Legislature(2009 - 2010)HOUSE FINANCE 519
01/27/2010 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB300 || HB302 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 300 | TELECONFERENCED | |
| *+ | HB 302 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HOUSE FINANCE COMMITTEE
January 27, 2010
1:35 p.m.
1:35:38 PM
CALL TO ORDER
Co-Chair Hawker called the House Finance Committee meeting to
order at 1:35 p.m.
MEMBERS PRESENT
Representative Mike Hawker, Co-Chair
Representative Bill Stoltze, Co-Chair
Representative Bill Thomas Jr., Vice-Chair
Representative Allan Austerman
Representative Mike Doogan
Representative Anna Fairclough
Representative Neal Foster
Representative Les Gara
Representative Reggie Joule
Representative Mike Kelly
Representative Woodie Salmon
MEMBERS ABSENT
None
ALSO PRESENT
Larry Ledoux Commissioner, Department of Education and Early
Development; Clark (Click) Bishop, Commissioner, Department of
Labor and Workforce Development; David Stone, Deputy
Commissioner, Department of Labor and Workforce Development
PRESENT VIA TELECONFERENCE
None
SUMMARY
HB 300 APPROP: OPERATING BUDGET/LOANS/FUNDS
HB 300 was HEARD and HELD in Committee for further
consideration. The following departments presented
overviews:
The Department of Education and Early Development
The Department of Labor and Workforce Development
HB 302 APPROP: MENTAL HEALTH BUDGET
HB 302 was HEARD and HELD in Committee for further
consideration.
1:35:44 PM
HOUSE BILL NO. 300
"An Act making appropriations for the operating and loan
program expenses of state government, for certain programs,
and to capitalize funds; making supplemental appropriations;
making appropriations under art. IX, sec. 17(c), Constitution
of the State of Alaska; and providing for an effective
date."
HOUSE BILL NO. 302
"An Act making appropriations for the operating and capital
expenses of the state's integrated comprehensive mental
health program; and providing for an effective date."
1:37:22 PM
DEPARTMENT OF EDUCATION and EARLY DEVELOPMENT
LARRY LEDOUX, COMMISSIONER, DEPARTMENT OF EDUCATION and EARLY
DEVELOPMENT (DEED), presented his staff. He highlighted some of
the major focuses and initiatives of the department. He declared
that the department is moving toward school reform to achieve
graduation goals and more efficiency and accountability to the
state. Commissioner Ledoux noted that next year the general fund
budget will go up about $60 million in response to HB273. He
added that the budget includes the continuation of the preschool
pilot program which is collecting data with the goal of every
child coming to school ready to learn. He furthered that in the
budget is the addition of three technical assistance positions in
science, reading and math. He reported that leadership expertise
in these areas was lacking statewide.
Co-Chair Hawker questioned how the three positions fit into the
responsibilities the legislature has delegated the DEED under the
Moore vs. State of Alaska suit. Commissioner Ledoux observed that
an identified concern was the financial inability of some
districts to provide this expertise.
Co-Chair Hawker alleged that the legislature is reluctant to grow
the state's employment base. He asked if the agency actually does
not have this expertise or is just looking to improve the
capacity. He asked how vital the positions were. Commissioner
Ledoux replied that the positions were vital for many districts.
He wanted to provide leadership to help change math and science
attitudes throughout the state.
1:45:43 PM
Co-Chair Hawker asked what the specialist would do to change the
attitudes. Commissioner Ledoux emphasized that specialists would
provide leadership in local communities to identify curriculum
and practices to improve math and science and then develop a
model curriculum.
Representative Joule remarked that one of the proposals being
considered is the governor's merit scholarship program. He
inquired what these positions would do to help districts meet the
criteria requirements for the scholarship.
Commissioner Ledoux declared there would be a connection. The new
positions would help small districts develop their processes and
programs to improve program delivery. Over fifty schools have
twenty students or less which mean fewer teachers to teach a wide
variety of subjects. There needs to be improvement for students
in rural Alaska to access quality distance programs within a
stable framework.
1:50:09 PM
Representative Austerman asked how many schools cannot meet the
criteria for the governor's merit scholarship. Commissioner
Ledoux believed that all schools could meet the program through
distance delivery programs. He believed the utilization of those
programs was limited by lack of leadership and program
development. Representative Austerman asked what kind of
leadership.
