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State Senator District E

Senate Majority Leader

 

Senator Cathy Giessel Newsletter

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Issues affecting

your family, community and jobs.

 

 

December 26, 2025

 

 

Dear friends and neighbors,

 

Tuba Christmas performance is something Rich and I look forward to every year. They were at Bell's Nursery on Specking on Dec. 20. They played to a large crowd amid the Christmas cheer of trees, wreaths, and poinsettas, along with vendors from the Farmer's Market.

Tuba Christmas occurs in communities around the US! Pretty amazing.

Its so beautiful to hear the tubas and euphoniums.

 

You might notice the man in the back, with his daughter on his shoulders while he played. What you can't see is the younger child he had in a carrier on his back as well! He's certainly raising music lovers!

 

Things to notice

In the last 4 years, the price of oil has dropped more than $65 per barrel.

$125/barrel, March 2022. $60.06, last week (Alaska Resource section, prices over time since 2008)

 

Lots of "first" items in Alaska History section during January, over the years.

 

 

The Weather

OK, its been cold. I'm trying not to be selfish but - I really enjoy the cold temperatures.

But then I like the darkness of winter also. This all comes from being a "lifer" here.

 

My childhood in Fairbanks makes the meaning of "cold" different for me.

When I moved down south here, to Anchorage, the temperature that winter was in the -30F range. In fact, January 1975 was the record (official) cold temp for Anchorage at -34 F.

 

On top of that cold temperature - there was NO Permanent Fund Dividend in those days! And home schooling ("correspondence") got no subsidy from the State in 1975. Raises the question: Were Alaskans just smarter, stronger, more self-sufficient back then?

 

Items in this Newsletter:

·    Governor's Proposed Budget

·    Elections

·    Seward Highway Redesign Advisory Committee

·    Railbelt Reliability Council Webinar

·    Holiday Tree Recycling

·    Current Topics, Stuff I Found Interesting, Arctic Issues, Economy, Education, Politics, Healthcare,

·    Resource Values, Permanent Fund

 

 

 

 

Governor's Proposed Budget

 

 

The Governor's proposed budget this year has a $1.5B deficit for 2027.

This Is chiefly due to the massive Permanent Fund Dividend he is proposing sending out.

The proposed Permanent Fund Dividend alone would cost $2.4 Billion.

 

The graph above.

In Red Bars are the 2025 money spent in each General Fund items.

In Blue Bars are the 2026 money for the General Fund items.

 

The box encloses bars for all the departments that would have to be completely closed to pay the Permanent Fund Dividend. They include Corrections, University of Alaska, Public Safety, Transportation, Courts, Law, Fish & Game, Natural Resources, Governor office, Legislature, Revenue, Education, Commerce, Environmental protection, Labor, Military & Veterans Affairs, Capital spending.

 

Along with this, the additional funding needed for this year (called Supplemental Budget) could likely be about $450 Million.

 

The Governor proposes filling a budget deficit of $1.950B from our main savings account, the Constitutional Budget Reserve (CBR), which has less than $3B.

 

Some perspective re: PFD:

2024 Dividend cost $960 Million (check was $1480)

2025 Dividend cost $680 Million (check was $1000)

 

 

Elections

 

The excerpt below comes from one of Alaska’s political party’s websites. The statement explains why the Open Primary matters! It clearly states that a small group of people (State Central Committee (SCC)) requires adherence to their wishes. SCCs want to control the policies and direction of our state and how legislators vote. Only Open Primaries and Ranked Choice Voting has allowed voters’ voices to be clearly heard in elections. And allows elected policy makers to use the facts before them to vote as they understand to be the correct way, not under threat from a political party that they will be punished.

 

From an Alaska political party:

“The newly adopted priorities signal an effort by the (Alaska political) Party to reassert policy cohesion and apply pressure on (“their”) legislators to vote consistently with party positions during the upcoming session. Party leaders indicated they intend to actively engage in legislative debates when necessary to keep lawmakers focused on the platform approved by the State Central Committee, particularly as budget negotiations, election policy, and education funding are expected to dominate the second session.” (from a current Alaska political party website)

 

Opinion: Alaskans, don't be duped by the citizens voter initiative. ADN

Alaska already requires voters to be U.S. citizens. Election officials enforce that rule. There is no bill in Juneau proposing to change it, no court case challenging it and no Alaska municipality contemplating noncitizen voting. Nothing in our election history or law suggests that the state’s citizenship requirement is under threat.

 

 

Seward Highway Redesign Advisory Committee

 

 

Click on the meeting summary to see the proposed options for the redesign.

 

If you have any questions about the advisory committee, please contact my staff, Paige Brown at paige.brown@akleg.gov

 

 

 

Webinar to Introduce the Integrated Resource Plan

 

 

The Alaska Railbelt Reliability Council (RRC) invites you to a public webinar on January 8, 2026, at 12:00 p.m. AKST. This session will provide the public with an overview of the Integrated Resource Plan (IRP) process and explain how to get involved.

This is the Railbelt’s first-ever IRP — a comprehensive, long-term strategy for ensuring that the power system serving most Alaskans stays reliable, affordable and ready for the future.

