Legislature(1995 - 1996)
02/12/1996 02:10 PM Senate CRA
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SENATE COMMUNITY & REGIONAL AFFAIRS COMMITTEE
February 12, 1996
2:10 p.m.
MEMBERS PRESENT
Senator John Torgerson, Chairman
Senator Randy Phillips, Vice Chairman
Senator Tim Kelly
Senator Fred Zharoff
MEMBERS ABSENT
Senator Lyman Hoffman
COMMITTEE CALENDAR
SENATE CONCURRENT RESOLUTION NO. 14
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.
SENATE BILL NO. 163
"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."
SENATE BILL NO. 229
"An Act relating to employment contributions and to making the
state training and employment program a permanent state program;
and providing for an effective date."
PREVIOUS SENATE COMMITTEE ACTION
SCR 14 - See State Affairs minutes dated 5/2/95.
SB 163 - See State Affairs minutes dated 5/2/95.
SB 229 - See Community & Regional Affairs minutes dated 2/7/96.
WITNESS REGISTER
Rebecca Nance, Director
Division of Employment Security
Department of Labor
P.O. Box 25509
Juneau, AK 99802-5509
POSITION STATEMENT: Offered information on SB 229
Arbe Williams, Director
Division of Administrative Services
Department of Labor
P.O. Box 21149
Juneau, AK 99802-1149
POSITION STATEMENT: Offered information on SB 229
ACTION NARRATIVE
TAPE 96-5, SIDE A
Number 001
CHAIRMAN TORGERSON called the Senate Community & Regional Affairs
Committee meeting to order at 2:10 p.m.
SCR 14 UNIVERSITY OF ALASKA STUDENT HOUSING
SB 163 APPROVE U OF A DEBT FOR STUDENT HOUSING
SENATOR TORGERSON brought SCR 14 and SB 163 before the committee
the first order of business.
SENATOR KELLY noted that the Administration, as well as the House,
are in support of SCR 14 and SB 163 and that the House Finance
Committee is currently working on committee substitutes. He
requested that the committee pass both pieces of legislation out of
committee so that they can be worked on in Senate Finance and then
their work will then be completed by the time the House legislation
passes over to the Senate.
SENATOR TORGERSON pointed out, for the record, that both pieces of
legislation have a referral to the Health, Education and Social
Services Committee before going to the Finance Committee.
SENATOR KELLY moved that SCR 14 be passed out of committee with
individual recommendations. Hearing no objection, it was so
ordered.
SENATOR KELLY moved that SB 163 be passed out of committee with
individual recommendations. Hearing no objection, it was so
ordered.
SB 229 STATE TRAINING & EMPLOYMENT PROGRAM
SENATOR TORGERSON brought SB 229 before the committee as the next
order of business. He directed attention to a letter from Rebecca
Nance of the Department of Labor providing additional information
to the committee on questions raised during the February 7 hearing
on the legislation.
Number 070
REBECCA NANCE , Director, Division of Employment Security, in
response to clarifying administrative costs for accounting and
collection, explained that this is a U.S. Department of Labor
compliance measure, which mandated that STEP's share for use of the
federally funded collection and accounting system was computed to
be 19 percent. She added that is 19 percent of the state's
employment service tax data collection and accounting.
SENATOR KELLY inquired how many people in the department collect
these taxes. ARBE WILLIAMS , Director, Administrative Services,
Department of Labor, replied that there are 19 positions in the tax
section. The federal agreement requires that 19 percent of those
total costs are reimbursed in the system. She clarified that the
money is not sent back to the federal government; it is used for
their internal operations. It allows those supplanted UI dollars
in their field offices or in other operations of the Employment
Security Division. She further clarified that the STEP program is
funded with one-tenth of one percent of employees' contribution to
the Unemployment Insurance Trust Fund. The trust fund funds the
benefit payments process through the Employment Security Division.
SENATOR TORGERSON asked if employee/employer contribution ratings
that must be posted for the Unemployment Insurance program show
that part of the money they are paying is going for administrative
costs for accounting and collection. REBECCA NANCE responded that
the contribution is lumped together on the form. SENATOR TORGERSON
asked that she look into whether it should be listed on the form
separately should STEP become a permanent program.
Number 200
REBECCA NANCE also clarified that the Employment Security Division
received State Employment and Training Program Funds through two
Reimbursable Services Agreements (RSAs) with DCRA, which are used
for counseling, job seeking skills and employment assistance in
local offices. These positions are located in Kenai, Fairbanks,
Nome and Ketchikan. In addition, there are two positions in DCRA:
one is a grants administrator and one is an internal auditor.
Ms. Nance noted that she had provided the committee with an
expanded list of contractors with the type of training that was
provided from 1990 through 1994. The 1995 list is still not
complete because they are waiting on the Fairbanks service delivery
area, but she said she could provide the information on the other
service delivery areas.
SENATOR KELLY questioned if there wasn't a time frame for awarding
these grants.
Turning to the fiscal note, Ms. Nance said the $252,000 figure is
projected for inter-agency transfer to the Department of Labor for
Labor Market Information (LMI) so that they can track the program's
success and connect it to the UI Trust Fund to see if there is a
lesser impact on the trust fund. It also provides for the analysis
of the data.
SENATOR KELLY commented that it seems to him they are propping up
the LMI with STEP money that they are not getting out of the
general funds. ARBE WILLIAMS agreed, and added that a couple of
years ago $50,000 was cut from their general funds and the
Legislature specifically said that $50,000 would come from the STEP
fund for analysis and production of the Alaska Resident Hire
Report. The $252,000 provides a base for the ability for the
department to evaluate not only the STEP program, but also track
the success of clients in the JOBS program and the AVTEC program.
SENATOR KELLY said it is pretty clear from the clarification of the
fiscal note that we are entering some real soft uses for this STEP
money; it is getting far beyond training people who are out of
jobs.
Number 300
SENATOR TORGERSON asked if their formula tracks to the LMI so that
the money they allocate to their job training is to the at-risk
occupations. ARBE WILLIAMS responded that this is one of the very
few programs in the state where they can provide that kind of
program evaluation.
Number 325
SENATOR TORGERSON said he wouldn't roll the STEP program into some
other employment program, but, by his count, there are currently 15
employment programs and he thinks that's too many. He said it is
time to start consolidating some of them and doing away with a few
positions, and he requested the committee be provided with
information on the job programs currently running.
There being no further testimony on SB 229, SENATOR TORGERSON
stated it would be held in committee for further information, and
then adjourned the meeting at 2:37 p.m.
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