Commissioner Ledoux referred to that fact that some schools or
districts can meet the challenges of creating good curriculums
and others do not. Representative Austerman asked if he believed
there was a lack of leadership in some schools or within the
DEED. Commissioner Ledoux replied that he believed his office
provided leadership, but wanted a good blueprint that could be
followed when positions are replaced by new individuals.
Commissioner Ledoux defined leadership as planning, taking
advantage of available resources, and continuation in the job.
Representative Austerman followed up with his concern that the
governor's merit program was not fair across the state.
Commissioner Ledoux agreed with the need for more equality
throughout the state. Although he agreed it is more difficult
for students in rural Alaska, he believed these students needed
to step forward. He added that the leadership problem often was
the result of the turnover of teachers and principals in many
communities.
1:54:26 PM
Representative Fairclough inquired how the DEED is working with
the university to improve distance learning opportunities inside
of individual communities.
Commissioner Ledoux responded that the federal government has
made millions of dollars available for broadband connectivity and
the DEED has elected to work with the university instead of
competing with them. He indicated that there is a shared employee
who works out of Anchorage that helps coordinate applications to
help increase broadband across the state.
Representative Fairclough asked the commissioner to assure the
committee that there would not be any additional funding request
to align in the same community's technology in the university
system and technologies in the school districts.
Commissioner Ledoux responded that there would be no additional
funding request from the DEED. The technology sharing is becoming
net friendly. Representative Fairclough stated that some areas,
such as the Dillingham, struggle with connectivity.
1:56:13 PM
Representative Foster asked if the DEED has assessed the
equipment needed in rural areas to access the distance delivery
programs, especially those necessary to meet the equity for the
merit scholarship. Commissioner Ledoux remarked that technology
surveys have been done, but not with respect to the delivery of
distance courses. Many schools are connected by broadband, but
the delivery of real-time synchronicity with teachers is limited
because of the expense.
Co-Chair Stoltze commented on Commissioner Ledoux's idea of
leadership, but wondered how the government promotes leadership.
He asked for further elaboration on this program.
1:59:37 PM
Commissioner Ledoux responded that the intent would be to help
build the capacity of local districts to manage and solve
problems. Some districts do not have the capacity or all the
tools in place because of leadership changes. The goal is to
stabilize the leadership and give the districts the necessary
tools.
Representative Gara asked about the college plan. He agreed it
was well intentioned, but too much money was being spent with too
little results. He noted a university regent study that estimated
what would be needed to get youths into the university's academic
and job training program. The study estimated that a statewide
program for those with financial difficulties would cost the
state $5 million to $7 million. Representative Gara contended
that the governor's plan costs $20 million. He also noted that
some of the money was being spent to send "C" students, whose
parents could afford the tuition. He wondered if this was the
best expenditure of money when there were other youths who just
could not afford to go to the university. He asked the
commissioner to talk about the comparative costs between the
university study and the governor's proposal.
2:02:09 PM
Commissioner Ledoux responded that he could not speak to that
individual study, but believed the governor's program was a
contract between a student and the state. The scholarship program
provides a motivation for students to work harder. He added that
when working with young people there is a battle of attitudes for
achievement and this program was a contract with a young person
to encourage them to work harder. Commissioner Ledoux emphasized
that many students are limited by the cost of tuition, but this
scholarship would not fully fund a college education. The goal is
to reward the student who takes on the task of a rigorous
curriculum which would ensure greater success in college. He
mentioned that with need-based students, the federal government
has increased grants along with other available grants. He
believed that parents and students need to start educating
themselves early about available financial assistance.
2:05:35 PM
Representative Gara asked if the state should leverage whatever
money is available. He wondered if full tuition was available
under this scholarship plan.
Commissioner Ledoux expounded that the current design of the
scholarship money is to pay for some of the expenses to attend
college, but not the entire tuition.
Representative Gara asserted that many students do not have an
ideal family to help them get this financial or scholarship
information. Commissioner Ledoux agreed that not everyone has a
family that provides this information. He believed that the
schools have not always communicated with students and parents
about the opportunities and decisions that need to be made. He
contended that students and parents need to start forming a
school plan by the 7th grade. His experience is that families
have dreams for their children that do not stop because they are
financially unable to afford higher education.
