Legislature(1995 - 1996)
04/20/1995 02:08 PM House HES
| Audio | Topic |
|---|
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HOUSE HEALTH, EDUCATION AND SOCIAL SERVICES
STANDING COMMITTEE
April 20, 1995
2:08 p.m.
MEMBERS PRESENT
Representative Cynthia Toohey, Co-Chair
Representative Con Bunde, Co-Chair
Representative Al Vezey
Representative Gary Davis
Representative Norman Rokeberg
Representative Caren Robinson
Representative Tom Brice
MEMBERS ABSENT
None
COMMITTEE CALENDAR
* HB 280: "An Act establishing the Alaska Human Resource
Investment Council and transferring certain functions
of other entities to the council; establishing a
planning mechanism for employment training and other
human resource investment needs; and providing for an
effective date."
HEARD AND HELD
* HB 309: "An Act approving the University of Alaska's plans to
enter into long-term obligations to borrow money from
the Alaska Housing Finance Corporation for the
acquisition of student housing facilities; and
providing for an effective date."
PASSED OUT OF COMMITTEE
* HCR 18: Endorsing a proposal by which the Alaska Housing
Finance Corporation, under provisions of law by which
the corporation may exercise its powers to complete
moderate income and rental housing, will make
interest-subsidized loans for the construction of
student housing facilities at certain campuses of the
University of Alaska, and relating to an agreement
between the parties respecting the initiation of
student housing on certain campuses of the University
of Alaska.
PASSED OUT OF COMMITTEE
CONFIRMATION HEARINGS - University of Alaska Board of Regents.
* HB 229: "An Act prohibiting certain amplified sounds from
automobiles; and providing for an effective date."
PASSED OUT OF COMMITTEE
(* First public hearing)
WITNESS REGISTER
BOB RUBADEAU, Special Assistant to the Lieutenant Governor
Lieutenant Governor's Office
State Capitol, 3rd Floor
Juneau, AK 99801
Telephone: (907) 465-3520
POSITION STATEMENT: Provided sponsor statement for HB 280.
JANICE TATLOW, Council Member
Private Industry Council
P.O. Box 1621
Palmer, AK 99645
Telephone: (907) 745-4488
POSITION STATEMENT: Testified in support of HB 280.
DEBRA CALL, Chairwoman
Alaska Job Training Council
P.O. Box 93330
Anchorage, AK 99509
Telephone: (907) 561-3200
POSITION STATEMENT: Testified in support of HB 280.
SARAH SCANLON, Former Chair
Alaska Job Training Council
1001 E. Benson Blvd.
Anchorage, AK 99508
Telephone: (907) 265-4100
POSITION STATEMENT: Testified in support of HB 280.
JERRY LEWIS, Executive Director
Governor's Council on Vocational Education
211 Fourth Street, Suite 101
Juneau, AK 99801
Telephone: (907) 586-1736
POSITION STATEMENT: Testified in support of HB 280.
REBECCA NANCE, Director
Employment Security Division
Department of Labor
P.O. Box 25509
Juneau, AK 99802-1149
Telephone: (907) 465-2711
POSITION STATEMENT: Testified in support of HB 280.
JACK SHAY
P.O. Box 3159
Ketchikan, AK 99901
Telephone: (907) 225-7429
POSITION STATEMENT: Testified in support of HB 280.
TOM ANDERSON, Legislative Assistant
Representative Terry Martin's Office
Alaska State Legislature
State Capitol, Room 502
Juneau, AK 99801
Telephone: (907) 465-3783
POSITION STATEMENT: Provided the sponsor statement for HB 309.
WENDY REDMAN, Vice President
Statewide University System
University of Alaska
P.O. Box 155000
Fairbanks, AK 99775
Telephone: (907) 474-7311
POSITION STATEMENT: Testified in support of HB 309 and HCR 18.
MARSHALL LIND, Chancellor
University of Alaska Southeast
11120 Glacier Highway
Juneau, AK 99801
Telephone: (907) 465-6472
POSITION STATEMENT: Testified in support of HB 309 and HCR 18.
LEE GORSUCH, Chancellor
University of Alaska Anchorage
3211 Providence Drive
Anchorage, AK 99503
Telephone: (907) 786-1437
POSITION STATEMENT: Testified in support of HB 309 and HCR 18.
BILL HOWE, Deputy Commissioner of Revenue
Treasury Division
P.O. Box 110405
Juneau, AK 99811-0405
Telephone: (907) 465-4880
POSITION STATEMENT: Testified in support of HB 309 and HCR 18.
JACK DALTON, President
Union of Students
University of Alaska Anchorage
3211 Providence Drive
Anchorage, AK 99508
Telephone: (907) 786-1207
POSITION STATEMENT: Testified in support of HB 309 and HCR 18.
HEATH HILYARD, Legislative Affairs Director
Associated Students
University of Alaska Fairbanks
c/o Wood Center
Fairbanks, AK 99775
Telephone: (907) 474-6036
POSITION STATEMENT: Testified in support of HB 309 and HCR 18.
CHRISTINA BROLLINI, Senator
Union of Students
University of Alaska Anchorage
1833 N. Western
Anchorage, AK 99508
Telephone: (907) 786-1205
POSITION STATEMENT: Testified in support of HB 309 and HCR 18.
DAVID WALKER, Chairman,
Rules Committee, Union of Students
University of Alaska Anchorage
4231 Laurel Street, Apt. 304
Anchorage, AK 99508
Telephone: (907) 786-1960
POSITION STATEMENT: Testified in support of HB 309 and HCR 18.
CHANCY CROFT, Attorney
441 W. 5th Avenue, Suite 400
Anchorage, AK 99501
Telephone: (907) 272-3508
POSITION STATEMENT: Testified as a candidate for the University of
Alaska Board of Regents.
JOE J. THOMAS, Business manager/Secretary Treasurer
Laborers' Local 942
315 Barnette Street
Fairbanks, AK 99701
Telephone: (907) 452-3139
POSITION STATEMENT: Testified as a candidate for the University of
Alaska Board of Regents.
SHIRLEY ARMSTRONG, Legislative Assistant
Representative Rokeberg's Office
Alaska State Legislature
State Capitol, Room 110
Juneau, AK 99801
Telephone: (907) 465-4968
POSITION STATEMENT: Testified in support of HB 229.
PREVIOUS ACTION
BILL: HB 280
SHORT TITLE: HUMAN RESOURCE INVESTMENT COUNCIL
SPONSOR(S): RULES BY REQUEST OF THE GOVERNOR
JRN-DATE JRN-PG ACTION
03/24/95 896 (H) READ THE FIRST TIME - REFERRAL(S)
03/24/95 896 (H) HES, FINANCE
03/24/95 896 (H) FISCAL NOTE (GOV)
03/24/95 896 (H) 4 ZERO FNS (DCED, DCRA, DOE, DHSS)
03/24/95 897 (H) 2 ZERO FNS (LABOR, UA)
03/24/95 897 (H) GOVERNOR'S TRANSMITTAL LETTER
03/24/95 899 (H) SECTIONAL ANALYSIS
04/20/95 (H) HES AT 02:00 PM CAPITOL 106
BILL: HB 309
SHORT TITLE: APPROVE U OF A DEBT FOR STUDENT HOUSING
SPONSOR(S): REPRESENTATIVE(S) MARTIN
JRN-DATE JRN-PG ACTION
04/13/95 1318 (H) READ THE FIRST TIME - REFERRAL(S)
04/13/95 1319 (H) HES, FINANCE
04/20/95 (H) HES AT 02:00 PM CAPITOL 106
BILL: HCR 18
SHORT TITLE: UNIVERSITY OF ALASKA STUDENT HOUSING
SPONSOR(S): REPRESENTATIVE(S) MARTIN
JRN-DATE JRN-PG ACTION
04/13/95 1318 (H) READ THE FIRST TIME - REFERRAL(S)
04/13/95 1318 (H) HES, FINANCE
04/20/95 (H) HES AT 02:00 PM CAPITOL 106
BILL: HB 229
SHORT TITLE: PROHIBIT LOUD VEHICLE SOUND SYSTEMS
SPONSOR(S): REPRESENTATIVE(S) ROKEBERG,Toohey,Bunde
JRN-DATE JRN-PG ACTION
03/03/95 565 (H) READ THE FIRST TIME - REFERRAL(S)
03/03/95 566 (H) STATE AFFAIRS, HES, JUDICIARY
04/05/95 1039 (H) STA REFERRAL WAIVED
04/13/95 (H) HES AT 02:00 PM CAPITOL 106
04/13/95 (H) MINUTE(HES)
04/20/95 (H) HES AT 02:00 PM CAPITOL 106
ACTION NARRATIVE
TAPE 95-39, SIDE A
Number 000
CO-CHAIR CON BUNDE called the meeting of the House Health,
Education and Social Services standing committee to order at 2:08
p.m. Present at the call to order were Representatives Bunde,
Toohey, Rokeberg, and Davis. A quorum was present to conduct
business. Co-Chair Bunde read the calendar and announced the order
of the bills. Representative Brice joined the meeting.
HB 280 - HUMAN RESOURCE INVESTMENT COUNCIL
Number 095
BOB RUBADEAU, Special Assistant to the Lieutenant Governor, said
Representative Phillips began this initiative to allow Alaska to
incorporate all of its federally mandated supervisory policy
committees that oversee federal funding for many of the vocational
job skill development and vocational education opportunities in the
state.
MR. RUBADEAU said these committees have the opportunity under a
recently passed federal statute to consolidate into one oversight
committee to help states plan for many of the coming funding
opportunities. These committees will also have the opportunity to
respond to the block grant scenario in a more consolidated way.
Number 194
MR. RUBADEAU said HB 280 basically takes the Alaska Job Training
Council, the Governor's Council on Vocational Education, and the
Employment Security Advisory Council, and incorporates them into
one body. Membership that is presently at 38 will be taken down to
a minimum of 21 and a maximum of 26 members. The efficiency and
economy of scale the Human Resources Investment Council (HRIC)
hopes to accomplish by doing this will also provide some initial
savings.
MR. RUBADEAU said the opportunity for more cohesive and effective
planning for all the vocational education and job training skills
presents itself for the entire Alaska workforce in the coming
decades.
Number 261
MR. RUBADEAU said 21 states presently have taken advantage of this
option under federal law. HB 280 was created after a study of all
the different existing programs for all the HRICs. The drafters of
the bill looked at many of the provisions in HB 280, hoping to
raise the debate about policy and decision making for vocational
education and job skill training. The drafters hope to place that
debate into the Governor's office.
MR. RUBADEAU offered to go through a sectional analysis of the
bill. Section 1 of the bill basically sets out the legislative
findings, and looks at the many job training and vocational
education programs that exist within Alaska's workforce. It is
estimated that there are approximately 16 different groups that may
apply in the future for consolidation under the Alaska HRIC
concept.
MR. RUBADEAU continued that Section 2 directs the Board of
Education to consider the advice of the HRIC in the development of
their vocational education programs. Initially, it is a given that
all education leads toward jobs and job skill development.
Number 362
MR. RUBADEAU said Section 3 makes a member of HRIC a member of the
Alaska Commission on Postsecondary Education. Within the bill, the
Postsecondary Education is rescinded underneath HB 280. Section 4
includes HRIC as a state board or commission, whose membership is
also subject to conflict of interest reporting requirements under
AS 39.50.
MR. RUBADEAU said Section 5 establishes the HRIC in the office of
the Governor. This is very important. The bill that dealt with
the HRIC that was previously passed through the House and the
Senate last year, and was vetoed by Governor Hickel, did not have
this provision. The drafters of the bill felt this was an
important component as all of the different agencies in the bodies
that are proposed for consolidation under this act are dealt with.
