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State Senator District E

Senate Majority Leader

Senator Cathy Giessel Newsletter

UPDATES

Issues affecting

your family, community and jobs.

October 5, 2023

Dear Friends and Neighbors,

The photo is from October 10 last year. A reminder to start planning more time to get places every morning. The snow and slippery roads are coming.

This week...

I've been immersed in healthcare and pharmaceutical cost drivers. The information is valuable as I work to pass SB 121, a bill reining in the power of Pharmacy Benefit Managers.

I also attended the one-day meeting of the Atlantic Council, Frontiers Project. This Project is a collaboration of western states (Ak, WY, UT, ID) working on energy access and cost. The conference brought the Idaho National Lab and others who are working in the nuclear energy space to meet the demand for low-emissions energy production. The speakers were not only INL scientists but also the Canadian National Lab, entrepreneurs, engineers, native corp leaders, UA faculty and others. While small micronuclear reactors may be 6-8 years away, lots of people are working now to make them a reality.

I continue to be a member of Energy Council, which explores the integration of oil & gas with low carbon emissions energy sources. I am on the executive committee of the Pacific NorthWest Economic Region (PNWER) which is a constant source of information on solutions U.S. states and Canadian provinces are finding to challenge of energy, invasive species, economic development and agriculture.

My work foci every day are reducing healthcare costs, increasing behavioral health service access, growing Alaska's economic prosperity, and reducing energy cost.

Items in this Newsletter:

· Ferry Focus Group and Survey

· FedEx Expansion at Anchorage Airport

· DOT Seward Highway- O'Malley to Dimond Reconstruction Update

· DNR 2023 Remote Recreational Cabin Sites

· Alaska Senate Majority Press Release on Kroger-Albertsons Merger

· Heritage Land Bank Open House Information

· Current Topics: Education, Economy, Minerals, Health Care, Politics

· Resource Values, Permanent Fund

· Alaska History

· Andy, the Driving Safety Dog

Email me

Dear Ferry Focus Group participants and invitees,

We are grateful for your valuable contributions during our second round of meetings. These productive discussions are crucial in shaping our ongoing efforts. If you were unable to make it to any of our FFGs this month, we invite you to review the meeting materials and take a short survey to share your thoughts and feedback. Stay tuned for upcoming opportunities to engage with the 2045 AMHS Long-Range Planning effort.

As promised, here are the links that were referenced during the FFG meetings:

1. Long Range Plan Website: You can explore the details of our Long Range Plan on the Alaska Marine Highway System's website: https://dot.alaska.gov/amhs/operations/

2. Ferry Focus Group Workshop Feedback: We highly value your feedback on the workshops. Please take a moment to share your thoughts by visiting this survey link. Your input will be instrumental in shaping our future discussions.

3. AMHS Level of Service Framework: You can check out an overview of the AMHS Level of Service Framework Overview (DRAFT) (arcgis.com)

4. GovDelivery Notification Service: Stay up-to-date with AMHS schedule changes, AMHOB meeting notices, and more by signing up for the GovDelivery notification service here.

5. Alaska Marine Highway Operations Board (AMHOB): On the AMHOB website, you'll find many informative documents, along with a comment form to reach out to board members. Explore the resources at AMHOB's website.

For any general questions, comments, or concerns related to scheduling or any other matter, please do not hesitate to contact us at amhs.focus@alaska.gov.

Once again, we extend our heartfelt thanks for your involvement and insightful contributions. Your input is invaluable, and we are eager to continue these discussions as we work on the 2045 AMHS Long-Range Plan.

FedEx Expansion Draft EA Public Open House:

A public open house will be held on Tuesday, October 17, 2023, from 6:00 p.m. to 7:30 p.m. Alaska Daylight Time (AKDT) at the Coast Inn at Lake Hood in Anchorage (3450 Aviation Ave, Anchorage, AK 99502).

The Draft EA and appendices are available for review at Ted Stevens Anchorage International Airport (alaska.gov)

Anyone wishing to comment on the FedEx Draft EA is offered the opportunity to do so in writing. The public is advised that before including their address, phone number, e-mail address, or other personal identifying information in their comment, that their entire comment – including their personal identifying information – may be made publicly available at any time.

