Legislature(2023 - 2024)BELTZ 105 (TSBldg)

01/27/2023 01:30 PM Senate LABOR & COMMERCE

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Audio Topic
01:30:23 PM Start
01:31:00 PM Presentation(s): Alaska Vocational Technical Center
02:14:32 PM Presentation(s): Northwestern Alaska Career and Technical Center
02:41:03 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Teleconferenced --
+ Workforce Overview from the Vocational/Technical TELECONFERENCED
Education Perspective
Presentation: AVTEC-Alaska Vocational Technical
Center by Cathy LeCompte, Director
Presentation: NACTEC by Doug Walrath, Director
Additional Presenters TBA
**Streamed live on AKL.tv**
-- Testimony <Invitation Only> --
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                        January 27, 2023                                                                                        
                           1:30 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Jesse Bjorkman, Chair                                                                                                   
Senator Click Bishop, Vice Chair                                                                                                
Senator Kelly Merrick                                                                                                           
Senator Forrest Dunbar                                                                                                          
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Elvi Gray-Jackson                                                                                                       
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
PRESENTATION(S):  ALASKA VOCATIONAL TECHNICAL CENTER                                                                            
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PRESENTATION(S): NORTHWESTERN ALASKA CAREER AND TECHNICAL CENTER                                                                
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
CATHERINE LECOMPTE, Director                                                                                                    
Alaska Vocational Technical Center (AVTEC)                                                                                      
Seward, Alaska                                                                                                                  
Department of Labor and Workforce Development (DOLWD)                                                                           
POSITION STATEMENT: Presented an overview of AVTEC, spoke to                                                                  
workforce challenges and solutions, and answered questions.                                                                     
                                                                                                                                
DOUGLAS WALRATH, Director                                                                                                       
Northwestern Alaska Career and Technical Center                                                                                 
Nome, Alaska                                                                                                                    
POSITION STATEMENT: Presented an overview of (NACTEC), spoke to                                                               
workforce challenges and solutions, and answered questions.                                                                     
                                                                                                                                
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:30:23 PM                                                                                                                    
CHAIR  JESSE  BJORKMAN  called   the  Senate  Labor  and  Commerce                                                            
Standing Committee  meeting to order  at 1:30 p.m. Present  at the                                                              
call to  order were  Senators Dunbar,  Bishop, Merrick,  and Chair                                                              
Bjorkman.                                                                                                                       
                                                                                                                                
^PRESENTATION(S):  Alaska Vocational Technical Center                                                                           
      PRESENTATION(S):  Alaska Vocational Technical Center                                                                  
                                                                                                                                
1:31:00 PM                                                                                                                    
CHAIR BJORKMAN  announced the  committee would continue  exploring                                                              
workforce   issues   in  Alaska.   He   said  AVTEC   and   NACTEC                                                              
representatives  are present to  discuss workforce challenges  and                                                              
what  their  centers  are  doing  to  provide  Alaskans  with  the                                                              
skills, tools,  and abilities to  enter the workforce.  He invited                                                              
Ms.  Lecompte  to  put  herself   on  the  record  and  begin  her                                                              
presentation.                                                                                                                   
                                                                                                                                
1:32:05 PM                                                                                                                    
CATHERINE LECOMPTE,  Director, Alaska Vocational  Technical Center                                                              
(AVTEC),  Seward,  Alaska,  Department   of  Labor  and  Workforce                                                              
Development  (DOLWD),  said  she  would  present  an  overview  of                                                              
AVTEC,  respond  to  Senator  Bishop's   request  for  a  ten-year                                                              
lookback on  enrollments, address  the emerging needs  of Alaska's                                                              
workforce, and speak to workforce training.                                                                                     
                                                                                                                                
1:32:50 PM                                                                                                                    
MS. LECOMPTE reviewed  slide 2, About Alaska  Vocational Technical                                                              
Center (AVTEC):                                                                                                                 
                                                                                                                                
