Legislature(2021 - 2022)BELTZ 105 (TSBldg)
02/08/2021 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB10 | |
| SB24 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 56 | TELECONFERENCED | |
| *+ | SB 10 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| *+ | SB 24 | TELECONFERENCED | |
SB 10-FREE/REDUCED TUITION FOR ESSENTIAL WORKER
1:36:31 PM
CHAIR COSTELLO announced the consideration of SENATE BILL NO.
10, "An Act establishing a grant program to provide to essential
workers the tuition and fees to attend a state-supported
postsecondary educational institution."
1:36:37 PM
SENATOR BEGICH, Alaska State Legislature, Juneau, Alaska,
sponsor of SB 10, introduced the legislation reading the
following sponsor statement into the record:
During this unprecedented time, thousands of Alaskans
have remained steadfast in their commitment to their
communities. From restocking grocery shelves to
delivering medicine, from hauling away our trash, to
continuing to care for the most vulnerable amongst us,
essential workers have provided the critical support
our communities have needed during this pandemic. Now
is the time to recognize the efforts and invest in
this ready and able workforce. SB 10 establishes an
Essential Worker Grant Program, leveraging the
dedication of our frontline workers and providing a
tuition free pathway for them to enhance and grow
their professional capacity.
1:38:10 PM
According to the US Department of Labor, rising levels of
education attainment correlates to a 14% increase in output per
hour worked in the private sector. In fact, data shows that the
typical college graduate working full-time pays more than 80% in
local, state, and federal taxes than the typical high school
graduate. Investing in our essential workers will make Alaska
more competitive and reduce strain on government financial
assistance programs, reduce crime rates, and increase tax
revenue and wages.
Research indicates that an overwhelming 93% of
employees would stay at their companies longer if the
company invested in their professional development.
With declining population rates affecting all of
Alaska, investing in our essential workforce will keep
Alaskans here working hard to stabilize, strengthen,
and build back our economy.
SENATOR BEGICH referred to a state health mandate and directed
attention to the document in the packets that lists a number of
the sectors that have provided essential services. He said
legislative legal has advised that this is the appropriate term
and it matches the document titled "Alaska Essential Services
and Critical Workforce Infrastructure Order," amended April 10,
2020. He noted that section II (e) lists each of the areas that
would be eligible for either free or reduced tuition under SB
10.
SENATOR BEGICH read the following from the most recent quarterly
report from National Bank Alaska that was reporting on the
Federal Reserve:
The negative consequences of COVID-19 have fallen
disproportionately upon low-wage workers. The
employment rate for low-wage workers is down by about
25 percent compared with January 2020. In contrast,
the employment rate for high-wage workers has fully
recovered and now stands about 1 percent higher
compared with January 2020.
SENATOR BEGICH stated that SB 10 was appropriate because this
public health emergency disproportionately affected low-wage
workers who were least able to carve a path for their futures.
He noted that Senator Stevens and Senator Holland were on the
next committee of referral and advised that he hoped to add some
technical changes to the bill in that committee.
1:43:20 PM
LOKI TOBIN, Staff, Senator Tom Begich, Alaska State Legislature,
Juneau, Alaska presented the sectional analysis for SB 10.
Section 1.
Establishes an Essential Worker Grant Program as new
uncodified law of the State of Alaska.
Directs the Alaska Commission on Postsecondary
Education to establish an undergraduate tuition grant
program for essential workers employed at the start of
or during the declared federal public health
emergency. This section also includes a comprehensive
listing of occupations that qualify as essential for
the purpose of this grant program.
Provides stipulations for qualifying essential
workers, including employment status, postsecondary
enrollment status, residency requirement, high school
or equivalency completion requirement, grade point
minimum, completion of federal aid application, and
post-secondary credit hour limitations.
Includes grant program eligibility requirements,
including grade point minimum, program progression,
and enrollment status.
Directs the Alaska Commission on Postsecondary
Education to establish policies and procedures for
application and admission to the program, including
establishing evaluation process of program efficacy.
Section 2.
Establishes an Essential Worker Grant Program Report
as new uncodified law of the State of Alaska.
Directs the Alaska Commission on Postsecondary
Education to submit the report of program efficacy to
the Alaska State Legislature on or before December
st
31.
Section 3.
Repeals Section 1 on the date of expiration or
determination of the declaration of a federal public
health emergency.
Section 4.
Sets a repeal date of January 1, 2025 for Section 2 of
this Act.
