Legislature(2009 - 2010)BELTZ 211
01/29/2009 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| Overview: Department of Labor and Workforce Development (dolwd) | |
| Overview: Department of Commerce, Community & Economic Development | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
January 29, 2009
1:33 p.m.
MEMBERS PRESENT
Senator Joe Paskvan, Chair
Senator Joe Thomas, Vice Chair
Senator Bettye Davis
Senator Kevin Meyer
Senator Con Bunde
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
Overview of the Department of Labor and Workforce Development by
Guy Bell, Director, Division of Administrative Services, and
David Stone, Deputy Commissioner
Overview of the Department of Commerce, Community and Economic
Development by Commissioner Emil Notti
PREVIOUS COMMITTEE ACTION
No previous action to consider
WITNESS REGISTER
GUY BELL, Director
Division of Administrative Services
Department of Labor and Workforce Development (DOLWD)
Juneau, AK
POSITION STATEMENT: Presented Department of Labor and Workforce
Development overview.
DAVID STONE, Deputy Commissioner
Department of Labor and Workforce Development (DOLWD)
Juneau, AK
POSITION STATEMENT: Commented on mining issues relevant to the
Department of Labor and Workforce Development.
EMIL NOTTI, Commissioner
Department of Commerce, Community & Economic Development (DCCED)
Juneau, AK
POSITION STATEMENT: Presented Department of Commerce and
Economic Development Overview.
ACTION NARRATIVE
1:33:36 PM
CHAIR JOE PASKVAN called the Senate Labor and Commerce Standing
Committee meeting to order at 1:33 p.m. Present at the call to
order were Senators Davis, Meyer, Thomas and Paskvan. Senator
Bunde arrived shortly after.
^Overview: Department of Labor and Workforce Development (DOLWD)
GUY BELL, Director, Division of Administrative Services,
Department of Labor and Workforce Development (DOLWD),
apologized that the Commissioner wasn't able to attend due to
illness and said he would deliver the overview for him. He
introduced David Stone, Deputy Commissioner, Department of Labor
and Workforce Development (DOLWD), who would comment on mining
issues as well.
1:36:25 PM
MR. BELL went to the second page of his presentation and began
the overview. He said the department has a dual mission of
workforce development and a regulation. They develop and
disseminate labor market information - workforce projections
largely, but also population estimates and other data. They
offer employment assistance through 23 job centers around the
state, worker training and education, and worker training
referrals to training providers around the state. They operate
the Alaska Vocational Technical Center in Seward and a small
component of it in Anchorage. They provide unemployment
insurance benefits and assist people with disabilities in
obtaining employment through the Division of Vocational
Rehabilitation.
On the regulatory side they perform a wage and hour function
assuring that people are paid the wages they are entitled to.
They enforce workplace safety through Division of Occupational
Safety and Health and mechanical inspection efforts. They
adjudicate workers' compensation disputes through the Division
of Workers' Compensation and the Workers' Compensation Appeals
Commission. They also collect unemployment insurance taxes.
1:38:30 PM
SENATOR BUNDE commented that a few years ago the commissioner
shared with the legislature what he thought the demographics of
Alaska's future workforce might look like and that the vast
majority would be under the age of 5 and over 65 and the small
cohort would be 40 - 50 year olds. He asked if that was still
current.
MR. BELL responded that he would provide that data and noted
that there is a dip in the 30-something age group. He said that
people are staying in the work force longer now and that people
in highly skilled positions are retiring; so the state has to
look at training younger and emerging workers for those jobs.
1:39:24 PM
At the same time he said there are approximately 22,000
unemployed workers in the state each month and a significant
non-resident work force at any time. The legislature would be
getting report called "Non-resident Workers in Alaska" that
would provide them with much more detail. He said these workers
earned about $1.7 billion in 2006 or 13 percent of all Alaskan
wages; they accounted for 29 percent of oil industry workers,
which the state considers to be high-wage jobs generally. This
is down slightly from the prior year. The wages for non-resident
workers in the oil industry are significantly higher at $364
million versus $327 million in 2006.
