Legislature(2001 - 2002)
05/02/2002 09:11 AM Senate FIN
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
MINUTES
SENATE FINANCE COMMITTEE
May 02, 2002
9:11 AM
TAPES
SFC-02 # 85, Side A
SFC 02 # 85, Side B
CALL TO ORDER
Co-Chair Pete Kelly convened the meeting at approximately 9:11 AM.
PRESENT
Senator Dave Donley, Co-Chair
Senator Pete Kelly, Co-Chair
Senator Jerry Ward, Vice Chair
Senator Lyda Green
Senator Gary Wilken
Senator Donald Olson
Senator Lyman Hoffman
Senator Loren Leman
Also Attending: REBECCA NANCE GAMEZ, Deputy Commissioner,
Department of Labor and Workforce Development; RONALD E. HULL,
Director, Division of Employment Security, Department of Labor and
Workforce Development; PAT DAVIDSON, Legislative Auditor, Division
of Legislative Audit; MICHAEL SHIFFER, Program Coordinator, Alaska
Workforce Investment Office, Department of Labor and Workforce
Development
Attending via Teleconference: From Anchorage: LINDA HULBERT, Alaska
Human Resource Investment Council; EDEN LARSON, Associated Builders
and Contractors of Alaska; MARY E. SHIELDS, Anchorage/Mat-Su
Workforce Investment Board; MANO FREY, Alaska AFL-CIO; MIKE
ANDREWS, Director, Alaska Work Partnerships Incorporated
SUMMARY INFORMATION
SB 252-EMPLOYMENT AND TRAINING PROGRAM/BOARD
The Committee heard testimony from the Department of Labor and
Workforce Development, the Division of Legislative Audit, and took
public testimony. Three amendments were considered and two were
adopted. The bill was held in Committee.
HB 451-MUNICIPAL BOND REIMBURSEMENT
Scheduled but not heard.
CS FOR SENATE BILL NO. 252(L&C)
"An Act renaming the Alaska Human Resource Investment Council
as the Alaska Workforce Investment Board and relating to its
membership; relating to repayment on promissory notes for
work-related items paid for by grant programs; extending the
termination date of the state training and employment program;
relating to employment and training activities; and providing
for an effective date."
This was the first hearing for this bill in the Senate Finance
Committee.
REBECCA NANCE GAMEZ, Deputy Commissioner, Department of Labor and
Workforce Development informed the Committee that since 1989, the
State Training and Employment Program (STEP) has trained 13,000
Alaskans, helped develop new jobs through workforce development,
and assisted in reducing unemployment insurance claims.
Ms. Gamez stated that communities all over Alaska have benefited
from the STEP program. She informed the Committee that STEP awards
training grants on a competitive basis to various entities as well
as awarding training grants to individuals. She contended that STEP
is a highly successful program with 85.9 percent of the individuals
who completed the program in the year 2000 obtaining work. She
added that training program participants might also qualify for
increased earnings due to their acquisition of new skills.
Ms. Gamez noted that the Department of Labor and Workforce
Development views this legislation as containing both improvements
to, and problems for, the STEP program. She stated the Department
agrees with the language addressing controlling administrative
costs of STEP as it would provide performance incentives; would
reduce complex program calculations therefore increasing
efficiency; would provide for accountability of additional
reporting costs; and would establish a baseline for evaluations.
Ms. Gamez voiced however, that the Department would prefer an
administrative cost cap of 20 percent of the prior year
expenditures instead of the proposed 15 percent. She elaborated
that a 20 percent cap would provide adequate administrative funding
for sub-grantees, would allow the Department to provide incentives
for sub-grantees, and would be aligned with cost definitions in the
recently enacted Workforce Investment Act therefore providing for
further efficiencies.