Number 390
MR. RUBADEAU said Section 5 establishes the HRIC as the state
planning and coordinating entity for certain state programs that
are administered under a number of different federal provisions.
This will allow the HRIC to anticipate and respond to whatever
funding scenario is passed down through federal legislation. Mr.
Rubadeau felt the council should be prepared for anything.
MR. RUBADEAU summarized Sections 6 through 15, noting that they
provide the statutory and session law changes for consistency with
the shift of responsibilities to the HRIC, including the deletions
of references to the Job Training Council and the other councils
that are presently under state statute.
MR. RUBADEAU felt the provision set out in Section 16 was also a
very important part of HB 280. When Mr. Rubadeau began studying
the different agencies involved and the different boards and
commissions that were suggested for consolidation, he wanted to be
sure that each of those had ownership and understanding of what was
envisioned in the bill.
Number 496
MR. RUBADEAU said because of the arcane requirements for the
federal funding programs (such as Job Training and the Carl Perkins
Grants), the sponsors of the bill needed to effectively make sure
they were maximizing the state's revenue from the federal level by
not missing any of the opportunities under the existing law. In
addition, as the sponsors began to plan a coordinated effort for
planning on the state level to make Alaska's plan unique to meet
Alaska's needs, they kept in mind a sunset provision. This
provision would basically give the councils an opportunity to plan
their own consolidation efforts to give the sponsors some
understanding of how their missions and funding requirements would
be met.
MR. RUBADEAU said the sponsor's office asked the councils to
propose their own terms of consolidation over 18 months.
Number 550
MR. RUBADEAU hoped that after the creation of the HRIC on July 1,
1995, the HRIC will be fully in place and empowered with the
different missions of the consolidated boards and commissions by
July 1, 1996.
MR. RUBADEAU continued that Sections 18 and 19 address the specific
federal requirements for reporting from the private industry
councils and the other existing regional development councils.
Those councils have been very effective in relaying the needs of
the Alaska work force to the state legislature, and to the
oversight and representative committees.
MR. RUBADEAU noted that one of the most important aspects of this
bill is that the bill has brought together the needs and desires of
the agencies to fulfill their requirements on job skills and
vocational education on the part of the Alaska work force. The
bill's sponsors have explained the provisions to the different
councils and commissions. Recently there was a joint meeting of
all the commissions and boards that are proposed to be
consolidated. Each of the commissions and boards have supported
this concept, and are present at the HESS Committee meeting to
testify to that fact.
Number 1687
CO-CHAIR BUNDE agreed that HB 280 is a major piece of legislation,
and input from representatives of the involved boards and
commissions would be greatly appreciated.
Number 734
JANICE TATLOW, Council Member, Private Industry Council, serving
the Anchorage, Mat-Su area, testified via teleconference that she
is pleased with the efforts that have been made toward the
development of the HRIC. There is also a great effort going on in
Alaska to see if there can be three pilot projects in the nature of
career development centers that would improve service to Alaska.
MS. TATLOW said it is her understanding that each career
development center will be based throughout the state. Ms. Tatlow
was concerned that the way the HRIC seats are configured may lack
a link with the local communities and the local people. Job
training is very effective in local communities, and Ms. Tatlow
suggested a provision be made.
MS. TATLOW stated lines 9 and 10, Section 5, says there would be
four representatives from business and industry. She asked if the
statement could be amended to include "...with at least two
representatives from a private industry council, representing
private sector business."
Number 840
MS. TATLOW also suggested a change on line 22 of that section.
line 22, she said, reads of "at least one, and up to four
additional members of the private sector to insure a private sector
majority in regional and local representation on the council." Ms.
Tatlow asked if the phrase, "...with at least one member from the
Private Industry Council, representing private sector business"
could be added.
MS. TATLOW also noted that HB 280 provides for a nonvoting member
of the HRIC. In order to keep the links strong in each local area
to insure continuity and stability in services and employment
training programs, perhaps membership could be considered in the
nonvoting segment for the three service delivery area managers.
These are the people that have worked on all ends of the employment
and training segment. These people work with the Governor's
office, the local staff, and the patrons of the training.
MS. TATLOW said these people, over the years, have developed a lot
of expertise and professionalism. They know what will and won't
work. Ms. Tatlow thinks Alaska is entering a time of great change.
Career development centers are being investigated, Congress is
considering block grants, and Alaska is considering the HRIC.
These are very positive moves for the future. Anyone Ms. Tatlow
has spoken with has well-received these ideas. However, Ms. Tatlow
wants to be sure the state has a strong link to the local people
who will be served.
Number 970
CO-CHAIR CYNTHIA TOOHEY had been looking over the list of proposed
HRIC members. She felt there was a wide representation from
private sector businesses. That representation is covered better
than any other sector.
MS. TATLOW agreed. However, she was concerned that people who have
been involved with employment and training programs, and have
worked many years with the Private Industry Council, will not be
included. Many of the council members are private sector business
people. Ms. Tatlow would not like to see that talent and knowledge
wasted. She felt to ignore their experience would be like
reinventing the wheel. If their inclusion in the bill was
expressed, their experience would help maintain the continuity of
employment training.
CO-CHAIR TOOHEY appreciated Ms. Tatlow's testimony. However, she
asked Ms. Tatlow to look at line 24, page 4 of the bill. It speaks
of additional nonvoting members. Co-Chair Toohey told Ms. Tatlow
that if and when this bill passes, and the HRIC is comprised, that
is the provision that can provide the balance Ms. Tatlow seeks.
CO-CHAIR TOOHEY felt, however, that the Governor's office will
certainly take Ms. Tatlow's testimony into consideration.
CO-CHAIR BUNDE announced the arrival of Representative Robinson at
2:10 p.m.
Number 1099
DEBRA CALL, Chairwoman, Alaska Job Training Council, said before
she speaks, she would like to ask the previous chair of the Job
Training Council (JTC) to provide HESS Committee members with a
brief history of how this legislation developed. Then Ms. Call
said she would provide a briefing on the current national status of
legislation such as this.
SARAH SCANLON, Vice-president of Human Resources, Northwestern
Alaska Native Association (NANA); former Chairwoman, Alaska JTC;
said she represents the private sector. The issue of consolidating
the human resource initiatives has been ongoing for more than ten
years. As some are aware, there have been attempts in the past to
push policy through. Unfortunately, efforts have failed up to this
point.
MS. SCANLON understood the last bill was vetoed by Governor Hickel
for reasons of state agency interference. She hoped that will not
happen with this bill.
Number 1195
MS. SCANLON said there is a need to consolidate the many human
resource investment programs, and there are many reasons to do so.
The rural economies demand that these changes move the state toward
a quality work force. In the private sector, fragmented systems
that make it difficult to find decent employees to fill the many
jobs that are available cannot be tolerated. The lack of a
connecting education system and the lack of communication between
state and federal programs are great problems.
MS. SCANLON said the creation of the HRIC provides the opportunity
to solve those problems. In addition, the consolidation of the
many councils is going to eliminate all the waste that is occurring
in the multiple council staff configurations. The travel alone for
a group of different people doing the same things is unnecessary.
Ms. Scanlon fully supports what the bill attempts to do in
eliminating the waste that is occurring.
Number 1287
MS. SCANLON said this is one of those bills that makes sense to the
private sector and to the state employees. Everyone wants to do a
better job, and it will force people to communicate with each other
more and work more closely together.
MS. SCANLON stated it was important to have a system driven by the
customer's needs. For too long, the system has paid too much
attention to what the state workers want to do and what the federal
requirements are. Not enough attention has been given to the
customer and the end product. Therefore, the HRIC is beyond its
time. Ms. Scanlon expressed her organization's support for the
bill, and asked HESS Committee members to support it also.
Number 1308
MS. CALL offered to bring HESS Committee members up to date on
these issues. She said she currently serves as the chair of the
JTC, and she also serves as a member of the national JTC. The
national group has been meeting on a semi-annual basis to track
what is going on in Congress. Currently, there are five bills in
Congress that propose to consolidate employment training programs
on the federal level. What that means, and as Ms. Scanlon
explained, is that block grants may be received at some point.
That is being anticipated.
MS. CALL said a block grant to the state of Alaska will be setting
the priorities on employment and training programs. Issues such as
where those monies will go and what issues are going to be
addressed will be taken into consideration. It looks very
promising that Congress will pass one of the bills. She expects
consolidation bills to pass in both the federal House and Senate.
The House bill proposes block grants for each state, covering
populations in need of employment training.
Number 1363
MS. CALL understood that Senator Stevens is very much in support of
the efforts on HB 280. He feels that nationally, the consolidation
is an issue being discussed.
Number 1406
JERRY LEWIS, Executive Director, Governor's Council on Vocational
Education (GCOVE), said GCOVE just completed, on March 31, a
biennial report that dealt with the coordination of the Job
Training Partnership Act (JTPA), its delivery system, and the
Vocational Education delivery system. Out of that biennial report,
the following recommendation was made. GCOVE is committed to
helping promote vocational education and JTPA coordination in the
state of Alaska.
MR. LEWIS said after reviewing the JTPA delivery system and its
coordination with vocational education programs along with current
national trends, GCOVE recognizes the necessity of the formation of
an HRIC. The specific provision of the JTPA amendments that most
significantly affect the cooperation with vocational education and
other systems concerns the HRIC, which the JTPA amendments empower
the Governor to establish as a means of coordinating and
integrating JTPA, vocational education, and other systems of Human
Resources Development.
Number 1414
MR. LEWIS continued that HB 280 facilitates this integration, and
the GCOVE concurs with its premise. The expected benefit of this
recommendation is the development of a statewide system that will
serve all Alaskans more efficiently. Additionally, in order to
accommodate the comprehensive system, the GCOVE would recommend
that the School-to-Work Transition Council be included under the
umbrella of the HRIC.
MR. LEWIS said to neglect this would be to fall short of the
complete consolidation necessary to avoid fragmentation of
programs, resources, and the possibility of duplicated services.
One of the members of GCOVE, David Stone, could not be present at
the hearing although he wanted to be. He asked Mr. Lewis to
apologize for his absence and express his support for the HRIC.
Number 1511
CO-CHAIR TOOHEY asked if Mr. Lewis was requesting a specific space
on the HRIC for a School-to-Work Transition Council member.
MR. LEWIS answered that he was asking that School-to-Work be
included in the list of representatives.
CO-CHAIR TOOHEY agreed that was critical.
REPRESENTATIVE GARY DAVIS noted that one of the first callers on
teleconference requested a "slot" be made for Private Industry
Councils. On page 4, line 10, it indicates "four representatives
from business and industry, with at least one representative from
the private industry councils appointed under 29. U.S.C. 1512."
Representative Davis asked how those federal statutes relate to the
Private Industry Council that is currently in place.
MR. LEWIS answered that the job training partnership amendments of
1992 are the ones that allow the creation of the HRIC. They
specifically had a percentage of the representatives on the
council. A percentage has to be from the private sector, a
percentage has to be union, a percentage must be included from the
public sector. The membership numbers that were arrived at for the
HRIC, the 21 to 26, was to fit that formula.
Number 1566
MR. LEWIS said GCOVE is required under the Carl D. Perkins Act,
which is up for reauthorization right now. The Administration's
bill has been submitted by Senator Kennedy and Representative Clay,
and a committee is working on the committee's bill. That is going
to change the Carl D. Perkins Act considerably. The
Administration's bill in itself eliminates Section 112, which
requires that there be a state council on vocational education.
With the elimination of that council, something will have to be in
place within the state to handle the predicted block grants.
MR. LEWIS said no one knows if the state is going to receive one
block grant, or four. That depends on which bill in Congress
passes through. Having an HRIC in place when the legislation is
passed will help Alaska be ahead of the game.
