Senate Majority Bipartisan Coalition Website

State Senator District E

Senate Majority Leader

 

Senator Cathy Giessel Newsletter

UPDATES



Issues affecting

your family, community and jobs.

 

 

December 19, 2024

 

 

Dear friends and neighbors,

 

No newsletter next week on December 26.

 

In the meantime, you might enjoy the Christmas video embedded in the aurora picture, called Silent Night, Holy Night.

 

Happy 1st Day of Hanukkah on December 25.

 

 

Opinion: The tradition we may not need. ADN

 

Items in this Newsletter:

·    Gov. Dunleavy's Budget

·    Fall 2024 Revenue Sources Book

·    Current Topics, Stuff I Found Interesting, National Security, Fisheries, Economy, Politics, Healthcare

·    Resource Values, Permanent Fund

 

 

 

 

Gov. Dunleavy's Budget

The Governor is required to propose a budget by December 15 of every year. The budget is based on forecast revenues and the Governor's priorities.

 

The budget now goes to the Legislature which is given the appropriation authority by our Constitution. What the Governor has proposed will go through thorough scrutiny and will significantly change, based on the 60 elected members of the Legislature, and the input of citizens.

 

We are now at the place where the Permanent Fund's earnings provide the money for more than 50% of the general fund spending. Oil taxes make up on 37% of state earnings. This year, the 5% allotment from the Fund is about $3.8 Billion for next year (which is the budget year that the Governor is proposing now). Out of that $3.8 Billion from the Fund, the Governor proposes spending $2.5 Billion of it for large dividends.

 

The budget being proposed has a $1.5 Billion deficit, which the Governor proposes filling from our savings account. That would leave our savings account with about $1.2 Billion.

 

The Legislature will be submitting a balanced budget, without spending from savings, by the end of our work. It won't be easy. You will see the Revenue Sources Book in this newsletter that shows that oil tax revenue is very low this year and forecast to continue at lower levels.

 

The Sunday Minefield - December 15, 2024. Alaska Landmine

The Governor’s ten-year plan, a statutorily required report meant to outline a governor’s policy strategy for tackling current and future fiscal challenges, shows ongoing deficits for the foreseeable future. His plan, however, provides no ideas to address the state's fiscal uncertainty. Under his published plan, Dunleavy would leave a $1.5 billion deficit and roughly $440 million in the CBR for the incoming governor in two years.

 

Dunleavy's budget draft includes plans to modernize Alaska's state computer systems, reopen a shuttered trooper post and advance the West Susitna access road. ADN

Dunleavy’s capital proposals include millions of dollars in funding to improve not just Alaska’s physical infrastructure, but also the computer systems that are used for state services. Alaska’s aging computer systems have been blamed in recent years for major delays in the approval of applications for food assistance and for delays and errors in the payroll of state workers.

 

 

 

 

 

Current Topics

Alaska State Capitol visitors won't face airport-style security checkpoint. Alaska Public Media

Sen. Elvi Gray-Jackson, D-Anchorage, who chairs the Legislative Council, supported adding a security checkpoint. She said mass shootings like Monday’s at a Wisconsin school underscore the need for vigilance. "I'm disappointed [the proposal] didn't work out, but I'm hopeful that eventually we will have metal detectors, which would provide more security," Jackson said by phone. "For not just us, but our staff and the public — yeah, it's the public's house, but we want to protect the public entering into their house."

(My comment: I agree with Sen. Gray-Jackson. The public would not be restricted from access to the Capitol at all, just as there is no restriction on air travel. The restriction is on materials that would harm others.)

 

State partnering with firm to modernize PFD process by 2026, using AI technologies. Alaska's News Source

Through a competitive process, Saige Consulting was selected to partner with the State of Alaska Department of Revenue (DOR) to modernize the Alaska Permanent Fund Dividend application process.

 

 

Arctic Issues

Ship traffic steadily increasing in Canadian Arctic waters, research says. CBC

"The numbers from 2011 and 2024 show the total number of trips have increased from 319 to 466 so far," Lasserre said in French. This trend is also seen in other Arctic regions. According to data from the Arctic Council, the number of ships that entered the region increased by 37 percent from 2013 to 2023. 

 

North Pacific, Nordic partnerships and Canada's Arctic Foreign Policy. Eye on the Arctic

The North Pacific is a critical gateway to the North American Arctic, a region of growing strategic importance, according to the white paper. Canada already has shared interests with Japan and South Korea on maritime security, sustainable economic development, and free trade and the new policy emphasizes strengthening ties with like-minded Indo-Pacific nations on Arctic issues, while remaining cautious about countries whose actions may conflict with Canadian interests.