Ms. Gamez continued that the Department supports a four-year
reauthorization of STEP instead of the proposed two-year sunset
authorization. She noted that the Division of Legislative Audit
report [copy on file], dated March 6, 2002, also recommends a four-
year reauthorization. She conveyed that the four-year timeframe
would provide efficiency by enabling staff to develop the program
rather than being required to defend the program. She warned that a
two-year reauthorization would reduce program alignment with other
workforce development programs in the State.
Ms. Gamez stated the Department would prefer improved participation
in the program. She noted that training programs that are longer
than a year produce a higher return on earnings than shorter-term
programs.
Ms. Gamez asked the Committee to consider removing the
reimbursement language for support services from the bill because
it would not be cost effective for the Department to administer the
loan program and would also erode the relationship between the
program's participants and their caseworkers. She suggested instead
that program participants seek funding support elsewhere. She
stated the Department currently expends between $35,000 and $40,000
annually in support services for tools, safety equipment and the
like, and estimates are that developing a tracking and collection
system would be more expensive.
Senator Ward referenced the letter dated May 2, 2002, from Michael
Samson, President of Samson Electric and member of the Associated
Builders and Contractors Legislative Affairs Committee [copy on
file] that accuses the STEP program of favoring the funding of
union training programs over non-union training programs even
though both entities pay an unemployment tax to fund the program.
AT EASE 9:18 AM / 9:23 AM
Senator Ward continued that both union and nonunion money is
contributed to fund the STEP program and that either entity could
apply for the STEP funding; however, he understood that unions
receive more of the funding because they have more aggressively
pursued it. He contended that Mr. Samson's letter is contrary to
this assumption as it implies that non-union people are being
denied access to the fund.
RONALD E. HULL, Director, Division of Employment Security,
Department of Labor and Workforce Development informed the
Committee that STEP is funded from a small percentage of the total
unemployment tax collected from people employed in the State. He
stressed that STEP grant funding is not determined by union or non-
union status.
Senator Ward restated that both union and non-union employees
contribute to the STEP plan through their employer.
Mr. Hull explained that an employer collects the tax from the
employee and remits the tax to the State.
Mr. Hull informed the Committee that funding might be denied to
non-union programs in the event of a conflict with the non-compete
clause as defined in State statute. He furthered that unions might
also be better organized in writing and applying for STEP grant
funding; however, he stressed that STEP grants are allotted to both
union and non-union entities.
Senator Ward asked if the information in Mr. Samson's letter is
incorrect.
Mr. Hull explained that grant applications are received in response
to the Department's request for proposals (RFP) announcing that
grant money is available. He shared that applicant grant requests
might range between $300,000 and $5 million; however, there might
be only $3 million available in the program. He stated the
Department undertakes a process to determine "which projects are
the best." He believed that the grant referred to in Mr. Samson's
letter was denied due to the non-compete clause in State statute.
Senator Ward asked if some projects are denied because funding has
been allocated to other grants.
Mr. Hull affirmed this occurs as the STEP program has a limited
amount of money available for grants. He detailed some of the
monetary amounts requested by various grant applicants.
Senator Ward asked if there is a flaw in the way the STEP grants
are distributed.
Mr. Hull stressed there is "no problem" with the program award
process and that the "the STEP program has never been used to
impede or promote organized labor." He continued that in some rural
areas of the State where union training programs are offered, non-
union individuals often attend without any obligation to join the
union.
Senator Wilken remarked that the Exhibit 10 Chart on page 27 of the
audit report illustrates "the problem." He stated Exhibit 10
portrays that STEP expenditures for private non-union training
decreased $200,000 while the expenditures for union training
"increased dramatically" between the years 1997 and 2001. He stated
this information supports Mr. Samson's contention that the increase
in expenditures for union backed programs referred to as "jointly
administered apprenticeship programs is squeezing out the private
training group." Senator Wilken stressed this situation needs to be
addressed before further action is taken on this bill.
Ms. Gamez referred the Committee to a Department of Labor and
Workforce Development letter included in the audit report, dated
April 24, 2002 [copy on file] addressed to Senator Ben Stevens,
Chair of the Labor and Commerce Committee, which explains how STEP
grant awards are determined. She read a portion of the letter as
follows.