2:09:10 PM
Representative Gara emphasized that there are many children
without parental support or guidance.
Co-Chair Hawker interjected that one of the biggest debates last
year concerned federal stimulus money. There was great concern
that this money not be used to raise expectations that more money
would be provided by the state once federal stimulus money was
gone. He asked the commissioner to report on the success of the
department's compliance with this plan.
Commissioner Ledoux answered that in the grant applications for
the schools it was made clear that the stimulus money was a one-
time grant and they could not come back to legislature for more
money. He noted that many districts are using the stimulus funds
wisely in building infrastructure, consultant hiring, designing
curriculum, and purchasing staff development. He added that some
districts have used the funds to hire new teachers which will
require them to reconfigure their priorities to keep these
positions.
2:12:42 PM
Commissioner Ledoux reported that the stimulus funds did create a
number of jobs in Alaska and there is the fear of who will pay
for these positions when the funds run out.
Representative Doogan asked the commissioner for his confidence
level that if a student in the 7th grade elects for vocational
education all the necessary courses to finish school and obtain a
good job will be there.
Commissioner Ledoux stressed that the earlier the conversations
start, the better it will be for the students and parents. Many
vocational programs have degraded from the 1960s. In the early
days, Alaska had some of the finest vocational training in the
world, but there are fewer career technical programs today. Money
was moved out of career technology and new money will have to be
found to infuse in the program. Middle school career and
technical education has been removed from many schools.
Commissioner Ledoux furthered that in the past, career education
and technical education was translated as "work ready." He
relayed that today's term was "Career Pathways" to move from the
high school to the university for further in depth training. He
added this only happens in the larger urban settings in Alaska.
He noted that there were a few smaller communities looking at how
to bring in students for career technical training. The
Department of Labor & Workforce Development and the Department of
Education & Early Development are working jointly on this issue.
Commissioner Ledoux indicated that the three big players in
vocational education are President Hamilton, Commissioner Bishop
and himself. He believed if the conversations start early to
provide students the opportunity to engage in career and
technical programs, then students will be ready to pick a career
and work hard to achieve it.
2:19:43 PM
Commissioner Ledoux asserted that if a child in sixth grade is
one grade level behind in math and reading, has poor attendance,
or negative behavior, then there is only a one in three chance
that student will graduate.
2:20:21 PM
Representative Doogan asked how long before a student can rely on
the K-12 school system to prepare him or her for vocational
education.
2:21:05 PM
Commissioner Ledoux answered that it has to do with resources. At
one time school districts received extra money for each student
enrolled in career and technical education. Also vocational
teachers were paid 5 percent more than other teachers to attract
them to the classroom, but that money disappeared. The program
will reach its goals faster if more money is specifically
directed toward quality career and technical education that is
directly aligned to the work force needs of Alaska. He
acknowledged that the program will need to go forward without
additional funding. There are many good ideas around Alaska
communities, but they are often limited by the lack of resources.
2:24:28 PM
Representative Doogan voiced his concern about all of the
proposed $400 million in the governor's program going to college
scholarships. He wanted something for those students who would
not be attending college. He contended there were more concrete
plans for students to receive the scholarship money for
university education, but not for those who may want to enter
vocational school. He wanted the money to be geared to those who
might need it the most.
2:27:14 PM
Commissioner Ledoux elaborated that one of the problems in
education is there are so many different philosophies on which
direction should be targeted. School reform is difficult for this
reason. He believed the governor's proposed scholarship that
contains a strong vocational component, will catalyze development
and insure the graduation goals. He commented on the list of
priorities that the department is actively working on,
"Initiatives of Alaska Department of Education & Early
Development" (copy on file). The development of each one of these
initiatives requires money that the commissioner knows is not
available. He reminded the committee that 10,000 students pass
through Alaska's school system each year, but he will not allow
the lack of money to stop the leadership goals.
2:30:50 PM
Representative Doogan redefined his message. He contended that
among the 10,000 students per year, some will go to college, but
others will not. He contended that Alaska needs to provide some
realistic opportunities for those students. He declared that he
would fight for a significant amount of the governor's proposed
$20 million a year goes to go to students who want to pursue
vocational education.