Number 1621
REPRESENTATIVE DAVIS asked to follow up on those comments. He
asked if the current private industry council that is currently in
place was formed under the U.S. Code referred to in the bill.
MR. LEWIS noted there is more than one private industry council in
the state. The statewide private industry council, of which David
Stone is the Juneau Chair, just completed its last meeting
yesterday. That council is under the authorization of that U.S.
Code.
Number 1661
REBECCA NANCE, Director, Employment Security Division, Department
of Labor, said the Alaska Department of Labor (DOL) is in support
of the Alaska HRIC legislation for a variety of reasons. Alaskans
are the most important resource available in the state. The HRIC
is good public policy because the bill provides for the
coordination and consolidation advocated by the public for more
efficient and effective government.
MS. NANCE also believed it was good for the DOL because it will
help it realize its mission of promoting the wage-earner of Alaska
and assuring that Alaskans will obtain the training they need in
order to be competitive for the available jobs. Therefore, the
need to rely on the nonresident work force will be reduced.
MS. NANCE stated the DOL is in support of this legislation as a
partner to the jobs program. This bill will strengthen the ability
of the DOL to get welfare recipients back to work. It will provide
a little more flexibility in terms of systems delivery.
MS. NANCE concluded by saying that when the time comes for the
creation and implementation of this legislation and the HRIC in
Alaska, the DOL will be poised and ready to receive the federal
block grants that seem imminent for employment and training
programs.
Number 1739
JACK SHAY represented himself at the hearing. He said he is a
former member of the JTC and the private industry councils, serving
under four different governors. He is also a former director of
the Employment Security Division. He has been involved in training
programs and private industry councils for quite some time. He
mildly disagreed with Janice Tatlow about a concern that perhaps
there would not be enough private industry involvement in this
council.
MR. SHAY was virtually sure there will be plenty of involvement.
It is designed into the law, and it is part of the JTPA. In
addition, Ms. Scanlon noted that this legislation has been in
progress for quite some time. Mr. Shay is currently retired, but
he is still interested in this arena because he agrees very
strongly that the people are Alaska's greatest resource.
Number 1776
MR. SHAY said the federal government came up with the enabling
legislation for this type of provision. As a matter of fact, the
federal legislation was actually encouraging states to consolidate
these bodies, focus more on the problems at hand, avoid duplication
efforts, and generally coordinate all the provisions of employment
and training.
MR. SHAY felt this legislation is a good idea. There might be one
possible amendment the HESS Committee members might like to
consider, however. The way the council is currently designed,
there will be 23 to 26 members. That seems to be rather unwieldy.
Mr. Shay has served on bodies containing that many members. If
there was some good way of perhaps reducing the number (and Mr.
Shay did not have any cogent suggestions at the time), he would
urge HESS Committee members to look into it.
MR. SHAY noted that the JTPA does require a certain percentage of
persons on the board. In fact, it requires a majority of the
private industry. Other than that, drawing on his many years in
this field, Mr. Shay felt this legislation was splendid, and he
urged its passage.
Number 1828
REPRESENTATIVE CAREN ROBINSON asked where the recipients of these
services fit in on the board. She asked Mr. Shay what he thought.
MR. SHAY said that was an excellent question. He said he was
involved in the design of policy, and not in the design of actual
delivery and procedures. He deferred the question to perhaps
someone from the Governor's office. However, he said the bottom
line is training individuals for jobs that exist in the labor
market.
CO-CHAIR BUNDE asked Mr. Rubadeau to speak to the fiscal note. He
also asked if Mr. Rubadeau had a grasp on what the state could
expect to save from consolidation. Co-Chair Bunde understood that
an efficient operation may mean better service, but he was
concerned about funding.
Number 1897
MR. RUBADEAU agreed everything boils down to dollars and cents.
The state, however, needs to focus on more of the "sense" part of
this legislation. By efficiency of scale, by dropping from 38
members to 23 to 26 members, there will be a slight economy of
meeting. There will not be duplication of effort. The state is
looking at doing a lot of the initial work in subcommittees (there
will be standing subcommittees of this group) which will report on
specific parts and portions of the job training in vocational
education aspects around the state.
Number 1924
MR. RUBADEAU said the dollars reflected in the fiscal note are all
interagency transfers. These are dollars that are already
identified by the enabling legislation to coordinate the planning,
to perform responsible oversight, and to look at how to more
efficiently deliver the product.
MR. RUBADEAU said as his office studied the issue, and they
identified nine PCNs that have been formally allocated over ten
years through different scenarios to the ongoing policy development
under the federal guidelines. Presently, there are three PCNs that
are servicing these three councils, as well as a lot of in-kind
donations from the agencies under which these councils exist. The
bill's sponsors are seeking to consolidate those three PCNs into
one, and adding a higher-level staff person. That person would not
be at a higher level than those that exist currently, but would be
a staff person in the Governor's office who will bring the private
industry's concerns to a higher policy level of debate on a daily
basis.
MR. RUBADEAU said by the consolidation effort, it is hoped the
efficiency of delivery will be realized. In addition, the private
industry employers and employees are the customers of the HRIC.
The efficiency in planning, the long-term policy and strategic
development that could be envisioned under the HRIC idea will be
the savings, but in the long run, there will not be significant
savings from a fiscal standpoint.
Number 2005
CO-CHAIR BUNDE asked Mr. Rubadeau to address the concerns of Mr.
Shay regarding the large membership of the proposed council.
MR. RUBADEAU said he has operated with many large-sized groups. As
the sponsor's office studied federal legislation, the group
membership was pared down as closely as possible. However, the
requirements of the enabling federal laws had to be met. It is
imperative that resources from the federal government be maximized.
There must be no opportunity for any federal programs to tell the
state it did not meet requirements. The federal program could then
audit the state, and the state could lose funding.
MR. RUBADEAU said as different scenarios were investigated, 21 was
the minimum membership. Everyone needed to come to the table with
a private sector majority. That is what bumped the membership up
to 23 members. The line agency commissioners had to be involved,
and there also had to be a private sector majority. That is how
the membership rested at 23. Many of the day-to-day working
aspects of the HRIC will be handled in subcommittees that are
specifically targeted for the Carl Perkins Grant and the oversight
of the UI trust fund.
MR. RUBADEAU said those grants and funds will be handled and
reported back to the general council. Therefore, the sponsors
envision that much of the work will be done in the subcommittee and
brought back.
Number 2063
CO-CHAIR TOOHEY read page 4, line 4 of the bill: "or each
respective commissioner's designee." She asked if there was
anything that precludes the other members from having their own
representatives if he/she cannot make the meeting. Co-Chair Toohey
was concerned about the legality.
MR. RUBADEAU said it is not specifically pointed out in the
legislation. However, he feels there also will be bylaws developed
by the HRIC once it is developed. Those laws will most certainly
address those issues. If a quorum is hard to come by, there will
be some sort of enabling working document that will allow work to
get done.
Number 2100
REPRESENTATIVE DAVIS noted that Mr. Rubadeau had mentioned sunset
dates for the existing councils that will be incorporated into the
HRIC. Representative Davis thought the size of the proposed HRIC
will be closely scrutinized. What the state will need is some
verification that the federal law is really driving this size.
REPRESENTATIVE DAVIS can foresee many people trying to whittle the
group down. If the group is not going to work whittled down, then
people must be shown documentation as to why the group size should
be left alone. In addition, federal legislation is currently in
the works. It has not yet passed, therefore there may be changes
in those laws as they progress as to how large the council may be
required to be.
REPRESENTATIVE DAVIS was thinking, therefore, of a possible sunset
clause on the HRIC so it will be revisited by statute, as opposed
to needing a bill to go through the process to even get the review
before the legislature. Representative Davis asked if a sunset
date has been discussed, and how a proposed sunset date would be
received.
Number 2145
MR. RUBADEAU felt Representative Davis brought up a very good
point. The situation at the federal level is very fluid at the
present. Therefore, HB 280 seeks to operate under the best case
scenario. The sponsor's office feels there will always be federal
monies coming to states to help with job training and vocational
education components of a state plan.
MR. RUBADEAU envisions this council to meet the present federal
requirements at the minimum. He hopes the federal laws will not
change so drastically. There always will have to be some body
present to accept the federal funds, and some body to disperse the
funds. If the membership is studied closely, the following line
agencies need to be identified: Agencies such as the Department of
Education, the Department of Labor, and the Department of Community
and Regional Affairs.
Number 2181
MR. RUBADEAU stressed that it is very important that those agencies
be at the table. In addition, labor needs to be at the table. The
private sector needs to have the majority. There needs to be some
sort of Alaskan Native component. If one person could be
identified which was not necessary to the legislation, Mr. Rubadeau
assured HESS Committee members that person would not be included.
MR. RUBADEAU said the sponsor's office would have loved to present
a 12-member board. However, it could not be done legally. If the
board could pare down to narrow its focus, it may well envision
itself doing so. However, to envision that the state of Alaska can
get by with regional representation, cultural sensitivity,
governmental, and nongovernmental entities as well as a private
sector majority, Mr. Rubadeau doubts the council can get by with
less.
Number 2245
REPRESENTATIVE ROBINSON asked if Mr. Rubadeau envisioned the one,
consolidated position of which he previously spoke would be in
Juneau, Fairbanks or Anchorage.
MR. RUBADEAU said the sponsor's office feels very strongly that
with the sunset provisions in the bill, it does not want to
anticipate the council's wishes. Sarah Scanlon testified that this
legislation has been in development for ten years. Mr. Rubadeau
does not want to prejudge what the council would plan to be the
most effective delivery system for vocational education and job
training.
MR. RUBADEAU continued that three councils are proposed, and the
fourth, School-to-Work, is of course a natural member. They are
all on parallel lines right now. It is envisioned that, once this
enabling legislation allows those groups to look at a sunset
provision, they converge on their own and with their own plans. It
is anticipated they will work together to develop a staffing
pattern with a regional representation on the HRIC. That would
indicate what those groups felt was the most effective use of the
available dollars. The sponsor's office therefore did not prejudge
where the position would be placed at the moment.
Number 2300
CO-CHAIR BUNDE closed public testimony. As this was the first time
this bill was heard, it was the inclination of Co-Chair Bunde to
hold the bill. Co-Chair Bunde asked for the wish of the committee.
REPRESENTATIVE TOM BRICE expressed a willingness to move the bill
from committee.
TAPE 95-39, SIDE B
Number 000
REPRESENTATIVE NORMAN ROKEBERG was concerned about the membership
of the HRIC. He had previously thought the bill would be referred
to a subcommittee, where his concerns could be addressed.
Number 035
MS. CALL spoke via teleconference in response to Representative
Rokeberg's concerns about council size. She said HB 280 will take
the three councils, which now consist of 40 members, and which are
now doing employment and training in the state of Alaska, and
reduce that number down to 23. If representatives are concerned
about size and cost, the first step would be to downsize to 23
members.
MS. CALL said the second item is that the consolidation is taking
place under the 1992 JTPA amendment. No matter what happens in
Congress, this legislation is still valid. HB 280 provides the
flexibility needed to address the employment training issues in the
state. Therefore, HB 280 correctly addresses what can be done, and
in the long run it will be more effective and efficient for
Alaskans.
MS. CALL reiterated that Alaskans are Alaska's most important
resource, and the HRIC should be a priority. When the state speaks
about mining, oil and timber, it certainly does not mind developing
those resources and spending the money to do so. However, that
type of development is not discussed in relation to the Alaskan
people. Therefore, Ms. Call encouraged HESS Committee members to
support HB 280, and move it through the legislature this year.
Number 165
CO-CHAIR TOOHEY asked how many meetings Mr. Rubadeau envisioned the
council having each year.