The distribution of STEP awards across vendor categories is
consistent with the type of workforce readiness training
identified by the Alaska Human Resource Investment Council
(AHRIC). STEP provides industry-specific and job-link
classroom training, often less than one year in duration and
offered by a wide variety of training vendors. The more
narrowly defined vendor categories simply have fewer
represented, and as such, have fewer awards relative to the
funding. The difference between the categories does not change
dramatically until FY01 when the Municipality of Anchorage
renewed previous awards to Union vendors. The Balance of State
(all of Alaska except for the Municipality of Anchorage and
the Mat-Su Borough) released an RFP that was aggressively
responded to by Union training providers. Over FY97 to FY01,
113 grants were awarded. Of those, 52 were awarded to union or
labor related organizations. Successful proposals addressed
market conditions, provided training through either a job-
linked classroom or industry-specific training, and submitted
a budget that met the limited available administrative
resources.
Ms. Gamez informed the Committee that the Department's letter also
includes a chart labeled Exhibit A that presents a summary of the
STEP training grants awarded between 1997 through 2000. She stated
that non-union grants totaled $3,323,025 and union grants totaled
$1,207,675 for total awards of $4,530,700.
Senator Wilken asked why the Department's Exhibit A summary differs
from the union and non-union award summary reflected in Exhibit 10
of the audit.
PAT DAVIDSON, Legislative Auditor, Division of Legislative Audit,
informed the Committee that the Department of Labor and Workforce
Development figures did not incorporate the Municipality of
Anchorage vendor grantees.
Ms. Davidson continued that further discrepancy is the result of a
categorization difference, and exampled that the Division of Audit
has identified The Center for Employment Education vender as a
union because it is affiliated with the Teamsters Union although,
the Department does not recognize it as such.
Senator Wilken opined that the Audit's Exhibit 10 is more inclusive
than the Department's Exhibit A.
Ms. Davidson concurred, and noted that Appendix C on page 57 of the
audit report identifies the various training vendors and whether
the Division categorized them as private, public, or union.
AT EASE 9:37 AM/ 9:40 AM
MICHAEL SHIFFER, Program Coordinator, Alaska Workforce Investment
Office, Department of Labor and Workforce Development stated his
office administers the State Training and Employment program and
confirmed that the Department recognizes the Center for Employment
Education as a non-profit entity even though it was established by
the Teamsters Union. He explained that the Center operates as a
non-profit independent entity; whereas, the training programs
identified by the Department as union are directly operated by the
labor organizations.
Co-Chair Kelly voiced support for the union/non-union
determinations as specified in the audit.
Mr. Shiffer voiced disagreement with the auditor's classification
of the Center as operated by a union.
Co-Chair Kelly opined that most people would recognize the Center
as a Teamster organization.
Ms. Gamez expressed that the auditors report took months to
compile; however, the Department had a relatively short time to
review it.
Co-Chair Kelly announced his support for using the findings
presented in the audit, but acknowledged the Department's efforts
and competency in addressing issues the audit raised.
Senator Wilken voiced his concern that non-union workers are being
"squeezed out" of training program opportunities. He referenced the
Associated Builders and Contractors' (ABC) position paper titled
"Equal Access to Training in Alaska" [copy on file] that is
included with Mr. Samson's letter. The paper, he stated, contends
that the ABC has applied for modest funding for programs for the
past three years, but "lost points" during the review process of
the requests because one of the criteria for the point system is
that the program should have the support of organized labor. He
stressed that because the ABC would not receive support from
organized labor for its programs, the criteria is biased. Senator
Wilken informed the Committee that Mr. Samson's letter suggests
that to address this concern, "the non-compete clause" in AS
23.15.652(a)(2) should be eliminated to avoid placing, "a non-union
program in second position just because they do not have support of
organized labor."