Emailed comments on the scope of the Draft EA may be sent to Karin Bouler at: Karin.Bouler@rsandh.com.

Handwritten comments may also be submitted via U.S. mail at:

RS&H, 369 Pine St, Suite 610, San Francisco, CA 94104, Attn: Ms. Karin Bouler

2023 Remote Recreational Cabin Sites

The Department of Natural Resources, Division of Mining, Land and Water, Land Conveyance Section’s 2023 Remote Recreational Cabin Sites, Offering #16 begins soon. Through this program, Alaskans have a unique opportunity to stake a parcel of State land and then purchase the parcel from the State at fair market value. A total of 96 staking authorizations may be awarded in two staking areas around the State. The Division’s Land Conveyance Section works diligently to offer staking areas Alaskans will enjoy.

The two of the staking areas are in western Alaska. The East Fork Pass II Staking Area is located approximately 40 miles east-northeast of Nome, and 15 miles southwest of Council, between the East Fork Solomon and Skookum Rivers. The Aniak-Doestock II Staking Area is located approximately 5 miles southeast of the City of Aniak near the confluence of the Aniak River and Doestock Creek.

Alaska residents can apply from October 4, 2023, through December 5, 2023. The drawing will be held on December 19, 2023. This offering is limited to Alaska residents by law.

The brochure is now available online at https://dnr.alaska.gov/mlw/landsales/rrcs/16/; paper copies of the brochure can also be requested via this link.

We continue to offer competitive in-house financing via State land sale contracts, making our offerings accessible to a broad customer base and improving marketability. The State also offers qualifying Alaska Veterans a once-in-a-lifetime discount on any parcel, except those purchased under through a Veteran’s Preference Auction.

You can follow us on Facebook, Instagram at @Alaska_Land4Sale, and “X” formerly known as Twitter at @AlaskaLand4Sale.

FOR IMMEDIATE RELEASE

October 4, 2023

Media Contact

Jane Conway

Chief of Staff to Sen. Cathy Giessel

Jane.Conway@akleg.gov

(907) 283-9170

Bipartisan Group of Alaska Lawmakers Urge Federal Trade Commission to Block Kroger-Albertsons Merger

ANCHORAGE - On Monday, twenty-four members of the Alaska State Legislature wrote to Lina Khan, chair of the Federal Trade Commission, urging the federal government to block the Kroger-Albertsons grocery store merger. The $24.6 billion merger was first announced in the fall of 2022, and the Federal Trade Commission is currently evaluating the proposed sale. Last month, a spokesperson from Kroger announced they would close 14 stores throughout Alaska, leaving thousands of Alaskans unsure about the future of their employment, access to food supplies, and overall competitiveness to keep prices reasonable and low.

“Alaska is facing major uphill battles in recruiting and retaining skilled workers in all industries, while also struggling to keep residents in the state,” said Senator Cathy Giessel (R-Anchorage), Senate Majority Leader. “When you add on major store closures, decrease grocery options, and set the stage for antitrust practices in this state, it puts an additional strain on an economy that we are striving to improve for working Alaska families.”

In September, local labor unions came out to oppose the merger, citing store closures, job losses, and lower wages and job standards. Additionally, Congresswoman Mary Peltola wrote a letter last month to the Federal Trade Commission calling on them to block the merger because of Alaska’s food security concerns. In Addition, Senator Lisa Murkowski and Senator Dan Sullivan also wrote a letter to Chair Khan on September 22 expressing their concerns about the possible merger, signaling that Alaskans are united on this matter.

“One of the basic functions of government is to provide opportunities and paths for success. We hope that Chair Khan and the Commission will embrace this fundamental value while considering the proposed merger and think about the impact to the Alaska economy and its citizens - from food security to quality employment where Alaskans can earn a living wage,” said Senator Bill Wielechowski (D-Anchorage). “We see no benefit to the residents of the state of Alaska with this merger, only increased hurdles.”