As an agency, Mr. Bell said, he is trying to find out what
Alaska can do better to train Alaskans so that more of them are
available for the jobs that are being taken by non-resident
workers, particularly the high-paying jobs.
1:42:07 PM
About 11,000 new Alaskans turn 18 years old every year; data
indicates that 4,000 Alaskans ages 16-19 are not in school and
not working. Only 62 percent of Alaskans graduate; only 62
percent of Alaskan high school graduates remain for training or
employment; the rest leave the state. A significant number of
people are falling through the cracks and DOLWD has been working
with the Department of Education, the University and others to
try to address some of these issues and improve those outcomes.
MR. BELL said the department's budget is $175.2 million of which
only $31 million is from general funds. They are largely funded
by federal funds and other state funds.
Slides 7 and 8 broke down the funding by division and program
and he offered to answer questions on those.
1:44:22 PM
Slide 9 was a quick overview of the state's training system.
Integral to the training system is the Workforce Investment
Board, a private sector group that sets the overall policy for
workforce development in the state. His agency does its best to
follow those policies that are driven by the private sector.
He said generally there is a significant state and private
partnership when it comes to workforce development -
postsecondary, secondary, employment services that are the
services provided through training providers in the private
sector. They all work together to basically get people into
jobs, preferably jobs that can sustain a family.
1:45:21 PM
Slide 10 summarized some of the state entity partnerships. They
are very closely involved with the University of Alaska in
coordinating their efforts with the Department of Education and
Early Development in their engagement with K-12, where the state
has been becoming even more involved in the recent several
years, with the Department of Commerce and Economic Development
in terms of meeting workforce needs associated with economic
development projects, and they have developed a close
relationship with the Department of Transportation and Public
Facilities in looking at opportunities for apprenticeships in
public construction projects. The relationships with other state
agencies are very healthy right now he reported.
1:46:16 PM
Slide 11 showed a quick snapshot of some of the partnerships
like the Workforce Investment Board where they have developed a
training plan for the gasline with help from a private sector
Gasline Training Plan Steering Committee.
MR. BELL explained that they had received financial support from
private industry like the construction academies that operate
construction-related training in high school facilities
generally for both high school kids in school and for adults
after hours. They have great partnerships with the Homebuilders
Association and the Association of General Contractors.
The same type of activity exists in the State Training and
Employment Program (STEP) which received $5 million in from the
private sector in FY 2008. The Occupational Safety and Health
Program has improved workplace safety with employer incentives
and initiatives. Finally, Workers' Compensation has a number of
advisory groups and a board that is made up of individuals from
the private sector. They are seeing a much improved safety
effort from employers.
1:48:33 PM
Slide 12 entitled "FY 08 Key Program Accomplishments" showed
over 31,000 Alaskans were connected with jobs, 6,600 individuals
received employment and/or training services for jobs, 94
percent of trained participants entered employment, 529 Division
of Vocational Rehabilitation clients were employed, AVTEC
trained nearly 900 Alaskans and issued over 1540 general
education development diplomas (GED), and they published the
Gasline Training Plan.
On the regulatory side, there has been a 21 percent reduction in
lost workday accidental injuries, a pretty significant
accomplishment in terms of improved workplace safety. They have
reduced the time it takes to resolve wage claims, and uninsured
employers are being detected to enforce the Workers'
Compensation law.
1:50:07 PM
On apprenticeships, he said the commissioner has had to goal of
seeing more people in non-traditional registered apprenticeships
in the state. Deputy Commissioner Stone has been tasked with
working with the mining industry, for instance, to develop
registered apprenticeships around the mining industry.
1:50:43 PM
DAVID STONE, Deputy Commissioner, Department of Labor and
Workforce Development (DOLWD) added that the mining industry has
highly skilled jobs and not many Alaskans are qualified to get
them. So, he is looking at taking young Alaskans from just entry
levels at the University to the equivalent of a journeyman
status. An example is with core drilling, which is exploration
diamond drilling; this area has a high number of non-residents
working in it and these are high-paying jobs. These would be
good for rural Alaska because a lot of exploration is going on
in those areas. Other areas are heavy duty mechanics for
underground mines and how to take workers from entry level all
the way to a top mining hand. The mining industry has been very
receptive and he is very enthusiastic about it.