1:45:52 PM
SENATOR BEGICH said the Higher Education Endowment Fund seemed
to be the appropriate vehicle for funding, but unallocated
federal resources for education may be used. The estimated
funding need was based on numbers from Michigan that adopted a
similar program. In that instance, less than one percent of the
population applied and fully half of those applicants joined
because of a high school element. The intent in the next
committee of referral is to set a hard date for application and
it will likely be December 31, 2021. He explained that somebody
who worked during an emergency order is eligible and if they
apply in 2021, they have up to four years to use the grant.
CHAIR COSTELLO mentioned grocery store workers specifically and
asked if the intention was to reward people that the public had
been relying on during the pandemic or to provide them
additional education to add value to their position and
potentially help them move forward.
SENATOR BEGICH replied it was both. Some people may choose to do
the same or similar work or they may choose to pursue a
different career path. It also is thanking these people for the
work they did putting themselves on the line and providing an
opportunity and path toward success.
He said Ms. Tobin has some data points about the health
consequences of being an essential worker that the committee may
find interesting.
1:50:39 PM
MS. TOBIN cited a study that shows over 20 percent of essential
workers had contracted COVID-19 and 95 percent were positive.
Over 24 percent experienced high anxiety and depression.
1:51:30 PM
SENATOR STEVENS asked him to restate the timeline for enrolling
in the program and using the funds.
SENATOR BEGICH said he wanted to set a hard date to apply for
the program, so it was easier to predict the cost. The
expectation was that this public health emergency would end
between September and December of this year. The idea was that
an essential worker would be able to apply this calendar year.
If the public health emergency were to extend into 2022, he
would ask the legislature to revisit the matter. He asked Ms.
Tobin how many people applied in Michigan.
MR. TOBIN replied 85,000.
SENATOR BEGICH estimated that about 5,000 Alaskans would apply.
Applicants that the Postsecondary Education Commission approved
would have up to four years to act. He said he was happy to
entertain amendments in the Education Committee.
SENATOR STEVENS said his concern was for a student who applied
this year but could not start classes until next January.
SENATOR BEGICH clarified that if someone had applied for the
program, he or she could start next year and have four years to
complete the program.
1:54:53 PM
SENATOR GRAY-JACKSON asked if an essential worker had the option
of applying for a grant to be either a full-time or a part-time
student, but the decision was theirs.
SENATOR BEGICH said yes and added that the intent was that the
grant would apply to both college and vocational education
opportunities such as AVTEC.
CHAIR COSTELLO asked if the language in the bill specifically
included AVTEC.
SENATOR BEGICH replied that Legislative Legal Services believes
it applies but suggested a small amendment to make that
abundantly clear. He posited that it was appropriate to offer
the amendment in the Education Committee. He noted that
Legislative Legal further advised him to state on the record
that the intent was to have the grant program apply to AVTEC.
CHAIR COSTELLO restated that the intent was that SB 10 would
apply to Alaska Vocation Educational Technical College (AVTEC)
students. She asked if he had talked to any grocery store
managers about how this bill might result in a reduction in
their workforce.
SENATOR BEGICH replied he had not talked to any owners or
managers directly but he did speak with Joelle Hall, the
incoming [president] of the Alaska AFL-CIO, about food and
commercial workers in the AFL-CIO's United Food and Commercial
Workers union. He said he was not sure that this program would
move grocery workers out of that workforce, but it would provide
an opportunity for those workers to choose to move out of that
workforce at some point in their lives.
CHAIR COSTELLO asked if he was aware of any opposition to the
bill.
SENATOR BEGICH replied he was not aware of any opposition.
1:58:16 PM [spotty audio from 1:5837-1:58:30]
DAN ROBINSON, Chief of Research and Analysis, Division of
Administrative Services, Department of Labor and Workforce
Development, Juneau, Alaska, informed the committee that the
division was policy neutral and politically free, and that was
key to their value to the state.
MR. ROBINSON advised that he would provide information about job
numbers during the COVID-19 health emergency and point to two
reports the department produces that would be helpful broadly,
as the committee thinks about the value of investments in
Alaska's training and education institutions.
2:00:02 PM
MR. ROBINSON directed attention to a line graph on slide 2 that
showed the percent change in Alaska employment from 2014 through
2020. He noted that the data was from the same month from the
previous year to eliminate fluctuation due to seasonality. He
pointed out the recession from October 2015 to the fourth
quarter of 2018 and commented that it looked mild compared to
the unprecedented plunge in employment that resulted from the
COVID-19 pandemic. He said that percent drop had never happened
in Alaska's history. To the people who might think this was
worse than in the 1980s, he said the COVID-19 drop was very
different and the rebound would likely be very different. He
noted that a lot was yet to be determined about how 2021 pans
out.
