Legislature(2007 - 2008)SENATE FINANCE 532

05/02/2007 01:30 PM Senate FINANCE


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= SB 125 PERS /TRS CONTRIBUT'NS;UNFUNDED LIABILITY TELECONFERENCED
Moved CSSB 125(FIN) Out of Committee
+= SB 124 ALASKA WORKFORCE INVESTMENT BD ALLOCATION TELECONFERENCED
Heard & Held
+= SB 104 NATURAL GAS PIPELINE PROJECT TELECONFERENCED
Scheduled But Not Heard
+ Bills Previously Heard/Scheduled TELECONFERENCED
                                                                                                                                
     CS FOR SENATE BILL NO. 124(L&C)                                                                                            
     "An  Act  relating  to unemployment  contributions  for  the                                                               
     Alaska  technical and  vocational education  program and  to                                                               
     the  allocation   of  money   appropriated  to   the  Alaska                                                               
     Workforce Investment  Board; and providing for  an effective                                                               
     date."                                                                                                                     
                                                                                                                                
                                                                                                                                
This was  the first hearing for  this bill in the  Senate Finance                                                               
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Stedman specified  that the intent today was  to hear an                                                               
explanation of the bill from  its sponsor, hear public testimony,                                                               
and  address  Committee questions.  The  bill  would be  held  in                                                               
Committee.                                                                                                                      
                                                                                                                                
2:07:40 PM                                                                                                                    
                                                                                                                                
Senator Olson,  the bill's sponsor,  informed the  Committee that                                                               
this legislation  would increase  training opportunities  for the                                                               
workforce  that  would be  required  to  support the  anticipated                                                               
Alaska   gas  pipeline   project.   The   University  of   Alaska                                                               
participated in the development of the bill.                                                                                    
                                                                                                                                
2:08:29 PM                                                                                                                    
                                                                                                                                
DAVID GRAY, Chief  of Staff to Senator Olson,  explained that the                                                               
original  version  of  the bill  solely  proposed  expanding  the                                                               
Alaska  Training  and   Vocational  Education  Program's  (ATVEP)                                                               
vocational  and  technical  (Voc-Tec) training  opportunities  to                                                               
include  the  Voc-Tec  training   center  in  Nome.  Subsequently                                                               
however,  as specified  in the  Senate Labor  and Commerce  (L&C)                                                               
committee   substitute  before   the   Committee,  the   training                                                               
opportunities were  broadened as  the result of  discussions with                                                               
Alaska Work Products, Inc. and the University.                                                                                  
                                                                                                                                
Mr.  Gray   noted  that  to   support  the   additional  training                                                               
opportunities, funding for ATVEP  would be increased as reflected                                                               
in the  Department of Labor  and Workforce  Development's revised                                                               
fiscal note dated April 27, 2007.                                                                                               
                                                                                                                                
Mr. Gray  pointed out that  the funding levels for  current ATVEP                                                               
participants would be increased  under this legislation and three                                                               
additional Voc-Tec entities would  be added: the Northwest Alaska                                                               
Career   and  Technical   Center  in   Nome;  the   Delta  Career                                                               
Advancement  Center, and  the  Alaska  Works Partnership  Program                                                               
(AWPP). AWPP is "a consolidation  of many union training programs                                                               
that are available to both union and non-union Alaskans".                                                                       
                                                                                                                                
Mr. Gray  communicated that  AWPP has a  history of  working with                                                               
the  University  and  technical  centers  throughout  the  State,                                                               
specifically those in rural areas, to train individuals.                                                                        
                                                                                                                                
Mr.  Gray clarified  that ATVEP's  current  and proposed  funding                                                               
levels  are  depicted on  page  3  of  the revised  fiscal  note.                                                               
Existing  program participants'  funding levels  would simply  be                                                               
increased were the  legislation adopted; else wise  they would be                                                               
unaffected.                                                                                                                     
                                                                                                                                
2:11:38 PM                                                                                                                    
                                                                                                                                
Senator Dyson asked how the school selections were made.                                                                        
                                                                                                                                