     - A division of the Department of Labor and Workforce                                                                      
       Development.                                                                                                             
                                                                                                                                
MS. LECOMPTE  expressed her belief  that Alaska is unique  in that                                                              
no  other state  in the  union  has a  training  center owned  and                                                              
operated by  an agency of  the state. She  said AVTEC has  a great                                                              
relationship  with the  department,  and all  divisions work  well                                                              
together and help each other perform duties to serve Alaskans.                                                                  
                                                                                                                                
     - Fifty years delivering training to Alaskans.                                                                             
                                                                                                                                
     - Accredited twenty-five years through the Council on                                                                      
       Occupational Education.                                                                                                  
                                                                                                                                
     - Serving Alaskans from 120 communities                                                                                    
                                                                                                                                
1:34:00 PM                                                                                                                    
MS.  LECOMPTE  spoke  in  detail to  slide  3,  Alaska  Vocational                                                              
Technical   Center  (AVTEC).   AVTEC's  mission   is  to   deliver                                                              
flexible,   affordable  workforce   training  responsive   to  the                                                              
dynamic  needs  of  business  and  industry  that  serve  Alaska's                                                              
diverse communities.  Student ages range  from 18 to 70,  but most                                                              
are  18 to  24.  A demographic  shift  shows  more students  enter                                                              
AVTEC after high  school. She noted the center  continues to serve                                                              
adult learners  who need additional  skills, upskilling, or  a new                                                              
set of  skills, reskilling. Adult  learners cannot always  pull up                                                              
stakes to  relocate to  AVTEC, so AVTEC  plans to expand  training                                                              
outside Seward.  She will  speak about  the expansion  plans later                                                              
in  the  presentation.  One  of AVTEC's  strengths  is  its  tight                                                              
connection   with  employers.   She  said   that  the  center   is                                                              
responsive  to  employer  needs. A  career  development  counselor                                                              
keeps  in  touch  with  students,   ensuring  they  are  gainfully                                                              
employed in  a field related to  their area of training  for up to                                                              
one year after  completion. She announced the  center's completion                                                              
rate  is brag-worthy,  with over  90 percent  completion in  FY22;                                                              
over 92  percent of  those that completed  were employed  in their                                                              
area of training in FY21. Slide 3 read:                                                                                         
                                                                                                                                
       - Provides relevant workforce training to prepare                                                                        
        Alaskans for entry into and advancement in their                                                                        
        chosen career field.                                                                                                    
                                                                                                                                
      - Affordable training in less than one year; applied                                                                      
        technical skills and good work habits.                                                                                  
                                                                                                                                
      - AVTEC's FY22 completion rate was over 90%, and 92%                                                                      
        of FY21 completers were employed in their area of                                                                       
        training.                                                                                                               
                                                                                                                                
1:35:39 PM                                                                                                                    
MS. LECOMPTE chronicled  slide 4, Occupational  Training Programs.                                                              
She recommended  using the quick  response (QR) code on  the slide                                                              
for  full details  of  AVTEC  Programs.  She listed  AVTEC's  nine                                                              
occupational  training programs  and indicated  there was  also an                                                              
Alaska Maritime Training  Center in Seward. The  nine programs run                                                              
anywhere  from 90  to  180 days,  depending  on  the program.  The                                                              
classes occur  in a workplace  simulation, meaning students  get a                                                              
sense of  what it is like  to get up and  get to work on  time, go                                                              
to lunch and  return to work on  time and be ready to  work at the                                                              
prescribed time,  as opposed  to arriving work,  pouring a  cup of                                                              
coffee, hanging your  coat, and settling in for  the morning. This                                                              
training center  requires the student  to be at  their workstation                                                              
and ready  to go at  8:30 a.m.  Many classes run  as late  as 4:30                                                              
p.m. Students  must call in to miss  class if they are  ill or for                                                              
any  other  reason they  must  call  in.  Students are  graded  on                                                              
punctuality, attendance,  and their ability to be  good employees.                                                              
Students  get the  opportunity  to build  those  skills at  AVTEC,                                                              
preparing them to enter the workforce with solid skill sets.                                                                    
                                                                                                                                
