Legislature(2021 - 2022)ADAMS 519

04/14/2021 09:00 AM FINANCE

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Audio Topic
09:04:17 AM Start
09:04:52 AM HB100
09:22:53 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 100 EXTEND WORKFORCE INVEST BOARD ALLOCATIONS TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
                  HOUSE FINANCE COMMITTEE                                                                                       
                      April 14, 2021                                                                                            
                         9:04 a.m.                                                                                              
                                                                                                                                
                                                                                                                                
9:04:17 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Merrick called the House Finance Committee meeting                                                                     
to order at 9:04 a.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Neal Foster, Co-Chair                                                                                            
Representative Kelly Merrick, Co-Chair                                                                                          
Representative Dan Ortiz, Vice-Chair                                                                                            
Representative Ben Carpenter                                                                                                    
Representative Bryce Edgmon                                                                                                     
Representative DeLena Johnson                                                                                                   
Representative Andy Josephson                                                                                                   
Representative Bart LeBon                                                                                                       
Representative Sara Rasmussen                                                                                                   
Representative Steve Thompson                                                                                                   
Representative Adam Wool                                                                                                        
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Ashley Carrick, Staff, Representative Adam Wool.                                                                                
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Teri Cothren, Associate Vice President of Workforce                                                                             
Development, University of Alaska.                                                                                              
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
HB 100    EXTEND WORKFORCE INVEST BOARD ALLOCATIONS                                                                             
                                                                                                                                
          HB 100 was HEARD and HELD in committee for                                                                            
          further consideration.                                                                                                
                                                                                                                                
Co-Chair Merrick reviewed the agenda for the day.                                                                               
                                                                                                                                
HOUSE BILL NO. 100                                                                                                            
                                                                                                                                
     "An Act relating to allocations of funding for the                                                                         
     Alaska Workforce Investment Board; and providing for                                                                       
     an effective date."                                                                                                        
                                                                                                                                
9:04:52 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  ADAM WOOL,  SPONSOR,  thanked the  committee                                                                    
for hearing HB  100. The bill was a  re-authorization of the                                                                    
Technical   Vocational  Education   Program  (TVEP).   House                                                                    
Bill 100  would re-authorize  TVEP  for another  3 years  to                                                                    
2024. The program was established  in 2000. He reported that                                                                    
.16  percent of  Unemployment Insurance  (UI) receipts  were                                                                    
provided to  the grant and  distributed around the  state to                                                                    
various technical  vocational educational programs.  The sum                                                                    
was  usually around  $12 million.  The Technical  Vocational                                                                    
Education   Program  impacted   thousands  of   students  by                                                                    
offering   industry-specific  training   opportunities  that                                                                    
helped Alaskans get  to work in industries  such as fishing,                                                                    
mining,  aviation, and  healthcare. Some  of the  recipients                                                                    
included  the University  of Alaska,  Alaska Vocational  and                                                                    
Technical Center  (AVTEC), the  Alaska Technical  College in                                                                    
Kotzebue,  and Ilisagvik  College in  Utqiagvik. There  were                                                                    
others on the  list which remained unchanged  since 2014. He                                                                    
indicated his staff would walk through the bill.                                                                                
                                                                                                                                
9:06:21 AM                                                                                                                    
                                                                                                                                
ASHLEY  CARRICK, STAFF,  REPRESENTATIVE  ADAM WOOL,  relayed                                                                    
that some  of the information  might be familiar  to members                                                                    
since the  legislature did a  re-authorization in  2020. She                                                                    
introduced    the   PowerPoint    presentation:   "Technical                                                                    
Vocational  Education Program  Re-authorization." She  began                                                                    
with a  brief history of the  Technical Vocational Education                                                                    
Program (TVEP)  Program on slide  2. She indicated  that the                                                                    
program was  established under Alaska Statute  23.15.830. It                                                                    
was  created  in  2000   to  provide  non-competitive  grant                                                                    
assistance   to   vocational    and   educational   training                                                                    
facilities in Alaska. In 2014  the legislature increased the                                                                    
amount  of   funds  diverted  to   TVEP  from   .15  percent                                                                    
contribution  from  UI receipts  to  .16  percent. The  bill                                                                    
sought  to  re-authorize  TVEP for  another  3  years  until                                                                    
FY 24.                                                                                                                          
                                                                                                                                