2:02:19 PM
MR. ROBINSON turned to the summary of job losses during the
pandemic reflected slide 3. He highlighted that, by percentage,
the largest job losses by far were in the leisure and
hospitality category.
He said the second largest losses, by percentage, were in the
oil and gas category and that there was more uncertainty about
those jobs going forward than for leisure and hospitality. He
explained that oil and gas jobs had just climbed back to 10,000
before the pandemic, and since then the numbers have dropped to
7,000. He noted that each of those 3,000 jobs paid about
$100,000.
CHAIR COSTELLO asked him to elaborate on the comment that there
was more uncertainty about oil and gas jobs going forward.
MR. ROBINSON said different and more structural factors might
affect oil and gas jobs when the economy reopens. The
expectation is that gyms, bars, and restaurants that survive
COVID-19 will reopen when the health emergency has passed, but
the trajectory of oil and gas jobs may be affected for a longer
period. Part of that is that the demand for business travel may
not bounce back quickly.
MR. ROBINSON said the third point on slide 3 was that COVID-19
did not spare any part of the economy. The fourth point was that
Alaska's losses were among the most severe of all states and the
recovery so far had been slower than other states.
2:05:14 PM
MR. ROBINSON directed attention to the data on slide 5 and
explained that the point of including it was to make members
aware that this annual report exists. It looks in detail at the
types of jobs that are growing and the types that were expected
to decline. The division also does some job compilation to look
at the jobs that pay better than average and are growing better
than average. He said this report would be useful for SB 10 and
plenty of other legislation to understand what was happening
with job growth and decline in the economy.
CHAIR COSTELLO asked him to give the title of the report and the
website where it was located.
MR. ROBINSON said the annual report called "Employment Trends
for Alaska, 2018-2028," was published in the October issue of
"Alaska Economic Trends." To find it, search for "Alaska
employment projections." He offered to follow up with specific
links for this report and more detailed information about
occupations.
CHAIR COSTELLO asked him to talk about how people changing
careers may affect occupational projections.
2:07:43 PM
MR. ROBINSON said people frequently change occupations,
particularly at the lower end where there are not many training
requirements. He noted that some people work 10 types of
occupations in two years.
SENATOR STEVENS commented on the decline of loggers and
potentially fewer lawsuits.
MR. ROBINSON pointed out that the numbers were small but old-
fashioned media was declining and marijuana was number one in
growth. Second in growth was the combination of mining and
brewing. He explained that occupations in both gold mining and
brewing study the suspension of solids in liquid. He noted that
other compilations such as registered nurses and teachers have
the big numbers.
2:10:02 PM
MR. ROBINSON explained that the report that Research and
Analysis publishes annually looks in detail at the nonresidents
working in Alaska. He noted that the definition of nonresident
worker was someone who worked but had not lived in Alaska for a
full year. This was important because the Alaska economy was
generating these jobs but the citizens of Alaska were not
benefiting.
MR. ROBINSON directed attention to slide 7 that looked at
construction as a sample of what was included in the report. It
looks, by industry, at the historical trends for the different
occupations and percentage of wages that go to nonresident
workers.
2:11:13 PM
SENATOR GRAY-JACKSON referred to declining occupations and asked
what a faller does.
MR. ROBINSON replied it was somebody who cuts down trees.
CHAIR COSTELLO assumed that the nonresident report was on the
department's website.
MR. ROBINSON answered yes; legislators also received the report
in an email.
2:12:08 PM
At ease
2:12:35 PM
CHAIR COSTELLO reconvened the meeting and invited James Harvey
to testify.
2:12:43 PM
JAMES HARVEY, Assistant Director, Division of Employment and
Training Services, Department of Labor and Workforce Development
(DOLWD), Juneau, Alaska, stated that he oversees the job centers
throughout Alaska, their operations, and the programs delivered
to the citizens of Alaska.
He directed attention to the map on slide 2 of the PowerPoint
that showed the locations of the 14 job centers located
throughout the state. He explained that the centers run
primarily through the Workforce Innovation and Opportunity Act
(WIOA), which was a partnership among 18 required programs that
form a one-stop system. He noted that DOLW operated 11 of the 18
programs.
