Legislature(2003 - 2004)
02/04/2004 03:03 PM House FIN
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* first hearing in first committee of referral
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= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE FINANCE COMMITTEE
February 04, 2004
3:03 P.M.
TAPE HFC 04 - 19, Side A
CALL TO ORDER
Co-Chair Williams called the House Finance Committee meeting
to order at 3:03 P.M.
MEMBERS PRESENT
Representative John Harris, Co-Chair
Representative Bill Williams, Co-Chair
Representative Kevin Meyer, Vice-Chair
Representative Mike Chenault
Representative Eric Croft
Representative Hugh Fate
Representative Richard Foster
Representative Mike Hawker
Representative Reggie Joule
Representative Carl Moses
Representative Bill Stoltze
MEMBERS ABSENT
None
ALSO PRESENT
Representative Mary Kaspner; Tim Benintendi, Staff,
Representative Carl Moses; Greg O'Claray, Commissioner,
Department of Labor; Guy Bell, Director, Division of
Administrative Services, Department of Labor & Workforce
Development
PRESENT VIA TELECONFERENCE
Janelle Vanasse, Executive Director, Yuut Elitnaurviat,
Inc., People's Learning Center, Bethel; Dr. Erie Johnson,
Executive Director, Southwest Alaska Vocational Education
Center, King Salmon; Bryce Edgmon, Chief of Operations,
Bristol Bay Economic Development Corporation, Dillingham;
Dave McClure, Executive Director, Bristol Bay Housing
Authority, Dillingham; Steven Angasan, President of Naknek
Board, Naknek
SUMMARY
HB 123 An Act relating to the allocation of money
appropriated to the Alaska Human Resource
Investment Council; and providing for an effective
date.
HB 123 was HEARD and HELD in Committee for further
consideration.
HOUSE BILL NO. 123
An Act relating to the allocation of money appropriated
to the Alaska Human Resource Investment Council; and
providing for an effective date.
Co-Chair Harris MOVED to ADOPT work draft #23-LS0620\H,
Kurtz, 2/3/04, as the version of the legislation before the
Committee.
Representative Joule OBJECTED for an explanation regarding
the differences between the two pieces of legislation.
Co-Chair Williams explained that Yuut Elitnaurviat, Inc.,
the People's Learning Center, had been removed from the
version being considered and that the percentages had been
changed.
Representative Joule WITHDREW his OBJECTION.
Co-Chair Williams noted that it was not his intent to move
the bill out of Committee at this meeting.
TIM BENINTENDI, STAFF, REPRESENTATIVE CARL MOSES, explained
that committee substitute would change the effective date on
Page 2, Section 2. The bill also reflects the name change
of the board from the Human Resources Investment Council to
the Alaska Workforce Investment Board. He added that the
version before the Committee would drop the Bethel Center.
Mr. Benintendi noted that the bill would add the Southwest
Alaska Vocational & Education Center in King Salmon to the
roster of entities that could gather federal funds. It
would change the University's share from 63% to 59%.
The Southwest Alaska Vocational & Education Center has
officially been in existence since May 2002, serving over
900 students. The average active student count is about 45
individuals per month.
Funding for the program is through the Technical Vocation
th
Education Program (TVEP) and comes from 1/10 of 1% assessed
from each employee under the State's Unemployment Insurance
Program. This action does not create a new general fund
expenditure but would share in the pool of what is
appropriated from that program.
The Center at King Salmon is a struggling regional training
center in the heart of the worst failed salmon fishery in
Alaska. He emphasized that the bill would require the
expenditure of no new money.
Mr. Benintendi continued, the King Salmon Center provides
on-going skill development and retraining services in
several areas of potential re-employment for local
residents, including skills in the construction trades,
energy development, heavy equipment operation, computer
hardware, commercial operator licenses and the refrigeration
and welding trades. The center is positioned to train the
workforce likely needed to support oil and gas development
identified in that region.
GREG O'CLARAY, COMMISSIONER, DEPARTMENT OF LABOR AND
WORKFORCE DEVELOPMENT, offered to answer questions of the
Committee.
