I hope that everyone is enjoying the slightly more moderate weather. Personally speaking, I’m enjoying the lengthening days and that some of the snow load on my roof is disappearing. It’s been quite a winter.
The legislature is hitting its stride now, as all bills for the 33’rd legislature to consider have been written and submitted by the deadline which is today.
My office continues to be incredibly busy with a full suite of legislative proposals that are getting hearings and I’m ecstatic about it. Our office feels like its buzzing with all of the meetings, prep sessions for hearings, and whiteboard work sessions on major statewide issues.
The legislature is a place where you work on things, try to get things going your way, but it can sometimes feel like you’re not making progress. And then the levee breaks and you find yourself scrambling to keep up with the tasks that come with a full agenda. There are more details below, so keep reading if you want to know more about the bills we are moving and issues that we are working hard to address!
Later in this newsletter we’ll discuss how lucky our office was to host Edison Wallace-Moyer, a Junior from West High School who I have been mentoring through ASD’s Gifted Mentorship Program. Also, I provide insights on the recently rejected transportation plan, Alaska’s energy issues, and other events I’ve been active attending/hosting.
As always, please take a look, and let me know if you have any questions or comments!
Thank you for subscribing and taking the time to review our updates. Please remember that you can call me anytime at 907-465-4949 and keep up with day-to-day things on my Facebook page.
A Visit to Service High School!
If you’d like to read more about education issues, I wrote a special section on this in my last newsletter. Read that here: https://mailchi.mp/akleg/we-are-back-senator-kaufman
Public Testimony Opportunity: Spending Cap
My proposed Spending Cap is scheduled for a hearing today! Public testimony is on the calendar in the Senate Judiciary Committee, so if you have time, please call in and voice your support for SJR 4 and SB 20. This constitutional amendment and bill create a solid framework for how Alaska can control our spending and improve the management of government funds.
The spending limit is set based on a certain percentage of Alaska’s private sector economic performance. Specifically, we use the Real GDP of Alaska minus government spending. As you can see below, this wouldn’t be a harsh cut or cap, but rather a smoothing mechanism that ebbs and flows with Alaska’s economy, preventing the boom and bust spending cycles Alaska goes through as oil prices and other events change.
Public Testimony Tips!
Full instructions sheet: https://akleg.gov/docs/pdf/AKLEG_Testimony_Instructions.pdf
- Before you call, know the bill number and committee you will be addressing
- On Monday at 1:30pm we will be in the Senate Judiciary Committee presenting SJR 4 and SB 20
- There will be a time limit. That’s normal, just be aware of that limit.
- When it is your turn to testify:
- Your name will be called and you will hear the audio prompt, “Your line is unmuted.”
- State your full name, where you are from, and your affiliation.
- “Mr. Chair and members of the committee, my name is ____, I am from ____and am representing (myself, business or organization name)”
- Provide your testimony.
- Please avoid using speaker phone
Can’t call in? Send an Email!
If you are unable to call-in, you can send your written testimony to Senate.Judiciary@akleg.gov and Sen.James.Kaufman@akleg.gov
If you have questions, give my office a call at (907) 465-4949 or call your local Legislative Information Office. Found here: http://akleg.gov/lios.php
Edison Comes to Juneau!
For the last couple of months, I have been mentoring Edison, a junior at West High School, as a part of the Anchorage School District Gifted Mentorship program. Edison came down to Juneau for the week to get a crash course on how the Legislature works during Session.
She has staffed me in committees and meetings, helped with office projects, and was a guest page on the Senate Floor. To top things off, she presented Senate Bill 105 on my behalf in the Senate Transportation Committee. SB 105 seeks to authorize the Alaska Railroad to bond up to $135 million dollars to replace the critically important Seward cruise ship dock which has reached the end of its lifespan. Today, the bill moved out of Transportation and now moves to its next committee!
Edison is smart, incredibly hard working, and passionate about learning how to serve Alaska well. I am looking forward to seeing her continue to succeed as she pursues college and a career in public service!
If you know of a student who might be interested in being part of this awesome program, you can learn more here >>
What’s Up with Road Construction Projects this Summer? (a STIP update)
Alaska’s Statewide Transportation Improvement Program (STIP) recently got rejected by the Federal Government agencies responsible for review and approval of the plan, the FHWA and FTA. We received a letter on Monday, February 12, noting the rejection alongside a detailed finding list. You can read those here:
The Federal Highway Administration’s STIP Finding Transmittal Letter
FHWA’s Detailed Finding List with Corrective Actions
Note: The STIP is the state’s four-year program for transportation system preservation and development. It includes interstate, state and some local highways, bridges, ferries and public transportation, but does not include airports or non-ferry-related ports and harbors.
If you look at the linked documents above you can see that there are many findings, but I believe they can be grouped into a few main categories. Lack of coordination with local planning organizations was the largest category that stood out to everybody. Quotes in news articles noted “no coordination” between the state and local planning organizations for Anchorage and Fairbanks. Other categories are the inclusion of projects that had cost increases exceeding federal guidelines, new projects not integrated into a ‘transportation system’, projects misrepresenting fund sources, and a number of misattributed federal grants.
