Legislature(2023 - 2024)SENATE FINANCE 532
02/13/2024 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB120 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 120 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
February 13, 2024
9:03 a.m.
9:03:40 AM
CALL TO ORDER
Co-Chair Olson called the Senate Finance Committee meeting
to order at 9:03 a.m.
MEMBERS PRESENT
Senator Donny Olson, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Click Bishop
Senator Jesse Kiehl
Senator Kelly Merrick
Senator David Wilson
MEMBERS ABSENT
Senator Lyman Hoffman, Co-Chair
ALSO PRESENT
Senator Cathy Giessel; Senator Jesse Bjorkman, Sponsor;
Raymond Matiashowski, Staff to Senator Bjorkman; Deantha
Skibinski, Executive Director, Alaska Miners Association;
Chad Hutchison, Director of State Relations, University of
Alaska; Keith Criddle, Ted Stevens Professor for Marine
Policy, University of Alaska; Tim Daugherty, Kenai
Peninsula Borough School Board, Homer; Annalia Karen,
College and Career Readiness Coordinator, Kenai Peninsula
Borough School District.
PRESENT VIA TELECONFERENCE
Michael Williams, Deputy Tax Director, Department of
Revenue; Stephanie Madsen, Executive Director, At-Sea
Processors Association; Kati Capozzi, President and CEO,
Alaska Chamber of Commerce; Joan Pardes, Director, Alaska
Academic Decathlon and Pentathlon, Southeast Regional
Resource Center; Doug Walrath, Director, Northwestern
Alaska Career and Technical Center, Nome; Tod Burnett,
President, University of Alaska Foundation.
SUMMARY
SB 120 EXTEND EDUCATION TAX CREDITS
SB 120 was heard and HELD in Committee for
further consideration.
SENATE BILL NO. 120
"An Act extending the education tax credits; providing
for an effective date by amending the effective date
of secs. 1, 2, and 21, ch. 61, SLA 2014; and providing
for an effective date."
9:04:06 AM
Co-Chair Olson commented that it was the first hearing of
SB 120, by the Senate Education Committee. The bill would
be carried by Senator Jesse Bjorkman on behalf of the
committee.
9:04:45 AM
SENATOR JESSE BJORKMAN, SPONSOR, introduced the bill. He
proposed that the bill would reinvigorate the successful
Alaska Education Tax Credit (AETC) program through January
1, 2031. The tax credit program encouraged businesses to
strengthen connections to Alaskas workforce development
and educational institutions. The program encouraged
businesses to target funding and resources toward
opportunity that helped grow essential skills and abilities
and directly move the states economy forward.
Senator Bjorkman discussed how the states educational
institutions had benefitted from AETC through charitable
donations in dollars and equipment. He used the examples of
lab equipment and mechanical equipment. The tax credits
could be used to offset a variety of tax obligations
including corporate income tax, fisheries business tax,
fisheries landing tax, insurance premium and title tax,
mining license tax, and oil and gas production taxes.
Currently for every dollar that the state offset under the
tax credits, it leveraged two dollars. He cited that in
2022, $2.32 million were claimed in tax credits, and $4.65
million was contributed to the states educational
opportunities in the state, $2.5 million of which went to
the University system.
Senator Bjorkman highlighted that the bill would not only
extend the tax credit program but would return the program
to the credit provision that existed before significant
cuts were made in 2018. The bill would raise the total
credits allowed to be earned from $1 million back to $5
million. The amount of credits allowed would be set to 50
percent of contributions, of not more than $100,000; 100
percent of the next $200,000; and 50 percent of
contributions that exceeded $300,000. He noted that the
bill further extended AETC to non-profits that focused on
student achievement across the state.
9:07:33 AM
RAYMOND MATIASHOWSKI, STAFF TO SENATOR BJORKMAN, spoke to a
Sectional Analysis. He summarized that Sections 1, 4, 7,
10, 13, 16, and 19 amended the Alaska statutes that
governed the insurance, income, oil or gas producer,
property, mining business, fisheries business, and
fisheries resource landing tax education credits by adding
a subsection stipulating that contributions subject to the
education tax credit could be used for the operation of a
nonprofit organization. The organization must be dedicated
to promoting statewide academic achievement, including for
student scholarships, in an interdisciplinary curriculum in
the subject areas of economics, science, social science,
literature, music, art, math, writing, speech, and
interview skills.
