rep. Genevieve Mina (D-Anchorage), and Senate Bill 149, sponsored by Sen. Cathy Giessel (R-Anchorage).
“The broad-based categorical eligibility authorized by HB 344 removes bureaucratic hurdles and will help feed hungry Alaskans. The SNAP program is a crucial tool for low-income households, but the income threshold was too low. As a result, people in need were going hungry, or, in some cases, people were forced to turn down a better paying job because the pay difference was not enough to make up for the lost food benefits. This is a good bill that strengthens the food and healthcare safety net in Alaska and I’m excited to see it become law,” said Sen. Giessel, who ran the amendment to HB 344 to expand SNAP eligibility.
"Too many working families and seniors risk losing SNAP benefits when pursuing economic independence and financial stability. This bill fixes that problem by adjusting the upper income threshold and removing the asset limit so that Alaskans on the edge don’t automatically lose their SNAP benefits when they get a pay increase or grow their savings. The Governor and all the lawmakers that worked on this deserve thanks for their dedication to getting a good bill signed into law,” said Rep. Mina.
House Bill 344 was also amended to include provisions to expand healthcare access to more school-age children and young adults. The bill allows schools in Alaska to be reimbursed by the federal government for healthcare services provided to Medicaid-eligible students. Prior to HB 344, state law limited Medicaid payments to Medicaid-eligible students with disabilities and an Individualized Education Plan (IEP). HB 344 expands eligibility to all Medicaid-eligible students.
“Providing healthcare to more people is a good thing, which is exactly what this bill does. The students that will be helped are already eligible for Medicaid. HB 344 simply allows healthcare services to be given to students in a more convenient location, which is often their school,” said Sen. Tobin, who successfully amended HB 344 to include the Medicaid-eligibility provisions.
The final version of House Bill 344 passed the Alaska State Senate by a unanimous vote and the bill passed the Alaska House of Representatives by a vote of 26-14 on the final day of the 2024 legislative session.
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Governor Signs Series of Healthcare Bills Into Law
Wasilla, AK—Today, Governor Mike Dunleavy signed a series of healthcare bills into law. Sponsored by Senator David Wilson, R-Wasilla, Senate Bill 45, Senate Bill 74, and Senate Bill 75 seek to improve access to healthcare and streamline licensing for specific medical professionals.
First, Senate Bill 45 streamlines Alaskans' healthcare access by introducing Direct Health Care Agreements (DHCAs) between patients and healthcare providers. These agreements involve patients paying a flat, periodic fee for routine visits and access to their provider, without involving third-party insurers. By cutting out insurance bureaucracy, DHCAs reduce administrative burdens for doctors, allowing them to spend more time with patients. While DHCAs can complement existing insurance plans, they are not insurance themselves and should not be regulated as such. The bill seeks to clarify the legal status of DHCAs, ensuring they are excluded from insurance regulations and thus enhancing public access to affordable, high-quality healthcare.
“Senate Bill 45 is a win for Alaska. Providers will now spend less time on paperwork and more time with their patients. Ultimately, it means more access to primary care in Alaska. I am grateful to Governor Dunleavy for recognizing that and signing it today,” said Representative Kevin McCabe, R-Big Lake, sponsor of the House companion legislation.
“Alaska’s high healthcare costs place a significant burden on residents, but Bill SB45 aims to ease this by allowing direct healthcare agreements between patients and providers. These agreements remove financial barriers to accessing routine care, such as preventive, wellness, and chronic care services,” said Sen. Wilson. “With a DHC plan, the doctor-patient relationship is prioritized, and providers are free from insurance paperwork. I believe this legislation will provide much-needed relief, making quality healthcare more affordable and accessible for all Alaskans.”
Second, Senate Bill 74 enters Alaska in an Interstate Physical Therapy compact (PTC). The PTC, enacted in 2017 and adopted by 34 states, allows eligible physical therapists and assistants to obtain compact privileges in member states, ensuring healthcare availability at the highest standard. Compacts, functioning as state-based solutions, enable states to retain policy control over interstate matters and preserve their authority without federal intervention, which is crucial for promoting interstate physical therapy practice and safeguarding state sovereignty.
Lastly, Senate Bill 75 enacts the Audiologist and Speech-Language Pathologists Interstate Compact (ASLP-IC), which allows eligible professionals from compact member states to obtain licenses to practice in other member states easily. This facilitates better healthcare availability, particularly in remote areas like Alaska, while ensuring services meet high standards. The bill emphasizes the importance of interstate compacts as a way for states to address shared challenges without federal intervention, preserving state sovereignty. It seeks to encourage cooperative solutions among states and protect their authority over policy areas.
“With the signing of SB 74 and SB 75, Alaska has entered professional licensure compacts for the first time. These bills pave the way for more providers in our state. They are a win for providers, and they are a win for patients waiting for care. Alaska needs to improve our professional licensing structure; today, we have taken one step towards that goal,” concluded Sen. Wilson.