Co-Chair Harris inquired if the programs had been listed
during the past six fiscal years. Commissioner O'Claray
explained that the programs were created and made effective
st
on July 1, 2000. The facilities listed in the bill were
primarily vocational and technical training centers.
Co-Chair Harris asked if those monies would be used for
retraining. Commissioner O'Claray explained that the money
could be used for retraining and first-time employment. The
Department also directs the Workforce Investment Act
allocation for training individuals that are affected by the
downturn in the fishing industry. The money could be used
for programs and/or capital improvements.
Co-Chair Harris asked the number of students that would be
affected in each of the areas. Commissioner O'Claray noted
that the numbers are available and would be provided to
Committee members.
Co-Chair Harris questioned if the percentages were accurate
in comparison to the number of students involved.
Commissioner O'Claray did not know.
Co-Chair Harris asked why Yuut Elitnaurviat, Inc., the
People's Learning Center had been removed from the list.
Co-Chair Williams understood that the State vocational
center was supported through the Governor's Office and noted
that it could be added back in.
Commissioner O'Claray pointed out that the Administration
supports the addition of the Southwest Alaska Vocational and
Education Center because of the approaching potential of oil
and gas development in that region.
Representative Joule countered that the Legislature is an
independent body from the Governor. He emphasized that the
lower Yukon-Kuskokwim has high unemployment and requested
further hearings on the bill.
Vice Chair Meyer understood that the University would be
receiving 8% less money. He asked which projects would not
happen loosing those funds. Commissioner O'Claray did not
know how that would affect the University.
Representative Croft inquired how much funding was being
discussed. Commissioner O'Claray explained that this is a
portion of the Employee Contribution Insurance and the total
for FY04 was $4.615 million dollars.
In reference to a query by Co-Chair Harris, Mr. Benintendi
advised that there have been approximately 900 people
passing through the program to date.
Co-Chair Harris inquired if the University of Alaska had a
branch in Bethel.
REPRESENTATIVE MARY KAPSNER replied that there is a
satellite branch of the University of Alaska-Fairbanks
located in that area.
Co-Chair Harris inquired if they offer training similar to
what the People's Learning Center offers. Representative
Kapsner explained that it is "somewhat" similar but not
exactly. She indicated the on-line testimony that would
further clarify these details.
Representative Fate asked how the allocations had been
divided. Commissioner O'Claray stated that the Legislature
actually had established the allocations.
JANELLE VANASSE, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE
DIRECTOR, YUUT ELITNAURVIAT, INC., THE PEOPLE'S LEARNING
CENTER, BETHEL, expressed concern over the omission of the
People's Learning Center in the draft committee substitute.
The Yukon-Kuskokwim region is the poorest in Alaska with
high unemployment. The gap between education and training
in the local workforce is large. She noted that what is
unique about the Center is the multi-organizational approach
to address education and workforce needs of the people. The
partnership does include the University and the local
campus. She continued discussion of local skills training
and that bridging is essential if the people of that area
are to fill the jobs of that region and address current
importation of workers. She stressed that it is an issue.
The partnership does address the importance of the training.
The partnership includes the:
· Alaska National Guard
· Association of Village Council President
· AVCP-Regional Housing Authority
· City of Bethel
· Coastal Village Region Fund
· Calista Corporation
· Kuskokwin Campus - University of Alaska/Fairbanks
· Lower Kuskokwin School District
· Yukon Kuskokwin Health Corporation
Ms. Vanasse noted that Governor Murkowski does support the
Yuut Elitnaurviat project. Commission Sampson and
Commissioner Blatchford have indicated that it could be a
model for the State.
Ms. Vanasse highlighted health career training. As services
are expanded in rural Alaska, it becomes more "tragic" that
there are nursing positions with no one to fill them. She
maintained that they should be filled with local persons
from those regions. She urged reconsideration of the
People's Learning Center in the proposed legislation.
Co-Chair Williams noted that amendments would not be taken
at this meeting but that the bill would be held in Committee
for further consideration and amendments.