2:14:00 PM
MR. HARVEY reviewed slide 3. He said the division staffs 14 of
the Alaska job centers and provides services in a tiered
approach. Applicants that need help generally need base
assistance with things like resumes, applications, and
interviews. These types of services were provided to over 75,000
job seekers last fiscal year, he said.
MR. HARVEY said the next tier of support was to provide
individualized and training services for Alaskans experiencing a
skill or credential barrier to employment. Case managers assess
and work one-on-one with these Alaskans to develop an individual
employment plan or roadmap to suitable employment. These plans
can include things like funding to assist with training for a
credential, skills upgrade, AVTEC, a CDL license from another
provider, or from the University of Alaska. He highlighted that
the division also provided supportive services for individuals
in training and job placement assistance when the training was
completed.
He reported that job training and placement assistance of
individuals includes traditional training, training for
credentials, and on the job training that may lead to an
apprenticeship and nationally recognized credential. The
division also works with individuals in prisons both pre and
post release.
2:17:32 PM
MR. HARVEY reviewed the Employer Services provided through the
Job Service System listed on slide 4. He said this work was
primarily through the AlaskaJobs System, which was the primary
exchange to match employers and job seekers. The division also
works with employers on job fairs and individualized employer
recruitment sessions. He highlighted that the veterans career
fair scheduled for November 2020, moved online in a virtual
format. It spanned several weeks to allow employers and other
service agencies an opportunity to connect with veterans and
eligible spouses.
2:19:15 PM
SENATOR REVAK asked if that program operated through the
Disabled Veterans Outreach Program (DVOP) and the Local Veterans
Employment Representative staff (LVERs).
MR. HARVEY replied it was in conjunction with DVOP and LVERS
through a federal grant called Jobs for Veterans State Grant.
The job center used those staff to do the majority of that
connection. He noted that the leader of that job fair does the
majority of the outreach to businesses to ensure that employers
understand the benefits of hiring a veteran. It was also
leveraged heavily by Wagoner-Peyser Act funding that covers the
scope of employment services, including veterans.
SENATOR REVAK asked if the division reported on these programs
annually.
MR. HARVEY replied the division prepared, in conjunction with
the Alaska Workforce Investment Board, the annual report for the
Workforce Innovation and Opportunity Act (WIOA).
SENATOR REVAK expressed interest in receiving a report on the
details of the implementation of these programs over the last
several years.
CHAIR COSTELLO asked Mr. Harvey for that report and a list of
what the division offers for veterans so legislators could share
that with their constituents.
2:21:57 PM
MR. HARVEY continued the presentation, highlighting additional
employer services listed on slide 4. He explained that some of
the hiring incentives for employers that address barriers to
employment include the Fidelity Bonding Program, Work
Opportunity Tax Credit (WOTC), and the Alaska Veteran Employment
Corporate Tax Credit. Additionally, the division has a Rapid
Response component to work with businesses undergoing closure to
promote economic recovery and minimize the impact on workers so
they receive benefits through the Unemployment Insurance
Program.
MR. HARVEY also highlighted that all the division's programs
through the US Department of Labor give priority to veterans.
Regarding DVOPs and LVERs, he said two half-time positions are
located in Fairbanks, four half-time positions in Anchorage, two
half-time positions in MatSu are coming soon, and one full-time
Local Veteran Employment Representative primarily to address
employer relationships.
2:23:56 PM
MR. HARVEY turned to slide 5. He advised that the Division of
Employment and Training Services administers workforce training
through the broad categories of programs to grantees and
programs delivered through the Job Center System. Delivery of
the Alaska Adult Education (GED) Program and the Senior
Community Service Employment Program was through grantees. He
noted that in Alaska the latter was called the Mature Alaskans
Seeking Skills Training (MASST).
Programs delivered through the Job Center System include Trade
Adjustment Assistance; Workforce Innovation and Opportunity Act
programs for adults, dislocated workers, and incumbent worker
training; and State Training and Employment Program for
individuals.
2:24:53 PM
MR. HARVEY said he was focusing on the federal funded programs,
primarily those delivered through the Job Centers, which are the
WIOA Adult and Dislocated Worker Programs. They play a key role
in helping Alaskans to secure self-sufficient employment. Both
programs have the same service structure discussed earlier.
MR. HARVEY said the Adult Program focused on individuals with
barriers to employment, while the Dislocated Worker Program was
designed primarily to assist workers affected by business
closure or layoff. Both programs have types of 104 week training
program that lead to certification, credential, or diploma upon
completion and employment is an immediate expectation
thereafter.
