Legislature(2017 - 2018)BELTZ 105 (TSBldg)
04/13/2017 09:00 AM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB37 | |
| HB81 | |
| HB49 | |
| HB141 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 37 | TELECONFERENCED | |
| += | HB 81 | TELECONFERENCED | |
| += | HB 49 | TELECONFERENCED | |
| + | HB 141 | TELECONFERENCED | |
HB 141-AK WORKFORCE INVESTMENT BOARD; FUNDS
9:16:03 AM
CHAIR COSTELLO announced the consideration of HB 141. She stated
that HB 141 reauthorizes the Technical Vocational and Education
Program (TVEP). The committee heard the Senate companion bill
and public testimony was held open. HB 141 will be the vehicle
moving forward and public testimony will continue today.
9:17:19 AM
REPRESENTATIVE ZACH FANSLER, Alaska State Legislature, sponsor
of HB 141, said his introduction would be brief because the
committee just heard the Senate companion, SB 85. Both bills
allocate TVEP funds to the same ten programs. The University of
Alaska receives 45 percent of the funding, the Galena Interior
Learning Academy receives 4 percent, Alaska Technical Center
receives 9 percent, the Alaska Vocational Technical Center
receives 17 percent, the Northwestern Alaska Career and
Technical Center receives 3 percent, the Southwest Alaska
Vocational Education Center receives 3 percent, Yuut
Elitnaurviat, Inc. People's Learning Center receives 9 percent,
Partners for Progress in Delta, Inc. receives 3 percent,
Amundsen Educational Center receives 2 percent, and Ilisagvik
College receives 5 percent.
REPRESENTATIVE FANSLER said the bill is a straight
reauthorization of funding for five years, whereas the Senate
bill has a three-year reauthorization. The idea is to put
Alaskans to work in their own regions. He explained that the
Technical Vocational Education Program (TVEP) was established in
2000 and the percentage an institution receives changes based on
the number of employees in the state. Employee contributions are
.0016 percent with a cap of $64 per Alaskan per year. He
described TVEP as a critical reauthorization for the state to
move forward putting Alaskans to work.
9:21:09 AM
SENATOR STEVENS asked why the House bill has a five-year sunset
when the Senate version has three years.
REPRESENTATIVE FANSLER explained that guaranteeing these
programs their current funding for five years allows them to
make long-term plans that isn't possible under a three-year
renewal. A second reason is it will give the Governor's
taskforce on Alaska's Education Challenge time to review all
aspects of education throughout the state. All technical and
vocational programs will be assessed, and recommendations will
be made to the legislature. Five years provides time for the
analysis and to determine the appropriate reporting standards.
9:24:02 AM
SENATOR STEVENS asked if he had looked at the administrative and
overhead costs of each of the grant programs.
9:24:28 AM
REPRESENTATIVE FANSLER explained that the costs vary between the
programs. For example, the cost for internet and energy at Yuut
Elinaurviat, Inc. in Bethel and Ilisagvik College in Barrow are
vastly different than the costs at the University of Alaska
Anchorage. In part the funds are used to offset the price of
broadband service or energy costs in these areas as a means of
helping to provide lower cost trainings.
9:26:32 AM
SENATOR STEVENS asked if he is satisfied with the program costs
and the training they provide.
REPRESENTATIVE FANSLER said yes, although there is room for
improvement. He opined that Alaska's Education Challenge will
ensure that the taskforce will look at needed efficiencies. He
directed attention to the TVEP report that shows that the goal
of getting Alaskans into the workforce is being met. Regional
needs are also being met. He stressed the importance of
continuing to serve the needs of the regional centers and
providing the training needed for the region.
9:28:08 AM
SENATOR MEYER asked where the Amundsen Education Center is
located.
9:28:33 AM
REPRESENTATIVE FANSLER replied it's in Soldotna.
SENATOR MEYER asked where most SAVEC and Yuut Elitnaurviat
graduates go to work.
REPRESENTATIVE FANSLER said they go to work in construction
jobs, heavy equipment, truck driving, and through partnerships
with aviation services and other programs such as
photojournalism, wind turbine maintenance, and alternative
energy. He stressed the importance of including maintenance when
spending money on large infrastructure projects.
9:30:56 AM
SENATOR MEYER mentioned that funding for NACTEC was reduced due
to private sector support from the Red Dog Mine. He asked if
programs in District 38 receive private sector funding.
9:31:43 AM
REPRESENTATIVE FANSLER said he believes that all the programs
charge tuition and partner with local programs. In his district,
Yuut Elitnaurviat, Inc. People's Learning Center partners with
the major local school district and the Yukon-Kuskokwim Health
Corporation to train future dental assistants and certified
nursing assistants throughout the region. He described TVEP
funding as vital but not the only way that these programs are
surviving.