Mr. Hull responded that this discussion "is getting bogged down in
the details." He stated that whether the audit numbers or the
Department's numbers are used, the fact is that less than half of
the funding was allotted to organized labor. He stated that funding
for training programs is also available from "a variety of
different avenues" including such entities as the Denali
Commission, and he asserted that the problem is not as significant
"as people are led to believe." He noted that the Department's
staff provides grant-writing assistance to non-union entities.
Senator Wilken reiterated that it appears the bill "automatically
puts a request for a non-union training program in a second
position" because the language in Section 16, subsection (2) states
a training entity is eligible for the grant request if it "does not
replace or compete in any way with a jointly administered
apprenticeship program."
Mr. Hull responded, "that is correct, it does."
Senator Wilken opined, "at the very start, a non-union effort takes
second position to a union effort." He asked whether a non-union
program request would receive points in the review process if a
union organization voiced support of the program.
Mr. Hull responded, "it's in statute, so it wouldn't be
considered."
Senator Wilken asked how the deletion of this language from the
bill, as suggested by the ABC in Mr. Samson's letter, would affect
the program.
Mr. Hull replied that as long as the grants for the training
programs are awarded competitively, the deletion of the language in
Section 16(2) would not have any effect. He stated that union
programs "are generally nationally certified training programs"
which makes the review of the program easier on the Department.
Co-Chair Kelly asked whether the review process awards points to a
request containing a nationally certified program.
Mr. Hull responded that the State does not require programs to be
nationally certified; however, this issue is a consideration under
the federal Workforce Investment Act (WIA).
Co-Chair Kelly inquired again whether national accreditation is a
factor in the scoring process for a training program request.
Ms. Gamez informed the Committee that the WIA replaced the Job
Training Partnership Act, and noted that this bill's Section 42
incorporates the provisions of the Act into the bill under U.S.C.
2801 - 2945.
Mr. Shiffer informed the Committee that WIA compels State agencies
providing job-training services through the WIA funding source to
identify qualified and approved training providers. He stated that
one of the elements of this is the encouragement of nationally
recognized skills standards.
Co-Chair Kelly concluded that, as a result of WIA stipulations, the
Department could award points in its review of a grant request for
programs that are nationally accredited.
Co-Chair Kelly stated being nationally accredited would give union
grant requests a "leg up;" however, he noted WIA provisions have no
impact on the how the Department administers the review process
concerning Section 16(2) that Senator Wilken has identified
regarding the non-compete language.
Mr. Shiffer stated this is correct.
Senator Wilken contented that the deciding factor in awarding a
training grant should be the quality of the program, the facility,
the program's history, and the methodology. He stressed that
whether the program is union or non-union should not be a
consideration.
Senator Wilken supported removal of the language in Section 16(2)
from the bill if it would result in "taking the union/non-union
issue out of the equation."
Co-Chair Kelly concurred.
Ms. Davidson suggested the Committee remove the language in Section
16(2) pertaining to jointly administered programs and retain the
language referring to federal government training programs or other
existing training programs, as STEP should ideally be a funding
source of "a training of last resort."
AT EASE 9:52 AM/ 10:01 AM
Amendment #3: This amendment deletes "jointly administered
apprenticeship program" in Section 16, subsection (2). The amended
language reads as follows.
(2) its activities do not replace or compete in any way with a
federally approved or any other existing training programs.
Senator Wilken moved for adoption of Amendment #3.
Co-Chair Donley objected.
Senator Wilken offered a motion to amend Amendment #3. He requested
the words "apprenticeship program" be retained in Section 16,
subsection (2). The language would therefore read as follows.
(2) its activities do not replace or compete in any way with a
federally approved apprenticeship program or any other
existing training programs.
Senator Wilken explained that deletion of the words "jointly
administered" would remove the preference for union programs in the
bill, and "would not affect how the STEP monies are distributed to
training programs in Alaska."
Co-Chair Donley objected to the amendment to the amendment. He
voiced approval of "the idea of management and labor working
together in these kind of training programs."
A roll call was taken on the motion to amend the amendment.