While acknowledging Kroger’s efforts to find a qualified buyer for closed stores, the letter references Alaska’s history with corporate mergers: “…Alaskans are leery, having already experienced prior grocery store mergers. In the late 1990s, Safeway purchased all locally owned Carrs grocery stores in the state, and despite the promise of continued employment and increased competition, they soon left the state. Alaska Marketplace purchased those closed stores and began business as a competitor to Safeway, but within a short period of time, the company closed, leaving many communities without competition.”

“Alaska is unique, and decisions made at the highest level can always be felt directly and harshly by Alaskans if our concerns are not taken into consideration. Alaska already has some of the highest food prices in the nation, especially when you consider many urban and rural areas are only accessed by air or water. This potential merger has the very real possibility to exacerbate this circumstance,” concluded Sen. Giessel.

It is unknown when the Federal Trade Commission will issue a ruling on the merger.

###

From: Heritage Land Bank,

Heritage Land Bank will be hosting a series of HLB Open Houses this month. These meetings will be an opportunity for the community to have an open discussion with HLB Staff about current and potential projects. We will be having two in-person open houses and then a virtual-only option.

Monday, October 16, 4:30 - 6pm

In person at the Girdwood Community Room, 250 Egloff Drive, Girdwood AK 99587

Tuesday, October 17, 12pm - 1:30

In person at the Permit & Development Center, Conf. Room 170, 4700 Elmore Drive, Anchorage, Alaska 99507 (Follow green signs from the main lobby)

Wednesday, October 25, 5:30pm - 6:30pm (Virtual Only)

To join via Microsoft Teams click this link to enter the meeting.

To join via telephone call 907-519-0237 and use conference ID 262 775 848#

Please visit www.muni.org/HLB for more information. Should you need additional assistance or special modifications to participate, or if you have questions, please call the HLB office at 343-7536 or email hlb@anchorageak.gov.

Current Topics

National Coffee Day. Axios

Lurking in the deep freeze? Science.org

In 1733, an Inuit boy and girl who had been sent to Denmark for the king’s coronation 2 years earlier sailed back home to Greenland. Both were in a “sickly state of health” during the trip, according to an account written a few decades later by a missionary, and the girl died on the way. Shortly after reaching his native land that September, the boy also died, of “a cutaneous disorder.” He had brought smallpox with him, and the disease raced around the island, killing Inuits and Europeans alike. Another missionary wrote of “houses tenanted only by the corpses of their former occupants, and dead bodies lying unburied on the snow.” The outbreak lasted until at least June of the next year, killing maybe half of Greenland’s already sparse population.

Climate change brings cloudberry to Svalbard. Eye on the Arctic

After an exceptionally warm summer, ripe cloudberries are for the first time documented at 78° North. “I was surprised, I have never seen cloudberry here before. I hardly believed my own eyes,” tells Stein Tore Pedersen.

Education

Home schooling today is less religious and more diverse, poll finds. ADN

Rather than religion, home-schoolers today are likely to be motivated by fear of school shootings, anxiety over bullying and anger with the perceived encroachment of politics into public schools, the poll finds.

All Work and No Pay- Teachers' Perceptions of Their Pay and Hours Worked. RAND Corporation

On average, teachers reported working 15 hours per week longer than required by contract. One out of every four hours that teachers worked per week, on average, was uncompensated.

(My comment: In Alaska teachers do not participate in Social Security. If their 401k doesn’t earn enough money to fund a retirement, they have no other safety net. They face poverty, hoping to receive food stamps, rent assistance and other state services for low-income folks.)

Opinion: Addressing Kenai Peninsula's education and public safety employee shortage. Homer News

Students are the reason I became a professional educator. I spent my career working as a teacher and school counselor on the Kenai Peninsula. I have watched as public education has gone from a calling where professional educators competed for positions to work and raise their families on the Kenai Peninsula — to a “teacher tourism” job where early and late career educators come to Alaska for a few years of a big adventure.

Congress passes protections for school hunting and archery programs. ADN

Report links lack of investment in school guidance programs to Alaska's lagging workforce. Alaska Beacon

Jobs are available in Alaska, but the workforce to fill them isn’t there. A report from the Association of Alaska School Boards linked it to underfunding public schools — especially guidance counselors and guidance programs.