2:33:24 PM
Commissioner Ledoux agreed that the DEED will not achieve its
goals without solid career and technical opportunities for
students. He added that there is a part in the governor's
proposed scholarship for vocational training.
2:34:28 PM
Co-Chair Hawker stressed that in his opinion the only place that
the state puts money is into vocational education programs
without much care for the state's gifted and talented students.
2:35:14 PM
Co-Chair Stoltze commented that he hoped the superintendents and
school boards who agreed to the rules of the one-time stimulus
money would not come back to the legislature looking for more
funds for these projects. He referred to the Alaska Constitution
where it states that the University of Alaska should be governed
by a Board of Regents to formulate policy and appoint the
president of the university. He viewed this passage could be read
broadly. Co-Chair Stoltze agreed that 60 percent of students in
the Alaska system were probably interested in the vocational
education program and a governor who showed leadership could
change policy by his appointments to the school board. He thought
the university system could do better in this area.
2:39:09 PM
Representative Kelly remarked that great principals and
superintendents, along with involved parents make a huge
difference in the school system. He believed that Commissioner
Ledoux really understands the problems and stressed he would vote
to give the commissioner the three new positions he needs to move
forward. He declared that the commissioner was a good man for the
job and agreed that the leadership of great teachers and
superintendents will move student performance forward.
2:43:05 PM
Co-Chair Hawker appreciated the spirited discussion on
substantive issues that are eventually turned into numbers.
Representative Joule thought much could be accomplished if the
energy of the people and legislature could be harnessed.
Co-Chair Hawker encouraged the participation in the subcommittee
process. Commissioner Ledoux agreed that the questions were
helpful and he appreciated the committee's concerns. He
emphasized that there is progress and good news in the system,
not just problems and challenges.
2:47:33 PM
Co-Chair Hawker drew attention to the committee substitute draft
for HB300 (FIN). He emphasized that the committee substitute is a
zero change in anything appropriated in this bill, only how the
individual fund sources are rolled up. He pointed out that this
committee substitute, along with the original, are posted on the
Legislative Finance website for comparison. He emphasized that it
all nets to zero.
Co-Chair Stoltze MOVED to ADOPT CS for HB 300(FIN) (26-GH2823\S,
Bailey, 1/26/10) as a working document for the committee. There
being NO OBJECTION, it was so ordered.
2:49:52 PM
Co-Chair Hawker explained that the Mental Health Operating Budget
reflects the amount The Mental Health Trust is providing and
being appropriated into other budgets. This is still a zero
change document, but the structure used by the governor's office
is different from the one used by the legislature.
Co-Chair Stoltze MOVED to ADOPT CS HB 302(FIN), (26-GH2825\S,
Bailey, 1/26/10) as a working document before the committee.
There being NO OBJECTION, it was so ordered.
2:51:54 PM
Representative Kelly thanked Co-Chair Hawker and stated his
support for the measure, which he believed puts the
administration's and the finance committee's way of presenting
things clearer to the public. Co-Chair Hawker thanked
Representative Kelly, but gave credit to many others who
facilitated this plan over the years.
2:53:41 PM
DEPARTMENT OF LABOR and WORKFORCE DEVELOPMENT
CLARK (CLICK) BISHOP, COMMISSIONER, DEPARTMENT OF LABOR AND
WORKFORCE DEVELOPMENT, introduced several members of his staff.
He indicated that the department budget request is $195 million
Commissioner Bishop indicated the good working relationship with
Commissioner Ledoux and the University. He agreed that many
school districts are meeting the challenge of career pathway
alignment, but some schools need help. He acknowledged that there
were students graduating who did not have all the necessary skill
needed. He supported a good career pathway plan between the
Department of Education and Early Development (DEED) and the
Department of Labor & Workforce Development (DLWD) that could
continue even with administration or teacher turnovers.