 

Premiers push Ottawa to build northern infrastructure after Arctic foreign policy. CBC

Canada's northern premiers are pitching the federal government to dip into its defence budget as a way to bolster Arctic infrastructure and help meet the NATO spending target in the process. The calls come after Canada released its new Arctic foreign policy earlier this month, which committed to promoting investment in a wide range of sectors — including critical mineral development, transportation and energy — but didn't specifically make funding commitments in those areas.

 

 

National Security

China-Russia Arctic cooperation a US national security concern. VOA News

The United States and its NATO allies are paying increased attention to military cooperation between Russia and China in the Arctic, where the two countries have conducted joint naval exercises, coast guard patrols and strategic bomber air training.

 

Chinese Arctic research expeditions inform military, economic goals, say experts. USNI News

“If the PLA [People’s Liberation Army] wants access to [the researchers’ findings], they’ll get access to it,” Matthew Funaiole, a senior fellow at the China Power Project at the Center for Strategic and International Studies, said. “Keep an eye on the research vessels.” China sent five research vessels into the Arctic in summer 2024.

 

After a yearslong delay, Air Force agrees to send more refueling planes to Alaska. ADN

Aerial refueling is the military capacity to add fuel to various planes in mid-flight, thereby extending their range. Though Alaska’s fleet of cutting-edge fighter jets has grown in recent years with the arrival of dozens of F-35s, the number of Stratotankers used to gas them up during trainings and intercept missions has remained flat, straining existing planes and personnel.

 

 

Economy

Opinion: Burning more state money on a mythical North Slope gas pipeline. ADN

But unlike a real fire pit, which warms those who gather around, spending more money on a gas line dream will leave Alaskans in the cold and the state a little poorer.

 

Lower prices dim expectations for Alaska oil earnings in coming years, revenue forecast says. Alaska Beacon

The state’s total petroleum revenues in the 12 months that ended on June 30 were a little over $3 billion, the forecast said. That total will drop to around $2.2 billion in coming years before starting to rise in the early 2030s. A decade from now, Alaska’s total petroleum revenues will have rebounded – but only to a level about equal to the total in just-completed fiscal 2024. That would not account for inflation.

 

Aleutians see growth as Alaska's overall population is expected to decline. Alaska Public Media

Southwest Alaska has the fastest-growing population in the state, according to new predictions from the state Department of Labor and Workforce Development.

The Southwest region includes seven census areas: Kusilvak, covering the Lower Yukon River; Bethel; Dillingham; Bristol Bay; Lake and Peninsula; Aleutians East; and Aleutians West.

 

 

Education

'Chronic absenteeism' in Alaska: Education commissioner gives thoughts on connection to e-learning. Alaska's News Source

This week, Alaska superintendents were informed e-learning days “should not be expected to count as school days,” according to a communication from Bishop’s office. Icy conditions caused Mat-Su Borough School District to call a school closure Wednesday when they announced there would be no e-learning and school was canceled entirely. A district spokesperson confirmed this decision was in connection to Bishop’s communication and comments made during her presentation.

 

Anchorage School District aims to test a program that would provide affordable child care. ADN

The idea is to help solve two of the district’s crises at once — a teacher shortage, and a lack of affordable child care options for families — by contracting with providers to offer discounted child care to school staff, provider staff and possibly others.

 

UAA training for health care providers keeps victims of violent crimes from falling through the cracks. Alaska Public Media

The state already has a team that responds to sexual assaults and strangulations, called the SART or sexual assault response team. The course isn’t meant to replace that, but to train health care workers on how to gather evidence if someone can’t or doesn’t want to access the response team. The SART only gathers evidence within a seven-day window, and may not always be able to reach rural Alaskans within that timeframe.

 

 

Politics

Dunleavy says he plans to introduce education bill pairing funding increase with reforms. Alaska Public Media

The Governor called on the Legislature to pass two policy proposals. One would have created a new approval pathway for charter schools, allowing them to apply directly to the state rather than a local school district. The other would have created yearly retention bonuses for teachers of up to $15,000 per year. Both of the proposals faced skepticism in the House and Senate and failed to advance.

 

No women will lead House committees. Axios

 

Republicans stoked fears of voting by noncitizens. Ohio's experience shows how the rhetoric diverged from reality. ADN

The outcome and the stories of some of those now facing charges illustrate the gap — both in Ohio and across the United States — between the rhetoric about noncitizen voting and the reality: It’s rare, is caught and prosecuted when it does happen and does not occur as part of a coordinated scheme to throw elections.

 

U.S. Senate to vote on bill that would boost Social Security benefits for thousands of Alaskans. ADN

The measure would reverse what is called the Social Security Windfall Elimination Provision and the Government Pension Offset Provision. The provisions, in place for more than four decades, have meant that many Alaskans who have worked both in the state’s public sector — including as teachers and public safety officers — and in jobs outside of Alaska’s public sector, could see their Social Security benefits increase.