1:36:57 PM                                                                                                                    
MS. LECOMPTE  expounded on  slide 5,  stating the Alaska  Maritime                                                              
Training  Center has  over  40 United  States  Coast Guard  (USCG)                                                              
approved  courses  offered  in   Seward.  She  said  AVTEC  offers                                                              
advanced training  online, which is new. Students  are eligible to                                                              
start   in  high   school   with   the  Young   Mariner   Program,                                                              
Introduction   to  Navigational   Skills.  Students  have   become                                                              
captains  through  AVTEC  training and  upgrading,  earning  their                                                              
licenses  and  moving  up  the  career  ladder.  The  training  is                                                              
similar to  Cal Maritime,  Piney Point,  or Kings Point  four-year                                                              
academies, where  students come out  working as 2nd or  3rd mates.                                                              
AVTEC  is  similar   to  these  academies.  Many   AVTEC  students                                                              
participate in  the "earn and learn"  model, which takes  a little                                                              
longer to  complete. She talked  about the AVTEC  simulation room,                                                              
where  participants  get to  pilot  a tug,  a  barge,  or a  polar                                                              
tanker.  This  is  a valuable  training  tool  for  the  industry.                                                              
Pilots and  captains train on these  simulators, plug in  new dock                                                              
prototypes,  and practice  docking to  determine if  the new  dock                                                              
construction will work.  It is a beneficial tool  for research and                                                              
training. USCG  prefers training  occur onboard vessels,  but some                                                              
simulator  training is USCG  approved. She  invited the  committee                                                              
to try out the simulator.                                                                                                       
                                                                                                                                
MS. LECOMPTE  said slide  6 details  AVTEC's partnership  with the                                                              
University of Alaska  (UA). One detail to remember  about AVTEC is                                                              
that  it is  not a  "stand-alone"  facility; it  works with  other                                                              
postsecondary providers.  NACTEC and the university  are excellent                                                              
partners,  especially in  the maritime education  sector.   Alaska                                                              
Maritime  Education Consortium  (AMEC) was  created a  year and  a                                                              
half ago.  The consortium  intends to  ensure the Alaska  maritime                                                              
workforce is filled  with and supported by Alaskans.  AVTEC joined                                                              
forces  with other  states'  postsecondary  maritime providers  to                                                              
ensure Alaska can deliver maritime training statewide.                                                                          
                                                                                                                                
1:40:25 PM                                                                                                                    
MS. LECOMPTE  said the charts  on slides  7 through 12  respond to                                                              
Senator  Bishop's  request  for  a  10-year  look  back  in  AVTEC                                                              
enrollments.  She  explained these  slides  collectively,  hitting                                                              
the  highlights,   so  the  numbers  on  the   charts  are  better                                                              
understood.                                                                                                                     
                                                                                                                                
MS. LECOMPTE  said that  on slide  7, the  red bar represents  the                                                              
long-term  programs, the  blue bar  represents maritime  programs,                                                              
and  the green  bar  represents  total enrollment.  The  long-term                                                              
program enrollment  from FY2012  to FY2016 was  due solely  to the                                                              
health campus  in Anchorage.  AVTEC collaborated  with Cook  Inlet                                                              
Tribal  Council  (CTIC)  to  offer   certified  nursing  assistant                                                              
(CNA), licensed  practical nurse (LPN), and registered  nurse (RN)                                                              
programs.   She  said  a   perfect  storm   happened,  causing   a                                                              
substantial  decline  in  enrollments.  The  first  storm  reduced                                                              
AVTEC's budget, then  grant funds ran out. No  sustainability plan                                                              
was in  place; the health programs  were taught out,  reaching the                                                              
tail  end by  FY17.  The health  campus  program  closed, and  the                                                              
program no longer exists.                                                                                                       
                                                                                                                                