3:00:15 PM
Commissioner Bishop acknowledged schools with good plans existed
throughout the state. He believed it important to build on the
good work he has seen in some districts. He referred to the gas
line training program as helping to close the gap and move the
workforce forward. There have been 113 identified gas line
related occupations. He noted many positions were included in
this plan including caterers and geologists. Commissioner Bishop
reported he had named a pipeline administrator to oversee the gas
line training plan. The public will have the opportunity to see
the manpower numbers soon. He furthered that the work to
determine the costs associated with gas line training will move
forward. He emphasized that this training was not just for the
gas pipeline, but future jobs in Alaska. He talked about
developing a core drilling program for mineral exploration. The
Department of Labor developed the first ever registered
apprenticeship core drilling program in the United States or
Canada. Thirty six entry level Alaskan core drillers were trained
for resource based work; now ready to begin the second round of
training.
3:07:10 PM
Representative Austerman referred to the Alaska Gasline
Inducement Act (AGIA) work plan and noted this training is not
just for the gas pipeline and asked for further information on
how this training applies to other occupations.
3:08:11 PM
Commissioner Bishop remarked that the AIGA training plan can
transform from occupation to occupation. He mentioned two other
occupations have used this plan; the health care industry and
green jobs occupations. He acknowledged it does not meet all
occupations, but a good framework for many. Representative
Austerman maintained that he wanted to make sure the training was
not just limited to pipeline jobs, but other occupations
necessary for Alaska's future.
3:10:15 PM
Representative Salmon asked what project was being worked on in
the Tower Hill area north of Fairbanks.
DAVID STONE, DEPUTY COMMISSIONER, DEPARTMENT OF LABOR AND
WORKFORCE DEVELOPMENT, responded the Livengood Gold project.
Co-Chair Hawker remarked that there is a lot of strategic work
within the department, but also workforce development schools for
actual training. Co-Chair Hawker wondered if all the state's
schools should be placed under the DEED with the DLWD focusing
primarily on strategy and workplace management.
3:12:43 PM
Commissioner Bishop responded that he liked the idea. Co-Chair
Hawker asked what would be the advantages.
Commissioner Bishop remarked he would like further discussions on
the subject. One of the things necessary in the training plan is
coordination from K-12 through regional training centers. The
Department of Labor has been coordinating regional training
centers throughout the state for the past three years.
3:15:00 PM
Co-Chair Hawker voiced that he was looking at the future of the
state and what would be in Alaska's best interest. He just
wondered if there is a better way of doing things.
Commissioner Bishop reiterated that he would welcome further
discussions. He indicated his support for higher education, but
the statistics state that 23 percent of Alaska high school
graduates successfully enter college and 70 percent need
vocational training.
3:17:20 PM
Representative Gara remarked about the difficulty in seeing the
unified picture of what is being done and where the gaps might be
because everything is spread through many different departments.
He wondered if there was a listing somewhere of where the gaps
are in vocational training.
Commissioner Bishop indicated that through the gas line training
program he wanted to achieve alignment to work together for the
common goal. He hoped that after five years of training people in
the state could see how it could work to become the benchmark for
the future. He remarked that many people come to his department
with different requests and his goal was to bring some
coordination to vocational training.
3:20:36 PM
Representative Gara understood that a training plan to meet
everyone's needs would be impossible to fund. He realized the
department brings budget requests for what can be accomplished
today, but the committee often cannot see where money might be
needed in the future. He requested more information about future
goals.
Commissioner Bishop agreed and remarked he would love to sit down
with Commission Ledoux to discuss this matter.
Commissioner Bishop concluded that getting out information on the
opportunities and services available to the people in the state
is important. He wanted make sure that schools get the
information out to the students in the rural districts.
3:24:12 PM
Representative Salmon asked the commissioner how the programs are
tied with the very small rural communities.
Commissioner Bishop replied that it was a hard question to
answer. He suggested sitting down to have a comprehensive talk
with him at another time.
Co-Chair Hawker interjected that a document summary would be
helpful to distribute to the committee.
3:25:56 PM
Representative Kelly noted that the commissioner is a strong
proponent for the Western Access Corridor and he was pleased to
see that the governor has added some additional funding. He added
that a person without a job is often a person lost.
3:26:53 PM
Co-Chair Hawker had a technical concern about the budget. He
noted that the department runs on many separate funds and was
concerned about the sustainability rate for spending out of these
funds. He believed there was a need to look at all the fund
groups available to this department.
3:28:45 PM
Representative Austerman asked about the unemployment rate in
Alaska for the past few years and the projected trends.