We are the only state to receive such a rejection this year. However, in response to many extreme reactions, it is my opinion that Alaska DOT will return a revised STIP within the required timeframe and fix many of the major issues that were noted in the findings report. It is still early in the notification and response process so I can’t speak to the specific ramifications, but it is my understanding that DOT will remove highly contested projects and move forward with the first tranche of federally approved projects while continuing to negotiate further additions to the STIP.
As the chair of the Senate Transportation Committee, this topic is of extreme importance to me. This year and last year, we held hearings specifically focused on the planning process and STIP development (see topics and links below). A major question that I have now is what changed! Did the development process change or the assessment process change? It is my understanding that this may be more of a planning process issue, but there may be some minor assessment issues with regards to high-visibility projects.
1/31/2023 Federal Funding and Planning for the Future: https://www.akleg.gov/basis/Meeting/Detail?Meeting=STRA%202023-01-31%2013:30:00#tab4_4
2/14/2023 Strategic Investment Decisions and Transportation Planning Data: https://www.akleg.gov/basis/Meeting/Detail?Meeting=STRA%202023-02-14%2013:30:00#tab4_4
8/22/2023 (Joint Senate and House) Alaska’s Modern STIP: https://www.akleg.gov/basis/Meeting/Detail?Meeting=STRA%202023-02-14%2013:30:00#tab4_4
As you can see, we followed the development process over the full year, but DOT hadn’t led on that there were major issues. The Senate Transportation intends to have another hearing focused on the STIP and the issues, but I want to allow DOT to put all available resources towards fixing and resubmitting the current plan. As soon as we can rest assured that Alaska’s construction season will move forward, we will look for ways to provide any systemic fixes that are needed so that this doesn’t happen again.
Hillside Town Hall
Representative Coulombe and I held a town hall this past Saturday at the Shephard of the Hills Church. Thank you to everyone that came out and let us know your thoughts. We had great conversations about education, energy, and much more.
We face some big issues in Alaska and I appreciate everyone that gets involved in these discussions. It helps us represent you better!
Energy
Energy, specifically Cook Inlet Gas shortages, is a major focus of the legislature this session. The recent extreme cold snap in Southcentral served as one of many recent reminders of the fast-approaching Cook Inlet Gas shortages. This is an issue that has been around for more than a decade, with talks of possible brownouts happening around 2010. Then Hilcorp moved into the area and policy was put into place that extended the life of the field another decade or so. Now, we’re at another crucial decision point.
A little over a week ago a Joint Resources Committee (both Senate and House) was held regarding specifically Cook Inlet Gas with all of the area’s gas producers. Hilcorp, HEX/Furie, BlueCrest Energy, and ENSTAR all presented their unique perspectives on current state, challenges, and outlook. The other involved parties are the electric utilities such as Chugach Electric, Matanuska Electric, Homer Electric, and more. All of these utilities hold contracts to buy gas from the producers that expire at various times. Right now, due to the economics of the fields and the increased risk to producers, we’re seeing a lack of willingness to continue to sign new contracts.
Watch the Joint Resources hearing: https://www.akleg.gov/basis/Meeting/Detail?Meeting=SRES%202024-02-07%2015:30:00#tab4_4
Hilcorp is the most active producer with regards to wells drilled and gas delivered, and the one with the most capital, but it is also the one most quickly depleting its reserves and most unwilling to extend contracts. HEX/Furie and BlueCrest both have a lot of proven, undeveloped reserves, but they’re struggling to attract investors. Demand for gas is fairly flat and, because of the lack of industrial or commercial need, is capped by population and cold temperatures.
We need to think about possible solutions in terms of actions related to short term, intermediate term, and long term solutions. Governor Dunleavy and other legislators have introduced short term solutions related to improving the economics of the field (e.g. royalty reductions), gas storage facility management (e.g. facility expansion, ownership, and transparency), rate structures (e.g. cost allocations and net metering), and more.
Intermediate Term solutions include the need for importing gas, improving the ability of producers to tap into proven reserves, and possible capital projects such as the GRIP grant, Dixon Diversion project, and more. We heard last week that large scale natural gas imports may not be available until around 2030 unless federal permitting timelines can be shortened. Importing gas is still not a preferred option. Alaska has SO MUCH gas, both in proven reserves and in stranded resources (such as on the North Slope). That’s why this should at most be categorized as a “bridge” solution.
Long-term solutions are where it is hardest to find agreement because they all require large investment and commitment. These could include a gas line, large-scale hydropower, clean coal powerplants, and other major developments. The Alaska Energy Security Task Force (AESTF) was convened last year and released a report which should be used as a guide for these intermediate and long-term solutions.
Read the report here: https://www.akenergyauthority.org/What-We-Do/Energy-Planning-Project-Development/Alaska-Energy-Security-Task-Force
In summary, the Alaska Legislature needs to act this year on short-term solutions and some intermediate solutions. That alone won’t take away the urgency, we will need to continue to act on more intermediate and long-term solutions. Please reach out with input or questions any time.