MR. RUBADEAU answered that the three councils now meet at least
quarterly. Currently, GCOVE meets quarterly also. Therefore,
there are a total of 12 meetings per year. Those 12 meetings will
probably shrink to 4 consolidated meetings.
CO-CHAIR BUNDE pointed out that the HESS Committee members had
quite a bit more work to do. He again asked the wish of the
committee on whether to hold the bill or not.
Number 229
REPRESENTATIVE DAVIS did not have a preference either way.
However, if the bill was going to be moved, he had a few questions.
On page 4, line 6, it says the council will be made up of four
additional representatives of education. One will be from local
public education, one from secondary vocational education....
Representative Davis did not see a distinguishing factor between
those two members, as opposed to basic education in the public
schools. Of course, the public schools do have vocational
education. The bill separates those two things in public
education.
MR. RUBADEAU agreed. He said that if Representative Davis could be
procured as an advocate for school-to-work, it would be desirable
to erase those barriers. All education leads toward work, and that
differentiation should be eliminated in any statute. However, the
bill presently seeks to not preclude someone perhaps in a middle
school who would like to be involved in this. Then, secondary
vocational education, which is felt to be a very important
component now, would be working with high school educational
facilities.
Number 329
MR. RUBADEAU said the postsecondary vocational education
institution is viewed as not only the public but the private
vocational education institutions. These four members are part of
the 15 percent requirement. This is mandated by the federal
government.
REPRESENTATIVE DAVIS said line 9 on that same page reads, "...four
representatives of business and industry...." That is then broken
down. Representative Davis then read another requirement: "...at
least one representative from an organization representing
employment and training needs of Alaska Natives...." He asked if
that membership place may serve as one of the four stipulated on
line 9.
MR. RUBADEAU answered yes. He said the bill aims for as much
flexibility as possible, and to be culturally and regionally
sensitive.
Number 394
REPRESENTATIVE ROKEBERG asked to pursue the same line of
questioning as Representative Davis in terms of membership on the
council. He asked if there was anything required by federal
statute that requires the Lieutenant Governor to be on the
commission.
MR. RUBADEAU replied that there was not.
REPRESENTATIVE ROKEBERG asked if there was anything in federal
statute that requires that both the Commissioner of Commerce and
the Commissioner of Community and Regional Affairs be on the
commission.
MR. RUBADEAU again replied no.
REPRESENTATIVE ROKEBERG said it was indicated in the bill that it
was a policy call as to insuring a private sector majority.
Squeezing the best possible out of 23 members, he can only find
nine that might even be considered as representing the private
sector. He asked Mr. Rubadeau to explain the breakdown of those
members.
CO-CHAIR BUNDE interrupted and asked Representative Rokeberg, Co-
Chair Toohey and Representative Brice to work with Mr. Rubadeau to
answer just those types of questions. He then asked that the bill
be heard again. He asked for the wish of the committee, and the
committee indicated agreement with that decision.
HB 309 - APPROVE U OF A DEBT FOR STUDENT HOUSING
HCR 18 - UNIVERSITY OF ALASKA STUDENT HOUSING
Number 528
TOM ANDERSON, Legislative Assistant, Representative Terry Martin's
Office, testified on behalf of Representative Martin that HB 309 is
basically an attempt to curb the current University of Alaska
statewide system shortage of housing needs. Specifically, the bill
addresses the University of Alaska Anchorage, Juneau, and Ketchikan
campuses. The bill is an authorization bill. Representative
Martin believes the Board of Regents have worked out a significant
plan with the Alaska Housing Finance Corporation (AHFC).
MR. ANDERSON said the companion HCR 18 is simply an endorsement
resolution. Backup material is available for all three projects,
and both the chancellors from the university in Anchorage and the
Juneau campus were available to testify.
Number 631
WENDY REDMAN, Vice President, Statewide University System, said the
chancellors are present at the meeting to provide testimony on the
need for housing. However, Ms. Redman wanted to comment on a few
things to clarify some questions on what appears to be a more
complicated procedure than necessary.
MS. REDMAN said HCR 18 is a bill that authorizes the AHFC to move
forward with the 3 percent housing bonds for the university. The
university has been working with the AHFC for several years on a
variety of plans for them to involve themselves with the
university's student housing provisions. HB 309, which goes with
HCR 18, is an authorizing bill. There are currently statutes which
require the university to get a separate authorization if it is
going to incur debt service in excess of one million dollars.
MS. REDMAN said the housing debt will go to help pay off the 25
year bonds. There may well be a third piece to put all this
together. It would probably be in the front section of the budget
bill if that is where the university needs it. Ms. Redman said,
"That would then authorize the AHFC to extend their reserves back
to AHFC from their reserves back to an expenditure account, which
is a third piece to it."
Number 706
MS. REDMAN said she also needed to point out that this bill is
linked absolutely to HB 281, which the HESS Committee was going to
hear very soon. That bill is part of the AHFC funding for the
deferred maintenance of the University of Alaska. That bill also
includes provisions which protect AHFC assets so that it can do the
kinds of projects envisioned. Without that kind of protection of
AHFC's assets, the university will not be allowed to use them, nor
does Ms. Redman believe that it would in any way go forward with
approval for the student housing provisions.
MS. REDMAN wanted to make sure that HESS Committee members
understood these bills; and while they may not appear to be linked
at this point, they are absolutely integral to each other.
Number 770
MARSHALL LIND, Chancellor, University of Alaska Southeast, felt
this group of legislation was a creative way of dealing with
problems at two of the Southeast campuses. The university has been
trying to acquire additional housing on the Juneau campus for
several years. The university was successful this year in having
the Governor recognize it and include it in his capital budget.
The proposal that is contained in HB 309 makes sense.
MR. LIND said the university has done a fiscal analysis as to
whether or not it can pay, and the university feels it can. The
plan for the Juneau campus has already been designed, and it will
be ready to go to bid in a very short time. The university has
been working on that project for a number of years. It will give
the campus an additional 81 beds. Currently, there is room for
200.
Number 828
MR. LIND said this bill also allows the University of Alaska
Southeast (UAS) to make some modifications to the food service
area. This will be necessary because the type of housing facility
UAS is proposing does not contain kitchen facilities. It is more
a traditional, dormitory-type operation. It is more traditional in
the sense that there will be two students to a room, and two rooms
share a bath. Those rooms will not have kitchen facilities.
MR. LIND said this is a good approach to meeting the problem on the
Juneau campus. In terms of Ketchikan, there is $1 million
containment. The community has been working on a project in
Ketchikan for close to ten years. The community has come up with
a plan that it feels it can support. It has created a nonprofit
housing corporation in Ketchikan involving a number of local
business and finance people.
Number 882
MR. LIND said this project is supported by the city mayor, the
borough mayor, and others in that community. This legislation will
enable them to go with one of a couple of choices. They can either
choose a facility that would accommodate 16 students, or possibly
32. Mr. Lind believes that facility will serve that portion of
Southeast Alaska very effectively, especially as traffic increases
between Prince of Wales Island and Ketchikan as a regional center.
MR. LIND continued that this would help the community a great deal,
and the community is very strongly behind it. Mr. Lind encouraged
the HESS Committee members' support for HB 309. It is a creative
way of dealing with a problem.
Number 926
REPRESENTATIVE BRICE noted that Mr. Lind stated the housing was in
the Governor's capital budget. He asked why it is needed in HB
309.
MR. LIND suggested that perhaps the housing is not needed in HB
309. However, the housing is needed, one way or the other.
Hopefully, it could prevail in the Governor's budget. If it does,
the university would not have to borrow the money. The bill would
just give the university the authority to do that. Rather than bet
on one approach or the other, the university felt a strong
obligation to do whatever it can to get housing for those students.
REPRESENTATIVE BRICE noted that those in Fairbanks feel the same
way.
Number 980
REPRESENTATIVE ROKEBERG allowed that he is from Anchorage, and he
has not spent much time in the community of Ketchikan. He asked if
he was correct that the Ketchikan campus was, previous to the
merger, part of the community college system.
MR. LIND said Representative Rokeberg was correct. Since 1954, the
campus has been in operation as a community college. Ketchikan is
probably one of three communities that has given annually a local
appropriation in support of that campus through borough tax
dollars.
REPRESENTATIVE ROKEBERG asked about the need of a commuter-type
school for housing.
MR. LIND said there has been a changing pattern in student
interest. In addition, mobility patterns have changed to
necessitate housing. In the past few years, there has been a
significant increase in the traffic between Prince of Wales Island
and Ketchikan. There is also a desire on the part of a larger
number of students to complete the two year degree program. In
particular, two year "AA" degrees are sought.
MR. LIND noted this is a change from earlier years, when students
were more interested in the single or occasional course. Now, the
campus is experiencing more students who are serious about staying
and completing a two-year program. This bill would help the entire
operation. It would be particularly helpful for students who have
families, and are unable to either acquire or pay for some of the
other housing they might find in Ketchikan.
Number 1069
REPRESENTATIVE ROKEBERG asked about the student enrollment at the
Ketchikan campus, and if the campus grants degrees other than an
two-year AA degree.
MR. LIND did not know the exact figures, but he could get the
numbers for Representative Rokeberg. However, the Ketchikan campus
only contains the certificate programs, which are one year in
duration, or the two-year AA programs. Four-year degrees are not
granted at that campus.
CO-CHAIR BUNDE had lived in Ketchikan at one time. He said it was
extremely difficult to find housing in Ketchikan.
Number 1125
LEE GORSUCH, Chancellor, University of Alaska Anchorage, said he
was speaking on behalf of the students who the president commissar
and the Board of Regents have asked him to serve. He wanted to
speak particularly to his primary mission, which is to try and
provide high quality programs that are accessible to the students
who would like to pursue them.
MR. GORSUCH said it is on the accessibility question that he would
like to speak first. There are four or five types of students who
are desperately in need of housing at the University of Alaska
Anchorage (UAA). The first type of student is from somewhere else
around the state who would like to have an urban experience in
Anchorage, but their parents would not want them to come to
Anchorage if, in fact, there was not some kind of protected
domicile for them such as a dormitory or residence hall.
MR. GORSUCH has received numerous correspondence from
superintendents around the state who have said as much to him in
writing.
Number 1174
MR. GORSUCH said the second type of student is also from around the
state. She or he would like to take a course that is only offered
at UAA. For example, a student that would like to become a nurse
would utilize UAA because it offers the only four-year or graduate
program nursing courses. Those students would also like to have
access to housing on the Anchorage campus in order to pursue their
careers. That would be true in a number of other fields, whether
the field be special education or some other specialized programs,
where UAA is the only campus that offers those programs.
MR. GORSUCH said there is another group of students who might, for
a variety of reasons not the least of which would be in the student
status, would be of an indigent nature. In other words, the
student does not have much money. The students are simply in need
of finding some place that has affordable housing, that is
reasonably safe, that doesn't require transportation.
Traditionally, university dormitory housing is one of those that
meet that need.
Number 1220
MR. GORSUCH said as the cost of education increases through raising
tuition, the affordability question becomes a key issue.
Affordable housing is one of the issues that many students have to
confront. From the university literature, HESS Committee members
know UAA only has 390 housing units on the campus currently. UAA
is a very large, substantial campus. This is no longer a question
of the small university. UAA has 16,000 students taking courses,
and another 5,000 students take courses from UAA's extended sites.
MR. GORSUCH noted that UAA is a very significant institution.
Nationally, most universities have somewhere in the vicinity of 35
to 50 percent of the students accommodated with housing. UAA
accommodates 2 percent. In other words, 2 percent of UAA students
are afforded the opportunity of campus housing.
REPRESENTATIVE AL VEZEY arrived at the meeting at 3:15 p.m.
