HIGHLIGHTS: ENERGY ISSUES, EDUCATION FUNDING AND PUBLIC EMPLOYEE PENSION IMPROVEMENT TO RETAIN WORKERS LIKELY TO DOMINATE 2024 LEGISLATIVE SESSION. FISCAL POLICY ON THE TABLE AGAIN BUT LITTLE LIKELIHOOD OF NEW TAXES. MODERATOR: JASON BRUNE PANEL: n SEN. CATHY GIESSEL, Majority Leader n REP. DAN SADDLER, Majority Leader n REP. CALVIN SCHRAGE, Minority Leader n SEN. CLICK BISHOP, Co-chair, Senate Resources Committee (Unable to attend because of weather/flights) KEY POINTS: n Funding of basic services important for economy n Given revenue constraints, expectations must be managed n Energy, transmission lines priorities in 2024 session n Alaskans themselves can’t be “NIMBYs” over projects DISCUSSION: Jason Brune asked each panelist to describe an expectation of the legislative session in one word. “Energy,” said Giessel; “Education,” said Schrage, and “Interesting,” said Saddler. Rep. Schrage said a crisis in funding schools is lowering the quality of education and making it more difficult to attract workers to Alaska. It is also a factor in the continued migration of working age adults, many with families, out of state. To retain and attract workers Alaska needs high quality schools including pre-Kindergarten for young children, a good university and functioning state agencies and public services like troopers. Rep. Saddler said it is important to put needs in the context of available revenues, and that a primary challenge for legislators in the 2024 session will be to manage public expectations. It’s important to continue support for natural resource development because in the long run this will result in new revenues to the state. The governor’s efforts to encourage growth of the state’s small forest industry is an example of an underdeveloped natural resource that could grow, Saddler said. Rep. Schrage said there could be an undetermined budget surplus due to higher oil prices but there may be a lot of demands on this including for a supplemental Permanent Fund Dividend. Meanwhile, the Legislature must find $200 million or more for the required state match to new federal infrastructure funds such as the $206 million grant to upgrade the Southcentral-Interior Alaska “Railbelt” electrical grid. State agencies are also underbudgeted to deal with administrative tasks like processing state payroll, Medicaid eligibility determinations and eligibility for low-income Alaskans to qualify for the Supplemental Nutrition Assistance Program, or SNAP, formerly known as food stamps. Sen. Giessel said one of her goals is to see the surplus not spent on a supplemental PFD, but to use it to, among other things, strengthen the energy infrastructure to help the economy grow. New mines will need power, for example. Giessel also said she doubts any legislation raising oil and gas taxes will pass in 2024, although there will be discussion. Two bills are pending in the Senate, SB 114 and SB 122, Jason Brune pointed out. In terms of what the Legislature can do to help resource development, Rep. Schrage said developing more efficient delivery of permits and fiscal stability will help. “We shouldn’t ‘grow’ government but do a better job with what we’re already doing. We see department after department being unable to fully care out their tasks,” because of underfunding and workforce shortages, he said. Sen. Giessel said stable and predictable permitting and budgeting for roads is needed, and to support transmission lines including natural gas pipelines such as the proposed Donlin Gold gas line from Cook Inlet to Southwest Alaska. She would also support one of the new-technology microreactors being built in Dillingham to provide energy to fisheries processors located there. Rep. Saddler said Alaskans themselves can be an obstacle to orderly development. “Alaska is blessed with resources but there’s too much ‘NIMBY’ (Not in My Back Yard). He cited the Mahn Choh gold project at Tetlin as an example, a project that will put a lot of people to work on lands owned by the Tetlin tribe east of Fairbanks. Objections are now being raised about a plan by Kinross Gold, the company developing the project in partnership with the Tetlin tribe, to truck ore over public roads to the ore mill at the Fort Knox Mine near Fairbanks, which is owned by Kinross. — COMPILED BY TIM BRADNER KEYNOTE CONVERSATION WITH LEGISLATIVE LEADERSHIP 22 ALASKA RESOURCE REVIEW WINTER 2024
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