Mr. Matiashowski continued that Section 1 further amended
AS 21.96.070(a) to clarify that insurance tax education
credits were allowed for contributions accepted by the
entities identified in Subsections 1 through 7. Sections 2,
5, 8, 11, 14, 17, and 20 would amend the Alaska statutes
that govern the insurance, income, oil or gas producer,
property, mining business, fisheries business, and
fisheries resource landing tax education credit to set the
amount of AETC at 50 percent of contributions up to
$100,000, 100 percent of contributions from $100,001
through $300,000, and 50 percent of the amount of
contributions that exceed $300,000. Currently the insurance
tax education credit is limited to 50 percent of
contributions.
Mr. Matiashowski detailed that Sections 3, 6, 9, 11, 15,
18, and 21 amended the statutes that govern the insurance
income, oil or gas producer, property, mining business,
fisheries business, and fisheries resource landing tax
education credits to stipulate to stipulate that
contributions claimed as a credit may not be used to claim
credit elsewhere under this title and may not be combined
with other credits to exceed a total of $5,000,000. The
current cap was $1,000,000. If the taxpayer was a member of
an affiliated group, the 2 total amount of credits for the
group may not exceed $5,000,000. Section 22 provided for
January 1, 2031, for expiration of AETC and Section 23 set
the effective date of January 1, 2024.
Co-Chair Olson had heard good things about vocational
programs and asked about other uses of the AETC funds.
Senator Bjorkman thought that invited testimony would speak
to Co-Chair Olson's question. He mentioned fisheries
businesses, mining, and oil and gas, as industries that had
been beneficiaries of the training done as a result of the
program.
Co-Chair Olson asked for an example of a healthcare
benefit.
Senator Bjorkman thought invited testifiers would address
the question.
9:11:44 AM
MICHAEL WILLIAMS, DEPUTY TAX DIRECTOR, DEPARTMENT OF
REVENUE (via teleconference), relayed that he would present
the updated fiscal note for the bill. He read from the
analysis on page 2 of FN 1 from the Department of Revenue:
Background
The education tax credit is a credit for qualifying
contributions to Alaska universities and accredited
nonprofit Alaska two- or four-year colleges for
facilities, direct instruction, research and
educational support purposes; donations to a school
district or a state-operated technical and training
school for vocational education courses, programs and
facilities; and donations for Alaska Native cultural
or heritage programs for public school staff and
students, and a facility in the state that qualifies
as a coastal ecosystem learning center under the
Coastal American Partnership.
The credit is available to be claimed against
insurance premiums tax, title insurance premiums tax,
corporate income tax, oil and gas production tax, oil
and gas property tax, mining license tax, fisheries
business tax, and fishery resource landing tax. The
credit for any one taxpayer cannot exceed $1 million
annually across all tax types. The credit is currently
scheduled to be repealed effective January 1, 2025.
This bill reverts back to provisions of prior
legislation (House Bill 274 in 2014) which expands the
amount of the credit as a percentage of the
contribution from 50% of all contributions to the
following:
(1) 50 percent of contributions of not more than
$100,000; (2) 100 percent of the next $200,000 of
contributions; and (3) 50 percent of the amount of
contributions that exceed $300,000 This bill also
would increase the credit limit from $1 million to $5
million annually per taxpayer. The new provisions
would take effect January 1, 2024. The bill extends
the sunset provisions to January 1, 2031.
Revenue Impact
The revenue impacts only include those eligible tax
programs administered by the Department of Revenue
(Department). The bill's fiscal impacts can be
divided into two categories: (1) increase to the tax
credit percentage of contribution and annual limit and
(2) extending the credit repeal date.
(1) The revenue impact of the increase in the tax
credit percentage of contribution and annual limit
change is estimated by applying historical information
when similar provisions and limits were allowed in
statute. This analysis looked at information from 2014
to 2019. See the table below.
(2) The revenue impact of the increase in the
extension of the repeal date is estimated by using the
average of the last three years of actual credits
claimed as a basis going forward. See the table below.
Mr. Williams looked on the table in the analysis on the
second page of the fiscal note. He cited that for FY 25,
there would be a roughly $5 million impact and going
forward the revenue impact would be $6.6 million annually.