Teacher pay penalty still looms large. Economic Policy Institute

Public school teachers have long made less than many other professionals. Last year, the gap hit its widest level since 1960. Because public school teachers must attain at least a bachelor’s degree to teach in the U.S., this research compares teachers with college graduates working in other professions. Providing teachers with compensation commensurate with that of other similarly educated and experienced professionals is necessary to retain and attract qualified workers into the profession. Over the past two decades, the weekly wages and total compensation of public school teachers have fallen further and further behind.

(My Comment: This chart doesn’t take into account that Alaska is the only state in which public school teachers do not receive Social Security benefits or a Defined Benefit Pension. I would also add that a vast number of private school teachers are paid even less than public school teachers.)

Economy

Alaska Permanent Fund leaders discuss whether to seek exemption from open-government law. Alaska Beacon

The trustees of the Alaska Permanent Fund Corp. are considering whether to back legislation that could exempt the corporation from the state’s open meetings act and the state’s procurement rules, as well as conceal personnel records from public records requests.

Minerals

Number of the day: 2030. Axios

That's the target date for deploying a 500-megawatt fusion power plant to supply one of steel giant Nucor's U.S. mills, the company and nuclear startup Helion said, Ben writes.

Russia announces major development plan for seaports on Northern Sea Route. Eye on the Arctic

A terminal for shipment of zinc and lead is to be built in the archipelago of Novaya Zemlya and the Seaport of Arkhangelsk will get its capacity tripled, Russia’s federal government decides.

Fisheries

Alaska Federation of Natives sides with federal government in Kuskokwim salmon dispute. Alaska Beacon

Politics

Let's stop the 'Neglect. Panic. Repeat.' cycle of public service delivery. Peninsula Clarion

Every two weeks, Alaska Division of Payroll Services staff review and process 14,000 timesheets. This includes complex adjustments to earnings that control recruitment bonuses, overtime pay and promotions for employees at every level of state government. Seventy-five personnel are needed for payroll to run smoothly. As of Sept. 10, only 37 people are employed at Payroll Services, making an already complicated job a nearly impossible task. The payroll section is one of several state agencies in crisis. As public program failures like SNAP benefits make headlines for the burden they place on Alaskans, hardships are also multiplying for state workers who count on timely and accurate paychecks. The departmental emergencies themselves reflect a problem that must be addressed with long-term solutions.

Anchorage's election interference investigation, explained. ADN Politics Podcast

Serious election security issue.

Opinion: Equating PFD cuts to a tax is a piecemeal metaphor. ADN

Take any of the other 49 states. They all have an established stream of revenue that pays for public services. Any one of them could decide to take a portion of that stream and, instead of funding public services, just start sending out checks to everyone. Any of the states could do that, and none of them do. No one in any of those states suggests that not issuing those checks amounts to a tax. No one does, because it would be laughable.

How the last vote to remove a House speaker backfired on the GOP. ADN

In recent history, several speakers have resigned amid intraparty threats of a vote on their ouster - notably John A. Boehner in 2015 and Newt Gingrich in 1998. But the House had never removed a speaker, and it hadn’t held a floor vote on removing a speaker in well over a century.

Health Care

Alaska child care providers struggle to stay open as pandemic-era relief funds dry up. ADN

With pandemic-era federal relief funds set to dry up at the end of the month, many child care providers in Alaska say they’re facing a stark choice: to significantly raise their rates or risk closing for good.

Physician assistants say proposed rules could spell disaster for rural Alaska health care. Alaska Public Media

“There’s a critical shortage of providers, and the patients will be sick and suffer and die because it’ll be a shortage of PAs,” Western said.

Those speaking out against the regulations included PAs, physicians and health care administrators. Many expressed outrage and fear over what the regulations could mean for health care in Alaska.

(My comment: I also oppose the added restrictions being imposed on PAs in Alaska by the State Medical Board. This makes no sense. I am a cosponsor of a bill that allows PAs to have independent practice.”

She received chemo in two states. Why did it cost so much more in Alaska? Alaska Public Media

This story is exactly the problem: hospitals can charge huge fees for services that an independent doctor's office or clinic can do just as well at a fraction of the cost. Hospitals are buying up doctors' offices and clinics so that they can have this large stream of money. These costs come from patients and insurance pockets (making insurance more and more expensive). This is wrong and I am exploring how to stop this.

