Legislature(2023 - 2024)BARNES 124
01/30/2023 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB13 | |
| HB46 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 13 | TELECONFERENCED | |
| *+ | HB 46 | TELECONFERENCED | |
HB 46-CHILD CARE PROVIDER COLLECTIVE BARGAINING
4:08:22 PM
CHAIR SUMNER announced that the final order of business would be
HB 46, "CHILD CARE PROVIDER COLLECTIVE BARGAINING."
4:08:32 PM
REPRESENTATIVE FIELDS, as prime sponsor, gave a brief history on
the background for the bill. On slide 2, he stated that the
problem in the childcare field is low wages and benefits leading
to a shortage of childcare workers, adding that the COVID-19
pandemic has increased the shortage of adequate childcare.
REPRESENTATIVE FIELDS directed attention to slide 3,
highlighting a report that employment in childcare has decreased
by 7 percent, contrasting with the number of people who want to
return to work following the pandemic. On slide 4, he
highlighted a report that 2 more childcare centers in Juneau,
Alaska, have closed, and there are none in Valdez, Alaska.
4:12:12 PM
REPRESENTATIVE FIELDS advanced to slide 5, stating that he
believes that the inadequate amount of childcare in Alaska is
playing a part in the issue of outmigration from the state. The
greatest number of people leaving the state are young people of
working age. He turned to slide 6, stating that 11 other states
have implemented some form of childcare employee collective
bargaining.
REPRESENTATIVE FIELDS directed attention to slide 7, stating
that the goals of HB 46 are to give childcare workers a "living
wage" in order to increase the supply of childcare. He said
that it should be done in a way that keeps the prices from
increasing, as many families cannot afford to pay more for
childcare. He added that public policy on childcare should
remain "flexible" to allow the sector to continue to work with
the state government on the best possible solutions.
4:14:36 PM
REPRESENTATIVE FIELDS continued to slide 8 and stated that major
Alaska employers are raising their concerns about the lack of
adequate childcare in Alaska. Childcare was one of the top
three issues that the Alaska Chamber of Commerce heard from its
member employers.
REPRESENTATIVE FIELDS concluded by explaining how the bill
works. He said that if the bill were passed, the Alaska
Department of Labor and Workforce Development would conduct an
election asking all childcare workers if they wished to engage
in sectoral bargaining with the state. If they were to vote
affirmatively, they would create or join a union to negotiate
with the state for wages and benefits. He added that the bill
would also establish a childcare trust fund.
4:17:37 PM
BLUE SHIBLER, Executive Director, Southeast Alaska Association
for the Education of Young Children, stated that there have
always been issues with childcare shortages due to childcare
"not being a very good business model." The cause of this is
that childcare centers have only a single source of revenue, and
they can only charge so much before families cannot afford it.
She said that prior to the pandemic, it was possible to find
childcare employees that would do the work because they enjoyed
it, but rising costs of living are causing more people to face a
choice between having a job they enjoy and having a job that
pays more. All of Juneau's childcare centers have the capacity
to care for more children, but do not have enough employees to
increase enrollment. She described the current business model
for childcare as a "market failure" and childcare as a "public
good" and asserted that the solution would be state government
investment into the childcare sector.
4:21:22 PM
REPRESENTATIVE PRAX inquired about the organizations that Ms.
Shibler's organization represents.
MS. SHIBLER explained that the Southeast Alaska Association for
the Education of Young Children provides different support
mechanisms to childcare providers rather than representing them.
In response to a follow up question, she said that the majority
of the money going to childcare centers is from the parents
paying tuition, although there are subsidies available for those
with lower incomes.
4:23:39 PM
REPRESENTATIVE RUFFRIDGE asked for an explanation of Ms.
Shibler's meaning when she labeled the lack of childcare as a
"market failure."
MS. SHIBLER explained that as a business, no profit is made and
a worthy wage is not provided. She contrasted that with a
traditional business in which goods or service costs could be
raised to close the gap; however, childcare business cannot do
that because parents can't pay.
4:25:55 PM
REPRESENTATIVE RUFFRIDGE sought to confirm that a state subsidy
would be the only way for businesses to survive. He asked where
the state would receive an injection of cash for that purpose.