The retroactive component was estimated to have a $1.7
million revenue impact. He continued to read from the
analysis:
Implementation
Cost This legislation would require the Department to
make minor changes to its Tax Revenue Management
System ("TRMS"). Resources required to implement this
bill would include staff time to updated tax forms,
TRMS, and Revenue Online, and other miscellaneous
costs when applicable. These costs will be absorbed by
the Tax Division using existing resources.
Co-Chair Olson hypothesized that a corporation contributed
to a vocational technology school, and asked who decided
the value of the contribution.
Mr. Williams relayed that the statute currently adopted
provision of Internal Revenue Service (IRS) Code 170, which
dealt with charitable contributions. Contributions of
equipment would require an appraisal for valuation purposes
of the donation.
9:16:42 AM
DEANTHA SKIBINSKI, EXECUTIVE DIRECTOR, ALASKA MINERS
ASSOCIATION, introduced herself and explained that the
Alaska Miners Association was a membership association that
represented all aspects of the mining industry. She read
from a prepared statement:
Since it was established in 1987, the Education Tax
Credit program has successfully encouraged private
sector investment in education in our state and helped
many Alaskans learn the skills for jobs in mining and
other industries. Alaska's large mines have welcomed
the opportunity to partner with the State of Alaska
and provide funding directly to Alaska's education
programs that support workforce development and
research that enhances efficiency and safety in
Alaska's mining industry. Between 2011 and 2023,
mining companies in Alaska used the education tax
credit program to invest in nearly 20 different
programs across educational systems.
Ms. Skibinski cited programs that the mining industry had
contributed to including five schools and programs in the
University of Alaska Fairbanks (UAF), three programs within
the University of Alaska Anchorage (UAA), a mining
education program at the University of Alaska Southeast
(UAS), the Northwest Arctic School District, and others.
She noted that there was a letter of support from Alaska
Metal Mines and AMA (copy on file) which further detailed
institutions and programs supported by the mining industry.
She continued to read from her prepared remarks:
These programs support young Alaskans who will be the
next generation of Alaska miners. MAPTS, the Pathways
to Mining, and the high school vocational programs
provide educational opportunities and training that
lead directly to full time jobs in the industry with
high pay and excellent benefits. This investment in
education and training is particularly valuable today
as Alaska grapples with both migration and significant
challenges of attrition and aging within the current
workforce.
The mining industry strongly supports a sustainable
fiscal plan for Alaska that encourages private sector
investment and economic growth. This includes
innovative ideas like the Education Tax Credit program
to encourage private sector investment in the
education system, providing Alaskans the skills to
succeed and opportunities to stay in Alaska.
Alaska Metal Mines and Alaska Miners Association urge
you to pass SB120 from your Committee and support this
important legislation to become law.
Senator Bishop appreciated Ms. Skibinski not forgetting
small miners.
Co-Chair Olson asked how many mining corporations and small
miners were participating in the tax credit program.
Ms. Skibinski was not certain but assumed that primarily
large operating mines participated. She offered to provide
more detail at a later time.
Co-Chair Olson wondered if small mining operations were
involved.
Ms. Skibinski thought smaller businesses supported the
Alaska Resource Education Program and schools and programs
in their community.
9:19:59 AM
STEPHANIE MADSEN, EXECUTIVE DIRECTOR, AT-SEA PROCESSORS
ASSOCIATION (via teleconference), expressed support for the
education tax credit program, and explained that the At-Sea
Processors Association (ASPA) members had contributed gifts
since 2000. She noted that ASPA had provided two endowments
through AETC. The first endowment funded the Ted Stevens
Distinguished Professor of Marine Policy through the UAF
College of Fisheries and Ocean Sciences. The second
endowment set up a research center called the Pollack
Conservation Cooperative Research Center (PCCRC) at UAF.
Ms. Madsen shared that the Ted Stevens professorship was
the basis of what UAF was doing in its Marine Affairs
Program. She expressed enthusiasm for the program. She
estimated ASPAs total gifting amount to be approximately
$16.8 million for marine research. She mentioned funding 53
graduate post-doctoral students. She mentioned that ASPA
had gifted funds to Alaska Pacific University and had
participated in two programs that supported high school
students. She mentioned the fisheries technology program at
UAS, which allowed high school students opportunities to
learn about fisheries in the state and get college credit.