IN FAVOR: Senator Green, Senator Leman, Senator Ward, Senator
Wilken, Co-Chair Kelly
OPPOSED: Senator Hoffman, Senator Olson, Co-Chair Donley
ABSENT: Senator Austerman
The motion to amend the amendment PASSED (5-3-1)
The amendment was AMENDED.
A roll call was taken on the motion to adopt the amended amendment.
IN FAVOR: Senator Leman, Senator Ward, Senator Wilken, Senator
Green, Co-Chair Kelly
OPPOSED: Senator Hoffman, Senator Olson, Co-Chair Donley
ABSENT: Senator Austerman
The motion PASSED (5-3-1)
Amendment #3 was ADOPTED as amended.
Amendment #1: This amendment changes the limit on administrative
expenses from 15 percent of the program expenses of the prior year
to 20 percent of the program expenses of the prior year.
Senator Hoffman moved for adoption of Amendment #1 and requested
the Department to comment on the amendment.
Co-Chair Kelly objected for discussion.
Mr. Hull informed the Committee that the Department supports the
amendment, as it would afford the Department an opportunity to
stabilize costs, account for additional expenses incurred by
reporting requirements in the bill, and fund some programs which
could not provide their services at the 15 percent cap on
administrative level.
Ms. Davidson stated the audit revealed that the Department was
interpreting and administering the 15 percent cap on administrative
expenses as 15 percent of the overall grant instead of 15 percent
of the program's expenses. She informed the Committee the audit
further revealed that some awarded grants were not being fully
expended; therefore, the grantees were collecting more than the 15
percent of the expenditures.
Ms. Davidson expressed that the focus of the audit was "to tie"
this percentage to actual expenses not the total amount of the
grant."
Senator Wilken asked Ms. Davidson to further explain the
information on page 23 of the audit report, under the section
titled "Cost of Administering STEP," that indicates administrative
costs of the program from FY97 through FY01 range from 21 percent
to 24 percent. He stated these numbers indicate that the program
has been out of compliance with the current 15 percent limit of the
law pertaining to program administrative costs.
Ms. Davidson responded that there has been a difference in the
"nature of applying the percentage, as there was a difference of
opinion between the Department and the Division of Legislative
Audit in the understanding of whether the limit was on the amount
appropriated or actually spent." She explained that the audit
reflects the Division of Legislative Audit's interpretation of the
statute.
Ms. Davidson clarified that this bill clearly defines the intent of
the percentage as 15 percent of prior year expenditures. She
continued that changing the percentage to 20 of expenditures would
allow the Department to operate at approximately the same level at
which they have been operating.
Ms. Gamez contended there is "a conflict in State statute"
regarding the interpretation of administrative costs. She explained
that the chart on page 156 of the audit report reflects the
discrepancies that result from this conflict as it depicts both the
percentages of administrative costs based on the Department's
interpretation of the intent of the statute as well as the Division
of Legislative Audit's interpretation. She explained that the audit
viewed data gathering as an administrative cost of the STEP program
whereas the Department views data gathering as a program expense
not an administrative expense because it is a federal requirement
for the unemployment insurance trust fund from which the STEP
program is funded.
Senator Leman asked the level of expenses incurred by data
gathering.
Ms. Gamez stated the chart on page 156 of the audit report
indicates the Department's administrative expenses as being in the
13 to 14 percent range for FY99 through FY01. She furthered that
the inclusion of the costs for data gathering would increase the
numbers to approximately 20 percent. She reiterated the
Department's position that data gathering is a program expense
because the STEP program would not be possible without the data
gathering.
Senator Green inquired if the required data is used exclusively for
this program.
Ms. Gamez affirmed that the compilation of data, specifically
unemployment records, is necessary as it is used to measure program
performance and to determine the percentage of the unemployment
program funding to be diverted into the STEP program.
Senator Olson asked if increasing the amount of the STEP program
funding allowed for administrative functions as proposed in
Amendment #1 would subsequently reduce the amount of funding
available for training programs.