1:51:53 PM
MR. BELL said more generally, the department has entered into a
unique agreement with the US Bureau of Apprenticeship to
actually receive their apprentice enrollment data. They have
compared that data with other databases including the Permanent
Fund and Unemployment Insurance databases and found 10 years of
registration information and 90 percent of the people who were
registered during that period of time are still Alaskan
residents.
1:52:41 PM
SENATOR BUNDE said he heard the construction industry had
trouble recruiting young people into a trade where they have to
sweat and come to work on a regular basis. He asked if he was
able to fill all the spots in the apprenticeship program and if
it served all the people who wanted to be apprenticed.
MR. BELL answered that he can only influence the number of
people who are taken into apprenticeships. He is trying to
develop more relationships with firms to add apprentices. In the
construction industry, they are using construction academies
which engage high school kids in construction activities. They
are operating in Anchorage, Fairbanks, Kenai, MatSu, Juneau and
Ketchikan and are trying to expand those out to rural Alaska in
a partnership with the Denali Commission. The focus would be to
get basic skills training for high school age people and then to
get them interested and then engaged in the industry. They are
seeing quite high levels of success with that. More school
districts are taking that on and focusing on construction as a
career.
1:54:22 PM
MR. STONE said one of the areas they have failed in the schools
is in educating young people that most of the future jobs in
Alaska are career and technical education jobs that don't
require a four-year degree, but do require further education;
and that these are good jobs that are honorable and high-paying.
They are partnering with the DOE and the University of Alaska to
develop a seamless transition for young people to explore these
careers. He thought this focus would result in a lot more people
going into these careers.
SENATOR BUNDE asked if they have plenty of applicants for the
apprenticeship programs.
MR. STONE answered that between GEDs and high school diplomas,
they have roughly 10,000 recruits every year.
1:56:13 PM
MR. BELL explained that their budget is flat year to year and
slide 15 summarized their work training efforts, where the
funding came from, and how many people were served in each
category.
1:57:22 PM
Capital budget requests are identified on slide 16, he said, and
mostly they relate to the Alaska Vocational Technical Center in
Seward, which has significantly substandard facilities that need
to be replaced. Some efforts are being made there, in particular
to one dormitory that was built in the 1970s by students, and
the heavy equipment, diesel and pipe welding training facility,
which now doesn't meet code requirements.
1:58:03 PM
He said that STEP is funded $8.5 million/year, but that expires
on June 30, 2010 unless extended.
1:59:47 PM
MR. BELL said the medical cost cap for Workers' Compensation
expires March 31, 2009 and unless a new cap is adopted there
will be no cost controls on those costs after that date.
2:00:30 PM
SENATOR MEYER asked if the governor was going to introduce a
bill to do that.
MR. BELL replied he didn't know.
SENATOR MEYER said time is of the essence.
2:01:31 PM
SENATOR THOMAS remarked that the imported workers number is
staggering. In the tourism industry for instance, there is a
ramp up time and a short period of time for working and it
seemed that was more opportunity for the governor's office and
DOLWD to encourage those industries that start right around the
end of the school year to focus on students.
He also commented that he didn't see much coordination between
the state agencies he mentioned and the Division of Corrections,
where he hears that the young ones in jail are getting an
education only in how to become a better criminal. Fairbanks
prisoners, for instance, don't do any kind of work other than in
the laundry.
MR. BELL responded that Commissioner Bishop has had discussions
with the Department of Corrections about the possibility of at
least pre apprenticeship training for persons who are
incarcerated, but with the likelihood that they will be back in
the work force in the near future. That discussion is in its
infancy, but they are working towards developing it.
SENATOR MEYER asked if he was concerned with the current
unemployment rate increasing, especially in the mining and oil
and gas industries.