Over the next two years, the IRP process will include public meetings, technical workshops and opportunities for Alaskans to ask questions and share feedback. The final plan is expected to be submitted to the Regulatory Commission of Alaska in early 2027.

Don’t miss this chance to learn more and participate in shaping Alaska’s energy future!

 

 

 

 

 

Current Topics

Military spending bill includes free flights for Alaska soldiers and a push to reopen Adak. Alaska Beacon

The new military spending law requires reports every 90 days on how that money is being spent and “an assessment of the feasibility of any viable infrastructure options in the Arctic region.”

 

 

Things That I Found Interesting

Don't be a "slopper". Axios

There's not much scientific evidence proving AI is making us lazy or stupid. But there is evidence that humans are wired to take shortcuts when given the opportunity. "We do what we can to avoid using the most calorically expensive part of our body, which is the brain," engineer, investor and tech founder Paul Kedroski.

 

Classic Christmas ads. Axios

This season marks 35 years since the iconic whistled tune and serene beach in the Corona O'Tannenpalm made its 1990 debut.From 1992, Santa rides a Norelco rotary shaver ("hugs every contour, every curve").

Dare ya not to cry: 2020 Christmas ad from DocMorris, a Swiss-based online pharmacist. Stunning reveal at end!

(My comment: The last ad, by the pharmacist, is the very best. Watch it until the end.)

Arctic

Murkowski celebrates codification of Arctic Ambassador position. Murkowski Senate Page

U.S. Senator Lisa Murkowski (R-AK) welcomed the codification of the Ambassador-at-Large for Arctic Affairs position within the U.S. State Department through the National Defense Authorization Act (NDAA). Senator Murkowski has long pushed to elevate U.S. Arctic diplomacy, leading to the State Department’s establishment of the position in 2022.

 

China, Russia pulling ahead of NATO in Arctic drone capabilities: report. CBC

A new study by the Center for European Policy Analysis suggests Russia and China are pulling ahead of NATO nations, including Canada, in the race to develop and field drones capable of operating in harsh Arctic conditions.

 

 

Economy

Rough year for the dollar could continue in 2026. Axios

The U.S. dollar, the dominant currency in global trade, has had a rough year, falling in value against other major currencies amid continued uncertainty over tariff policy and falling interest rates in the U.S.

 

Energy Resources

Dunleavy administration may divert federal oil revenue from North Slope. Alaska Beacon

Alaska Gov. Mike Dunleavy’s administration is proposing to divert money from a program intended to compensate North Slope communities for the side effects of oil and gas drilling on federal land near them. “Definitely a big deal,” said Alexei Painter, director of the Legislative Finance Division, which analyzes the budget on behalf of legislators.

 

INTERVIEW: Tokyo Gas mulls participation in US Gulf Coast LNG project. S&P Global

"The LNG project in Alaska is geographically advantageous for Japan, as Alaska is relatively close and does not require passing through so-called 'choke points' that pose risks. In that sense, I believe it is well located geographically," Sasayama said. "However, at this stage, the price and terms remain completely unclear, so it is difficult to say either yes or no," he said.

My Comment: Reality – Nobody actually signs up to buy something for which the price is unknown. At this point, the gas pipeline is all hype. The price estimate needs to be at the Class V level for buyers to seriously consider buying it.

 

Is the Alaska gasoline a pipe dream? Skeptics flag concerns. Alaska Public Media

Glenfarne could make a lot of money even if a mile of pipe is never laid. The company now owns permits, engineering work and other assets that give it leverage in future deals within the state or in qualifying for federal support.

 

 

Elections

A Kodiak couple faces possible deportation due to a voter registration error by the state. Alaska Beacon

“The creepy thing is that the registration form says you’re not allowed to use an electronic signature on it, but the state’s been doing that anyway. … We have a copy of their voter registration form, and the state created that on their own, without the immigrants’ knowledge, and submitted it and checked off that they were US citizens. Some employee of the state is really doing bad things, basically,” Stock said.

 

Alaska joins states providing voter data to Trump's DOJ. Juneau Independent

Dahlstrom, in a prepared statement, said she is aligned with Trump’s stated goals.

“Alaska is committed to the integrity of our elections and to complying with applicable law,” said Lt. Governor Nancy Dahlstrom. “Upon receiving the DOJ’s request, the Division of Elections, in consultation with the Department of Law, provided the voter registration list in accordance with federal requirements and state authority, while ensuring appropriate safeguards for sensitive information.”

 

 

Politics

State opts to give Anchorage $19M less than expected for road safety next year. ADN

Gov. Mike Dunleavy’s administration on Wednesday revealed a Highway Safety Improvement Program plan omitting nearly $19 million that city officials expected to use to address some of Anchorage’s dangerous roadways.

(My comment: To state the obvious…the State needs to replace lost oil revenue (dropping price of oil). That means taxes; Alaskans have to pay for the amenities they enjoy. The “free stuff” has run out. IDEA: increase motor fuel tax which is right now lowest in the US). Put the tax into a Transportation Fund, channeled to roads.)