"I'm proud to have carried the companion legislation and to support Senator Wilson's hard work on SB 74 and SB 75. These compacts will make a real difference for Alaska's military families and ensure all Alaskans have better access to specialized healthcare," said Representative Stanley Wright, R-Anchorage, House sponsor of the companion legislation to SB 74 and SB 75.
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Current Topics
Federal government finalizes decision to maintain protections for 28M acres of D-1 lands. KYUK
The lands were set aside following passage of the 1971 Alaska Native Claims Settlement Act (ANCSA) and have been locked up ever since.
(My comment: This coverage includes a map of the lands affected by the order.)
Alaska attorney general says state 'watching' mega grocery merger case, could join later. ADN
Attorney General Treg Taylor, when asked why Alaska hasn’t joined other states in the lawsuit aiming to block the merger, said the state is tracking the case. The state can bring its own action if it finds “that there is going to be an actual harm to Alaskans,” he said.
Stuff I Found Interesting
In Anchorage, a coal-inspired startup could help pave the path to wind and solar. Alaska Beacon
Cache has developed a new energy storage system that stores power in tiny, white pellets derived from limestone, a cheap, abundant material. Its process involves using renewable power to heat the pellets, which has the effect of changing their chemical composition and, essentially, charging them. When moisture is blown over the charged pellets, they release heat, which can be used to run generators when there’s a shortage of renewable power.
Economy
Attorney general's lawsuit misstep could haunt Alaska. Fairbanks News Miner
Attorney General Treg Taylor’s decision to merely “watch” the Kroger-Albertsons merger instead of actively opposing it is a glaring oversight that could have disastrous consequences for Alaska.
Education
Teacher recruitment and retention bill becomes law in Alaska without Gov. Dunleavy's signature. Alaska Beacon
UAF launches energy resource engineering degree program. Alaska Business
The program features a curriculum that blends courses in conventional and renewable energy production. It is designed to prepare students with the skills necessary to address Alaska’s diverse energy needs and to play a significant role in the global energy transition.
Most students are not proficient in reading, math or science, state test results show. Alaska Beacon
The scores are similar to last year’s results overall, even though the state lowered its standards for the assessment in January. Education Commissioner Deena Bishop said then that Alaska’s standards are still in the top third in the nation.
(My comment: Our kids, like Alaska’s adults, are still recovering from the pandemic shutdowns. The kids are also suffering from the high turnover of our teaching faculty across the state. People, all of us, thrive in stable, predictable environments; that’s what’s needed in our schools.)
1 big thing: One-third of K-12 pupils are behind. Axios
Florida, Indiana, Louisiana and South Carolina have legislation that limits cellphone access. Governors in at least three states — Virginia, California and New York — have called on schools to restrict or ban phones.
Alaska education department will compile data on correspondence schools under new law. ADN
Alaska’s education department will begin collecting information on how families spend funds they receive through state-sponsored homeschooling programs.
Politics
Opinion: We can improve our elections by speaking out about issues. ADN
Opinion: I'm a conservative, and I'm voting to keep ranked choice voting. ADN
Open primaries and RCV weren’t the result of political advocacy for a particular candidate; they were the answer to a system that was irreparably broken and needed to be reformed to better reflect the independent nature of Alaska’s political landscape. Yet some believe the old way was and is the only way to run an election. So, after only one election cycle under this current system, Ballot Measure 2 aims to turn back the clock to reinstate a broken system.
Health Care
Here's where money from Alaska's opioid settlement is going. Alaska Public Media
Alaska’s Division of Public Health announced 18 organizations in the state that will get grants as part of the National Opioid Settlement. The grants will fund programs to help communities address the state’s increasingly-deadly opioid epidemic.
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Alaska Oil Resource Values
Alaska North Slope crude oil price (9/3/24): $75.15
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 (9/2/24): 399,153 bpd
Fairbanks energy cost study calculates high burden. Alaska Business
Both energy consumption and expenditures in Alaska are the highest in the nation, according to the US Energy Information Administration’s Energy Atlas. The energy cost in the FNSB is the highest in the Railbelt, the electrical grid that stretches from Fairbanks through Anchorage to the Kenai Peninsula.
(My comment: We have to find efficiencies and energy sources that come at a lower cost. Anchorage will face higher costs in the near future as well. This is my priority work.)
Harvest LNG project progressing; AOGCC metering approval required. Petroleum News
The LNG plant is designed to supply LNG to Fairbanks based Interior Gas Utility for the supply of natural gas to IGU's customers in the Fairbanks region. IGU is transferring its gas supplies from the Cook Inlet to the North Slope, given pending gas shortages in the Cook Inlet region.
Precious Metal Prices
September 3, 2024
Gold - $2510.26
Silver - $28.52
Platinum - $925.42
Palladium - $970.30
Rhodium - $4725.00
Alaska Permanent Fund
website
Fund value August 29, 2024 - $81,341,100,000
PFD payout from ERA, Fiscal years 1980-2023: $29.7 Billion
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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.
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