Alaska pauses some Medicaid renewals after thousands lose coverage they may still qualify for. ADN

The burden of limiting physician assistants would fall on rural Alaska. Alaska Beacon

Alaska Department of Health turns down new hospital facility in South Anchorage. Alaska Beacon

The Alaska Department of Health has rejected a new $18 million emergency hospital facility in South Anchorage, saying in an analysis that there isn’t enough demand for it.

(My comment: This denial is made possible by something called “Certificate of Need”. The CON is a counter to the free market that would allow competition and new entrants into a market. The CON determination, whether to allow competition to take place, is made by one person…the Commissioner of Health. That single person decides what facilities can be built, or, as in this case, not be built. It's long past time for Alaska to repeal the CON law.)

Report: Alaskans dogged by chronic diseases and many lack healthy lifestyles or regular screenings. Alaska Beacon

Alaskans have high rates of chronic health conditions that can lead to death, and they are failing to follow lifestyles that would keep those chronic conditions at bay, according to a newly released state report.

Drugmakers target merger guidelines. Axios

Pharmaceutical giants including Amgen, Merck and Gilead formed a coalition today to lobby against a proposed overhaul of federal antitrust guidelines. In health care, much of the discussion around the tougher merger rules so far has focused on how they might slow down a wave of provider consolidation. (My comment: These mergers are creating huge monopolies that are controlling healthcare costs and not benefiting consumers. Profits are large and CEO salaries are larger.)

Alaska Oil Resource Values

Alaska North Slope crude oil price (10/4/23): $93.74

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

Price on 9/30/23: $87.99

Price on 9/30/22: $86.91

Price on 6/29/22: $116.84

Price on 3/8/22: $125.44

Price on 12/22/21: $75.55

ANS production (10/4/23): 464,807 bpd

Oil price is warning for D.C. Axios

The rise in oil prices, along with a recent upswing in housing prices, suggests a possible resurgence in inflation. One reason for rising prices is that the U.S. economy has been stronger than expected. So more oil is being consumed.

Weather events have reduced our forecast of U.S. hydropower generation by 6% this year. EIA

Above-normal temperatures in May in the Northwest melted snow rapidly, resulting in a significant loss of water supply, measured as Snow Water Equivalent in higher elevations. With less water available, the region generated 24% less hydropower in the first half of this year than during the same period in 2022. This year, we expect 19% less hydropower generation in the Northwest than in 2022.

After being bailed out by Alaska's state government, North Slope oil field is eyed for sale. Alaska Beacon

AIDEA spent $72 million developing the oil field and supporting infrastructure, not counting a special $22.5 million bridge loan from the Alaska Department of Revenue. Budget documents show the investment bank has spent additional money since then to maintain the project, with little to show for it. Earlier this year, AIDEA gave part of the project to the state in order to reduce the annual cash dividend it pays the state treasury.

(My comment: There are folks who advocate that the state own the oil company developing the oil on the Slope, as Norway and its state-owned oil company does. But oil field development is a gamble – dry holes, cost over-runs, etc. I am also very, very leery of state subsidies for oil field development. The Mustang project is one example. The other is the cash payments to companies who came into Cook Inlet to develop natural gas in the 2010s; we had to abruptly discontinue that, which forced many companies into default on loans they secured with the cash promises we made. You will probably see at least one bill this coming legislative session reinstituting credits in Cook Inlet for gas development. I will oppose this; I’ve been there, done that, and the state can’t afford to make that mistake again.)

Russia Shipping More Oil to Chinese Ports via Arctic Route. VOA News

The United States is closely watching a recent surge of Russian crude oil shipments to Chinese ports through the Northern Sea Route (NSR), a sign of increased cooperation between Beijing and Moscow in the Arctic region as Russia faces crippling Western sanctions over its invasion of Ukraine.

Oct. 4, 2023 Precious Metal Prices

Gold - $1834.73

Silver - $21.25

Platinum - $882.13

Palladium - $1214.49

Alaska Permanent Fund

website

PFD payout from ERA, Fiscal years 1980-2024: $29.7B

Cost of PFD in Oct. 2022: $2.2 B

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