MR. GORSUCH continued that the fourth class of student who is
interested in student housing is the student who desires an
international experience. Of the 16,000 students, even if a small
percentage of them wanted to have a year of study abroad or wanted
to have an exchange agreement in Korea, Japan, etc., the only way
that exchange works is if the student can offer the exchange
student a place to live on the university campus.
MR. GORSUCH said universities extend to UAA students the
opportunity of student housing. However, UAA has no capacity to
reciprocate.
Number 1285
MR. GORSUCH summarized that there are a large number of students
who are not being served because of UAA's incapacity to offer
campus housing.
MR. GORSUCH also asked to speak on behalf of some parents with
school-aged children who would like to attend UAA. Their children
would like to have a traditional campus life experience. They want
an opportunity to have meals together, have parties together and
hopefully study together. As it currently stands, UAA cannot offer
that opportunity, so many parents and their children do not think
of UAA as one of their options. They select a university in the
Lower 48 if they do not pick the University of Alaska Fairbanks
(UAF).
Number 1320
MR. GORSUCH noted that as the cost of education increases around
the country, UAA is a "best buy." However, it becomes a best buy
only if it meets the quality of life that students and parents are
looking for. Many parents feel if they are going to finance the
education, they would like to have at least one fringe benefit
associated with the financing of their children's education. That
is to get their children out of the house.
MR. GORSUCH continued that UAA has many needs. A better library is
needed, and there is not enough full-time faculty relative to the
size of the student population. There are many needs, and those
needs require hard general fund dollars. This is a need that is
obvious, but the university is trying to meet its need creatively
through the AHFC. The university thinks the AHFC is set up exactly
for these needy students. It is an appropriate use of the Alaska
Housing Finance Corporation assets.
MR. GORSUCH felt the students are eligible, because in almost all
instances they would meet any criteria of financial need for
eligibility purposes. Most importantly, students who are in that
first year dormitory experience do better academically. Their
grade point averages are higher because of the attendant
restrictions and opportunities of a study hall and study groups.
Number 1403
MR. GORSUCH therefore noted that housing makes sense for good,
solid academic reasons. He urged the support of HESS Committee
members, and he felt that the entire state's interest is served
when the legislature looks at trying to do more with less. This
legislation does not solve UAA's library problem, nor does it solve
the faculty resource problem. But it does increase the university
accessibility for students who have a need for housing.
MR. GORSUCH stated the quality of the academic experience will be
increased for those students who have the opportunity to enter the
residence halls, and it is going to make a significant transforming
impact on the community's image and support.
Number 1438
MR. GORSUCH continued that what is not written is that he has
pledged that he will raise $1 million in support of the project
itself. It is an opportunity for the Anchorage community to come
forward and make a financial commitment to the growth and
development of the campus. Even though this is a small step, it is
a very significant step. Symbolically, it represents a sense of
optimism and a future for the community in the face of all the
financial pressures being confronted with the decline of oil
revenues.
MR. GORSUCH concluded that this is a very important project for a
variety of reasons for the Anchorage community and UAA in
particular. He urged HESS Committee members' support.
Number 1470
CO-CHAIR BUNDE assumed from Mr. Gorsuch's comments that if UAA has
more housing, it is more convenient for students from outlying
areas to attend UAA. That might help the state address those
incredibly expensive remote campuses that suffer from a lack of
cost effectiveness and economies of scale.
CO-CHAIR TOOHEY asked Mr. Gorsuch if the legislation passes and the
university system gets housing in Anchorage, Ketchikan and Juneau,
if every effort will be made to fill those housing units 12 months
out of the year.
MR. GORSUCH said the only way the plan works financially is for 12-
month occupancy. There are exciting plans for summer institutes,
programs that will bring high school students desiring immersion
experiences in language and who want to learn about Alaska Native
cultures. There is a very ambitious plan to occupy this facility
12 months out of the year.
CO-CHAIR TOOHEY asked for assurance that the housing would not be
provided for free.
MR. GORSUCH answered no, the facilities would not be made
available for free.
Number 1519
REPRESENTATIVE DAVIS asked if Mr. Gorsuch has contacted other
campuses, and if other campuses have requested funds or expressed
dire need.
MR. GORSUCH said a fairly comprehensive survey was conducted at the
request of the Board of Regents. To his knowledge, no other
campuses have come forward requesting similar facilities.
REPRESENTATIVE BRICE was incredulous that UAF does not have any
housing needs. He felt he did not quite understand. Mr. Gorsuch
had said there had not been any requests from other campuses for
similar needs. Representative Brice wanted to know if all the
campuses in the University of Alaska system were questioned, or if
only the campuses in the UAA system were proposed.
MR. GORSUCH said the survey was done in the entire university
system, but his reference was seven sites in the Anchorage area.
REPRESENTATIVE BRICE concluded that there are, therefore, needs
outside of the Anchorage area.
MR. GORSUCH said he could not speak to those.
REPRESENTATIVE VEZEY left the meeting at 3:20 p.m.
Number 1583
REPRESENTATIVE ROKEBERG asked Mr. Gorsuch how many on-campus rooms
are available now in the UAA system.
MR. GORSUCH answered 398.
REPRESENTATIVE ROKEBERG recalled Mr. Gorsuch's mention of the 12-
month utilization of rooms. Representative Rokeberg asked if he
had considered senior citizen seminars, etc., as possible summer
tenants. He said there are many possibilities for those rooms.
MR. GORSUCH agreed. He said the elder hostel-types of programs
around the country have indicated a very significant contribution
can be made to housing in the summer months. There is also a very
significant opportunity to house professional conventions, whose
participants would also be seeking some affordable housing. Many
hotels are $200 a night. However, Mr. Gorsuch assured HESS
Committee members that in all instances the conventions would be
for educational purposes.
MR. GORSUCH has worked with most of the hotels in Anchorage to
insure that this is in no way any competition with the Anchorage
area visitor industry.
Number 1631
REPRESENTATIVE ROKEBERG asked if campus housing would assist in the
recruitment of athletes to the UAA campus.
MR. GORSUCH said it helps promote the overall image of the campus
to offer a full program that includes some type of campus life and
facility. Mr. Gorsuch could not over-emphasize the importance of
what happens when a resident capacity is present on the campus to
create an atmosphere of an intellectual community. If one's only
attachment to the university is to have a parking space and a seat
in a classroom, the attachment will not be great.
MR. GORSUCH felt campus facilities provided the opportunity to sit
with friends, drink coffee and have a conversation about what is
occurring inside the classroom. New horizons and challenges can be
explored. The athletes are certainly among those who would be
interested in campus housing opportunities.
Number 1688
REPRESENTATIVE BRICE understood that UAA is not considered a
residential campus, and that the Board of Regents, when developing
the mission statements for each institution, purposefully left out
UAA in order to keep its focus on other things. Representative
Brice's concern was why residences were being built versus
libraries. In addition, Representative Brice wanted to know if
there had been any discussion between the administration at UAA and
possibly private consortiums that develop and construct facilities
on campus on a type of 50-year-lease basis. The private entity
would own and run the facility.
MR. GORSUCH said he would not be present at the HESS Committee
meeting without the express authorization of the Board of Regents.
Therefore, the legislation carries their full endorsement and
support. If there had been any sort of prior designation of no
housing, it is not the current policy, because this legislation
reflects their wishes.
MR. GORSUCH then spoke to the option of building a library versus
a residence hall. He said he would gladly take a library if that
were available. However, a library generates no revenue to make it
self-supporting. Unless Mr. Gorsuch could receive a $28 million
capital appropriation for the purpose of a library, this project
does not compete with that at all. This is an auxiliary facility
in which the student rents basically retire the debt for the
facility.
MR. GORSUCH also added that a model facility is proposed in the
sense that the expectations are that the student rents in auxiliary
will not only pay the mortgage, but they will also pay for the cost
of the residential life program. Secondly, the rent pays for the
full operation, maintenance and replacement costs of the facility
as well. Therefore, the way this is structured is that there will
be no future deferred maintenance issues associated with this
facility. It is essentially self-financed, with the interest
subsidy.
Number 1789
REPRESENTATIVE BRICE expressed concern that UAA's proposed facility
was therefore competing with members of the private sector. He
knows of a number of cases in various other institutions of higher
learning in which the university contracts out the construction,
operation and maintenance of these types of facilities. The
private entity also provides the same type of traditional campus
life.
REPRESENTATIVE BRICE feels this is a viable option, and he has been
pressing his administration up at UAF to study this option as well.
If this option is viable, and if the state is going to break even
on that option, Representative Brice is not sure that the state
could not find another entity to save the state's bonding
authority.
Number 1822
MR. GORSUCH answered Representative Brice that he has had extensive
conversations with members of the hotel industry about this
particular issue. The possibility was discussed of whether or not
this facility could serve as a hotel in the summer and a student
dormitory during the nine months of the school year. The answer
was no. However, it is true that the university can find private
sector support for financing, somewhat conventionally, of the
apartment-style houses. These would be a seven-story structure
that has a whole different construction element and cost.
MR. GORSUCH said from the conversations he has had with Bob Hickel,
Al Parish and others, the consensus is that this does not work
under any kind of private scenario. However, it would work under
this low interest relationship for the AHFC.
MR. GORSUCH noted that subcontracting out some of the services is
an open issue that the university is receptive to in terms of
trying to have a very cost efficient system. The university has to
make money on its auxiliary services or it will not be able to
repay the debt. Therefore, the university is very much receptive
to the idea of outsourcing or subcontracting some of these elements
like the food service.
Number 1865
CO-CHAIR TOOHEY asked about the approximate student enrollment in
Anchorage. Mr. Gorsuch answered about 16,500 as a head count. The
full-time equivalent (FTE) enrollment is about 10,600. Co-Chair
Toohey asked about the Fairbanks enrollment, which Mr. Gorsuch
answered was around 6,000 students. Co-Chair Toohey then asked how
many students the Fairbanks campus can house, and the approximation
was 2,100. It was again determined that UAA can house 398.
CO-CHAIR TOOHEY said that times have changed since she was a
graduate of UAA. She thinks increased housing in Anchorage is
necessary, there is no doubt about it.
Number 1922
REPRESENTATIVE BRICE said the question he is trying to get answered
is that the Board of Regents have developed mission statements for
each of the three campuses. Those mission statements do not place
Anchorage as being a major residential campus. Not only that, but
there are private contractors that have worked out of the
university system and a lot of various campuses that have built and
run the student housing without state assistance.
MR. GORSUCH said he is unaware of any mission statement that has
"residential campus" in its character.
REPRESENTATIVE BRICE suggested that perhaps the statements have
changed since 1990.
MR. GORSUCH asserted that he would not be before the HESS Committee
without the authorization of the university system.
REPRESENTATIVE BRICE understood, and assured Mr. Gorsuch that he
was not implying to the contrary.
Number 1969
CO-CHAIR BUNDE said he has been in the system long enough to
remember that had regents originally had their way, there would not
have been an Anchorage campus at all.
REPRESENTATIVE ROKEBERG asked if Ms. Redman could clarify the
situation.
MS. REDMAN appreciated the comments of Representative Brice. The
board's decision is clearly that Anchorage will not become
primarily a residential campus. That is not appropriate for the
mission right now. However, three times the amount of housing that
UAA is currently seeking could be added and it would still be
substantially below even what an urban university has. The
proposed housing does not bring the university anywhere close to
what would be available on a residential campus.
MS. REDMAN said a residential campus is a campus where one would
expect to see 75 to 85 percent of the students in on-campus
housing. Those are the ratios that Fairbanks is looking at, as it
is a residential campus. Anchorage is seeking residence halls, not
to turn into a residential campus.
Number 2057
BILL HOWE, Deputy Commissioner, Treasury Division, Department of
Revenue, said he was not present at the meeting to speak on the
merits of student housing. He wanted to talk about the proposed
involvement of AHFC in the project specific to the requested
subsidy and the assumption that the AHFC can raise new bond issues
of $36.5 million that is required to fund the program.