Co-Chair Donley responded that current administrative costs already
exceed the percentage specified in Amendment #1.
Ms. Gamez stated that the Department supports the language in
Amendment #1 which would increase the administrative program
allowances from the current 15 percent to "not to exceed 20 percent
of the prior program year expenditures." She continued that this
new level would be still be lower than needed to support the
program if the Department's interpretation of the statute were
continued; however, the Department supports Amendment #1 as it
would provide an opportunity to reach a consensus on the
interpretation of the language.
SFC 02 # 85, Side B 10:15 AM
Ms. Gamez informed the Committee that some of the costs of
administering the program would be "passed on" to providers of the
training services to offset "any significant decrease in funds."
Ms. Davidson clarified that the auditors view the STEP program
reporting requirement to be an administrative expense despite being
considered "critical" to the program, as those expenses are not
funding or actual training and "are not considered non-essential
costs." She furthered that the Division supports the language that
bases the percent of administrative costs on the prior year's total
STEP program funding, rather than a percentage based on the
program's actual expenses, as it is difficult to determine actual
costs of a program until the end of the year.
Ms. Gamez referred the Committee to the Department's written
response on the issue of administrative costs on page 156 of the
audit report. She stressed that the Department supports its
position on the interpretation of the law as being in compliance
with the law.
Senator Leman asked for clarification as to the Department's
reference in the aforementioned response regarding "FY 99 statute
and FY 99 law."
Ms. Gamez responded that SB 344, enacted in 1999, included a
provision allowing some flexibility in the definition of
administrative costs.
Senator Wilken voiced that the amendment would increase the allowed
administrative costs to 20 percent; which would provide sufficient
funding to cover the expense of collecting data required by federal
law.
Mr. Hull responded that the Department has determined that
increasing the allowable administrative costs of the STEP program
to 20 percent as outlined in Amendment #1 would actually decrease
the amount the Department would receive to cover administrative
costs, as that percentage would be calculated based on a different
set of criteria than the Department has been using. He informed the
Committee that the Department has never counted the cost of
administering the collection of the tax supporting the STEP program
as an administrative cost, but rather has considered it a program
expense.
Co-Chair Kelly WITHDREW his objection to Amendment #1.
There being no further objection, Amendment # 1 was ADOPTED.
Amendment #2: This amendment would extend the sunset date of the
STEP program from two years to four years.
Senator Hoffman moved for the adoption of Amendment #2.
Ms. Davidson explained that the proposed four-year sunset date
would allow the STEP program the timeframe necessary for program
reevaluation. She additionally noted that this timeframe would
allow the STEP program to monitor proposed changes in federal
training programs and the Alaska Vocational Technical Center (AVTC)
and to evaluate its role in those programs.
Senator Leman commented that the Senate Labor & Commerce Committee
supports a two-year sunset date primarily to ensure program
accountability.
Senator Leman voiced objection to Amendment #2.
Senator Hoffman WITHDREW his motion to adopt Amendment #2 without
objection.
Senator Wilken asked if there is an established "scoring" procedure
for STEP grant proposals, and if there is, are the findings made
available.
Mr. Hull replied that there is an established procedure.
Senator Wilken asked the amount of funding the Denali Commission
has made available for training through the STEP program.
Mr. Shiffer commented that the State has received $2.8 million from
the Denali Commission training fund. He noted that the funding is
commonly used to support Denali Commission projects as well as
activities or projects related to rural development, primarily
infrastructure development.
Senator Wilken asked if these training programs are evaluated for
their effectiveness.
Mr. Shiffer replied that quarterly and annual reports are supplied
to the Denali Commission that include the number of people
attending the training programs and any job placements resulting
from the training.
Senator Wilken requested the Department to provide the Committee
with copies of those reports.
Senator Wilken asked whether the seven recommendations outlined on
page 29 of the Audit Report are addressed in this bill.
