Legislature(1999 - 2000)
03/28/2000 02:04 PM Senate L&C
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SB 289-TECH & VOC EDUC/EMPLOYMENT ASSISTANCE
MS. MARY JACKSON, Legislative staff for Senator John Torgerson,
stated SB 289 will focus the efforts of the State on technical and
vocational education into one board, and SB 289 will provide
additional funding for that effort. SB 289 will also become a
vehicle within the new board for new federal funding. Senator
Torgerson has a proposed committee substitute that makes technical
corrections to SB 289.
SENATOR KELLY moved to adopt the CS for SB 289 (L&C) (version H) as
the working draft of the committee. Without objection, the motion
carried.
MS. JACKSON explained the differences between SB 289 and CSSB 289.
On page 8, line 22, "75 percent", was replaced with ".75 percent".
SENATOR LEMAN suggested using a zero before ".75 percent", to avoid
confusion.
MS. JACKSON stated on page 5, line 30, a new subsection (b) was
inserted. It formally places the current State training and
employment program under the office of the new board. On page 9,
line 9-25, new language was inserted. It increased the funding
amount to 3/10 of one percent, and half will come from employees
and half will come from employers as a contribution.
SENATOR LEMAN stated the funding that was increased is false. If
it is to be 3/10 of one percent, the figure needs to say 3/1000,
and "percent" needs to be deleted.
MS. JACKSON stated yes. The intent is for the figure to be 3/10 of
one percent. The word "percent" should be deleted and the figure
should say "3/1000".
CHAIRMAN MACKIE stated the drafters would correct the mistake.
MS. JACKSON stated the last change was made on page 12, line 18.
It is transitional language that accommodates the first year of
funding for the program. The intent is to assure that funds are
distributed from the new source. Because the new board will not
have been in place and able to go through a notification process
for grants to all entities, those funds will be available and they
will be distributed for that first year as is provided in the
language. Senator Torgerson feels strongly that the efforts need
to be focused on one board with authority, and accountability, and
that is how SB 289 would work.
SENATOR KELLY asked if there was legislative confirmation of the
board.
MS. JACKSON answered yes.
SENATOR LEMAN asked if the consolidation of this board would lead
to the elimination of other boards.
MS. JACKSON stated with the inclusion of the step program in the
committee substitute, funds will remain given to the Alaska Human
Resource Council (AHRIC) committee, but the funding would decrease.
SENATOR LEMAN asked if AHRIC would still exist.
MS. JACKSON stated yes.
MR. MIKE ANDREWS, Executive Director of AHRIC, stated AHRIC
believes these types of grants are important for employers,
workers, vocational education programs, students, and the State's
economy. AHRIC has concerns about SB 289, it seems to reverse the
consolidation efforts of Congress over the last five years. Four
major pieces of legislation in 1995 consolidated three councils
into AHRIC that included the Governor's council on vocational
education.
In 1998, SB 334 was a reform bill of the system that created
performance measures and accountability, and provided more
authority for AHRIC for planning and reporting to the legislature.
In 1999, HB 40 consolidated 17 federal state workforce investment
programs and adult education programs, from three departments into
one new department, the Alaska Department of Labor & Workforce
Development. In 1998, Congress passed the Workforce Investment Act
that goes into effect July 1, 2000 which consolidated 60 federal
programs and established AHRIC as the State's workforce investment
board. AHRIC believes some areas of SB 289 are duplicative, and
will increase administrative effort.
AHRIC has been effective bringing business and education closer
together to work on career pathways and skilled training for
students and adults. The job training programs are meeting their
performance levels. AHRIC has been able to receive additional
funds to help Alaska's rural youth, and develop regional skills
consortiums for the State, so business and education work directly
in providing industry standard training.
There are no eligibility requirements for persons being trained and
that is a concern for AHRIC. AHRIC is concerned if SB 289 passes
it should be viewed as a demonstration program so AHRIC is assured
that it is providing the results that AHRIC would like to see, and
that it doesn't offset the actuarial condition of the unemployment
trust. AHRIC believes the grant program and the State coordinated
plan is a good idea and necessary at this time, but this can be
accomplished without creating a duplicative board and a duplicative
administrative and funding cycle. AHRIC has not had time to review
the committee substitutes, but is raising concerns about shifting
step funds into this program.
CHAIRMAN MACKIE asked if Mr. Andrews had talked with Senator
Torgerson about the committee substitute.
MR. ANDREWS answered yes. They have discussed how to raise
additional money for vocational education training that would help
support the connection with post-secondary education, and the need
for a coordinated plan. Where AHRIC differs from Senator Torgerson
and Congress is in the need for a new board and some duplicative
text. AHRIC's administration cannot support SB 289 as it exists.
SENATOR KELLY asked if AHRIC's position and the administration's
position are the same.
MR. ANDREWS stated he was speaking for the administration.
MS. BARBARA THOMPSON, Deputy Director of the Division of Teaching
& Learning Support for the Department of Education & Early
Development (DEED), referred to the fiscal note. What the DEED saw
as a cost for establishing this new board would be included first
for the Alaska Technical Vocational Education Program Fund. The
Department of Labor & Workforce Development (DLWD) estimates what
they would collect for this portion of SB 289.
TAPE 00-11, SIDE B
MS. THOMPSON explained the funds listed in the grant line on page
1 of the fiscal note. The other costs are related to the
establishment and operation of the new board and ongoing
activities, personal services for staffing of the board, a grant
administrator, travel for the board, contractual relating to the
ongoing cost of the board, and supplies for the board.
The last page of the fiscal note discusses existing resources that
are in DEED, that would fall under the preview of the new board.
Those include federal grant funds, text prep grant funds, and non
K-12 portions of the federal Carl Perkins Grant. The management
fee assessed from the Alaska Vocational Technical Center (AVTeC) is
currently a management assessment fee to AHRIC, and assume the fee
would go to the new board.
MR. DWIGHT PERKINS, Deputy Commissioner of the Department of Labor
& Workforce Development (DLWD), stated the concerns that DLWD has
are financial and technical in nature, with employment security and
the Unemployment Insurance trust fund.
CHAIRMAN MACKIE stated his concerns are dealing with the fiscal
note of CSSB 289. Chairman Mackie stated the bill should be passed
to the Finance committee so Senator Torgerson can work with Mr.
Andrews and Ms. Thompson.
MR. PERKINS stated DLWD will continue to cooperate with Senator
Torgerson regarding the fiscal note, but Mr. Andrews' concern seems
to be a philosophical concern.
MS. RUTH DECAMPI, Program Manager for the Municipality of Anchorage
Workforce Development Program, stated opposition for CSSB 289. The
Workforce Development Program administers the step training program
for people who are unemployed, and for half of the State's
workforce in Anchorage. CSSB 289 defies the entire Workforce
Investment Act, which is based on customer choice, and performance
base. Institutions receive funding if people choose to go there.
Ms. Decampi does not see a reason for AHRIC to exist if CSSB 289
passed.
SENATOR KELLY moved CSSB 289 (L&C) with individual recommendations
and accompanying fiscal notes. Without objection, the motion
carried.
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