9:34:02 AM
SENATOR MEYER asked if students pay tuition.
REPRESENTATIVE FANSLER said yes, but TVEP funds help to close
the gap to ensure that people do receive training in regions
where classes would otherwise be very expensive.
9:35:12 AM
CHAIR COSTELLO commented on the value of training Alaskans for
the workforce. She noted that while the Amundsen Educational
Center has 15-20 partners and the students pay tuition, TVEP
still supplies about $14,000 per student. She expressed interest
in looking at the variety of programs and the amount of funding
going to each program, because some areas are not getting TVEP
support. She pointed out that the state chooses who receives the
funding and the performance reports sometimes lack important
information.
She asked Greg Cashen to address a letter the committee received
today that explains the lack of occupational reporting from some
TVEP recipients.
GREG CASHEN, Deputy Commissioner, Department of Labor and
Workforce Development, read the following response to questions
about why 30 participants were in an occupational category of
unknown or unavailable:
The occupation data used the department's Research and
Analysis (R&A) team comes from quarterly employer
unemployment insurance filings. Not all employers
report the occupations for their employees or call
these occupations the same thing. This requires R&A to
follow up with employers to collect the missing
information or to get a better understanding of the
work performed so that they can assign the employee to
a nationally recognized occupation. There are always
some occupations that Research and Analysis is
unsuccessful in categorizing, unfortunately.
It is critical for the committee to understand what is
and is not included in the employment data available
to Research and Analysis. Since they rely on
unemployment insurance reports, they are unable to
capture federal, military or self-employment. Many
individuals in the construction trades work for
themselves, and fishing is also a very significant
employment category in some of these rural
communities, which is not captured. It is also
important for the committee to know that based on the
wording of the statutory performance measures they
only report employment and wages of TVEP participants
seven to 12 months after they exit the program. Since
TVEP runs on the state fiscal year, this would mean
January-June and TVEP participants could have been
employed and earned wages earlier in the year, but
they are not captured.
Also, the average wages reported are for six months so
they would represent only half of what the individuals
may have made over the full year, which is why we
provided an "annualized" average wage in our
presentation. If these individuals are employed in
seasonal occupations they may have only worked a few
of the six months collected, which brings down the
overall average.
9:40:17 AM
MR. CASHEN said what it comes down to is that DOLWD's Research
and Analysis Section is somewhat limited in categorizing the
employment data.
CHAIR COSTELLO asked if high school students who are enrolled in
TVEP programs but not really employed account for some of the
"n/a" category.
9:40:57 AM
PALOMA HARBOUR, Director, Division of Administrative Services,
Department of Labor and Workforce Development (DOLWD), clarified
that the letter responds to two separate questions. The first
was about the 30 participants whose occupations were in the
unknown or unavailable category. That is about employers not
reporting occupation information and the department being unable
to identify occupations for those individuals. The second
question asked why there was no employment data for students
from the Galena Interior Learning Academy (GILA). That is
because they are high school students and the department didn't
have the information needed to match with the unemployment
insurance data.
9:42:21 AM
SENATOR MEYER asked if the commercial fishing industry
contributes to local colleges like Ilisagvik.
MS. HARBOUR recalled that during the previous hearing the
representative from the Southwest Alaska Vocational and
Education Center (SAVEC) reported that they have been working on
a partnership with the seafood processors in their area to
improve Alaska hire.
MR. CASHEN added that he believes some of the Community
Development Quota (CDQ) Program groups also contribute to
training centers in that region.
SENATOR MEYER said he didn't recall hearing about a partnership
between the seafood industry and these schools, but it's good to
know.
9:43:28 AM
SENATOR HUGHES joined the committee.
CHAIR COSTELLO stated that public testimony on the
reauthorization of the Technical Vocational and Education
Program will continue.
9:43:55 AM
DON ETHERIDGE, Lobbyist, Alaska AFL-CIO, stated that the union
does not receive any TVEP funds, but has been supportive of the
program since its inception. He addressed why some programs like
King Career and Hutchison are not included in TVEP. He recalled
that the programs initially received general funds and were not
considered when TVEP started since they were already funded.
He recalled the history of TVEP and concluded that the union
likes to see Alaskans taking Alaskan jobs and TVEP training
makes that possible. He highly recommended the reauthorization
of the TVEP funding.
9:46:31 AM
CHRIS REITAN, Superintendent, Galena School District, testified
in support of HB 141. He informed the committee of the seven
career pathways the Galena Interior Learning Academy (GILA)
offers students attending the boarding school. These include:
pathways to aviation, construction trades, media and information
technology, cosmetology, natural resource management, applied
mechanics, and health sciences. He related that GILA has
developed career pathways that have both a rural and urban
influence. Thus, graduates have the option of returning home to
work or moving on to the university system or to postsecondary
vocational training. He reported that 169 high school students
participated in the dual credit tech prep system through the
University of Alaska Fairbanks and received 473 university
credits. The total savings for these students as they
transitioned into either a university postsecondary vocational
program or an academic program was $90,000.