Ms.  Carrick continued  to  slide 3  and  conveyed that  the                                                                    
types of training that TVEP  recipients offered branched out                                                                    
through many  different industries in Alaska  including some                                                                    
of  the   state's  most   high  need   industries  including                                                                    
fisheries,   construction,  mining,   aviation,  healthcare,                                                                    
transportation, and other types  of vocational and technical                                                                    
training.                                                                                                                       
                                                                                                                                
Ms. Carrick turned to the flow  chart on slide 4 that showed                                                                    
how the  TVEP funding  was distributed. The  important take-                                                                    
away from  the chart was  the .16 percent  contribution from                                                                    
the UI fund. The funding  came out of the employee's portion                                                                    
of  unemployment  in  their  paycheck  and  distributed  via                                                                    
statutory allocations to the various TVEP recipients.                                                                           
                                                                                                                                
Ms.  Carrick  reviewed a  brief  timeline  of what  entities                                                                    
received TVEP over  the years on slide 5.  Red indicated new                                                                    
recipients  in  various year.  She  detailed  that when  the                                                                    
program  was established  in 2000  the University  of Alaska                                                                    
received  52  percent  of  the   TVEP  funds.  The  Kotzebue                                                                    
Training Center and  AVTEC were also recipients.  In 2001, a                                                                    
new  recipient  was  added,  the  Galena  Project  Education                                                                    
Training Center which eventually  became the Galena Interior                                                                    
Learning  Academy (GILA).  In 2004  two new  recipients were                                                                    
added  including   Southwest  Alaska   Vocational  Education                                                                    
Center  (SAVEC)   and  Yuut  Elitnaurviat,   Inc.,  People's                                                                    
Learning Center.                                                                                                                
                                                                                                                                
Ms. Carrick continued reviewing  the list of TVEP recipients                                                                    
over  time  on  slide  6.  In 2008,  when  the  program  was                                                                    
re-authorized, four  new recipients were added  bringing the                                                                    
number  of  recipients  to  10.  The  additional  recipients                                                                    
included   Partners   For   Progress  in   Delta,   Amundsen                                                                    
Educational  Center in  Kenai, Northwest  Alaska Career  and                                                                    
Technical  Center, and  the University  of Alaska  Southeast                                                                    
which  received  a  separate allocation  under  a  community                                                                    
college structure.                                                                                                              
                                                                                                                                
9:09:24 AM                                                                                                                    
                                                                                                                                
Ms. Carrick moved to slide  7. She reported that finally, in                                                                    
2014, 2017, and  in 2020 the program  was re-authorized with                                                                    
the following  recipients. She indicated that  the left-hand                                                                    
side of  the slide  showed the  location of  the recipients.                                                                    
The  University  of  Alaska  received  45  percent  of  TVEP                                                                    
allocations  and  was   distributed  statewide.  There  were                                                                    
materials  in  members'  bill  packets  describing  how  the                                                                    
University  of  Alaska used  the  funds.  She noted  that  a                                                                    
representative from the university  was online and available                                                                    
for questions. Additionally, the  recipients stayed the same                                                                    
when  the program  was re-authorized  in 2014.  However, the                                                                    
University of  Alaska Southeast  was removed,  and Ilisagvik                                                                    
College   in   Utqiagvik  was   added   for   a  5   percent                                                                    
contribution. She  also noted that the  University of Alaska                                                                    
distributed statewide,  and the rest of  the recipients were                                                                    
located across Alaska's various regions.                                                                                        
                                                                                                                                
Ms. Carrick  moved to slide  8 that showed the  current TVEP                                                                    
distributions.  She pointed  to the  far-right column  which                                                                    
showed the proposed distribution  updated on March 11, 2021.                                                                    
It  had since  been updated  further. The  current projected                                                                    
distribution for  FY 21 might  be higher than  $11.5 million                                                                    
due   to  more   people   returning  to   work  post   Covid                                                                    
additionally  contributing  to UI.  She  was  happy to  take                                                                    
questions.                                                                                                                      
                                                                                                                                
Representative  Josephson asked  if the  State Training  and                                                                    
Employment  Program  (STEP)  was  re-authorized  separately.                                                                    
Representative  Wool  indicated  that STEP  was  a  separate                                                                    
program that  was also  paid with  UI receipts.  He believed                                                                    
the total withdraw from UI  was split between TVEP and STEP.                                                                    
He  invited  his  staff to  make  additional  comments.  Ms.                                                                    
Carrick reported that STEP took  a .10 percent contribution.                                                                    
The  total UI  contribution between  STEP and  TVEP was  .26                                                                    
percent.                                                                                                                        
                                                                                                                                