She mentioned support for the Northwest Western Alaska
Career and Technical Center in Nome, which brought students
from outlying communities. She thought the committee would
hear other testimony that would address value added. She
thought many involved students had gone on to work for the
Department of Fish and Game. She mentioned supporting
research.
9:23:44 AM
Co-Chair Olson asked if ASPA funded tuition for the
graduate students it supported.
Ms. Madsen relayed that ASPA funded graduate students in
two different ways. She described funding research projects
which likely involved graduate students. Additionally, ASPA
had funded graduate fellowships in the past which included
two years of funding for Masters degrees and three or four
years of doctoral degree funding, both of which provided
for tuition and stipends.
Co-Chair Olson agreed that outside funding was helpful for
graduate studies. He asked if there was assistance for
students that attended out-of-state institutions.
Ms. Madsen answered "no." She noted that ASPA supported
students attending Alaska universities.
9:25:29 AM
KATI CAPOZZI, PRESIDENT AND CEO, ALASKA CHAMBER OF COMMERCE
(via teleconference), spoke in favor of the bill. She
explained that the Alaska Chamber was founded in 1953 and
was Alaskas statewide business advocacy organization. The
chambers mission was to promote a healthy business
environment in Alaska. The chamber had more than 700
members and represented businesses of all sizes and
industries across the state. The chamber represented 58,000
Alaskan workers and $ 4.6 billion in wages. By vote of its
diverse membership, the chamber had a formal policy
position in support of AETC. It supported extending or
repealing the sunset date. She referenced previous
testimony. She emphasized the importance of an educated and
trained workforce as part of a healthy economy. She
proposed that extension of AETC would encourage continued
and long-term investment in the states future workforce,
which was desperately needed.
9:27:35 AM
AT EASE
9:30:57 AM
RECONVENED
CHAD HUTCHISON, DIRECTOR OF STATE RELATIONS, UNIVERSITY OF
ALASKA, discussed a presentation entitled "University of
Alaska - Education Tax Credits Overview - Senate Finance
Committee - February 13, 2024 (copy on file).
Mr. Hutchison showed slide 2, "Education Tax Credits
(ETC)":
• UA strongly supports the Education Tax Credit (ETC)
Program in Alaska
• Multi-year extension is encouraged
• Charitable contributions from industry partners are
used throughout the UA to meet direct workforce,
academic and research needs?and benefits all of Alaska
Mr. Hutchinson referenced the picture on the slide, which
showed a large-size mock check for $1 million that someone
had provided to UAF. He mentioned positive partnerships.
Mr. Hutchinson showed slide 3, "Overview," which showed a
table of historical contributions. He cited that in 2018,
there was a change in the education tax credits with a
phased approach. He pointed out that there had been a cause
and effect on contributions. He cited that the University
had received more contributions prior to 2018 and thought
the phased approach was more beneficial to contributions
toward the University.
Mr. Hutchison showed slide 4, "A Few Tax Paying Entities
that Historically Contribute to the University of Alaska":
1. Glacier Fish Company, LLC
2. American Seafoods Company
3. Hecla Greens Creek Mining Company
4. Fairbanks Gold Mining, Inc.
5. ConocoPhillips Alaska, Inc.
6. Alaska Airlines Inc.
7. Holland America Princess - Alaska
8. Ravn Alaska
9. Aurora Animal Clinic
10. Bristol Bay Native Corporation
11. Northrim Bank
12. Usibelli Coal Mine
Mr. Hutchison referenced Co-Chair Olson's earlier question
about healthcare. He mentioned the donation of a CAT scan
to the biomedical lab at UAF.
9:34:14 AM
Mr. Hutchison showed slide 5, "Questions?"
Co-Chair Olson asked about the donation of the equipment
and where it was located. He asked if students were able to
use the CAT scan.
Mr. Hutchison relayed that the equipment was used on
studies of hibernating animals, and highlighted that UAF
was working with NASA on understanding deep space travel
and putting humans into stasis for space travel. He
mentioned multiple studies taking place that were involving
animals.
Co-Chair Olson thought there had been reference to the
number of contributions decreasing in 2018. He asked about
the reasoning.