Ms. Davidson responded that all of the recommendations are being
addressed either at the Departmental level or the Legislative
level, with the exception of the recommendation relating to the
unexpended STEP fund balance. She stated this concern arises from
the fact that workers have had monies withheld from their wages for
contribution to the STEP fund; however, if those monies have not
been expended then no training benefits have been provided. She
informed the Committee that the Legislative Audit Division
recommendation is that the unexpended STEP fund balance be returned
to the Unemployment Insurance (UI) fund.
LINDA HULBERT, Volunteer, Alaska Human Resource Investment Council
(AHRIC) testified via teleconference from Anchorage to urge the
Committee to support changing the name of the AHRIC to the Alaska
Workforce Board to more clearly define the role of the board. She
supported the increase to 20 percent for administrative expenses,
and strongly urged the Committee to grant permanent status for the
STEP program with a minimum of a four-year extension as two-year
extensions undermine the program's efficiencies as well as
opportunities and service to individuals. She additionally voiced a
lack of support for having employees reimburse the State for the
costs of their participation in training programs, as this would be
complex and not be cost effective. She urged support for all STEP
funding to be allocated initially to the Employment Security
Division instead of being dispersed directly to various Workforce
Investment Boards, as this would allow for better accountability
and statewide disbursement.
EDEN LARSON, Executive Director, Associated Builders and
Contractors of Alaska, Inc. (ABC) testified via teleconference from
Anchorage and thanked the Committee for adopting Amendment #3 as it
addresses ABC's concerns. She stated that ABC would continue their
effort to expand and improve training in the construction industry
to the non-union sector.
MARY SHIELDS, Chair, Anchorage/Mat-Su Workforce Investment Board
(WIB), testified via teleconference from Anchorage and urged the
Committee to remove the sunset clause included in this bill, as the
STEP program, which is entirely user supported, provides a needed
service to people in the construction industry by offering training
that enables individuals to obtain sustainable wages. She stated
the WIB would accept a minimum four-year extension, as it would
make the program more efficient by allowing for more long-term
planning and implementation of programs, instead of routinely
"having to defend itself". She questioned the reasoning behind the
language in the bill regarding the loan program and asked that
further consideration be given to this. She thanked the Committee
for changing the administrative cap to 20 percent.
MANO FREY, Business Manager, Anchorage Laborers Union Local 341;
President, Alaska AFL-CIO; and Denali Commissioner testified via
teleconference from Anchorage to voice "strong support for the
reauthorization of STEP as it has been invaluable." He asserted
that the STEP program funding has "greatly accelerated" training
opportunities in both union and non-union members and has provided
for the expansion of effective training opportunities in rural
areas of the State.
Mr. Frey opined that the Senate Labor and Commerce Committee's
recommendation to extend the STEP program for two years was based
on "misinformation." He summarized that STEP "is the number one
training program in Alaska" and has assisted in the development of
an "amazing" number of new jobs.
Mr. Frey explained his perspective of the term "jointly
administered" to the Committee and questioned whether the
elimination of that language has any affect. He stated that STEP
grants enhance budgets, provide for additional training
opportunities to Alaskans, and assist workers in finding jobs. He
reiterated that the workers "in the field", not management or
unions, provide the bulk of the funding of the STEP program, and
stated that the construction industry in Alaska "is in growth
mode," unlike the fishing and timber industries that are in
decline.
MIKE ANDREWS, Director, Alaska Work Partnerships Incorporated,
testified via teleconference from Anchorage to voice his support
for changing the Alaska Workforce Investment Council's name to the
Alaska Workforce Board. He reminded the Committee that the Senate
Labor and Commerce Committee recommends a report be developed to
analyze how jointly administered training programs work. He voiced
support for the four-year reauthorization for STEP, and affirmed
that STEP is a "great investment" for the State of Alaska.
Co-Chair Kelly ordered the bill HELD in Committee.
ADJOURNMENT
Co-Chair Pete Kelly adjourned the meeting at 10:57 AM.
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