Legislature(2007 - 2008)BELTZ 211
01/31/2008 02:00 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| Achia Update | |
| HB226 | |
| SB153 | |
| SB187 | |
| SB197 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 153 | TELECONFERENCED | |
| *+ | SB 187 | TELECONFERENCED | |
| *+ | SB 197 | TELECONFERENCED | |
| + | HB 226 | TELECONFERENCED | |
CSHB 226(FIN)-REPEAL TERMINATION OF STEP PROGRAM
2:18:43 PM
CHAIR ELLIS announced CSHB 226(FIN) to be up for consideration
and that he has instructed a CS to be written that would extend
the program to 2018 to comport with some of the gasline training
plans the state hopes to have. He, personally, along with a lot
of other people, wanted to see the State Training and Employment
Program (STEP) program made permanent in statute.
REPRESENTATIVE COGHILL, sponsor of HB 226, explained that when
he originally introduced this bill the STEP program was
permanent. Mainly he sees that some people who need retraining
or who are marginally employed need an avenue to get into the
workforce. In the foreseeable future, Alaska is going to have
workforce development struggles in every major professional
career field. The STEP program has proven to him that it can
fill that need.
He said the program is not without its problems and union issues
revolve around philosophies of different administrations. While
he favors non-union, he realized that unions do some good work.
They have the best training in the world, for one, and this
program has hit one of the sweet spots of Alaska where people
really have the need.
2:22:37 PM
The House gave it a 2009 sunset date because it wanted to see
how the STEP grants were handled. He agreed with that, but he
didn't want to sunset it every year. It's right to be
accountable, so he proposed putting it into the DOL and then
looking for places to fund it. In his view then, the funding
would be part of the annual question of what the legislature
looks at.
He said that part of the funding comes from unemployment
insurance, so the annual review would include the workforce
development reports and unemployment insurance accounting. This
was enough for him, but it wasn't for the majority members in
the House. That is why the reporting mechanism is in the bill,
and that is okay with him. He said there are other programs, but
the STEP program is one good tool that promotes a healthy
workforce.
2:27:33 PM
CLICK BISHOP, Commissioner, Department of Labor and Workforce
Development (DOLWD), said the STEP program has demonstrated
tremendous success in training Alaska's workers in Alaska
careers for over 19 years. Over 24,000 Alaskans have been served
by the program, and each year it is evaluated. It continually
demonstrates its overall success. Some of the performance
highlights are that more than 94 percent (1,643) of the trainees
had employment within 12 months after completing the program.
STEP participants earned over $71 million in Alaska wages in the
year following training, a 35 percent increase over total pre-
training earnings. STEP provides services that benefit the
participants in the long term; about 90 percent of participants
that completed STEP training in 2003 were still Alaskan
residents in 2006.
2:29:03 PM
He said intent was developed last year that requires the
department to work with all interested stakeholders in reviewing
the program's priorities and procedures in both the controlling
regulations and statute. A public forum was held in the interim
in which all but 4 of the 22 entities testified in favor of
STEP's continuance. One comment stands out from that period;
that was, "STEP demands deliverables and accountability." He
concurred with that.
He said that last year he pledged to Representative Coghill to
advance STEP one piece at a time. The first goal was the
reauthorization of STEP; and the second was to get the
recommendations from the public forum on STEP. The third goal
was to assemble a task force to work through the comments and
recommendations he had received in the course of last year in
order to develop any changes or procedures - in regulations or
statute - to bring forward in the next legislative session. He
had assigned Deputy Commissioner David Stone to that task. He
closed saying that everyone needs to keep the dialogue on a
professional tack as the program gets improved.
2:31:05 PM
SENATOR BUNDE said he would provide some questions in writing.
CHAIR ELLIS asked Commissioner Bishop if he was able to find
improvements in the procurement process.
COMMISSIONER BISHOP answered that one of the areas he was able
to work on last spring was to improve the STEP application
process.
CHAIR ELLIS asked if he was personally involved.
COMMISSIONER BISHOP replied yes; "I'm on deck."
2:33:23 PM
JOE CRUM, President, Northern Industrial Training Trust, started
by saying they had trained 875 Alaskans in 2007 and looked to
double that this year. He said the concept of STEP is excellent.
It is one of the only programs that has training for someone who
is already working. The STEP electronic submittal application
for grants is awesome as well as the fact that STEP pays for
room and board and other support services for participants.
Having STEP funds available for competitive grants ensures that
trainees from around the state, not from just population
centers, can attend the program. A person from Savoonga, for
instance, does not have equal access to a Job Center where he
can meet with a counselor in person and receive assistance
versus a person from Anchorage. STEP grants circumvent the
access problem by allowing the burden to be placed on the
grantee and not the state system - and he appreciated that. He
summarized that the STEP cuts across barriers; it is open to all
ages, abilities, all races and all regions within the state.
2:35:39 PM
On the improvement side, he said, grant announcements have a
deadline for submittal and a required training schedule, but
there is no deadline for when the grants are awarded. This
typically takes several months, which makes the original
training schedule that must accompany the application invalid.