Mr. Hutchison noted that the contribution limit in 2018
went from $5 million to $1 million. He thought the phased
approach that was eliminated had changed things. He
acknowledged that the UA system still received
contributions, but thought the contributions were trending
downward.
Co-Chair Olson asked about the proposed extension until
2031.
Senator Bjorkman thought seven years was a good amount of
time to allow for evaluation of the programs
effectiveness.
9:37:38 AM
Co-Chair Stedman thought there seemed to be more to the
bill than a simple extension. He referenced page 6, line 7
of the bill, which discussed the operation of a non-profit.
Senator Bjorkman relayed that Senator Kiehl had crafted the
language.
Senator Kiehl explained that the provision allowed for
funding of an additional statewide program. It was crafted
around an existing program with a broad curriculum. He
highlighted that the provision would cover the Academic
Decathlon, which was a full curriculum as well as a
competition for high school students. He noted that the
bill sponsors had worked to make the language tightly
written and that there were corporate sponsors in the state
that were interested in supporting the Academic Decathlon.
He mentioned scholarships to ensure rural students could
travel into the hubs for the statewide championships.
Co-Chair Stedman was still not very clear on the new
provision.
Senator Kiehl relayed that there was an invited testifier
that could address Co-Chair Stedman's question in more
detail. He explained that the decathlon was an existing
statewide academic competition for high school students. He
considered that the new provision was very similar to
existing provisions in the tax credit code for STEM
competitions and robotics leagues.
9:40:15 AM
AT EASE
9:41:14 AM
RECONVENED
JOAN PARDES, DIRECTOR, ALASKA ACADEMIC DECATHLON AND
PENTATHLON, SOUTHEAST REGIONAL RESOURCE CENTER (via
teleconference), explained that the Alaksa Academic
Decathlon was part of a national program created in the
early 1970s in California. She explained that almost all
states competed, and in Alaska the program had been run by
GCI for decades through a non-profit the company created.
For many reasons, the program had been moved to the
Southeast Regional Resource Center, which was a non-profit
that provided school district services to almost every
district in the state.
She explained that SERRC did not have dedicated funding and
that each program must create its own income stream,
including the Academic decathlon. She discussed funding
through various sources and noted that the state
competition was held at UAA. She recounted hearing from
various funders that would be interested in supporting the
decathlon as part of the education tax credit program. She
thought a sponsor that funded through the program would
provide a more stable plan.
Ms. Pardes mentioned the decathlon teams and the
requirement to have members from different achievement
levels. She mentioned program success with students and
referenced a current youth mental health crisis. She
described that being included in the bill would be a
positive step toward sustainability of the program.
Co-Chair Olson asked if Ms. Pardes answered Co-Chair
Stedman's question.
Co-Chair Stedman considered that Ms. Pardes had clarified
the need for the provision in the bill.
9:44:45 AM
Senator Wilson was concerned that the language was
interpreted broadly and could be narrower. He wondered how
many of the 7,000 non-profits in the state could fit the
definition of promoting statewide academic achievement.
Co-Chair Olson asked if Senator Wilson was addressing his
question to Ms. Pardes.
Senator Wilson relayed that his question was for the
sponsor or for Senator Kiehl.
Senator Kiehl was happy to work with Senator Wilson on
tightening the language. He relayed that the way the
language was written, an organization would have to do all
ten of the listed subjects.
Senator Bjorkman agreed that he would support tightening
language if it was the will of the committee.
Co-Chair Stedman referenced page 6, line 4 of the bill, and
the Coastal America Partnership established by the federal
government. He thought the mention was in the original
bill.
Senator Bjorkman offered to get back to the committee with
more information.
Senator Bishop noted that the fiscal note referenced a
facility in the state that qualifies as a coastal ecosystem
learning center under the Coastal American Partnership. He
asked if the fiscal note referred to the same bill language
Senator Wielechowski mentioned.
Senator Bjorkman was not certain but thought it seemed that
the reference would fit the Sea Life Center in Seward. He
agreed to get back to the committee with more detail.
