Legislature(2021 - 2022)ADAMS 519

04/16/2021 09:00 AM House FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 100 EXTEND WORKFORCE INVEST BOARD ALLOCATIONS TELECONFERENCED
Heard & Held
-- Public Testimony --
*+ HB 92 ANTICIPATION OF REVENUE; BORROWING;CREDIT TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
HOUSE BILL NO. 100                                                                                                            
                                                                                                                                
     "An Act relating to allocations of funding for the                                                                         
     Alaska Workforce Investment Board; and providing for                                                                       
     an effective date."                                                                                                        
                                                                                                                                
9:03:45 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   ADAM  WOOL,   SPONSOR,  provided   a  brief                                                                    
reintroduction   of  the   Technical  Vocational   Education                                                                    
Program (TVEP)  bill that provided  funding to  10 different                                                                    
vocational schools  or programs around the  state using .016                                                                    
percent  of  unemployment funds.  The  bill  provided for  a                                                                    
three year authorization of the program.                                                                                        
                                                                                                                                
Co-Chair Merrick OPENED public testimony.                                                                                       
                                                                                                                                
9:04:38 AM                                                                                                                    
                                                                                                                                
FRED VILLA, SELF, PALMER  (via teleconference), testified in                                                                    
support of the  legislation. He shared that  he formerly was                                                                    
the  Associated Vice  President for  workforce programs  for                                                                    
the  University of  Alaska (UA)  and  administered the  TVEP                                                                    
program for 13 years. He  believed that the TVEP funding was                                                                    
an  extremely important  part of  the workforce  development                                                                    
system. He indicated that the  program had been in place for                                                                    
over  20 years.  He pointed  to the  annual program  reports                                                                    
that showed  the incredible amount of  outreach and industry                                                                    
supported  training programs  that  were  a strong  economic                                                                    
driver and  foundation for workforce development  in Alaska.                                                                    
He  encouraged the  legislature to  consider continuing  the                                                                    
program  in perpetuity  instead of  the proposed  three year                                                                    
extension. The program had proven  itself in performance and                                                                    
return on  investment and was  not a mere pilot  program. He                                                                    
understood there were  other entities that would  like to be                                                                    
considered as  a recipient of  the funds. He  suggested that                                                                    
there  were opportunities  to expand  the  program to  other                                                                    
entities.  He reported  that the  situation  was similar  to                                                                    
when I?isagvik  College [Utqiagvik,  Alaska] was added  as a                                                                
TVEP  recipient,  where  the formula  was  adjusted  by  .01                                                                    
percent to  accommodate the  change. The  current recipients                                                                    
were held harmless  and did not experience  any reduction in                                                                    
their awards.  He suggested ways new  recipients could apply                                                                    
for  TVEP  funding.  He   thanked  Representative  Wool  for                                                                    
bringing the  bill forward  and was  deeply grateful  to all                                                                    
the entities involved in the program's success.                                                                                 
                                                                                                                                
9:08:54 AM                                                                                                                    
                                                                                                                                
DAVE  REES, FACILITATOR,  BUSINESS EDUCATION  COMPACT (BEC),                                                                    
EAGLE  RIVER (via  teleconference), supported  the bill.  He                                                                    
had  been involved  in workforce  development in  Alaska for                                                                    
the past  30 years. He  shared that he  was a member  of the                                                                    
Alaska   Workforce  Investment   Board   at  the   programs                                                                     
inception. He  supported TVEP,s  continuation for  the long-                                                                    
term. He shared  that the BEC had  continually supported the                                                                    
program  over   the  years  as  an   effective  approach  to                                                                    
delivering training  across the state. The  program provided                                                                    
both secondary and post-secondary  education for many of the                                                                    
businesses in the state.  He appreciated Representative Wool                                                                    
for bringing  the bill forward.  He stated that  the program                                                                    
provided a  pathway to jobs in  many areas. He spoke  to the                                                                    
importance of  getting unemployed individuals back  in jobs.                                                                    
He reported that  the two major funding  recipients, UA, and                                                                    
Alaska Vocational Technical  Center (AVTEC) reached students                                                                    
across the  state. Other recipients  of the funds  were very                                                                    
focused  on  local  areas   and  workforce  connections.  He                                                                    
reiterated  his   support  for  the  program   and  for  the                                                                    
programs continuation in the long-term.                                                                                         
                                                                                                                                
