Legislature(2017 - 2018)HOUSE FINANCE 519
04/06/2017 01:30 PM FINANCE
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HOUSE BILL NO. 141 "An Act relating to allocations of funding for the Alaska Workforce Investment Board; and providing for an effective date." 2:46:42 PM REPRESENTATIVE ZACH FANSLER, SPONSOR, reminded the committee that the bill was a funding mechanism for technical and vocational education programs set to sunset on June 30, 2017. He furthered that HB 141 included a five- year renewal extending it through June 30, 2022. He noted that during the prior hearing several questions were asked. He had distributed a memo with answers in response to committee member questions [Memo "House Bill 141 Questions" (copy on file)]. Representative Wilson asked about the constitutionality of a private school receiving some of the funding. 2:49:53 PM PALOMA HARBOUR, ADMIN SERVICES DIRECTOR, DEPARTMENT OF LABOR, was not aware of any constitutional restrictions or violations. She referred to the memo and noted that the answers listed the federal requirements regarding use of the fund and specified that there were no federal requirements regarding use of employee contributions to unemployment programs. She reminded committee members that the state requirements were statutes enacted by the legislature. Representative Wilson asked whether private schools were required to meet state standards to qualify for the funding. Ms. Harbour was unable to answer the question but remembered that the list of eligible recipients were placed in state statute. Representative Wilson commented that there were certain restrictions on uses of general funds for education. She deemed that since the funding was generated by unemployment funds, restrictions regarding type of institution did not apply. Ms. Harbour responded that the funds became designated state general funds. 2:51:46 PM Vice-Chair Gara asked whether the bill covered the same training institutions at the same amounts as in years prior to the sunset. Representative Fansler replied that the same 10 institutions would receive the same amount of funding they received in prior years. Vice-Chair Gara commented that the Constitution did stipulate that private funds were prohibited for use for public education. He was not concerned about any constitutional issues over the funding. Co-Chair Foster asked Vice-Chair Gara to review the bill's fiscal notes. 2:53:17 PM Vice-Chair Gara reviewed the fiscal notes for HB 141. He noted the new Department of Labor and Workforce Development (DLWD) fiscal impact note appropriated for Employment Training Services in the amount of $408 thousand in designated general funds (DGF). He cited the new Department of Labor and Workforce Development fiscal impact note allocated to Workforce Development in the amount of $4.2 million DGF. He reported that another new Department of Labor and Workforce Development fiscal note was appropriated to the Alaska Vocational Technical Center (AVTEC) in the amount of $2 million DGF. He turned to the previously published fiscal notes: FN4 (UA) for the University of Alaska in the amount of $5.3 million DGF and a previously published fiscal notes: FN1 (EED) for the Department of Education and Early Development in the amount of $478 thousand DGF. 2:56:02 PM Co-Chair Seaton MOVED to report HB 141 out of Committee with individual recommendations and the accompanying fiscal notes. There being NO OBJECTION, it was so ordered. HB 141 was REPORTED OUT of Committee with a "do Pass" recommendation and with three new fiscal impact notes from Department of Labor and Workforce Development and with two previously published fiscal notes: FN1 (EED) and FN4 (UA). Co-Chair Foster reviewed the agenda for the following day. Co-Chair Foster recessed the meeting to a call of the chair [Note: the meeting never reconvened].