2:05:53 PM
MR. BELL replied that they are concerned that the unemployment
rate is at 7.5 percent now, but the research section doesn't
project a substantial raise in that figure this year. Alaska
hasn't suffered to the extent that other states have and they
hope the stimulus package will help.
2:08:04 PM
SENATOR PASKVAN went to slide 12 and asked why occupational
safety has improved.
MR. BELL replied that part of it is because employers are
concerned with the cost of workers' compensation and they are
taking steps to improve workers' safety because it affects their
bottom line. The Division of Occupational Safety and Health has
developed partnerships through some with award programs
recognizing safe work places. They offer compliance inspections
without the fear of penalties. A number of activities are making
a difference.
2:09:36 PM
SENATOR THOMAS said he found when people came to the unions
looking for an apprenticeship, generally out of high school,
they didn't realize what it took, and in reality a wide variety
of skills are needed. He thought that intervention early in the
high school years to keep them interested and to let them know
that it's not going to be just simply you have to go to school
till you're 16 and then you're going to become a carpenter.
2:11:04 PM
CHAIR PASKVAN announced an at ease at 2:11.
2:14:34 PM
CHAIR PASKVAN called the meeting back to order at 2:14.
^Overview: Department of Commerce, Community & Economic
Development
CHAIR PASKVAN announced that Commissioner Notti, would give them
the Department of Commerce, Community & Economic Development
(DCCED) overview.
EMIL NOTTI, Commissioner, Department of Commerce, Community &
Economic Development (DCCED), said their mission statement is a
healthy economy and strong communities. The department has six
divisions and one office that isn't quite a division.
2:15:56 PM
Besides the divisions, the department has a relationship with
six independent agencies or state corporations. One division is
Corporations, Business and Professional Licensing that works
with 39 professional occupational licenses, and it issues
100,000 licenses a year. The Governor nominates the board
members and the legislature confirms them. They deal with
tobacco licensing, they register corporation trademarks, they
investigate consumer complaints. They have also improved the web
licensing procedure making it easier to get and renew licenses
on line. They deal with the guide units and are providing new
maps for big game guides.
The next is the Division of Banking and Securities that deals
with 71 financial institutions that have to be examined every 18
months. They handle the complaints from native corporations,
mainly on elections, and investigate fraud.
The Division of Insurance licenses insurance companies; they
audit their financial reports and determine financial solvency.
They have investigated 54 cases in the last year, and since 2006
they have had eight criminal convictions. They also handle
consumer complaints regarding insurance.
The Administrative Services Division houses information
technology and procurement and keeps things kosher.
2:18:56 PM
The Office of Economic Development is small, but it provides a
lot of publications. It publishes the Alaska Economic
Performance Report and does a net rate of return on the
businesses. It publishes the Alaska Minerals Industry Report,
the Alaska Minerals Commission, Alaskan Loggers History and this
past year they started up the film office. They have one
forestry specialist who does promotion, most recently hard wood
products including translating the report on hard woods into the
Japanese language. He promotes saw mills and recently some wood
pellets.
This office also deals with Alaska Regional Development
Organization (ARDOR). The legislature provides $57,000 to the 12
ARDORs that need to have a local match to promote small
businesses. They control the "made in Alaska" logo and they work
with small business assistance, the University and Small
Business Association (SBA) on that issue.
MR. NOTTI said the Division of Investments is a state-run bank
that operates in areas that are not adequately serviced because
of high risk and limited collateral. They promote economic
development and return a dividend to the state. It has six loan
programs; the latest one being a Capstone program for aviation,
the latest use of technology for safety in rural Alaska that has
proved to reduce accidents by over 30 percent. Because the state
helped finance the equipment on airplanes, the FAA committed to
spending over $400 million in the next 10 years. They do
commercial fishing revolving loan funds, too, that fishermen can
use for buying boats, permits and upgrading their equipment. The
commercial fishing carbon footprint is being compared to fish
farms'; so there is great pressure to improve emissions and
efficiency in the fishing fleet.
