In this July 8, 2019, file photo, Senate President Cathy Giessel, R-Anchorage, left, and Speaker of the House Bryce Edgmon, I-Dillingham, speak to members of the media after gaveling in to a Second Special Session of the Alaska Legislature in Juneau, Alaska. During her first year as Alaska Senate president, Giessel won over one-time political adversaries and angered some within her own party for her willingness to buck Gov. Mike Dunleavy, a fellow Republican, on key pieces of his agenda. (Michael Penn | Juneau Empire)

In this July 8, 2019, file photo, Senate President Cathy Giessel, R-Anchorage, left, and Speaker of the House Bryce Edgmon, I-Dillingham, speak to members of the media after gaveling in to a Second Special Session of the Alaska Legislature in Juneau, Alaska. During her first year as Alaska Senate president, Giessel won over one-time political adversaries and angered some within her own party for her willingness to buck Gov. Mike Dunleavy, a fellow Republican, on key pieces of his agenda. (Michael Penn | Juneau Empire)

Alaska Senate president in spotlight with dividend fight

Giessel has shown a willingness to buck key pieces of Dunleavy’s agenda

During her first year as Alaska Senate president, Cathy Giessel won over one-time political adversaries and angered some within her own party for her willingness to buck Gov. Mike Dunleavy, a fellow Republican, on key pieces of his agenda.

Giessel’s ascension to the role just three other women have held coincided with Dunleavy’s 2018 election. She was among those who argued cuts proposed by the governor were too much, too fast, and that the formula he wanted to follow for paying checks to residents from the state’s oil-wealth fund, the Alaska Permanent Fund, was no longer workable.

Tuckerman Babcock, a former state GOP chair and former Dunleavy chief of staff, said Giessel’s position on the dividend changed.

“That’s one issue, and the other is, to be so publicly, adamantly at odds with the governor is just bizarre,” he said, noting he would not support her again.

Giessel said as Senate leader, she’s an easy target.

Rather than dictating views to her 14-member caucus, which includes a Democrat, Giessel said she gives them room to wrestle with issues to reach agreement, or not. Her caucus was sharply divided on the dividend last year, which she said reflected the electorate and divisions within her party.

Giessel said the dividend has been one of the most divisive statewide issues she’s seen. It’s expected to be a major focus during the next legislative session, which begins Jan. 21.

“But I do believe … we will, after all of this vigorous conversation, come to a good conclusion,” she said.

In 2016, as she faced re-election, Giessel supported then-Sen. Dunleavy’s call to restore the portion of the dividend cut by Gov. Bill Walker as the state struggled with a budget deficit. Giessel recently said she felt the issue should not be decided by one person.

Lawmakers had a chance to override Walker’s actions but didn’t. A legal challenge ultimately was decided in his favor.

In 2018, lawmakers began tapping permanent fund earnings, long used to pay dividends, to help cover government costs. They also passed a law seeking to limit withdrawals from earnings for government and dividends.

Dunleavy has supported using a decades-old dividend formula that many lawmakers see as unsustainable and haven’t followed in recent years. Giessel has called for a formula change.

During her race, “I never said I supported these massive-sized PFDs,” she said, referring to the checks. “I supported a full legislative discussion of the subject and not just keeping the money in the earnings reserve account but actually using it to balance our budgets.”

Lawmakers settled on a 2019 dividend that equaled $1,606. Under the formula, it would have been $2,910, according to the Department of Revenue.

House Speaker Bryce Edgmon said his relationship with Giessel mainly consisted of passing hellos before she became Senate president but has blossomed into a friendship and trusted working relationship. He said she has come into her own as a leader.

“She sticks to her values, her principles. In the face of flack by some in her own party, and maybe some Alaskans along the way, she didn’t flinch, and I really respected her for that,” said Edgmon, an independent.

Giessel and Edgmon joined in challenging the administration in a dispute over school funding and Dunleavy’s pick of a special session location.

Giessel was born in territorial Alaska, in Fairbanks, where she was raised, the oldest of four children. Her father was a pilot who often took her on trips to rural Alaska. Her mother went to law school after raising the family.

Giessel wanted to study political science in college but said her mother urged her to study something “practical,” like nursing. Her mother also urged her to intern for then-U.S. Sen. Ted Stevens, which she said she did.

Giessel met her husband Richard in Michigan, where she attended college. After nursing school, when he suggested they marry, she told him he’d find her in Alaska, where they eventually settled.