Commissioner Bishop answered that Alaska's unemployment story is
a success story. Alaska paid out $274 million in unemployment in
1009; $83 million in federal funds for extended benefits. He
referred to the multi-colored U.S. map graph, UI Fund Solvency
Measure-January 21, 2010 (copy on file). He remarked that Alaska
is one of three states where the employee is taxed as well as the
employer. Only two states are funded, Alaska and Washington.
Alaska is at 8.8 percent unemployment rate. His goal is not to
make double digit unemployment.
Representative Austerman asked for any future projections.
Commissioner Bishop forecasted a trend down of 1400 jobs this
season, but not as bad as the 2400 lost last year. The Health
Care industry is looking to add 500 jobs. He reported he was
optimistic about the future.
3:32:46 PM
Representative Salmon responded that there is greater
unemployment in rural Alaska and wondered if the commissioner had
any statistics. Commissioner Bishop replied he will provide
updated unemployment statistics by region to the committee.
3:33:32 PM
Representative Fairclough reported that the forecast for Alaska's
population is just under 700,000. She believed forecasting low
unemployment may cause more people from the outside to migrate to
Alaska who may not completely understand the full costs and
challenges of residing here.
3:36:44 PM
Representative Foster thanked Commissioner Bishop for the help
with rural Alaska and vocational education. He asked about health
care jobs in rural Alaska.
Commissioner Bishop responded that he has not been to a community
yet that does not have openings in health care. He mentioned that
in Representative Foster's region there are potentially 100 new
positions available. He observed that there are some real
opportunities for young people who want to work and stay in the
rural area.
3:39:27 PM
Representative Joule extended his appreciation to the
commissioner for being aware and supporting efforts of the group
in the Northwest Arctic magnet school. The school board has been
working towards a paradigm shift regarding health care and
education positions. Often when a position requires a higher
degree of education those positions are often imported from
outside. The focus of the magnet school is to take the idea of a
boarding school and focus training in the three specific areas of
health, education, and mining occupations.
3:43:01 PM
Representative Doogan believed Commissioner Ledoux is doing what
the department needs to be done. He noted his continuing concern
that whatever is done with vocational education be accomplished
within the best financial plan and little duplication.
3:45:09 PM
Co-Chair Hawker reiterated that one of greatest challenges in the
state is building replacement workers. Many Alaska jobs are
filled by outside workers and it is in Alaska's best interest to
train replacement employees from the local communities.
Commissioner Bishop indicated that he was available to meet with
any legislator to answer any questions or clarify any subject.
3:47:19 PM
Representative Gara agreed that Commissioner Ledoux has a
proposal to get something done this year.
Representative Austerman maintained that the problem today in
training people from local communities is that before Alaska
became a modern state people in the local communities performed
the jobs. Now there are so many regulations and standards of
qualifications it has become more of a challenge.
ADJOURNMENT
The meeting was adjourned at 3:50 PM
| Document Name | Date/Time | Subjects |
|---|---|---|
| Labor Overview 10 Year Proj.pdf |
HFIN 1/27/2010 1:30:00 PM |
|
| 10 Yr Plan Assumptions 1-22-10DEED Overview.docx |
HFIN 1/27/2010 1:30:00 PM |
|
| Initiatives summary Jan 2010 (2)DEED Overview.doc |
HFIN 1/27/2010 1:30:00 PM |
|
| FY11 EED Governor's Budget Overview.pdf |
HFIN 1/27/2010 1:30:00 PM |
|
| Dept LaborOverview Legislative Presentation.pdf |
HFIN 1/27/2010 1:30:00 PM |
|
| 10 Yr Plan Graph DEED Overview.xls |
HFIN 1/27/2010 1:30:00 PM |
|
| UI Fund SolvencyDOL Overview.pdf |
HFIN 1/27/2010 1:30:00 PM |
|
| EED Overview ARRA Funding Summary2.xlsx |
HFIN 1/27/2010 1:30:00 PM |
|
| HB302 CS DRAFT version S 01262010.pdf |
HFIN 1/27/2010 1:30:00 PM |
HB 302 |
| HB 300 CS DRAFT version S 012610.pdf |
HFIN 1/27/2010 1:30:00 PM |
HB 300 |