They also have the revolving fishing enhancement fund, which
mainly finances hatcheries. They deal with permits and quota
share. A rural development fund makes loans in communities less
than 5,000 people to promote economic development.
The last division, the Office of Economic Development (tourism,
mining, fisheries, timber, small business), is a hang-over from
the old Department of Community and Regional Affairs that deals
with local communities and does the Rural Utility Business
Advisor Program (RUBA) training. The office visited 172
communities last year to do training on upkeep of diesel
generators, and it is the land trustee of land claims for
villages on the transfer of land from the federal government. He
explained that if there is no local government, the state
becomes the trustee of the land the village corporations have to
turn over.
2:24:33 PM
This office does grants administration; about 900 grants
amounting to $1 billion are in place right now and in various
stages of completion. They deal in forestry receipts to
communities and the fishery tax. Last year they incorporated the
Wrangell Borough and did an annexation for the Ketchikan
Borough. The state tax assessor is within this division and does
the annual full value tax assessment report. They do research on
community profiles and energy costs.
The independent agencies were "joined at the hip" with the
Alaska Railroad Corporation because by statute the DCEED
commissioner on the railroad board. He has seats on other boards
as well. They have the Railroad Commission, the Alaska
Regulatory Commission, the Alaska Seafood Marketing Institute,
the Alaska Aerospace Development Corporation, the Alaskan
Industrial Development and Export Authority and the Alaska
Energy Authority. The legislature will get a report from the
Seafood Marketing Institute that markets Alaska salmon all over
the world. He has heard that the price of salmon to the
fishermen went from around $.50/lb. to over $2.
MR. NOTTI offered to answer questions.
2:27:08 PM
SENATOR THOMAS asked in which areas he saw lacks and what
initiatives had he taken with an eye to the downturn in the
economy.
MR. NOTTI replied that he does a lot of licensing and
regulation, but not necessarily development even though they
have an Office of Economic Development with one forestry and one
mining expert. The department didn't even have an economist when
he came in. The reason he wanted one is whenever data is needed
they have to go to every different department. That pointed out
to them that if someone wanted to do business in Alaska, it
became a big research job for them to get the information they
need to consider it. So they are compiling a database as a one-
point of contact to get information.
2:31:16 PM
SENATOR THOMAS said the CDQ became an extremely successful
operation when it was put together from the previous process. He
asked if there were other areas that could be improved like that
- for geological data in mining, for instance.
2:31:45 PM
COMMISSIONER NOTTI replied that was a good point. They don't
know how much minerals are taken out of the state because miners
are not required to report it. A lot of the data is guess work
and it would be good to tighten that up.
The CDQ program doesn't require reports to the department any
more. He is not sure what their role is until the regulations
are promulgated on that law.
2:32:27 PM
SENATOR MEYER asked if anyone had applied for tax credits under
the new film office law.
COMMISSIONER NOTTI replied that regulations took until July to
get set up. The office has a director and an assistant, and they
have begun to take applications.
SENATOR MEYER said he thought that office had a lot of potential
to bring money into the state. He asked what the Alaska State
Community Service Commission program does.
MR. NOTTI replied that program was established under Governor
Hickel. It was required for Alaska to apply and get the federal
money for volunteer and service work. Three or four volunteer
agencies come under this umbrella.
SENATOR MEYER asked if the state is matching the federal money.
COMMISSIONER NOTTI replied that he thought it was a pass-through
situation.
2:34:59 PM
There being no further business to come before the committee,
Chair Paskvan adjourned the meeting at 2:34 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| (S) L&C - Overview of Dept of CC&ED - 29JAN09.pdf |
SL&C 1/29/2009 1:30:00 PM |
|
| (S) L&C - Dept of CCED 2010 Op Budget Overview - 29JAN09.pdf |
SL&C 1/29/2009 1:30:00 PM |
|
| (S) L&C - Overview of Dept of L & WD - 29JAN09.pdf |
SL&C 1/29/2009 1:30:00 PM |
|
| (S) L&C - Overview of Dept of L and WD (REVISED) - 29JAN09.pdf |
SL&C 1/29/2009 1:30:00 PM |