He highlighted that TVEP funding has allowed the City of Galena
and the school district to develop both a woody biomass boiler
system that serves the GILA campus and a natural resource
program. The natural resources program has two courses that were
established in conjunction with UAF. He spoke in full support of
reauthorizing the TVEP funding. It is a primary reason that
students are choosing to attend the GILA boarding school.
9:50:12 AM
DANIEL REPASKY, Chief of Operations & Deputy Director, Alaska
Vocational Technical Education Center (AVTEC) stated that AVTEC
is a grateful recipient of TVEP funds. They receive 17 percent
of the funds, which represents about 14 percent of their overall
budget. The money is used to enhance the training of Alaskans.
He reported that about 90 percent of AVTEC students complete a
10-month program and between 88 and 90 percent of those
graduates are employed in the field in which they received
training. AVTEC partners with many organizations that receive
TVEP funds. As those students become proficient in their fields,
they transition to AVTEC for further training. He said this year
alone, over 500 high school students have visited AVTEC and 134
Alaskans have enrolled in both long-term and short-term
programs. About 1,100 students graduate AVTEC each year, leaving
with certifications that are highly valued by employers
throughout the state.
He highlighted that TVEP is the backbone for AVTEC's maintenance
department. Continued funding is vital and would be greatly
appreciated, he concluded.
9:52:42 AM
SENATOR STEVENS asked if he is prepared to provide relevant
training for students, should a gas pipeline be built.
9:53:27 AM
MR. REPASKY said yes, we are prepared. He explained that AVTEC
offers a combination welding program.
SENATOR STEVENS said he understands that building a pressured
gasline is a complex process.
MR. REPASKY advised that AVTEC students take a one-inch bend
test and are also certified in x-ray welding.
SENATOR GARDNER commented that she enjoys the note of pride in
Mr. Repasky's voice when he talks about being ready.
9:54:33 AM
JOEY CRUM, President & CEO, Northern Industrial Training (NIT),
related that he has been a professional vocational trainer for
over 15 years and is a staunch advocate of efficient and
effective vocational education. However, he has concerns with HB
141 and SB 85.
He voiced concern that TVEP is supposed to provide access to
technical and vocational education, but there are no
requirements as to what the funds are used for, and there are no
standards to define success. The lack of statutory guidance is
illustrated in the TVEP reports that show a preponderance of
graduates trained in office and administrative support
occupations. That is neither technical nor vocational. He
maintained that the varied and inconsistent reporting does not
demonstrate a statewide plan. Furthermore, there are cases where
the funds were spent on regulatory safety classes instead of a
skill-building curriculum.
MR. CRUM highlighted that the Department of Labor and Workforce
Development (DOLWD) testified that schools are not compared to
determine who is successful and who is not. He posited that the
lack of reporting guidelines leads to institutions holding back
data because they don't know what others will or won't report.
He cited the Amundsen Educational Center as an example of
outrageous costs to train only 17 people. By comparison, AVTEC
reported training 1,490 people for about one-tenth the cost. He
said that sounds nefarious but AVTEC reported their total
enrollment, not just TVEP students. He cited his source.
MR. CRUM spoke of his experience working with programs that
report data accurately. He then pointed out the TVEP report the
committee received doesn't include the minimal data that AS
23.15.835 requires institutions to report or lose 20 percent of
their funding the following year. He also noted the inconsistent
explanations about why secondary student data isn't available.
He said the committee also heard that private schools aren't
named in TVEP even though both Amundsen and Ilisagvik are
private.
10:01:04 AM
MR. CRUM summarized the three points he made and urged the
committee to make two changes to HB 141. First, prohibit TVEP
monies from being spent on capital projects or facilities.
Second, add a provision to limit all administrative spending to
2 percent of the funds awarded. He also urged the committee to
adopt the Senate's [three-year] sunset.
CHAIR COSTELLO asked Mr. Crum to submit his comments in writing.
MR. CRUM agreed to do so.
SENATOR STEVENS requested Mr. Crum repeat his recommendations
and Mr. Crum did so.
10:03:04 AM
SENATOR HUGHES asked Mr. Crum if he has suggestions to correct
inconsistent reporting.
MR. CRUM said he recommends the TVEP report follow the
guidelines set in statute. He added that the state needs to come
up with standards defining what success looks like. He gave an
example.
SENATOR HUGHES said she would appreciate seeing those
recommendations in writing.
CHAIR COSTELLO stated she would hold HB 141 in committee with
public testimony open. She said this will give DOLWD the chance
to respond to any of the concerns that were brought up. She
specifically asked if there have been consequences for not
meeting the statutory reporting requirements.
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