(My Comment: This is a serious issue for folks in my district and all Alaskans. Teachers, in particular, are losing the majority of the benefits earned by their private sector spouses due to WEP and GPO. I am hopeful that Sen. Dan Sullivan understands this and hears the voices of Alaskans.)

 

Anchorage Assembly postpones vote on Girdwood Comprehensive Plan until new year. Alaska's News Source

The Anchorage Assembly unanimously decided to postpone a vote to approve a revised version of the Girdwood Comprehensive Plan during Tuesday night’s regular assembly meeting, pushing that vote into the new year.

 

 

Health Care

Alternative PBM's pressure on big 3 titans. Fierce Healthcare

One of a PBM’s most common tactics is to accumulate rebates for drugs on its formulary. Instead of the rebate going to consumers, the rebate instead is pocketed by PBMs or sent to other insurer-owned subsidiaries for the purpose of financial workarounds. The government also uses rebates for its general revenue fund or to lower the cost of federal healthcare programs.

 

Giant Companies Took Secret Payments to Allow Free Flow of Opioids. NYTimes

In 2017, the drug industry middleman Express Scripts announced that it was taking decisive steps to curb abuse of the prescription painkillers that had fueled America’s overdose crisis. The company said it was “putting the brakes on the opioid epidemic” by making it harder to get potentially dangerous amounts of the drugs.

The announcement, which came after pressure from federal health regulators, was followed by similar declarations from the other two companies that control access to prescription drugs for most Americans.

The self-congratulatory statements, however, didn’t address an important question: Why hadn’t the middlemen, known as pharmacy benefit managers, acted sooner to address a crisis that had been building for decades?

One reason, a New York Times investigation found: Drugmakers had been paying them not to.

For years, the benefit managers, or P.B.M.s, took payments from opioid manufacturers, including Purdue Pharma, in return for not restricting the flow of pills. As tens of thousands of Americans overdosed and died from prescription painkillers, the middlemen collected billions of dollars in payments.

 

The skin's 'surprise' power: it has its very own immune system. Nature

The skin — once thought to be a mainly passive barrier — can produce its own antibodies that fight off infections, a pair of studies reports in Nature this week. The findings could pave the way for the development of needle-free vaccines that can be applied to the skin.

 

 

Alaska Oil Resource Values

 

Alaska North Slope crude oil price (12/18/24): $71.71

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 (12/17/24): 475,365 bpd

 

IEA says OPEC+ supply delay won't prevent oil glut next year. RigZone

Global oil markets face a glut next year despite last week’s decision by OPEC+ to delay supply increases, the International Energy Agency said. World markets will be oversupplied by a hefty 1.4 million barrels a day if the group proceeds with plans to revive output starting in April, the IEA predicted in a monthly report. Even if OPEC+ cancels next year’s hikes entirely, there’ll still be an overhang of 950,000 barrels a day. 

(My comment: Why should you care? Because Alaska’s budget, both public and private, depends on oil. We now rely on the Permanent Fund for more of our state revenue than revenue from oil. The price of a barrel is forecast to be much lower next year. China, the world’s largest oil importer is decreasing demand as they move to other sources of energy.)

 

Anchorage officials say advocacy and energy consumption are ways city can address looming natural gas shortage. Alaska Public Media

While officials have pointed to a need for addressing the region’s natural gas supply for a long time, the problem has become more apparent in recent years, with experts predicting a major shortfall as early as 2027. However, city officials say most of the solutions to the issue won’t be solved by the government. “The utilities are by far the biggest players in the space, and I think that solutions really do start and end with them,” said Nolan Klouda, a policy advisor for Mayor Suzanne LaFrance’s administration.

 

Opinion: Planning for Southcentral Alaska's natural gas supply this winter and beyond. ADN

 

Switch to buy 12 GW of nuclear from Oklo for data centers. Axios

Oklo has developed a modular "fast reactor" where the nuclear fuel rods are cooled by liquid metal instead of water. Oklo, was founded in 2013 and went through Y-Combinator where Altman was the president. The company went public in May via a SPAC that was co-created by Altman and investor Michael Klein.

(My comment: Oklo is the company that was selected by the Air Force to install a micro reactor at Eielson AFB in Fairbanks. That decision has been protested by another company who also bid to do the project, so the selection process is being re-evaluated.)

 

 

Precious Metal Prices

December 18, 2024

Gold - $2613.39

Silver - $29.74

Platinum - $939.35

Palladium - $942.76

Rhodium - $4425.00

 

Alaska Permanent Fund

website

 

Fund value December 17, 2024 - $81,938,500,000

PFD payout from ERA, Fiscal years 1980-2024: $43.9 Billion

$100 Billion total earnings over lifetime of the Permanent Fund

 

 

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

 

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