2:26:14 PM
MR. HARVEY paraphrased the text on slide 7 that describes the
Workforce Innovation and Opportunity Act (WIOA) Adult Program:
The WIOA Adult program improves the quality of the
adult workforce, increases self-sufficiency through
employment, and enhances the productivity and
competitiveness of Alaska's workforce. It enables
workers to obtain good jobs by providing them with job
search assistance and training opportunities.
General Program Eligibility:
• Age 18 or older
• In need of workforce services, training or
retraining to secure unsubsidized employment
• Priority is given to veterans, low-income
individuals, individuals who are basic skills
deficient and recipients of public assistance
MR. HARVEY paraphrased the text on slide 8 that describes the
Workforce Innovation and Opportunity Act (WIOA) Dislocated
Worker Program:
WIOA Dislocated Worker Program
The Dislocated Worker program is designed to help
workers get back to work as quickly as possible and
overcome barriers to employment. When individuals
become dislocated workers as a result of job loss,
mass layoffs, global trade dynamics, or transitions in
economic sectors, the Dislocated Worker program
provides services to assist them in re-entering the
workforce.
General Program Eligibility:
Unemployed and have lost their job through no
fault of their own
Veterans receive priority of service
MR. HARVEY displayed slides 9 and 10 that show contact
information for the Alaskan Job Center System and his work email
and phone number.
2:29:50 PM
CHAIR COSTELLO invited Louise Dean to testify.
2:30:10 PM
LOUISE DEAN, Executive Director, Alaska Workforce Investment
Board (AWIB), Anchorage, Alaska, stated that AWIB had multiple
funding sources to provide support and training programs...
2:30:36 PM
At ease due to technical difficulties
2:31:09 PM
CHAIR COSTELLO reconvened the meeting.
2:31:40 PM
At ease due to technical difficulties
2:32:18 PM
CHAIR COSTELLO reconvened the meeting.
Technical difficulties continued and Chair Costello asked Ms.
Dean to submit her testimony in writing.
2:33:14 PM
CHAIR COSTELLO opened public testimony on SB 10.
2:33:37 PM
MIKE COONS, representing self, Palmer, Alaska, said he could not
support SB 10, largely because of the definition of "essential
worker." He opined that these workers were given higher priority
over all other Alaskans who are just as essential. He maintained
that the low-income workers the sponsor referenced in the bill
are those who are working and drawing a paycheck. However, the
"nonessential" workers are the new low-income and new poor. He
described this as upside down and potentially discriminatory. He
emphasized the importance of getting all Alaskans back to full
employment.
CHAIR COSTELLO said she was sure the sponsor would take his
questions to the next committee.
2:36:00 PM
At ease due to technical difficulties.
2:37:00 PM
CHAIR COSTELLO reconvened the meeting.
2:37:20 PM
SANA EFIRD, Executive Director, Alaska Commission on Post-
Secondary Education, Juneau, Alaska, said she was available to
answer questions.
SENATOR STEVENS congratulations her on her new position.
MS. EFIRD said she looked forward to working with him.
2:38:22 PM
JOELLE HALL, incoming President, Alaska AFL-CIO, Anchorage,
Alaska, said she was pleased to report that many of the Alaska
AFL-CIO frontline workers had been working during the pandemic.
However, she said many other workers who hold important jobs
that make the gears of the economy turn did not benefit from
collective bargaining.
She said we have learned a lot during this pandemic but
something that sticks in our collective memories and hearts is
that without childcare and grocery store workers, everyone is in
deep trouble. She thanked the sponsor for introducing the bill
and emphasized the importance of training to get Alaskans back
to work. She related that a cornerstone of the work the labor
movement does was to provide training and the opportunity to
build a better life for families. She agreed with the statement
in the sponsor statement that better training also benefits
employers.
MS. HALL described SB 10 as a win-win for workers and their
current or future employers. She said it was a good idea and the
Alaska AFL-CIO was in full support and looked forward to its
passage.
2:40:16 PM
CHAIR COSTELLO found no further testimony. She noted that the
bill had a Finance Committee referral so she would not ask for a
review of the fiscal note.
SENATOR BEGICH thanked the committee for hearing the bill.
2:41:02 PM
CHAIR COSTELLO closed public testimony on SB 10.
2:41:11 PM
SENATOR GRAY-JACKSON moved and asked unanimous consent to report
SB 10 from committee with individual recommendations and
attached fiscal note(s).
CHAIR COSTELLO found no objection and SB 10 was reported from
the Senate Labor and Commerce Standing Committee.