MS. SHIBLER answered that childcare centers are unable to pay
high wages or make a profit. In other businesses, it is
possible to raise the prices to reflect a rise in costs to the
business, whereas childcare centers are unable to because it
would become unaffordable for families. She concluded that the
lack of ability to make a profit means fewer people attempting
to start a childcare center as a business. In response to a
follow-up question, she said that she believes that the
childcare sector needs subsidies to remain operational, and she
observed that the issue of lacking childcare is being
acknowledged in other states and at the national level.
4:27:31 PM
REPRESENTATIVE SADDLER asked if the issue of low profits and
wages in childcare is a new or existing problem.
MS. SHIBLER answered that it has been an ongoing problem in her
20 years of experience working in childcare. The increase in
the cost of living has exacerbated the problem. In response to
a follow-up question, she said that childcare prices are
generally similar across the sector and largely paid for by the
parents.
REPRESENTATIVE SADDLER asked what role the state Department of
Health would play in funding childcare.
MS. SHIBLER said the Department of Health receives block grants
from the federal government and is responsible for deciding on
the best usage of that money in regard to childcare.
REPRESENTATIVE SADDLER inquired about the percentage of the cost
that the federal government is taking on for childcare in
Alaska.
MS. SHIBLER answered that the federal money used in the
Childcare Assistance Subsidy Program pays childcare providers on
behalf of parents that qualify for assistance. Other money is
used for training purposes, but the federal money is not able to
be used for increasing wages or benefits for childcare workers.
She concluded that she was unsure of the amount of money from
the federal grants contributed towards wages.
4:32:29 PM
PEARL BROWER, PhD, CEO, Ukpeagvik Inupiat Corporation (UIC),
stated that workplaces across the state are facing shortages,
and a lack of childcare is making it more difficult for people
to return to work. She said that one of the reasons her family
moved from Utqiagvik, Alaska, to Anchorage was because of the
difficulty finding childcare in Utqiagvik. She continued that
the lack of childcare availability causes economic instability
for families, leaves children at a higher risk of neglect, and
makes it difficult for employers to fill all of their available
positions.
4:36:28 PM
REPRESENTATIVE PRAX asked whether UIC is a for-profit
organization.
DR. BROWER answered that it is. In response to a follow-up, she
said that even if the corporation were to provide childcare
benefits to employees, there would not be enough childcare
providers to care for every child.
REPRESENTATIVE PRAX suggested that the solution may require an
increase in the cost of childcare, either paid for by the state
or by private employers as a benefit to their employees.
4:39:03 PM
CHRISTINA EUBANKS, Executive Director, Hillcrest Children's
Center, stated that finding employees has been a continuous
issue in her 20 years working in childcare. Childcare is one of
the lowest paying professions in the state, causing high levels
of turnover. She said that she believes it is important for the
industry to have a voice in how the money from federal grants
for childcare is being spent due to that having a direct impact
on the operations and cost of childcare centers.
4:41:49 PM
REPRESENTATIVE PRAX asked what is preventing childcare centers
from raising their prices.
MS. EUBANKS explained that nothing is preventing price
increases, and that prices have already increased. There is an
expected price increase of 6-10 percent this year. She said
that the consequences of this is that childcare is becoming
affordable only to parents with high incomes.
4:42:47 PM
REPRESENTATIVE SADDLER asked why the providers do not raise
prices to allow them to pay higher wages.
MS. EUBANKS emphasized that raising prices would make childcare
unaffordable for many families.
4:44:44 PM
EVAN ANDERSON, Staff, Representative Zack Fields, Alaska State
Legislature, on behalf of Representative Fields, prime sponsor,
provided a sectional analysis of HB 46 [included in the
committee packet], which read as follows [original punctuation
provided]:
Section l: This section amends AS 23.05.360(t) to allow
the Alaska Labor Relations Agency board in the Department
of Labor & Workforce Development the authority to include
workers in the child care sector for the purpose of
holding hearings. This is a conforming change to
language added in Sec 4.
