Legislature(2007 - 2008)SENATE FINANCE 532

02/22/2008 09:00 AM Senate FINANCE


Download Mp3. <- Right click and save file as

* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 230 FILM OFFICE/ FILM PRODUCTION TAX CREDIT TELECONFERENCED
Heard & Held
+ SB 249 CAPSTONE AVIONICS FUND/LOANS TELECONFERENCED
Heard & Held
+ HB 61 TAX CREDIT FOR CONTRIBUTIONS TO VOC ED TELECONFERENCED
Scheduled But Not Heard
+ HB 226 REPEAL TERMINATION OF STEP PROGRAM TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled 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                                                                                                                   
                                                                                                                                

Document Name Date/Time Subjects