MR. HOWE explained that for the AHFC to raise the $36.5 million, it
has to access the bond markets. Bond sales at competitive and
attractive interest rates are a function of having the ability to
have the bonds rated as investment grade. Investment grade bond
ratings are a function of the investment community having
confidence that their bond holders will get paid back the money
paid for the bonds plus interest over the 25 years.
Number 2111
MR. HOWE said it is no secret to most legislators that the AHFC has
been recently put on "credit watch" by one of the major bond rating
agencies, Standard & Poor (S&P). S&P is evaluating the current A+
rating that the AHFC currently has. That rating is well into the
middle range of investment grade.
MR. HOWE said Mr. Dan Fauske, who is the executive director of the
AHFC, has just returned from a meeting in New York with S&P.
However, in summary S&P has issued a press release, effective
yesterday, that it very much likes the approach in HB 281 and SB
143 which are the Governor's effort to program, over a five-year
period, a transfer of capital from AHFC in an orderly manner.
MR. HOWE said the total of the funds transfer will be $270 million
over five years, including $30 million this year. S&P has reviewed
that program, and the press release says the company supports that
program. The release also says that if that program is adopted,
S&P will take the AHFC off of credit watch and reinstate its prior
status.
Number 2174
MR. HOWE said HCR 18, if considered outside the total scope of the
legislature's intent on how to deal with the AHFC simply adds fuel
to the fire on the part of the credit agencies in terms of
increasing their apprehension that the legislature will continue to
drain funds out of the AHFC with no end in sight, and the interest
subsidy in effect, does that. In addition, it increases the credit
agencies' unwillingness to consider the AHFC as having investment
grade bonds.
MR. HOWE said another example that has the attention of the rating
agencies is SB 40. SB 40 will require the AHFC to transfer over an
18-month or 2-year period over $400 million--with no end in sight--
back to the general fund, leaving the bondholders exposed to some
degree as to their ability to get paid over such a long period of
time.
TAPE 95-40, SIDE A
Number 000
MR. HOWE concluded that the AHFC wants to work with the university
to meet the student housing needs. There is no question about
that. But in the opinion of the AHFC and the Department of
Revenue, the program presented must be incorporated into the
overall AHFC capital budget, grant program, subsidy program that is
considered at that time. The legislature can then begin to apply
priorities as to how it wants to utilize the capital available to
housing programs, and how the student housing in Anchorage,
Ketchikan and Juneau fit in.
MR. HOWE said for AHFC to deliver the services being requested it
has to be financially strong. HB 309 will not achieve that
objective and will increase uncertainty.
CO-CHAIR BUNDE interjected that if the goose that lays the golden
eggs is killed, "there won't be much for omelets."
Number 109
CO-CHAIR TOOHEY asked what the bank balance was of the AHFC at the
moment.
MR. HOWE answered that the AHFC has approximately $700 million in
cash.
CO-CHAIR TOOHEY said it is very understandable that the AHFC is on
a credit watch, because there are no restrictions on what the
legislature can take. The AHFC could be done away with today, and
ten dollars could be left in the bank account. However, that would
be extremely foolish. Co-Chair Toohey asked how taking $270
million out of the AHFC and putting it into the general fund will
benefit the housing projects. That would not benefit the housing
projects in the state.
MR. HOWE said that is up to how the legislature wishes to allocate
the general funds.
CO-CHAIR TOOHEY asked if, in Mr. Howe's opinion, bonding was not a
better way.
MR. HOWE said bonding is certainly a better way to go in terms of
funding programs. Generally, he concluded, that is true. The AHFC
has the ability to raise money at attractive interest rates because
of their bond rating. That basically leverages their capital to be
able to deliver more programs to more people.
Number 222
CO-CHAIR TOOHEY asked if the Governor's office and S&P would be
satisfied if the legislature attached to HB 309 the ability to only
take out $36.5 million plus another $20 million from AHFC a year.
She said that would be the limit that can be taken out of the AHFC
each year. She asked if that would make the Governor's office and
S&P happy because there is a limit on what the legislature can take
from that account.
MR. HOWE said the Governor's office believes that the AHFC can
transfer to the general fund $70 million this year, and $50 million
for the next four years to help balance the budget without
impairing the ability of the AHFC to raise money through bond sales
and having an investment grade. S&P in New York has reviewed that
program and has endorsed it. Therefore, to the degree that the
legislature only wants to take out $36.5 versus $70 million would
appeal to the bondholders, but the Governor's office would probably
say that more can be done to cover the budget gap.
Number 317
REPRESENTATIVE ROKEBERG understood that the legislature needs to
have a plan for its desire to reach into the balance sheets of the
AHFC. The legislature needs to look into the many programs that
are before it. Representative Rokeberg felt that Mr. Howe was
saying that all those programs have to fit together in such a
manner so he would be comfortable with this particular bill.
MR. HOWE said that is correct.
REPRESENTATIVE ROKEBERG asked if it was somewhat difficult, in his
opinion, to look at the bill discretely without looking at the big
picture.
MR. HOWE was saying that the AHFC can lose its bond rating through
1,000 cuts as opposed to just a major withdrawal.
REPRESENTATIVE ROKEBERG surmised that it would be Mr. Howe's
recommendation if HB 309 is passed by the legislature, that the
legislators should listen to the Governor's recommendation about
the ability to access the equity of the AHFC in the future.
MR. HOWE said Representative Rokeberg was correct.
REPRESENTATIVE ROKEBERG said therefore, bonds will be sold on a
separate issue, rather than being part of a major package, like a
larger, $100 million-type AHFC housing bond. Representative
Rokeberg asked if the bonds would be discrete, stand-alone bonds.
MR. HOWE answered that he believed there would be a separate issue,
and it would be a specific side.
REPRESENTATIVE ROKEBERG asked if there would be a higher rate of
interest than otherwise because of that. In other words, a lower
gross value of the bond face, vis-a-vis the totality.
MR. HOWE said the AHFC has issued over its 20-year life span $9
billion of bonds, of which $2 billion are outstanding. Therefore,
Mr. Howe does not believe this one issue would affect it one way or
another. It would be rated primarily on the general obligation
merits of AHFC, since the AHFC is required in this program to
subsidize the loan repayment.
REPRESENTATIVE ROKEBERG asked if Mr. Howe was saying he did not
think it would have a negative impact on the interest rate level
because this would be a smaller, stand-alone issue in the total
picture.
MR. HOWE agreed.
Number 510
REPRESENTATIVE DAVIS said Mr. Howe has been talking about the
AHFC's bond rating. He asked if there has not been a whole string
of ratings. He asked if the state was worried about losing the
ability to bond altogether, or if the fear was losing the AHFC
rating at a certain level.
MR. HOWE said there was concern about two issues. One is losing
rating on existing bonds. Bondholders who hold $2 billion on AHFC
paper, bought at a certain price predicated on the "double A" or
"single A" rating depending on the type of issue. They can sell
those bonds. There is a market because of the rating. If the
rating is withdrawn because of the uncertainty about the AHFC
future as Co-Chair Toohey pointed out, in all likelihood, unless
this issue is resolved or if some of these other bills are passed,
as well as HB 309, and AHFC loses its bond rating, those
bondholders then can not sell the bonds for the same basic price
paid regardless of the interest rate.
MR. HOWE said the liquidity for the ability to sell into an open
market disappears. The bonds can only be sold on a private
placement basis.
Number 585
MR. HOWE said a second issue is that for new issues, the lower your
rating, the higher the interest rate to compensate for the risk.
CO-CHAIR BUNDE felt that if HESS Committee members choose to pass
HB 309 and HCR 18, it places additional emphasis on the fact that
the House is willing to accept the other Governor's bills.
Number 638
JACK DALTON, President, Union of Students, University of Alaska
Anchorage, said he has come down to Juneau three times attempting
to get funding for housing. Each time, however, he has been turned
down because the state of the economy and expenditure cutbacks.
However, this time the Union of Students is more optimistic. The
388 students living on-campus currently were very excited about
that aspect. Those students are willing to do almost anything to
convince HESS Committee members that more student housing is a
great idea.
MR. DALTON said the 600 students on the waiting list for university
housing each year feel the same way. Mr. Dalton offered the
assistance of the Union of Students to the HESS Committee members
in getting the bill through or asking for money somehow.
Number 723
REPRESENTATIVE ROKEBERG assured Mr. Dalton that the legislature
holds many friends of UAA, and that he is a former faculty member
of UAA. Representative Rokeberg supports the Union of Students and
the plea for student housing.
Number 752
HEATH HILYARD, Legislative Affairs Director for the Associated
Students, University of Alaska Fairbanks, said the Associated
Students support HB 309 and HCR 18. There has been much discussion
with colleagues in Anchorage. Mr. Hilyard said that he has, for
the last four years, been living on a campus with a large degree of
student housing. He can therefore understand what kind of
community it builds, and how important campus housing can be in
establishing a strong university community as is spoken to in HCR
18.
MR. HILYARD said he wanted it to be known that the students of UAF
do not feel threatened by UAA's possible acquisition of housing,
and they support the idea.
Number 813
CHRISTINA BROLLINI, Senator, Union of Students, University of
Alaska Anchorage, reiterated that there is a desperate need for
housing. There are approximately 1,000 students each year that are
turned away due to housing shortages. In addition, the UAA library
is very important to the university students. The students have
created a $5.00 fee which will generate $85,000 per semester to
fund the library. Therefore, she assured HESS Committee members
that the students realize that they need to start contributing to
university projects, and the library is a main concern.
MS. BROLLINI assured HESS Committee members that students are
putting in their share. The housing is needed, and she strongly
encouraged HESS Committee members to support this legislation.
CO-CHAIR BUNDE asked Ms. Brollini to take the message back to the
Union of Students that he is impressed that the students are
willing to assess themselves for the library.
Number 891
DAVID WALKER, Chairman, Rules Committee, Union of Students,
University of Alaska Anchorage, voiced his support and the support
of the student body for this legislation. He asked HESS Committee
members to remember that this housing will not simply provide 600
beds. It will provide a community to the student body in
Anchorage.
MR. WALKER noted that when students choose where they want to go to
college, they do not really look at mission statements, etc. Mr.
Walker can personally attest to the need for student housing, as he
is currently on the waiting list for housing this fall. He said it
is very difficult to obtain university housing. It has been very
hard for him to plan out his academic future because he does not
know where he is going to be living. He has lived both on and off-
campus, and he felt that living on campus is definitely better.
MR. WALKER reiterated the comments of Chancellor Gorsuch that a
student's grades are enhanced, as is their participation in
extracurricular activities, when they live on-campus. This is an
issue that the faculty, students and administration are standing
together on, and he requested HESS Committee members' support.
Number 971
REPRESENTATIVE ROKEBERG asked about rents charged by UAA for
housing.
MR. WALKER said the charge for an entire semester is about $1,050.
That is just for the room. A dining facility will accompany the
new housing complex, and that facility is also desperately needed.
Such a complex breathes life into the social atmosphere. Mr.
Walker said any college student knows that half of your education
is from the classroom, and the other half is from interacting with
peers and discussing what has been learned.
Number 1043
CO-CHAIR BUNDE closed public testimony on HB 309 and HCR 18. He
was not optimistic that the dorms will pay for themselves, and he
is certainly not optimistic that the food service will be well-
attended. However, he said those feelings are from his past
experiences, and he is willing to let the current UAA students
prove him wrong. He asked for the wishes of the committee.
CO-CHAIR TOOHEY moved HB 309 and HCR 18 to the next committee of
referral with individual recommendations and accompanying fiscal
notes.