9:47:14 AM
DOUG WALRATH, DIRECTOR, NORTHWESTERN ALASKA CAREER AND
TECHNICAL CENTER, NOME (via teleconference), testified in
support of SB 120. He noted that the contributions to the
Northwestern Alaska Career and Technical Center (NACTEC)
from the tax credit fund partners had dropped off between
FY 20 and FY 24. He cited that funding had dropped by 50
percent. He testified that the education tax credit had
provided the NACTEC Program the opportunity to seek
industry support, which had led to support in junior high
career exploration program, postsecondary programs, and the
purchase of training equipment that engaged students in the
maritime and aviation sectors.
Mr. Walrath cited that junior high students that had
participated in NACTEC programs participated in high school
at a rate 21 percent greater than peers. Additionally, data
showed that high school NACTEC participants graduated at a
22 percent higher rate than the overall student population.
He thought when business and education worked together with
training providers it was a win-win for all partners. He
thought AETC was a program that was working for intended
outcomes.
Co-Chair Olson referenced local students and asked if
NACTEC was getting a contribution from the local school
districts.
Mr. Walrath relayed that NACTEC was supported by two school
districts and allowed it to operate with lower overhead
costs. He mentioned the Bering Strait School District, Nome
Public Schools, and the city of Nome.
9:51:00 AM
KEITH CRIDDLE, TED STEVENS PROFESSOR FOR MARINE POLICY,
UNIVERSITY OF ALASKA, introduced himself. He explained that
he was the Ted Stevens Professor for Marine Biology based
in Juneau at the UAF Center for Fisheries and Ocean
Sciences. He offered background that he had been with UAF
for almost 27 years, 18 of which were in Juneau as the
professor for marine policy. He commented that his salary
came from the spendable earnings from the endowment. He
noted that as the endowment was maturing, it came from
direct contributions from the Pollack Conservation
Cooperative. He discussed the Pollack Conservation
Cooperative, including the research center. He noted that
the bulk of the research funding supported graduate
students through stipends and tuition. He mentioned a
salmon tag project.
Mr. Criddle continued his testimony. He discussed the
marine policy professorship, under which he had
responsibility for research and educational activity,
including building a curriculum to support creation of a
graduate program in marine policy. The program had been
created in 2022 as a joint program between UAF and UAS with
curriculum available at both universities and statewide. He
mentioned the recent offering of research grants, including
ongoing projects and three new grants that added up to
$350,000. He discussed current projects including the study
of Yukon salmon, Orca by-catch in bottom trawling, and
microplastics.
Mr. Criddle cited an average of $408,000 in funding for
research projects each year, the bulk of which supported
graduate students.
9:56:16 AM
Mr. Criddle cited that 25 percent of the research funding
had been for salmon projects, with about 17 percent for
marine mammal research, and a focus on quality research to
support fisheries in the Bering Sea and Gulf of Alaska. He
discussed the marine policy program, which was in its
second year and had 16 current students and four enrolled
for the following fall. He cited that 78 percent of the
students were Alaska residents and 91 percent were full-
time professionals and part-time students. He continued
that seven were Department of Fish and Game (ADFG)
employees. He discussed support from the PCCRC. He asserted
that the degree program was meeting its objectives and
discussed broad stakeholder support for the program.
Mr. Criddle discussed the U.S. Coast Guards support and
funding for officers to complete graduate programs on a
competitive basis. It supported programs in maritime law,
engineering, and marine policy/marine affairs. He mentioned
that the Coast Guard was currently recommending marine
policy/marine affairs programs at the University of Rhode
Island, the University of Washington, and the University of
Alaska.
10:00:05 AM
Co-Chair Stedman asked Mr. Criddle to address how the bill
would affect his work and discuss future impacts.
Mr. Criddle explained that the Ted Stevens Professor of
Marine Policy Endowment was fully funded and fully endowed
and would continue to generate funds through endowment
earnings that were sufficient to support the professorship.
The PCCRC had a small endowment and had provided most of
its funds as annual contributions to the program for annual
spending. The decision has been made by the board. The
PCCRC endowment supplied about $70,000 to $80,000 in
earnings per year that went to the programs spending along
with annual contributions.
Mr. Criddle continued that the marine policy program had
the professorship, and was led by the UAF College of
Fisheries and Ocean Sciences and the UAS School of Arts and
Sciences. He continued that UAF and UAS both received one-
time funding from UA President Pat Pitney to hire faculty
members in the programs. He noted that UAF had identified a
candidate, and UAS was in the earlier stages of the
process. He thought there was a good chance that UAF would
have a second marine policy faculty member and UAS would
have a faculty most likely focused on mariculture policy.