Representative Josephson  clarified that  traditionally, the                                                                    
list  was embedded  in statute  rather  than the  department                                                                    
accepting  applications from  grantees through  regulations.                                                                    
Representative Wool  indicated Representative  Josephson was                                                                    
correct.   The   recipient   list  had   changed.   However,                                                                    
recipients  did not  apply  for grants  each  year with  the                                                                    
exception  of  the recipients  of  funding  received by  the                                                                    
University of Alaska. The  university distributed within its                                                                    
system based on applications.                                                                                                   
                                                                                                                                
Representative Edgmon  spoke in strong support  of the bill.                                                                    
He  referred to  slide  7  and pointed  out  that SAVEC  was                                                                    
located in King Salon rather than Dillingham.                                                                                   
                                                                                                                                
9:13:47 AM                                                                                                                    
                                                                                                                                
Representative   LeBon  asked   how  the   allocations  were                                                                    
decided. Representative  Wool indicated that  the recipients                                                                    
were  determined  including  the  addition  or  deletion  of                                                                    
recipients  at   the  policy  level.   Representative  LeBon                                                                    
clarified  that   the  allocation  was  determined   by  the                                                                    
legislature.   Representative   Wool  confirmed   that   the                                                                    
legislature had the power to add or subtract recipients.                                                                        
                                                                                                                                
Representative  LeBon noted  that the  University of  Alaska                                                                    
went  from an  allocation of  63 percent  to 45  percent. He                                                                    
wondered if  there had been  push back from  the university.                                                                    
He had  not. Representative Wool thought  the university was                                                                    
satisfied with 45 percent but would  not want to see it drop                                                                    
any  further.  He  suggested  that   it  was  possible  that                                                                    
legislators   from  other   districts  had   influenced  the                                                                    
distribution at other times.                                                                                                    
                                                                                                                                
Representative  LeBon  asked   if  Representative  Wool  was                                                                    
suggesting any  change in  the formula.  Representative Wool                                                                    
confirmed  that   he  was  not  suggesting   any  change  or                                                                    
alteration  in   the  distribution.  He  simply   wanted  to                                                                    
re-authorize the bill in the current year.                                                                                      
                                                                                                                                
9:16:02 AM                                                                                                                    
                                                                                                                                
Vice-Chair  Ortiz clarified  that the  University of  Alaska                                                                    
decided where  its portion was  distributed. He asked  if he                                                                    
was   correct.  Representative   Wool  responded   that  the                                                                    
representative was correct. Ms.  Cothren from the University                                                                    
of Alaska  had done  a presentation in  the House  Labor and                                                                    
Commerce   Committee  which   provided  details   about  the                                                                    
university's portion. He had  given an abridged presentation                                                                    
in the current committee.                                                                                                       
                                                                                                                                
Vice-Chair  Ortiz  referred  to   slide  3  of  the  current                                                                    
presentation that showed the types  of training provided. He                                                                    
asked  if there  was a  breakdown of  the funding  spent for                                                                    
each  type of  training.  Representative  Wool thought  some                                                                    
analysis  had  been done.  He  did  not believe  a  specific                                                                    
formula  was  used.  He  noted  that  the  university  might                                                                    
distribute things differently as  well. He thought his staff                                                                    
had additional information.                                                                                                     
                                                                                                                                
Ms. Carrick  relayed that the  TVEP Annual  Report, included                                                                    
in  members'  packets,  broke down  the  types  of  training                                                                    
offered with  each recipient. She did  not think percentages                                                                    
of  funding  per types  such  as  fisheries or  mining  were                                                                    
provided for  the overall program. However,  the information                                                                    
was available  for the University  of Alaska's  portion. The                                                                    
rest of  the programs  listed major accomplishments  and the                                                                    
major   trainings  they   offered.   It   was  possible   to                                                                    
approximately  extrapolate  how  much  money  was  going  to                                                                    
various industries.                                                                                                             
                                                                                                                                
Vice-Chair Ortiz commented that  certain programs might have                                                                    
attracted  more  attention  in   previous  years  and  other                                                                    
programs might  merit increased attention as  things changed                                                                    
and Alaska's economy changed. He  wondered whether there was                                                                    
flexibility and  adaptability to  meet changes of  the times                                                                    
in terms of where the state's investments were directed.                                                                        
                                                                                                                                