REPRESENTATIVE BRICE objected. He said that considering that this
piece of legislation was just introduced last week, and that the
more substantive issue of addressing the needs of the whole
University of Alaska system as embodied in the Governor's bills of
HB 282 and HB 281 were introduced about one month ago and those
bills have not even received their first hearing, Representative
Brice felt the HESS Committee was getting ahead of itself.
REPRESENTATIVE BRICE said that, combined with the testimony from
the Department of Revenue causes him grave concern that without
further advancement of the Governor's legislation, the legislature
will be jeopardizing a great resource within the state.
Number 1163
REPRESENTATIVE DAVIS said if he could find any alternative method
of funding, something that has an opportunity to pay for itself, he
would certainly do it. He felt this legislation was a great
attempt, although it is probably not full-proof, and he supports
this approach.
REPRESENTATIVE ROKEBERG said he shares part of the concern of
Representative Brice about the financing mechanism in the AHFC.
Representative Rokeberg felt it would be very imprudent for this
bill to reach the floor of the House without the other funding
bills being in place or having been debated through the system of
the floor.
REPRESENTATIVE ROKEBERG noted that he is a "super UAA Seawolf fan
and season ticket holder," and he would hate to have to vote
against this bill. However, without the additional bills, he may
be put in that position. Other than that, the support for UAS and
the UAA campus he supports 100 percent.
REPRESENTATIVE ROKEBERG said however, he has significant qualms
about allotting a million dollars for the Ketchikan campus. He is
not sure how many students are there, and he is not sure that 32 or
even 16 students would be more than 2 percent for Ketchikan. He is
not certain that a case has been made, but he is not from
Ketchikan. There is no question in his mind about the housing
needs of UAA. However, he does not feel a case has been made for
the Ketchikan campus. Therefore, he asked to introduce an
amendment that would delete that provision.
Number 1273
REPRESENTATIVE ROBINSON objected and a roll call vote was taken.
Voting "yes" on the amendment was Representative Rokeberg. Voting
"no" were Co-Chair Bunde, Co-Chair Toohey, Representative Robinson,
Representative Brice, and Representative Davis. The amendment
failed.
CO-CHAIR BUNDE called for the vote on HB 309. Voting "yes" were
Co-Chair Bunde, Co-Chair Toohey, Representative Rokeberg,
Representative Davis, and Representative Robinson. Voting "no" was
Representative Brice. The bill passed out of committee.
Number 1340
REPRESENTATIVE ROBINSON understood that HB 281 has been assigned to
the HESS Committee. She assumed that the co-chairs understood the
importance of hearing the bills quickly as HB 309 had just been
passed.
CO-CHAIR BUNDE acknowledged her concern, and assured her they would
be addressed. He asked for the pleasure of the committee regarding
HCR 18.
REPRESENTATIVE DAVIS moved HCR 18 from the HESS Committee with
individual recommendations. Representative Brice objected.
REPRESENTATIVE ROKEBERG asked if the resolution was necessary
because of the bonding appropriation. Co-Chair Bunde indicated
that he was correct.
REPRESENTATIVE BRICE said his only objection to the movement of HCR
is the same as his objection to HB 309. He then withdrew his
objection, and HCR 18 passed the HESS Committee.
CONFIRMATION HEARINGS - UNIVERSITY OF ALASKA BOARD OF REGENTS
Number 1457
CHANCY CROFT, Attorney, provided a short statement as a candidate
for the University of Alaska Board of Regents. He said the
university has a great challenge in front of it to maintain
academic excellence while offering education to a wide variety of
people over tremendous geographic distances. He sees the
university from the perspective of a consumer. He is not a
professional educator or an administrator. He has attended quite
a few classes at UAA and Mat-Su.
MR. CROFT said he was particularly concerned about the change that
is going to occur in all universities over the next few years. He
felt universities were going to change from educating primarily
teen-agers and young adults to giving a second education to a lot
of adults. Some people have to change jobs several times within
their lifetime. Universities are going to therefore be educating
adults. That is going to call for different techniques and
approaches, and will provide some exciting opportunities for
Alaska.
MR. CROFT asked to show HESS Committee members something he found
in a book about the best colleges and universities regarding
community colleges in Texas. There are some innovative programs at
those colleges, and they are finding that when college programs are
adapted to what is happening with the economy, some pretty exciting
things can occur. As a matter of fact, he and Joe Thomas, the
other candidate for the Board of Regents, are going to take credit
for the fact that they are just now attending their first board
meeting, and they appreciate being scheduled by the HESS Committee
members so they can appear before the committee at the same time.
Number 1559
MR. CROFT said today at his fist meeting, Prince William Sound
Community College presented three new career offerings for two-year
degree programs. The school plans to graduate about 120 people a
year in three different areas.
MR. CROFT also wanted to mention that he has a long-time
involvement with the community college system in Anchorage. In
fact, his wife is a professor at the university. She recently
became the head of the developmental education department. He
accepted the decision of the voters made (although he disagreed
with it) about the structure in 1988. Mr. Croft wanted to make
sure, regardless of the structure, that the mission, the ideals and
the opportunities of the community colleges are not lost as
academic excellence is emphasized throughout the entire university.
Number 1611
CO-CHAIR TOOHEY said she was heartsick when community colleges were
done away with. She was a registered nurse who graduated from a
community college, and she feels an educational niche was lost when
that happened.
CO-CHAIR TOOHEY said she is aware of a problem that occurred in
Fairbanks. UAF was usurping a private enterprise policy, and was
in competition with private enterprise in the community. That was
addressed three times, and three times the problem was ignored.
She wanted to make very sure that the university does not compete
with private enterprise at any level. She wanted the candidates to
be aware of that because it is a problem, and she does not want to
see a lawsuit happen.
Number 1673
REPRESENTATIVE ROBINSON suggested that Mr. Croft visit the
Whitehorse community college system. Many of their programs are
clearly directed toward what is happening in the economy also.
That system also has an excellent program of mobile units. For
example, students from rural communities who wish to be health care
providers can receive schooling and then go back to their
community. A mobile unit then follows the student.
REPRESENTATIVE ROBINSON also asked if Mr. Croft had a chance to
visit the UAS campus.
MR. CROFT noted that he has spoken to Chancellor Lind about
visiting the campus, and they are hoping he has the chance to do
that.
Number 1729
REPRESENTATIVE ROKEBERG asked Mr. Croft if he had played hockey
lately.
MR. CROFT answered that Representative Rokeberg was an excellent
hockey player, but over the last few years he may have lost some of
his speed and aim. Representative Rokeberg may find that
discouraging. However, Mr. Croft said that he, personally, was
"uniformly lousy." Therefore, he takes satisfaction in stating
that he is every bit as good as he ever was.
REPRESENTATIVE ROKEBERG said he is pleased to hear Mr. Croft's
comments about the university system. He said if there is any way
the legislature can help the regents in rectifying the problems
caused by consolidation, Mr. Croft may elicit his help.
REPRESENTATIVE ROKEBERG wished Mr. Croft well, and noted that any
future mission statements drafted by the Board of Regents should
not try to isolate the UAA campus, as has been done for a number of
decades. Representative Rokeberg is concerned about some of the
policies he has heard about in the meeting. He expressed
confidence that Mr. Croft would represent his community fairly.
Number 1821
JOE J. THOMAS, Business Manager/Secretary-Treasurer, Laborers'
Local 942, basically sees the university as probably one of the
greatest assets of the state of Alaska. Through proper use and
guidance in a state with so much potential for development, Mr.
Thomas sees the university as an integral part of the state.
MR. THOMAS recalled a discussion about how close the university is
in assessing job needs in industry, and working with industry
representatives and students to make sure students get a useful
education. Students must have the prospect of a job at the other
end of their education.
MR. THOMAS said that was, in a nutshell, his concern. The
University of Alaska system is a broad subject to speak on, and
hopefully people can get away from individual interests and
concerns and do what is best for the people and students of the
state. Alaska is broad and diverse. Alaska must deal with
situations that are very different from experiences in the rest of
the United States. The community college system was, and should be
again an integral part of the university. He believes the
university can move forward in a reasonable manner to take care of
most needs.
Number 1887
CO-CHAIR TOOHEY noted that the university is a land-grant
university. She asked if it will be, at any time, the regents'
responsibility to help select some allocated land.
MS. REDMAN noted that legislation has not yet been passed.
CO-CHAIR TOOHEY asked if the regents at any time will have the
responsibility or any input into that selection.
MS. REDMAN answered yes, absolutely.
Number 1925
MR. CROFT stated the Board of Regents can also set the policy about
the land as well. He noted that there is some disposal of land
that is being reviewed as a result of the oil spill.
CO-CHAIR TOOHEY said that is the background for her question. She
asked if either Mr. Croft or Mr. Thomas had any "heartburn" about
disposing, developing, cutting or mining the university's land.
MR. THOMAS said the only concerns he would have would regard a
community that may have some objections to what the university may
be doing with its land. At least in his case, he would add that
sensitivity to the board to make sure the board was not considering
the surrounding community. Mr. Thomas conceded that may slow down
the process in some people's minds. However, to actively
accomplish long-term goals and keep the university in good standing
with various communities, that is a necessary process.
MR. CROFT said he graduated from one of the wealthiest land grant
colleges in America. The first year he was a student, it was
necessary to amend legislation to increase the range of investments
from the University of Texas trust lands. He found it interesting
he was working on this type of legislation as a regent. But he
believes in land grant colleges, not for the preservation of land
for parks, but because the land produces revenue.
Number 1996
CO-CHAIR TOOHEY just wanted to make sure that neither Mr. Thomas
nor Mr. Croft were "preservists." Neither are.
REPRESENTATIVE BRICE noted that a better term is "conservationist."
Number 2022
CO-CHAIR BUNDE asked Mr. Croft and Mr. Thomas what they
philosophically and physically envision for the future.
MR. THOMAS answered that he perceives the university as being one
of the primary sources of education for the purposes of development
in Alaska. He believes in higher education as being more than
doctoral degrees. He understands the need for vocational
instruction, and he supports that. He hopes the university will
continue to move in that direction. He sees the university as
being an integral part of the development of the state of Alaska
and its future.
CO-CHAIR BUNDE said part of the basis of his question regards the
physical plant and the expenses of having a university entity in
all the far corners of the state. Co-Chair Bunde asked if Mr.
Thomas had any type of vision in that area.
MR. THOMAS said that was a tough question, probably one the
university has struggled with and the Board of Regents has wavered
on. He certainly believes that the university should try and keep
education close to the communities. Education is unsuccessful if
it tries to remove people from the far-flung reaches of the state
to bring them into a center. It does not appear to work very well
in some cases (at least, that is what he is led to believe at this
point).
MR. THOMAS said therefore, although expense is certainly something
that needs to be taken into consideration, the rural college
program is important. How it is administered, what it covers,
etc., is certainly a subject of study to make sure the college is
not training in areas that will not provide work. Mr. Thomas is
very concerned that the university educate people with useful
skills.
MR. THOMAS felt more sophistication was needed in the process of
what the university is trying to accomplish. Mr. Thomas felt that
rural campuses were necessary, and he supports the rural campus
theory.
Number 2144
MR. CROFT supported the rural campus theory, but he thinks the
rural campus education can be accomplished without a heavy emphasis
on the facilities. Most parents are worried that their children
learn more from television than they do in the classroom. It is a
mistake for the regents to be preoccupied with classroom education
throughout Alaska where there are obviously communities where those
classrooms cannot be built. It would also be a mistake to ignore
the possibilities of television, computers or follow-up learning
through mobile units and other methods.
MR. CROFT stressed that those options must be utilized because
facilities cannot be built.