Co-Chair Harris asked how much involvement does the
University of Alaska have with that campus in retraining
programs. Ms. Vanasse responded that there is significant
involvement. The region is finding that retraining
successfully means more than just traditional education
courses. It must also include transitional skills. In the
Yukon-Kuskokwin region, it often means language development
for those with English as a second language, basic skills
development and basic workplace training. Through a
partnership, the University does what they do best, bringing
in other partners to provide alternate skill training.
Co-Chair Harris asked if any of the money that the
University currently receives from Unemployment Insurance
(UI), was going into the Bethel Campus at this time. Ms.
Vanasse did not know.
Co-Chair Harris understood that the University does not have
a problem allocating 4% of their funds to the People's
Learning Center. Ms. Vanasse stated that the University has
indicated that they support inclusion of the People's
Learning Center in the bill.
DR. ERIE JOHNSON, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE
DIRECTOR, SOUTHWEST ALASKA VOCATIONAL EDUCATION CENTER, KING
SALMON, reiterated comments made by Ms. Vanasse. He noted
that Southwest Alaska Vocational Education Center is in
partnership with the regional agencies. The Board is made
up of seven regional agencies. He stressed that the economy
of that area has "gone through the floor" as it had been a
fishing economy. Many of the young working age people are
leaving the areas, as there is limited employment. There
has not been adequate skill training for them to assume
their role in the work place. HB 123 would provide a "basic
level" in operational use in order to maintain the regional
facility-training center.
Dr. Johnson stressed that the agency has addressed skill-
training needs in the area. During the first couple years
of operation, they have successfully created partnerships
and have been able to address the skill training needs of
nearly 900 people. A high percent are Alaska Natives who
are interested in learning new professional skills that will
enable them to take jobs that are available in that area in
order to decrease dependency on imported labor. Equally
important are great opportunities for employment with the
upcoming oil and gas development in the region.
Dr. Johnson continued, the intent is to also move toward
opening mines in the area within the next few years, which
could provide nearly 1,000 jobs. He stressed the need for
the training of local residents. The proposed funds will
stabilize the Center and allow them to concentrate on
developing more local partnerships in order to provide the
quality training. He offered to answer questions of the
Committee.
BRYCE EDGMON, (TESTIFIED VIA TELECONFERENCE), CHIEF OF
OPERATIONS, BRISTOL BAY ECONOMIC DEVELOPMENT CORPORATION,
DILLINGHAM, testified in strong support of HB 123. He noted
that the fishing industry in that area "has seen its better
day". In 1985, there were 39 companies in the area that
bought salmon, whereas, in 2004, that number has declined to
7. The current price is down to 27-cents per pound. The
mainstay economy of the area has diminished. He pointed
out the opportunities in the mining sector.
Mr. Edgmon emphasized that training regional residents to
take the upcoming jobs is important. He highlighted the
shallow gas drilling opportunities proposed for the area.
Mr. Edgmon urged support of HB 123 and that it move quickly
from Committee.
DAVE MCCLURE, (TESTIFIED VIA TELECONFERENCE), EXECUTIVE
DIRECTOR, BRISTOL BAY HOUSING AUTHORITY, DILLINGHAM, voiced
support for the proposed legislation. He pointed out that
their building was constructed in 2000 in partnership with
the Bristol Bay Housing Authority (BBHA). He noted the
success of that construction project. Mr. McClure noted
that the area looks forward to developing local skills to
develop the local work capacity.
STEVEN ANGASAN, (TESTIFIED VIA TELECONFERENCE), PRESIDENT OF
NAKNEK BOARD, NAKNEK, voiced support for the legislation.
He stated that grants had been written in 1997 with no
positive results and then in 1988, a $2 million dollar
Housing and Urban Development (HUD) grant provided money to
remodel and finish the building currently used. Final
completion of the building was in 2002.
Mr. Angasan echoed concerns with the decline of fishing
happening over the past five years. He urged support and
adoption of HB 123, emphasizing that the bill would provide
for the survival of the Southwest Alaska region. Mr.
Angasan pointed out the Governor's focus on oil and gas
development and that without the Center's training program,
those jobs will not be available to the people of that area.
Co-Chair Williams stated that HB 123 would be HELD in
Committee for further consideration.
ADJOURNMENT
The meeting was adjourned at 3:44 P.M.
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