Representative Carpenter acknowledged  that the TVEP program                                                                    
was  successful, highly  sought after,  and useful.  He knew                                                                    
there were  some opportunities for  high school  students to                                                                    
use  the  vocational  schools and  noted  the  waitlist  for                                                                    
programs. He  asked if there  were times  unemployed members                                                                    
of  the community  were unable  to get  into programs  while                                                                    
there were high school students enrolled.                                                                                       
                                                                                                                                
Mr.  Rees answered  that he  was aware  of the  situation in                                                                    
rare  instances.   He  was   uncertain  how   prevalent  the                                                                    
situation was and  deferred the answer to  the Department of                                                                    
Labor and Workforce Development (DLWD).                                                                                         
                                                                                                                                
9:14:14 AM                                                                                                                    
                                                                                                                                
DOUG  WALRATH,  DIRECTOR,  NORTHWESTERN  ALASKA  CAREER  AND                                                                    
TECHNICAL CENTER (NACTEC),  NOME (via teleconference), spoke                                                                    
in support of  the bill. He explained that  TVEP supported a                                                                    
regional  training center  network  that provided  workforce                                                                    
development training that was  otherwise unattainable in the                                                                    
regions and would increase training  expenses for the state.                                                                    
He  delineated  that  in the  Nome  census  area  healthcare                                                                    
training   was  a   top   priority.   Norton  Sound   Health                                                                    
Corporation   was  the   largest   regional  employer   that                                                                    
partnered  with NACTEC  to deliver  dual credit  high school                                                                    
courses  and  advanced   technical  training.  The  students                                                                    
graduated high  school and  immediately began  employment as                                                                    
Certified  Nurse   Aides  and   Village  Health   Aides.  He                                                                    
continued  that  without  the  funding,  graduated  students                                                                    
would  wait  until  the  following fall  to  begin  a  post-                                                                    
secondary  education  program.  In  addition  to  healthcare                                                                    
needs  in Nome,  in December  2020, Congress  had authorized                                                                    
over $379 million  for construction of an  Arctic deep draft                                                                    
port in Nome. Furthermore,  the federal permitting committee                                                                    
designated Graphite Creek as  a high priority infrastructure                                                                    
project  located  40 miles  outside  of  Nome that  had  the                                                                    
highest  grade and  largest known  graphite  deposit in  the                                                                    
country. He  informed that  committee that  NACTED supported                                                                    
both  projects  and  the opportunity  to  provide  workforce                                                                    
training.  In   addition,  NACTEC  was  a   DMV  third-party                                                                    
provider  for road  test  examinations  and offered  drivers                                                                    
education classes because of the  state DMV closure in Nome.                                                                    
He believed  that as  the state  budget decreased  it became                                                                    
increasingly  necessary  to  develop a  technically  trained                                                                    
workforce. He restated his strong support of the program.                                                                       
                                                                                                                                
9:17:31 AM                                                                                                                    
                                                                                                                                
KATIE  BENDER,  PRESIDENT,  UNIVERSITY OF  ALASKA  ANCHORAGE                                                                    
ALUMNI   ASSOCIATION,    ANCHORAGE   (via   teleconference),                                                                    
testified in favor of the  legislation. She shared that TVEP                                                                    
had been a vital part  of the universitys  funding stream to                                                                    
ensure   Alaskan's  access   to   workforce  training.   The                                                                    
university  worked  collaboratively  with  its  partners  to                                                                    
identify holes in the states   training system and addressed                                                                    
the  shortfalls  with  quality education.  The  university's                                                                    
TVEP success  had been solidly  demonstrated in  the states                                                                     
construction,  trades  and  careers,  aviation  and  marine,                                                                    
mining, oil,  and   healthcare system  by putting  people to                                                                    
work and  growing their  wages. She  stated that  the system                                                                    
was working and was providing  critical training to meet the                                                                    
states needs.                                                                                                                   
                                                                                                                                
Co-Chair Merrick CLOSED public testimony.                                                                                       
                                                                                                                                
9:19:17 AM                                                                                                                    
                                                                                                                                
Co-Chair Merrick asked the departments  to review its fiscal                                                                    
notes.                                                                                                                          
                                                                                                                                
LACEY SANDERS, ADMINISTRATIVE  SERVICES DIRECTOR, DEPARTMENT                                                                    
OF  EDUCATION AND  EARLY DEVELOPMENT,  OFFICE OF  MANAGEMENT                                                                    
AND  BUDGET, OFFICE  OF THE  GOVERNOR (via  teleconference),                                                                    
spoke  to  the  published  fiscal note  (FN1  EED)  for  the                                                                    
Department of  Education and  Early Development  (DEED). She                                                                    
indicated that  the fiscal noted reflected  an appropriation                                                                    
of $463.4 thousand  for the Galena City  School District for                                                                    
the  Galena   Interior  Learning  Academy.   The  department                                                                    
distributed the grant funding to the district.                                                                                  
                                                                                                                                