Number 2175
MR. CROFT said secondly, the university must use the existing
facilities. The whole community college structure was very able to
respond to the needs of the community because it was in the
community. It was using the high schools, the junior highs and the
existing community facilities. In that way, contact was maintained
with the community, and the school became more responsive to the
community when using community facilities.
MR. CROFT said the university does not have to equate building
facilities everywhere educational opportunity is desired. Frankly,
that line of thinking must be avoided if the university is going to
provide the maximum opportunity that people deserve.
CO-CHAIR BUNDE said he has just gone through an assessment process
of all the branches of the university. He commends the branches
for their effort; self-examination is not always fun. Part of one
of the facets of that was productivity. A number of students in
the classroom and the hands-on experience from various teaching
entities provides a new view of the assessment process and goals,
and a view on productivity.
Number 2233
MR. THOMAS said he did not study the process, and he has heard only
briefly about it at some of the meetings. He does not want to seem
uninformed, but he is not so sure, without looking at the process,
that the program assessment was definitely budget driven. He also
has some concern about where the centers of learning might be, and
that there might be some skewed statistics that were interpreted in
a certain way.
MR. THOMAS reiterated that he had not taken a close look at the
process. He acknowledged that it is a large and sophisticated
study, so it will take some review. However, he plans to look at
the study. He was concerned that oversimplification of statistics
may cause people to come up with some findings that might not be
accurate or might not be advantageous to communities. A study may
be conducted which indicates that some programs should be cut even
though other factors, perhaps qualitative, have not been
considered.
Number 2288
MR. CROFT felt the evaluation was a good idea, but he was a little
concerned that the data was not uniform. Therefore, the figures
retrieved from one campus were not comparable to another. That may
be what Mr. Thomas was alluding to in his concerns. However, Mr.
Croft felt the idea of the study was good.
MR. CROFT felt there was a problem with the evaluation, however.
He remembers that former Alaska Governor Hammond had an efficiency
in government commission. The recommendations of the commission
was referenced in 1977 in the budget. By 1988, no one spoke of the
recommendations anymore. Those recommendations were lost. That is
the problem with evaluations. The organization must keep going
back over them every time to make sure they are implemented.
MR. CROFT felt that frankly, the tuition increase is the biggest
indication of what has happened in the last six months. Mr. Croft
wanted to make sure it was not the only indication. He felt the
students are going to pay their fair share, but the other side of
that is those recommendations have to be implemented. Mr. Croft
was worried that, unless those recommendations are constantly
revisited, they will fade away.
TAPE 95-40, SIDE B
Number 066
CO-CHAIR BUNDE asked for Mr. Croft's perception of productivity,
where it is and where it should be.
MR. CROFT said there were several questions concerning
compensation, tenure and productivity which were most difficult to
wrestle with. Those issues are on the agenda for the next six
months. However, he thinks that productivity varies widely across
the board. It is something that must be addressed.
REPRESENTATIVE BRICE commented that when talking about productivity
it is very important to look not only at credit hours taught, but
also to look at relevant research brought to the institution. He
also asked Mr. Thomas and Mr. Croft to consider the importance of
the research that the University of Alaska system provides.
Number 145
MR. THOMAS agreed the research is very important. In addition, the
university must study who it produced and what they are doing six
months after graduation as far as employment. That is crucial.
Just cranking out numbers is not the answer. Cranking out numbers
that can be successfully employed somewhere is probably the most
important thing. The research that brings that about and causes it
to happen shows that this is the direction one needs to go, even
though the direction may change.
REPRESENTATIVE ROBINSON said when looking at the university system,
people have a tendency to focus on the single student, not the
married student or the single mother with a child/children. She
asked how Mr. Thomas and Mr. Croft felt about on-site child care
centers and the need to make sure that those elements are part of
the university system.
MR. CROFT felt it was very important. Recognition of the non-
single student on the university's part, as an older and older
population of students enroll, is crucial.
Number 250
MR. THOMAS agreed with Mr. Croft. There is a segment of the
population that is looking toward education or re-education. Many
of those students are now in their 40s and 50s, looking for a
different or better career (or employment to begin with). Those
people need different service than the typical single student who
is 19-years-old and "fancy-free."
CO-CHAIR BUNDE thanked Mr. Croft and Mr. Thomas, and read a
statement. He read, "Our action here does not reflect any intent
by any member to vote for or against these individuals during any
further sessions for the purpose of confirmation." He then asked
for the wish of the committee.
REPRESENTATIVE BRICE passed the confirmation of the two Board of
Regents members onto the full body of the House. There were no
objections, and the names passed.
HB 229 - PROHIBIT LOUD VEHICLE SOUND SYSTEMS
Number 429
REPRESENTATIVE ROKEBERG, sponsor of the bill, said that noise is a
form of pollution and a potential health hazard. He felt the bill
should be approved based on the fact that it endeavors to alleviate
that problem in one instance.
CO-CHAIR BUNDE asked to speak to the bill as someone who was
trained as a speech and hearing therapist. He is well aware of the
damage that excessive noise can and has done to many people. He
felt much noise damage is self-inflicted by young people at times.
He also mentioned the psychological irritation due to excessive
noise. He felt this bill was a good measure for protecting young
people and protecting the sanity of the older people.
CO-CHAIR TOOHEY asked about the penalties for violating the
provisions of the bill, and who is going to police the provisions.
REPRESENTATIVE ROKEBERG said the bill provides for an infraction
only. It would be enforced by the state police and the law
enforcement agencies of the various jurisdictions. The Anchorage
Municipal Police Department has a municipal code already
prohibiting this type of infraction.
CO-CHAIR TOOHEY noted the sponsor statement says that the violation
of this provision is an infraction not considered a criminal
offense and does not add points against the person's driving
record. She asked what the provision does to stop this behavior.
REPRESENTATIVE ROKEBERG said it was a function of the state
statute. The state statute stipulates that there only be a fine up
to $300--that is the provision for infraction under Alaska Statute.
Representative Rokeberg said the alternative would have been to
create a misdemeanor offense, and Representative Rokeberg did not
feel that was appropriate.
Number 638
REPRESENTATIVE DAVIS said he did not have a problem with the bill,
although he felt the reasons for the bill may be wrong. He has not
heard any of these sound systems that are louder than most other
things one runs into throughout the community. However, he thinks
the issue is one of insensitivity. The excess noise is a nuisance.
In addition, Representative Davis felt that those who install the
systems also need to be penalized. Those who install systems, just
as those who don't adequately tune up automobiles for their proper
emissions, can get their licenses taken away. That is an issue
that also needs to be addressed at some time.
REPRESENTATIVE ROKEBERG ventured to say that the first amendment
does not extend to installers. He did not think the amendment
would be possible to extend.
CO-CHAIR BUNDE said perhaps the problem would cure itself. If
there was no demand, they would be no supply.
REPRESENTATIVE BRICE said he has a car with a stock radio in it.
He cannot tell if it is being heard outside the car or not. He
asked how one would be able to tell if their sound system was
"offensive." He asked if "audible" meant right next to the car,
or 5 feet from the car, or 25-feet from the car. He asked for
discussion on those topics.
Number 817
REPRESENTATIVE ROKEBERG noted for the information of the committee
that a review of the various statutes throughout the country and a
number of states that have similar statutes have provided
information that is being used by the sponsor of the bill. He is
working on an appropriate amendment to overcome this grey area when
the bill reaches Judiciary. Representative Rokeberg said he is
attempting to gather some empirical evidence to determine between
a 50 and 100 foot radius as opposed to the other measurements of
sound that can be utilized.
CO-CHAIR BUNDE suggested wording to the effect of "audible outside
a car that causes a public disturbance." If someone is driving by
50 feet away and the ground is shaking, that is a problem.
CO-CHAIR TOOHEY asked if Representative Rokeberg had considered
mentioning if the window of the vehicle was open or closed. Co-
Chair Toohey sometimes cranks up her stereo on the highway. She
stated that this was somewhat different than those who drive
through neighborhoods causing a disturbance. If the window is
closed and the car is moving, the noise is not bothering her. It
may be damaging the car owner's hearing, but it is not bothering
her. When the windows are open, then it bothers her.
Number 927
REPRESENTATIVE ROKEBERG said her point was well taken, and that is
why the radius was being researched. Representative Rokeberg seeks
to provide a standard of reasonableness. There is no intent to
inhibit the utilization of any sound system. It is only when it
becomes a nuisance that he seeks to curb the problem. In addition,
there are certain situations in which emergency vehicles cannot be
heard due to the noise from the car next to you. In certain urban
areas, this can be a real problem.
REPRESENTATIVE ROKEBERG also looks at this bill as another tool of
law enforcement. The significant gang activities in Anchorage may
allow the law enforcement agencies to investigate probable cause
for enforcement. The main thing, however, is the noise. This is
a "neighborhood friendly" bill. Representative Rokeberg assured
HESS Committee members that the bill was going to be modified in
the Judiciary Committee to alleviate concerns.
Number 989
REPRESENTATIVE ROBINSON said she was curious. She was somewhat
incredulous that there was not anything on the books regarding
noise pollution. She knew of cases in which police visit houses
only because children are playing their stereos or their bands too
loud. Those individuals are ticketed for noise pollution. She
felt the HESS Committee members and the legislature have more
important things to do.
REPRESENTATIVE ROBINSON did not feel the issue was in need of
legislation. She felt the police, with already existing laws,
could act if a problem was evident.
REPRESENTATIVE ROKEBERG responded that Americans spend literally
billions of dollars each year to try and abate noise. Noise is
scientifically recognized as being a pollution problem. Then
someone thinks he/she has a right to install a thousand dollar
speaker system in their automobile and disturb the peace. That is
not right.
CO-CHAIR TOOHEY noted that Anchorage has its own ordinance.
Therefore, she asked if the scope of the bill would not include
Anchorage, as the state police do not cover Anchorage. Anchorage
is covered by the municipal police. She asked if there are other
cities within Alaska that have similar laws on their books.
SHIRLEY ARMSTRONG, Legislative Assistant, Representative Rokeberg's
office, said she checked with the Juneau Police Department, and
Juneau does not have a vehicle noise ordinance like the city of
Anchorage does. Juneau has a nuisance/disturbance noise provision.
That is a misdemeanor. Therefore, the problem would have to be
pretty prevalent in order for the police to intervene.
CO-CHAIR TOOHEY asked if Ms. Armstrong checked with Fairbanks, and
she answered no.
MS. ARMSTRONG said a resident of Kotzebue called in favor of the
bill. When Ms. Armstrong asked if this type of "noise pollution"
was a problem in Kotzebue, the person said no, not yet.
Number 1160
REPRESENTATIVE DAVIS said in discussions with contract jails, it
has been discovered that city cops around the state are arresting
people under state law, and it is the state's responsibility to pay
for all that. Every city, except Anchorage, in the state of Alaska
that has a police department and arrests people does so under state
law. HB 229 creates yet another state law. Representative Davis
did not have a problem with that, as what is going to have to
happen is an automatic conversion to all state laws. Local
municipalities are going to have to start covering the costs, and
let their police make arrests. Then it would be that
municipality's arrests and court costs, to a degree.
REPRESENTATIVE DAVIS said the $6 million figure that is currently
being paid out needs to be considered. If municipalities can
handle these issues on their own, the legislature needs to make
sure they have that opportunity. However, again Representative
Davis said he did not have a problem with this bill as it is very
inconsiderate of people to have obnoxious sound systems.
REPRESENTATIVE BRICE stated for the record, "If it's too loud,
you're too old." Co-Chair Bunde said "Amen."
Number 1243
REPRESENTATIVE DAVIS moved HB 229 from committee with individual
recommendations and accompanying fiscal notes. There were no
objections and the bill moved.
ADJOURNMENT
Number 1263
CO-CHAIR BUNDE adjourned the meeting at 4:45 p.m.
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