Legislature(2007 - 2008)SENATE FINANCE 532
02/22/2008 09:00 AM Senate FINANCE
Audio | Topic |
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Start | |
SB249 | |
HB226 | |
SB230 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
+ | SB 230 | TELECONFERENCED | |
+ | SB 249 | TELECONFERENCED | |
+ | HB 61 | TELECONFERENCED | |
+ | HB 226 | TELECONFERENCED | |
+ | TELECONFERENCED |
HOUSE BILL NO. 226 "An Act repealing the termination of the state training and employment program; and providing for an effective date." 10:04:56 AM REPRESENTATIVE JOHN COGHILL, SPONSOR, introduced HB 226, related to the State Training and Employment Program (STEP). This program puts unemployment insurance (UI) money into grant capacity to train and re-train workers within Alaska. The current version of the bill would sunset the program in 2018 and requires the Department of Labor (DOL) to provide a review of the program. The review will look at union and non-union entities, publish a report and make recommendations. Representative Coghill explained that DOL has set up a task force to develop the report to be presented to the Alaska Legislature in early 2009. He expressed his confidence in the Department. The program is designed for workers who have paid into UI and who cannot afford to pay for their own training or re-training. 10:08:21 AM Representative Coghill wanted workers to have access to the program as it effectively helps to get young people and hard-to-place people back into the workforce. He said that the grant process currently is very complex. The process has been streamlined this year. He recommended extending the program out to 2018 with an annual review. 10:10:26 AM Co-Chair Stedman referred to an audit made of the program and asked if the issues brought up in the audit had been resolved. Representative Coghill replied there were still issues with the grant process. The Commissioner of DOL has begun to deal with the issues by changing the application process and how allocations are made. 10:11:25 AM GUY BELL, ASSISTANT COMMISSIONER AND DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT, spoke in support of HB 226. He said the program has demonstrated success for over 19 years and has served over 23,000 Alaskans. The program is evaluated annually. The most recent report indicates that more than 94% of trainees were employed within 12 months of receiving the training. Those people earned over $71 million in the year following their training, an increase of 35% over their pre-training earnings. Over 90% of 2003 participants were still Alaska residents in 2006. The Department supports the on-going annual review which has begun, supervised by David Stone, the Deputy Commissioner of the Department of Labor and Workforce Development. 10:14:19 AM ANN WILLIAMS, HUMAN RESOURSES ADMINISTRATOR AND TRAINING COORDINATOR, KLEBS MECHANICAL INC. (KMI), ANCHORAGE (TESTIFIED VIA TELECONFERENCE), spoke in opposition to HB 226. She emphasized that unless there are major revisions, KMI would like to see STEP sunset. She gave an overview of KMI experience with the program. They partnered with another business to provide joint job training for approximately 80 underemployed and potentially at-risk construction workers. The vision was to achieve stable employment of a diverse and well-trained local construction force. The program was a success. Ms. Williams said their experience with the administration of the program was not as successful. The requirements for a private employer were a burden. She listed restrictions, especially removal of payment for instructor fees. 10:18:05 AM Ms. Williams believed that KMI was one of the few private employers who received a STEP grant. Immediately upon completion, the grant program was restructured and effectively eliminated the possibility of future private employer funding. She said it is well understood that the STEP grant program has allocated the vast majority of its training money to organized labor while purporting to provide training opportunities to any Alaskan with need. STEP is funded by the UI contributions of all Alaskans and should be accessible to all. 10:19:24 AM JEANNINE PROVOST, GRANTS MANAGER, ALASKA LABORERS TRAINING SCHOOL (ALTS) (TESTIFIED VIA TELECONFERENCE), spoke in favor of HB 226. She spoke about the positive impact of the program on the construction workforce. Alaska Laborers Training School trains about 300 people per year through STEP, focusing on preparing the workforce in the construction industry. Outreach includes members of the union as well as other Alaskans, most of whom come from remote rural areas of the State. Training requests come from village councils. Statistically speaking, 50% or more of the individuals served are from minority populations and over 45% are from areas outside of Anchorage, Fairbanks and Juneau. The program's success rate has consistently been above 87%. 10:22:09 AM CHRIS HARMON, INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS (IBEW), JUNEAU, spoke in favor of HB 226 and described how the training money helped him. He said he would not have been able to complete the apprenticeship without the grant, as he had to be away from home for five terms of 7 weeks each for 8,000 hours of on-the-job training. Senator Thomas asked about his training. Mr. Harmon said he trained about 1400 hours in the classroom in addition to the on-the-job training. Co-Chair Stedman asked if the training was beneficial. Mr. Harmon listed expenses. Senator Olson asked how many people are affected by the program. Mr. Harmon knew of twenty or so apprentices in Juneau who are recipients of the program. 10:25:29 AM ROBERT CESAR, APPRENTICE ELECTRITION, IBEW, JUNEAU, spoke in favor of HB 226. Mr. Cesar, who is a single father of an ill child, was not able to receive assistance from STEP due to administrative problems. He had financial problems and the STEP grant would have been greatly beneficial. He urged the Committee to extend the program. Senator Dyson asked if he had been asked to come and testify and if he received help preparing his testimony. Mr. Cesar said it was suggested he come at an IBEW union meeting and he was given help with preparation. Senator Elton acknowledged Mr. Cesar's struggle as the father of a child with a bone marrow transplant. Mr. Cesar said Senator Elton and other Legislators had helped. 10:29:49 AM TOM BRICE, ALASKA DISTRICT COUNCIL OF LABORERS, JUNEAU, spoke in favor HB 226. Senator Olson referred to earlier testimony that the STEP program was only targeting special interest groups and asked Mr. Brice's opinion. Mr. Brice thought the doors are open to anyone who can show they have a viable accounting system and can show they are doing real training. He cited a non-union program that has been successful. His organization trains both union and non-union individuals. 10:33:02 AM BARBARA HUFF TUCKNESS, DIRECTOR OF GOVERNMENTAL AND LEGISLATIVE AFFAIRS, TEAMSTERS LOCAL 959, spoke in favor of HB 226. She said Teamsters Local 959 has both union and non- union training programs. The progams are funded through joint efforts in negotiations with the employers that Local 959 has collective bargaining agreements with. Local 959 also attempts to reach out to employers that were not part of the collective bargaining agreement. The tech engineer program, a four-year apprentice program for surveyors, has spent extra time and effort reaching out to individuals around the State. The cost of housing has been a major issue because of the six-week training program; STEP funds have helped with that. 10:35:18 AM REBECCA LOGAN, PRESIDENT, ASSOCIATED BUILDERS AND CONTRACTORS OF ALASKA (TESTIFIED VIA TELECONFERENCE), spoke in support of HB 226. She pointed out the discrepancies in the program reflected in previous testimony: a private employer not being able to use funds for instructors while individuals use the same money for travel and housing. Associated Builders and Contractors supports the program but urges some clean-up before the program is extended. 10:36:49 AM Co-Chair Stedman asked Mr. Bell to address concerns brought up in testimony. He asked him to also have the audit issues raised prepared for a future Committee meeting. Mr. Bell stated that DOL uses a competitive grant proposal process to receive and process applications. The independent evaluation committee does not evaluate on a union/non-union basis but on the overall quality of the proposal. The distribution of grants over the past years has been reviewed and presented to the Legislature. The Department recognizes the criticisms and intends to resolve them. He invited critics to participate in the task force that is being developed. 10:40:16 AM Co-Chair Stedman pointed out that more work will be needed on fiscal notes. HB 226 was HEARD and HELD in Committee for further consideration. 10:40:40 AM
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