 

Opinion: In Anchorage, there is no free lunch. ADN

The mayor of Anchorage, Suzanne LaFrance, has taken a stand that is refreshing to see from a politician — she has actually come right out and said that there is no free lunch anymore.

In her comments to the Assembly and the public last week, she said that the city can no longer provide acceptable levels of service without investment. She actually stated that we cannot address outmigration, housing, child care or economic growth without spending money to address those issues. How refreshing — a politician who dares to tell the truth fearlessly.

(My comment: In Alaska, leaders are usually punished for telling the truth! That’s why its so rare! Its more rewarding (on many levels) to lie, tell Alaskans they will get huge checked from government (dividends), that the good times are just around the corner and they’re free! We’ve reached the point that people are looking behind the curtain and seeing that the wizard is a fraud. Bravo to Mayor LaFrance for her leadership!)

 

Opinion: Governor’s final budget kicks the can yet again. ADN

 

Opinion: You get what you pay for — and Alaska is paying too little. ADN

It is clear, even to the stingiest among us, that Anchorage and Alaska need more income. Our severely underfunded public schools, decreasing population — called “outmigration” these days — underfunded police force, deteriorating streets and highways, underfunded city and state park budgets, and on and on, are not going to fix themselves. We have to pay for it.

(My comment: The only people who don’t understand are so-called conservative Republicans who want to depend on the government for everything. They oppose all taxes (except the ones on other people), oppose protecting the Permanent Fund spending by keeping the earnings open to spending for big dividends for themselves, and want to eliminate any legislator who bases decisions on facts.)

 

 

Alaska History

·    1921 Jan 24 - Alaska's first pulp mill opened in Juneau

·    1925, Jan 27 - first dog team left Nenana with serum for Nome for deadly diphtheria outbreak (serum arrived in Nome 6 days later)

·    1946, Jan 13 - First issue of the Anchorage Daily News

·    1959, Jan 3 - President Eisenhower signed Alaska Statehood Proclamation

·    1959, Jan 18 - Direct Long Distance phone service to Alaska began

·    1964, Jan 1 - North Star, Kenai Peninsula, and MatSu Boroughs all formed

·    1966, Jan 2 - Sitka fire destroyed St. Michaels cathedral

·    1970, Jan 1 - City & Borough of Juneau formed

·    1971, Jan 23 - Coldest recorded temperature (-80 F) at Prospect Creek Camp

·    1985, Jan 5 - Federal government sold the Alaska Railroad to the State of Alaska

·    1988, Jan 14 - record 2.145 million barrels of oil went though TAPS in one day

·    1989, Jan 31 - record North American high pressure of 31.85 inches of mercury in Northway, Alaska

·    1990, Jan 16 - record 47.5 inches snowfall, Valdez

·    2025, Jan 7 - Eastern Orthodox Christmas

·    2025, Jan 22 - First Sunrise in Utqiagvik (after 65 days of no sun)

 

 

Alaska Resource Values

 

Alaska North Slope crude oil price (12/23/25): $63.16

FY26 budget (beginning 7/1) is fully funded at

$64/barrel of oil.



History of prices:

12/17/25: $60.06

9/2024: $63.63

9/30/23: $87.99

9/30/22: $86.91

6/29/22: $116.84

3/08/22: $125.44

12/22/21: $75.55

March 2020: $12.29

7/3/2008: $144.00

ANS production (12/16/25): 476,834 bpd


 

Graphite Creek hosts 14 high-value REEs. Mining News North

First reported in November, the Graphite Creek deposit hosts schist zones with rare earths-enriched garnets. Analysis completed by ActLabs found that 71% of rare earths contained in these garnets fall into the heavy REE category – yttrium, scandium, holmium, erbium, thulium, ytterbium, and lutetium – and another 14% are magnet rare earths – praseodymium, neodymium, samarium, dysprosium, and terbium.

 

Investors put the pedal to the metals. Axios

The rallies in gold and silver, and in other precious metals, are seen in large part as an investor response to ongoing global tensions, including the recent pressure the U.S. is putting on Venezuela. Platinum and palladium also rose.

 

 

Precious Metal Prices

December 17, 2025

Gold - $4341.29

Silver - $66.23

Platinum - $1954.90

Palladium - $1681.13

Rhodium - $8275.00

 

Alaska Permanent Fund

website

The projected payment to the state General Fund for upcoming Fiscal Year 2027, under the Percent-of-Market-Value (POMV) formula, is to be $4 billion, up from $3.8 billion for FY 2025, the current year.

 

The Fund’s rate of return over five years has been 9.54%

• For the first three months of the FY 2026 fiscal year, or July 1 through September 30, the Fund had $2.21 billion in “statutory net income.” 

 

Fund value December 15, 2025 - $87,552,600,000

PFD payout from ERA, Fiscal years 1982-2025: about $33 billion

Over $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)

·    Legislation Aide: Paige Brown (from Anchorage/Girdwood)

·    Resources Committee Staff: Inti Harbison (from Anchorage)

 

Copyright © 2025. All Rights Reserved.

 

 

 

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