2:12:08 PM                                                                                                                    
                                                                                                                                
Mr.  Gray  reiterated  that  the   original  bill  only  proposed                                                               
expanding the program  to include the North  Arctic Career Center                                                               
in Nome.  The Delta  Career Center and  the Alaska  Work Products                                                               
training  program  were  added   at  the  recommendation  of  the                                                               
University and Alaska Work Products, Inc.                                                                                       
                                                                                                                                
2:12:35 PM                                                                                                                    
                                                                                                                                
Senator  Dyson qualified  his concern.  The question  was whether                                                               
other qualified  Voc-Tec training schools had  been considered or                                                               
notified of this opportunity.                                                                                                   
                                                                                                                                
2:13:01 PM                                                                                                                    
                                                                                                                                
Mr. Gray  was uncertain whether  "a broad solicitation"  had been                                                               
conducted.  To   that  point  however,   he  attested   that  the                                                               
University was aware  of the spectrum of Voc-Tec  programs in the                                                               
State. The Alaska Works Partnership  program has also coordinated                                                               
Voc-Tec efforts throughout the State.                                                                                           
                                                                                                                                
Mr. Gray  emphasized that the  intent of this legislation  was to                                                               
enhance pipeline construction training center opportunities.                                                                    
                                                                                                                                
2:13:57 PM                                                                                                                    
                                                                                                                                
Senator Dyson worried  that only government or  union schools had                                                               
been considered to the detriment of private trade schools.                                                                      
                                                                                                                                
2:14:23 PM                                                                                                                    
                                                                                                                                
GUY  BELL,  Assistant  Commissioner,   Department  of  Labor  and                                                               
Workforce Development,  informed the  Committee he  was available                                                               
to answer questions about the Department's fiscal note.                                                                         
                                                                                                                                
No questions were forthcoming.                                                                                                  
                                                                                                                                
2:15:05 PM                                                                                                                    
                                                                                                                                
MIKE ANDREWS, Director, Alaska  Works Partnership Inc., testified                                                               
via teleconference  from Anchorage  and attested to  the benefits                                                               
the  bill would  provide.  It "would  significantly increase  the                                                               
ability of  our State's trained  workers for good paying  jobs in                                                               
Alaska,   particularly  those   in   construction  and   pipeline                                                               
construction jobs".                                                                                                             
                                                                                                                                
Mr.  Andrews stated  that  Alaska Works  Partnership  has a  good                                                               
working  relationship  with  the training  centers  supported  by                                                               
ATVEP. Alaska  Works Partnership has trained  hundreds of workers                                                               
from all regions of the  State, including rural and remote areas.                                                               
Programs  include  building construction,  highway  construction,                                                               
student programs, and electrical and plumbing programs.                                                                         
                                                                                                                                
Mr. Andrews  also noted that  training is provided  regardless of                                                               
union or non-union status.                                                                                                      
                                                                                                                                
Mr. Andrews informed the Committee  that the bill is supported by                                                               
a  wide  range of  the  State's  construction industry  including                                                               
Associated  General Contractors  of Alaska,  numerous homebuilder                                                               
associations   in  the   State,  the   North  Slope   Contractors                                                               
Association,   Bristol   Bay   Housing  Authority,   and   Wilder                                                               
Construction.  Several school  districts  also  work with  Alaska                                                               
Works Partnership to  train youth. The entities  that support the                                                               
bill  are   involved  in  such   things  as   road  construction,                                                               
commercial  and residential  building construction,  and pipeline                                                               
construction in rural and urban areas of the State.                                                                             
                                                                                                                                
2:18:08 PM                                                                                                                    
                                                                                                                                
Mr. Andrews  addressed Senator Dyson's concern  regarding how the                                                               
training entities  were chosen. For  the past several  years, the                                                               
Legislature  selected  six  entities to  receive  State  Voc-Tech                                                               
training funds: the University of  Alaska, AVTEC, Kotzebue, SAVEC                                                               
in King Salmon, Yuut in  Bethel, and the Galena Regional Training                                                               
Center. It  has been determined that  additional training centers                                                               
were necessary  and places such  as the Delta  Career Advancement                                                               
Center and the Nome training center were recommended.                                                                           
                                                                                                                                