Representative  Wool  thought  Representative  Ortiz  had  a                                                                    
great  point.  He  brought up  the  example  of  information                                                                    
technology which played a different  role in the current job                                                                    
market than it did in  2000. Renewable Energy was an example                                                                    
of  a  program  playing  a  different  role  over  time.  He                                                                    
suggested  that Ms.  Cothren from  the  university might  be                                                                    
able  to comment.  The university  changed its  distribution                                                                    
more   frequently  than   the  TVEP   recipient  list.   The                                                                    
university  had  more  flexibility  in  emphasizing  certain                                                                    
programs.                                                                                                                       
                                                                                                                                
9:20:26 AM                                                                                                                    
                                                                                                                                
TERI   COTHREN,  ASSOCIATE   VICE  PRESIDENT   OF  WORKFORCE                                                                    
DEVELOPMENT,  UNIVERSITY  OF  ALASKA  (via  teleconference),                                                                    
thanked  Representative Wool  and his  staff for  sponsoring                                                                    
and  introducing HB  100. The  University of  Alaska managed                                                                    
its  portion of  TVEP  as  a single  allocation.  It had  an                                                                    
internal  competitive   process  with  the  goal   that  the                                                                    
university had  flexibility in being  able to  be responsive                                                                    
to current  and emerging  workforce priorities. In  the TVEP                                                                    
advocacy packet there was a  breakdown of how the university                                                                    
was  addressing  those priorities.  Health  was  one of  the                                                                    
largest  and fastest  growing  sectors. Fisheries,  seafood,                                                                    
and maritime  received 14  percent in  FY 20.  Resources and                                                                    
energy including  oil, gas, and mining  received 18 percent.                                                                    
Another portion  went to information technology.  During the                                                                    
current year's internal process,  the university received an                                                                    
emerging industry  request to develop  a program  that would                                                                    
help  train technicians  to address  the needs  for electric                                                                    
vehicles  and to  provide funding  to support  equipment for                                                                    
the  program.  The  university  tried  to  address  upcoming                                                                    
career and education needs in the state.                                                                                        
                                                                                                                                
Co-Chair  Merrick thanked  the bill  sponsor. She  indicated                                                                    
the committee  would hear  public testimony  on the  bill on                                                                    
Friday, April  16, 2021. Amendments  were due in  her office                                                                    
by the end of the day on Saturday, April 17, 2021.                                                                              
                                                                                                                                
Co-Chair Merrick reviewed the agenda for the afternoon                                                                          
meeting.                                                                                                                        
                                                                                                                                
HB 100 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
9:22:53 AM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 9:22 a.m.                                                                                          

Document Name Date/Time Subjects
HB 100 Backup ATC Support Letter.pdf HFIN 4/14/2021 9:00:00 AM
SFIN 5/3/2021 9:00:00 AM
HB 100
HB 100 Backup DOL AWIB Flow Chart.pdf HFIN 4/14/2021 9:00:00 AM
HB 100
HB 100 Backup City of Kenai Fire Support Letter.pdf HFIN 4/14/2021 9:00:00 AM
SFIN 5/3/2021 9:00:00 AM
HB 100
HB 100 Backup FY22 Proposed Distribution.pdf HFIN 4/14/2021 9:00:00 AM
HB 100
HB 100 Backup Galena City School District Support Letter.pdf HFIN 4/14/2021 9:00:00 AM
SFIN 5/3/2021 9:00:00 AM
SFIN 5/14/2021 1:00:00 PM
HB 100
HB 100 Backup NACTEC Support.pdf HFIN 4/14/2021 9:00:00 AM
SFIN 5/3/2021 9:00:00 AM
SFIN 5/14/2021 1:00:00 PM
HB 100
HB 100 Backup TVEP Annual Report FY20.pdf HFIN 4/14/2021 9:00:00 AM
SFIN 5/3/2021 9:00:00 AM
SFIN 5/14/2021 1:00:00 PM
HB 100
HB 100 Backup UA Presentation.pdf HFIN 4/14/2021 9:00:00 AM
HB 100
HB 100 Backup UA Result Report.pdf HFIN 4/14/2021 9:00:00 AM
SFIN 5/3/2021 9:00:00 AM
SFIN 5/14/2021 1:00:00 PM
HB 100
HB 100 Backup UA Results Overview.pdf HFIN 4/14/2021 9:00:00 AM
SFIN 5/3/2021 9:00:00 AM
SFIN 5/14/2021 1:00:00 PM
HB 100
HB 100 Sponsor Version A.pdf HFIN 4/14/2021 9:00:00 AM
SFIN 5/14/2021 1:00:00 PM
HB 100
HB 100 Backup Intro Presentation 041421.pdf HFIN 4/14/2021 9:00:00 AM
SFIN 5/3/2021 9:00:00 AM
HB 100