Email: sen.james.kaufman@akleg.gov
Office Phone: (907) 465-4949
Join me and other Anchorage area legislators at a Town Hall Saturday, March 9th from 2-4pm. Bring a friend and your questions!
My Bills Heard Recently:
Creating an Office of Information Technology | SB 201
Senate Bill 201 was heard in the Senate State Affairs Committee on Tuesday. Many state agencies in Alaska are running IT systems so outdated that only one or two people in the state know how to maintain them. Anyone who has applied for food stamps or a professional license has experienced delays only exacerbated by inefficient, outdated processing programs. SB 201 recognizes the fundamental role of Information Technology (IT) projects in the effort to move Alaska into a new era of management and operations. This bill establishes the Office of Information Technology which would standardize management practices for overseeing IT overhauls across state agencies, ensure best practices are followed, and enforce budget compliance. Advancing this bill helps to create a more efficient, responsive, and customer-driven information technology landscape in our state, ensuring that IT projects play a crucial role in enhancing the lives of all Alaskans.
Securing Tourism and Economic Growth for Southcentral Alaska | SB 105
Edison presented SB 105 to the Senate Transportation Committee on Tuesday! The Port of Seward is a tourism hub in Southcentral Alaska. Most cruise ship voyages begin or end in Seward, and many visitors disembarking in Seward will travel on to the Kenai Penninsula or north through Anchorage, Denali, and even Fairbanks. The cruise ship dock in Seward was built in 1966 and has reached the end of its lifespan. SB 105 authorizes the Alaska Railroad to secure up to $135 million in revenue bonds to finance replacing dock infrastructure and ensuring that the Port will continue its major contributions to our local economy.SB 105 was passed out of the Transportation Committee on Thursday and goes next to the Senate Finance Committee.
Helping Alaskans Get Back to Work | SB 147
Alaska is a difficult state to do work in and workers get injured. Sadly, these injuries can leave them unable to stay in the same line of work. Senate Bill 147, which was heard in the Senate Labor and Commerce Committee on Wednesday, will help workers in that situation get retrained and back to work again. Alaska has a workers’ compensation law that is intended to help these injured workers get properly compensated and, if possible, retrained in a new profession. Unfortunately, the law has become woefully outdated. My bill would make important updates to it, including increasing reimbursement rates for the cost of retraining and other provisions that will help those who keep our state running!
Protecting Alaskan’s Data from Cyber Attacks | SB 134
Alaskans have seen several large scale data breaches in the last few years. Insurance companies store the personal data of just about every Alaskan, increasing the need for secure storage policies. SB 134 requires insurance companies to implement a information security program to protect our data against cyber threats. The bill was heard for the second time in the Senate Labor and Commerce Committee on Friday and was passed onto the Senate Judiciary Committee for consideration.
Coming up next week:
GDP-Based Spending Cap | SB 20 / SJR 4
Senate Bill 20 is a functional state spending cap which constructively links our private sector performance (measured by GDP) and government spending. An effective limit like this one creates stability and predictability in our budgeting process – in economic boom years, extra revenues are pushed forward, preventing the need for drastic cuts in economic bust years. SB 20/SJR 4 will be heard in the Senate Judiciary Committee on Monday and there will be an opportunity for you to testify in support if you are interested! (See above for details on how to call in)
Citizens’ Advisory Commission on Federal Areas | SB 34
For decades, CACFA monitored federal actions and ensured that individual Alaskans had a resource to understand and engage constructively with federal decisions that effected them. Senate Bill 34 reinstates the commission (after it sunset in 2021) so that it can continue to serve Alaskans. The bill is now in the Senate Finance Committee (its last stop before the floor) awaiting a second hearing. SB 34 will be heard in the Senate Finance Committee on Monday afternoon!
Anchorage Snow Removal Presentation:
The Department of Transportation came to my committee on February 1st and talked about snow removal and winter storm response. I’ve heard your frustrations about how difficult it is to get around (especially on the hillside) days after big snowfalls. I’ll continue to work with the Department on ways to improve service and response times.
Watch the whole hearing here >>
Watch the Anchorage-specific portion >>
Governor’s State of the State Address
Governor Dunleavy delivered his annual address to the Legislature on January 30th. He highlighted education, energy, public safety, and more.
The State of the Judiciary Address
Alaska Supreme Court Chief Justice Peter Maassen, new to the role as of last year, delivered his annual address to the Legislature on February 7th. He spoke about recent efforts that improved the court system’s accessibility and efficiency.
Senator Murkowski’s Annual Address
Senator Lisa Murkowski delivered her annual address to the Legislature on the 15th. She spoke about some of the big issues
Community Bulletin
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Abbott Loop Community Council MeetingThursday, February 29, 6:30-8:30PM |
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Hillside Home & Land Owners (HALO) MeetingBeginning of March, Begins 7:00PM |
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Hillside Community CouncilWednesday, March 6, 6:30-8:00PM |
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Huffman/O’Malley Community Council MeetingThursday, March 21, begins 7:00PM |