Mr. Andrews  stated that Alaska  Works Partnership  was "engaged"                                                               
because  it "was  constructing a  pipeline  training facility  in                                                               
Fairbanks" that would offer four types of construction training.                                                                
                                                                                                                                
Mr. Andrews urged the Committee to advance the bill.                                                                            
                                                                                                                                
2:19:10 PM                                                                                                                    
                                                                                                                                
Senator Thomas  acknowledged there  being widespread  support for                                                               
vocational technical  training. While  there has been  mention of                                                               
school   districts'   involvement  with   construction   training                                                               
programs,  he has  not heard  about  an outreach  to the  State's                                                               
military population; particularly young veterans.                                                                               
                                                                                                                                
2:19:36 PM                                                                                                                    
                                                                                                                                
Mr. Andrews informed the Committee  that Alaska Works Partnership                                                               
offers a  statewide "Helmets to  Hardhats" program  with outreach                                                               
to veterans, their spouses, particularly  those involved with the                                                               
Alaska  National Guard  and National  Guard  Reserves. He  shared                                                               
details of  the program  and characterized it  as "a  very active                                                               
program". Only one other state has such a program.                                                                              
                                                                                                                                
2:20:19 PM                                                                                                                    
                                                                                                                                
MICHAEL  SEXTON, Executive  Director,  Mechanical Contractors  of                                                               
Fairbanks, testified via teleconference  from Fairbanks on behalf                                                               
of  contractors   in  the  welding,  plumbing,   and  pipefitting                                                               
industry. He  appreciated Senator  Olson's effort to  expand this                                                               
training program  as these contractors place  tremendous emphasis                                                               
on hiring  local Alaskan workers.  They have worked for  the past                                                               
six years with  Alaska Works Partnership to  further training and                                                               
hiring   of  rural   Alaskans.  Expanding   this  program   would                                                               
strengthen the Alaska workforce that  will be required to support                                                               
the pipeline  industry. It  would also  support the  operation of                                                               
the Fairbanks  pipeline training  center. He urged  the Committee                                                               
to support the bill.                                                                                                            
                                                                                                                                
2:22:38 PM                                                                                                                    
                                                                                                                                
Co-Chair  Stedman invited  Guy Bell  to discuss  the Department's                                                               
$2,912,200 fiscal note  dated April 27, 29007. He  also noted the                                                               
bill  was  accompanied  by  a   $129,600  fiscal  note  from  the                                                               
University, dated April  30, 2007. A one  page spreadsheet titled                                                               
"SB  124:  Allocation  Changes to  Alaska  Workforce  Investment"                                                               
[copy on  file] has  been developed by  his office  for reference                                                               
purposes.                                                                                                                       
                                                                                                                                
Mr.  Bell directed  attention to  the comparison  of current  and                                                               
proposed  Program funding  as depicted  on page  3 of  the fiscal                                                               
note.  The  total  status  quo  program  funding  for  FY  08  is                                                               
estimated  to be  $6,043,600. The  cost of  the program  would be                                                               
expanded to $9,166,100 if this bill was enacted.                                                                                
                                                                                                                                
2:24:41 PM                                                                                                                    
                                                                                                                                
Mr.  Bell stated  that  the net  program  increase of  $3,122,500                                                               
consisted of the  projected increase in program  revenues and the                                                               
increase  in   distribution  amounts  to  the   existing  program                                                               
entities and the three new program participants.                                                                                
                                                                                                                                
2:26:35 PM                                                                                                                    
                                                                                                                                
Senator Olson  thanked the Committee for  scheduling this hearing                                                               
on the bill. It would benefit  the future needs of Alaska and its                                                               
citizens.                                                                                                                       
                                                                                                                                
The bill was HELD in Committee.                                                                                                 
                                                                                                                                
2:27:13 PM                                                                                                                    
                                                                                                                                

Document Name Date/Time Subjects