9:20:31 AM                                                                                                                    
                                                                                                                                
DAN DEBARTOLO, ADMINISTRATIVE  SERVICES DIRECTOR, DEPARTMENT                                                                    
OF  LABOR AND  WORKFORCE DEVELOPMENT,  OFFICE OF  MANAGEMENT                                                                    
AND  BUDGET, OFFICE  OF THE  GOVERNOR (via  teleconference),                                                                    
spoke to four  DLWD fiscal notes related to  the program. He                                                                    
turned  to the  fiscal note  appropriated to  Employment and                                                                    
Training  Services (FN9  (EED)) that  showed a  reduction in                                                                    
the amount  of $68.9  thousand from  the FY  2022 governors                                                                     
request. He  moved to the fiscal  note (FN 8 (EED))  for the                                                                    
Workforce  Investment   Board  that  was   the  department's                                                                    
largest  fiscal note  related to  the  TVEP program  [$665.4                                                                    
thousand in  FY 2022].  The department  handled most  of the                                                                    
funds  for  the  program.  He highlighted  the  fiscal  note                                                                    
allocated to  Unemployment Insurance (UI) (FN10  (EED)) that                                                                    
was specifically  for collection and enforcement  related to                                                                    
TVEP [$428.8  thousand in FY  2022]. He emphasized  that the                                                                    
department could  not use UI  Trust Fund money  for anything                                                                    
other  than delivery  of benefits.  He spoke  to the  fiscal                                                                    
note  (FN7  (EED))  appropriated to  the  Alaska  Vocational                                                                    
Technical Center  (AVTC) [$2.351.7 million in  FY 2022] used                                                                    
for general operations of AVTC.  He noted the $382.3 million                                                                    
reduction to the program in FY 2022.                                                                                            
                                                                                                                                
Co-Chair   Merrick   asked    Mr.   DeBartolo   to   address                                                                    
Representative Carpenters earlier question.                                                                                     
                                                                                                                                
9:24:47 AM                                                                                                                    
                                                                                                                                
Representative Carpenter  restated his earlier  question. He                                                                    
asked if  there were  situations where high  school students                                                                    
were enrolled in  TVEP courses and there was  a waitlist for                                                                    
unemployed adults to enter the program.                                                                                         
                                                                                                                                
Mr.  DeBartolo answered  that he  would  respond in  writing                                                                    
after further research.                                                                                                         
                                                                                                                                
9:25:38 AM                                                                                                                    
                                                                                                                                
CHAD  HUTCHINSON,  STATE  DIRECTOR, UNIVERSITY  SYSTEM  (via                                                                    
teleconference),  addressed the  fiscal note  for UA  [FN 11                                                                    
(UA)]   allocated    to   Budget    Reductions/Additions                                                                        
Systemwide. He  reported that the anticipated  amount of the                                                                    
appropriation in  FY 2022  was $5.2  million. He  added that                                                                    
the  operating   expenditures  were  split   evenly  between                                                                    
personal services and commodities.                                                                                              
                                                                                                                                
9:26:49 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:28:45 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair Merrick  announced that the amendment  deadline for                                                                    
HB 100 was the end of the day on April 17, 2021.                                                                                
                                                                                                                                
Representative Josephson  voiced that the UI  benefit amount                                                                    
had not  been updated in  a  long time.  He wondered  if the                                                                    
benefit  amount  was updated  whether  it  would affect  the                                                                    
program.  Representative Wool  answered that  the percentage                                                                    
for TVEP was .016 percent  and if benefits were increased it                                                                    
would  be   sustainable.  He  did   not  believe   it  would                                                                    
jeopardize the  program or  the UI  program. He  thought the                                                                    
issue was separate from funding the TVEP program.                                                                               
                                                                                                                                
HB  100  was  HEARD  and   HELD  in  committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
AT EASE                                                                                                                         
9:31:23 AM                                                                                                                    
                                                                                                                                
RECONVENED                                                                                                                      
9:32:50 AM                                                                                                                    
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
HB 92 Transmittal Letter 02.04.21 .pdf HFIN 4/16/2021 9:00:00 AM
HB 92
HB 92 Sectional.pdf HFIN 4/16/2021 9:00:00 AM
HB 92
HB92 presentation FINAL.pdf HFIN 4/16/2021 9:00:00 AM
HB 92