This delay severely shortens the recruitment timeframe. STEP
reimbursements take a considerable time to be paid back, so when
a grantee is purchasing training equipment for the grant
training they have to pay in advance and wait two or three
months to be paid back. That causes undue financial hardship for
his organization as well as many others, and there is no
recourse for late payment from the State of Alaska.
MR. CRUM also suggested using a flat rate for tuition in the
grant, because going back for a breakdown of costs for facility
rental, telephone and fax use and insurance amounts is very
cumbersome. The last suggestion he had was to consider using the
new Denali Commission application process which is awesome.
CHAIR ELLIS commented those were the most specific comments he
had heard in a long time and he said the Deputy Commissioner of
the Department of Law (DOL), Guy Bell, was taking notes.
2:38:00 PM
DENNIS TRAYLOR, Southcentral Alaska Building and Construction
Trades, supported HB 226 and said one of Alaska's major
challenges over the coming decade is workforce development. STEP
grants benefit working Alaskans, because as a past instructor of
a training program he has seen firsthand the assistance the STEP
grant provided. Most of the trainees are men and women from
rural areas who are already supporting a household with family
members on a trainee's budget. Going to a training facility to
complete their training while supporting an additional household
crates a financial hardship, and these grants are a lifesaver
for these men and women. Otherwise, he said, these slots would
ultimately go to a trainee within a city where the training is
being offered. This is not a union/non union issue, because any
of the trainees, union or non union, can use the STEP grant.
When he was an instructor, the AVTEC program in Seward received
a $5 million grant and was able to purchase training equipment
he wasn't able to. When Dan Logan, one of the AVTEC directors
came to his facility looking for curriculum to put together a
concentric conduit bending program, he invited him in and opened
up the curriculum to him. While he was jealous of the grant, he
knew they were all working towards the same goal or training the
working men and women of Alaska to become skilled workers. He
urged that the unions, the universities, AVTEC and the ABC all
work together to meet the incredible challenge this state faces.
2:41:24 PM
TOM BRICE, Alaska District Counsel of Laborers, supported HB
226. His folks deal with private construction laborers of
Alaska, Locals 341 and 942. Specifically, they appreciate the
STEP program because it is competitive and that insures quality.
It ensures deliverable and accountability for state funds spent.
2:43:27 PM
JOHN MACKINNON, Executive Director, Associated General
Contractors, supported HB 226. The Association represents over
650 members statewide, and it is very heavily involved in
workforce development, training and continuing education.
2:44:14 PM
KEN PELTIER, Administrator, Alaska Operating Engineers and
Employers Training Trust, said the trust is a jointly
administered labor-management trust fund between the Operating
Engineers Local 302 and Associated General Contractors. They
train heavy equipment operators, mechanics and service oilers in
the construction field and have provided training services
independent in Alaska since 1989. The Training Trust has
successfully received STEP funding for the last 10 years.
He said that the Department of Labor and Workforce Development
(DOLWD) has identified the construction field as a high priority
occupational training area and Alaska is experiencing a critical
shortage of resident workers with construction skills.
Historically this industry relies on non-residents to fill jobs
where they cannot find qualified Alaskans. Without the necessary
training available, contractors are more likely to hire
experienced individuals from outside the state. The department
estimates construction job growth will exceed 15 percent over
the next decade; more than 40 percent of the workforce is over
the age of 45 and could retire within a decade. The job growth
and replacing the aging workforce will require about 1000 new
constructions workers each year; if a gas pipeline is built,
thousands more will be needed.
Opportunities for employment of rural Alaskans are limited
primarily due to a lack of appropriate skills. The STEP program
has expanded training opportunities to rural individuals and has
increased the number of available trainee slots for rural
participants to attend the apprenticeship program in Palmer.
He concluded by saying through STEP funding, the Training Trust
believes it will be able to increase employability for more of
its Alaskans by providing training resulting in credentials and
certifications. This training will make them ready to meet the
needs of labor shortages and expanding job opportunities and to
fill positions otherwise filled by non residents. He stated that
STEP training will meet the job needs of those in areas with a
high rate of unemployment.
MR. PELTIER added that this is a unique and viable program that
Alaskans can be proud of. No matter what the field of work, it
is a program that encourages workers to improve their skills,
allowing them to obtain better paying jobs and decrease their
dependence on unemployment funds. He encouraged the legislature
to take the STEP program from a pilot to a permanent state
program.
2:47:17 PM
JONATHAN SMITH, Alaska Regional Council of Carpenters, supported
HB 226. He said the STEP funds have helped the millwright,
machine erectors, pile drivers and carpenters across the state.
2:47:45 PM
CHAIR ELLIS summed up that it's highly likely that the
legislature would extend the STEP program. He didn't sense any
controversy, but the accountability piece could still be
discussed. He had proposed a longer extension period than came
to the committee and he wanted members to think about what
period of time they are comfortable with.
SENATOR BUNDE said he had no quarrel with 2018 if he could hear
the rationale.
| Document Name | Date/Time | Subjects |
|---|