Section 2: This section amends AS 23.05.370(a) to direct
the Alaska Labor Relations Agency to serve as labor
relations agency for workers in the child care sector
covered by the new language added in Sec. 4.
Section 3: This section amends AS 23.05.380 to give
Department of Labor & Workforce Development the authority
to update regulations pertaining to collective bargaining
rights for workers in the child care sector. This is a
confonning [sic] change to language added in Sec 4.
Section 4: This section amends AS 23.40 to give child
care providers the right to self-organize, join, or
assist an organization to bargain collectively and engage
in concerted activities for the purposes of collective
bargaining or other mutual aid or protection. This
section prohibits the Department of Health from engaging
in unfair labor practices, and it provides a process for
investigation and conciliation of complaints. This
section also provides definitions.
Section 5: This section establishes a child care provider
fund as a separate fund in the state treasury. This
section also establishes a child care stakeholder group
to recommend disbursements from the fund.
4:47:07 PM
REPRESENTATIVE FIELDS addressed earlier questions from
Representative Saddler and Representative Prax, adding to the
previous answers that not investing in childcare would create an
environment in which only those with high incomes would be able
to afford childcare. The result is that people are pushed out
of the workforce and economic capacity decreases. He reiterated
that the bill would create a childcare trust fund to allow the
State of Alaska to invest more in childcare as other places in
the world do.
4:49:06 PM
REPRESENTATIVE SADDLER asked what role the Department of Health
would play in collective bargaining and who would end up paying
for it.
REPRESENTATIVE FIELDS said the model was similar to the higher
education trust fund. He continued that subsidized slots do not
cover the entire cost of tuition at a childcare center and
childcare centers end up passing that cost on to the other
parents who can pay.
REPRESENTATIVE SADDLER asked for a breakdown of the costs of
childcare paid for by families and the grants from the federal
government.
REPRESENTATIVE FIELDS explained that at the childcare centers
his family uses, subsidized slots are available, meaning that
the state pays for the childcare of children whose parents
qualify. He added that some other states have expanded the
levels for which parents can be eligible for childcare subsidies
in order to make childcare more affordable for a wider range of
families and therefore increase the number of people working.
4:52:42 PM
REPRESENTATIVE PRAX expressed concern that the bill would result
in continuously expanding eligibility for the subsidy, comparing
it to the current issues facing Medicare.
4:54:16 PM
REPRESENTATIVE CARRICK sought confirmation for whether home-
based childcare providers would be covered by the bill.
REPRESENTATIVE FIELDS answered that all licensed providers would
be covered, including home-based providers.
REPRESENTATIVE CARRICK commented that the bill could be useful
in the effort to retain childcare workers.
4:55:59 PM
REPRESENTATIVE RUFFRIDGE asked if it was possible for HB 46 to
cause prices to increase for some parents if the subsidy was not
expanded.
REPRESENTATIVE FIELDS answered that the goal was to keep prices
down for parents. He continued that his belief is that
childcare providers should be a greater part of the discussion
because they have the best idea of how to serve the families for
which they provide childcare. The bill would create a framework
to give childcare providers a greater voice rather than
mandating a certain wage be paid to childcare employees. In
response to a follow-up question, he stated that there is not
currently a specific dollar amount to be placed into the
childcare trust fund that would be created under HB 46.
4:59:06 PM
REPRESENTATIVE SADDLER asked how much of childcare is paid for
privately versus how much is paid for by the government.
REPRESENTATIVE FIELDS recapped that the vast majority was paid
for privately by parents, with some per-child subsidized slots
paid for using government funds. In response to a follow-up
question, he stated that the idea behind the trust fund was to
give childcare providers a greater say in how the federal grants
were used because they have a better idea of how those funds
would be most effective.
5:01:07 PM
REPRESENTATIVE WRIGHT asked what the amount of money received
from the federal grant block is per year.
REPRESENTATIVE FIELDS answered that he is unsure but would
follow up with an answer at a later time.
REPRESENTATIVE WRIGHT explained the "for the wage" campaign and
asked whether the bill was related to it in any way.
REPRESENTATIVE FIELDS answered that he is unfamiliar with the
campaign.
[HB 46 was held over.]