She put her nursing career on hold for 12 years to raise and homeschool their children, and later earned a master’s degree.

In this Jan. 15, 2019, file photo, Anchorage Republican state Sen. Cathy Giessel is shown after being elected Alaska Senate president in Juneau, Alaska. During her first year as Alaska Senate president, Giessel won over one-time political adversaries and angered some within her own party for her willingness to buck Gov. Mike Dunleavy, a fellow Republican, on key pieces of his agenda. (AP Photo | Becky Bohrer File)

In this Jan. 15, 2019, file photo, Anchorage Republican state Sen. Cathy Giessel is shown after being elected Alaska Senate president in Juneau, Alaska. During her first year as Alaska Senate president, Giessel won over one-time political adversaries and angered some within her own party for her willingness to buck Gov. Mike Dunleavy, a fellow Republican, on key pieces of his agenda. (AP Photo | Becky Bohrer File)

Giessel has long been involved in Republican politics and served as a state GOP vice chair.

After working on campaigns and wanting to make a difference with policy, she was elected to the Senate in 2010. For two years, she was part of a conservative, four-member minority.

Oil and gas were hot topics, and she “made up her mind that she was going to know everything that there was to know about it,” said Republican Sen. John Coghill, who was in that caucus and is on the current GOP-led majority’s leadership team.

“Man, oh man. She got hold of something and became a formidable force because of her tenaciousness,” he said.

During her legislative career, Giessel has often attended hearings of committees she doesn’t serve on, taking notes, likening it to soaking up all she can in a classroom.

Giessel became Senate Resources Committee chair in 2013, after Republicans wrested control of the Senate from a bipartisan majority. She said she wanted the job after seeing how North Slope communities she visited as a nurse had benefited from oil development.

Senate Democratic Leader Tom Begich said Giessel once was a political adversary but last year said they expressed a desire to work together, in their leadership roles. The Anchorage Democrat said he and Giessel have different ideas but share the goal of a “stable, sustainable Alaska” with opportunities.

“I have no doubt about that, and that makes it easy to work with her,” he said.


• This is an Associated Press report by Becky Bohrer.


More in News

Jasmine Chavez, a crew member aboard the Quantum of the Seas cruise ship, waves to her family during a cell phone conversation after disembarking from the ship at Marine Park on May 10. (Mark Sabbatini / Juneau Empire file photo)
Ships in port for the week of June 8

Here’s what to expect this week.

(Michael Penn / Juneau Empire file photo)
Police calls for Tuesday, June 11, 2024

This report contains public information from law enforcement and public safety agencies.

Two banks with drive-through lanes are seen on Postal Way on Thursday morning. A man was fatally struck by a truck in a drive-through lane in the area during the early morning hours of June 1. (Mark Sabbatini / Juneau Empire)
Man dies after being struck by truck while laying in drive-through lane near Mendenhall post office

Armando Sanchez, 38, struck during early morning hours of June 1; JPD notified of death Tuesday.

Curtis Davis sharpens a spike at his makeshift campsite near Juneau International Airport on Sunday. (Mark Sabbatini / Juneau Empire)
With no official place to camp, homeless and neighborhoods alike are suffering miseries

Complaints to JPD nearly double, social agencies seek “safety zone,” many campers just want peace.

Alaska Supreme Court Justice Peter Maassen receives applause from his fellow justices and members of the Alaska Legislature during the annual State of the Judiciary address on Wednesday, Feb. 1, 2023, at the Alaska State Capitol. (James Brooks/Alaska Beacon)
Gov. Dunleavy will be asked to pick fourth state Supreme Court justice

Applications being accepted to replace Peter Maassen, who reaches mandatory retirement age next year

(Michael Penn / Juneau Empire file photo)
Police calls for Monday, June 10, 2024

This report contains public information from law enforcement and public safety agencies.

Pins supporting the repeal of ranked choice voting are seen on April 20 at the Republican state convention in Anchorage. (James Brooks/Alaska Beacon)
Alaska ranked choice repeal measure wins first round of legal challenge, but trial awaits

Correction: The initial version of this article incorrectly listed Alaskans for Better… Continue reading

Juneau resident Ajah Rose Bishop, 21, suffered severe spinal injuries in a single-vehicle accident early Saturday morning. (GoFundMe fundraiser photo)
Woman breaks spine in single-vehicle collision on Egan Drive early Saturday morning

21-year-old Juneau resident medivaced to Anchorage, online fundraising effort underway.

Most Read