10:03:22 AM
Co-Chair Stedman asked about the bills marginal financial
impact on the marine policy program. He asked how much
increased cashflow was expected, and what cashflow was
collected for the program.
Mr. Criddle did not have access to the financial
information. He noted that there was a steady stream of 15
to 20 students per year graduating from the program. He
thought it was possible to extrapolate funding from the
tuition and credits required to graduate in the program.
Co-Chair Olson asked how many recipients there were for the
professorship.
Mr. Criddle relayed that he was the first recipient.
10:06:31 AM
TOD BURNETT, PRESIDENT, UNIVERSITY OF ALASKA FOUNDATION
(via teleconference), introduced himself and relayed that
he was available for questions. He thought Mr. Hutchison
had done a good job explaining how AETC and private giving
greatly supported UAs programs and students. He explained
that he worked for the UA Foundation, which received all
private contributions to UA.
Co-Chair Olson asked if Mr. Burnett could give an estimated
size of donations to UA.
Mr. Burnett estimated that the foundation raised and
received donations of around $15 million to $30 million per
year. He noted that the foundation also distributed roughly
the same amount per year.
Co-Chair Olson asked if any of the annual funding went
towards an endowment.
Mr. Burnett answered affirmatively.
10:08:12 AM
Co-Chair Olson OPENED public testimony.
10:08:31 AM
TIM DAUGHERTY, KENAI PENINSULA BOROUGH SCHOOL BOARD, HOMER,
spoke in favor of the bill. He was a longtime educator in
the state and former vocational education teacher. He
referenced the No Child Left Behind (NCLB) Act, which was
passed when he was a vocational education teacher in a
middle school. He recounted wood shops being replaced with
computer labs. He had been a principal on the North Slope
and discussed teaching constraints due to the NCLB Act. He
emphasized his passion for vocational education. He
mentioned the Base Student Allocation (BSA) and thought it
was important to find another way to fund career and
technical education (CTE).
Mr. Daugherty mentioned the Skills USA Program, which
brought people from all over the state to participate in
vocational education competitions. The program was being
restarted after a seven-to-eight-year hiatus. He thought
the bill presented an opportunity. He mentioned an empty
school in Seldovia. He thought the priority of the Kenai
Peninsula Borough School District (KPBSD) was to develop
more CTE programs in the district, but there was a lack of
funding. He thought the bill offered an opportunity for the
vocational education teachers, school administrators, and
the school district to pursue relationships with private
industry.
10:12:23 AM
Mr. Daugherty offered two personal anecdotes. He mentioned
that his son went to UAF and obtained a biology degree and
was now making a good wage working construction. He
recounted encountering a former student that recalled her
biggest memory from school was using a tape measure and
chop saw. He emphasized the importance of CTE.
10:14:15 AM
ANNALIA KAREN, COLLEGE AND CAREER READINESS COORDINATOR,
KENAI PENINSULA BOROUGH SCHOOL DISTRICT, Kenai Peninsula
School District{ spoke in support of the bill. She noted
that she was the coordinator for the CTE programs at KPBSD
and managed the Middle College Program, which offered dual
credit for students taking university classes. She
mentioned a mining training program for high school
students, which provided a pathway to industry due to
university partnerships and support from industry. She
mentioned a maritime education program. She noted that most
internships required a student to be 18 years of age. She
thought the bill offered an opportunity to look at getting
industry partners into schools and students into industry.
She thought CTE organizations could have a big impact.
10:18:54 AM
Co-Chair Olson wondered whether the numbers of students in
KPBSD that were interested in CTE were increasing or
decreasing.
Ms. Karen replied that she had seen a large increase in
interest in technical education. She noted that there was a
significant aversion to risk associated with the financial
impact of conventional college. She mentioned an increase
in students in the Middle College Program. She remarked
that there was significant tuition savings that came with
technical education.
10:20:50 AM
Co-Chair Olson CLOSED public testimony.
SB 120 was HEARD and HELD in committee for further
consideration.
ADJOURNMENT
10:21:20 AM
The meeting was adjourned at 10:21 a.m.