MS. LECOMPTE said  reduced enrollments and budgets  affected other                                                              
programs  and  resulted in  eliminating  a  chef in  the  culinary                                                              
program. The  construction, plumbing, heating,  refrigeration, and                                                              
culinary programs all  had to go to half-year to  match the budget                                                              
with  the   enrollments.  The  economy   was  fairly   good  then,                                                              
unemployment  was low,  and  it was  pre-pandemic.  She said  that                                                              
when  people are  working, they  are not  interested in  receiving                                                              
training at a  community college training center.  This means that                                                              
courses were not in high demand because people were working.                                                                    
                                                                                                                                
1:44:01 PM                                                                                                                    
MS.  LECOMPTE  said  that  the   declining  enrollment  trajectory                                                              
continued  to FY19  when AVTEC  sought alternative  ways to  serve                                                              
Alaskans. Studying  at the Seward residential training  center was                                                              
not meeting  the needs of  people who could  not pack up  and move                                                              
to Seward,  but who  wanted and  needed training.  In response  to                                                              
this  need, AVTEC  put together  short  courses, extracting  self-                                                              
contained,  small modules  from  long courses.  The short  courses                                                              
included modules  like building stairs, putting up  sheetrock, and                                                              
laying foundations.  AVTEC was ready to take these  modules on the                                                              
road, but  COVID hit. AVTEC  had to shut  down, send  student home                                                              
in FY20,  and figure  out how  to get  them back  to finish  their                                                              
training. Staff initially  thought AVTEC would reopen  in a couple                                                              
of weeks,  but a couple  of weeks turned  into a couple  of months                                                              
and  then a  couple of  years. AVTEC  was  able to  open at  half-                                                              
capacity in  FY21, and students  did not  share a bathroom  due to                                                              
health  and  safety  concerns.   The  dorms  have  jack  and  jill                                                              
bathroom   facilities.  AVTEC   was   ready  to   open  in   FY22.                                                              
Unfortunately,   five   teachers    quit,   leaving   the   center                                                              
understaffed and unable to operate at capacity.                                                                                 
                                                                                                                                
MS. LECOMPTE said  it is now FY23, AVTEC has a  full complement of                                                              
instructors  and is  ready to  launch its  customized training  in                                                              
short  courses  with  full  student  enrollment.  She  recommended                                                              
going  through the  slides  to see  the story  unfold  in all  the                                                              
different programs.  She directed attention to slide  11, Energy &                                                              
Building  Trades. The  green bar  represents  AVTEC's most  recent                                                              
short  course model  for  2022. The  green  represents a  six-week                                                              
facilities  maintenance/construction   program  in   collaboration                                                              
with Weidner  Group  and other employers.  It  meets the needs  of                                                              
someone  working in  a facilities  maintenance role  who needs  to                                                              
know a little bit  about many things. If the person  is interested                                                              
in learning  more, AVTEC  is available for  the full  program. The                                                              
short  model gives  an individual  the skills  to be an  effective                                                              
facilities maintenance service worker.                                                                                          
                                                                                                                                
1:47:29 PM                                                                                                                    
MS.  LECOMPTE  shared  two  examples   of  businesses  that  AVTEC                                                              
partnered  with  to  create  customized   programs  that  met  the                                                              
businesses'  staffing goals.  One was a  partnership with  Bristol                                                              
Bay   Native   Corporation.   An   employer   needed   entry-level                                                              
construction    workers   trained    in    confined   space    and                                                              
lockout/tagout  and  who had  OSHA  training. Bristol  Bay  Native                                                              
Corporation   used  its   Department   of   Labor  and   Workforce                                                              
Development  (DOLWD)   STEP  grant  to  offer  this   training  in                                                              
collaboration  with AVTEC.  The  center supplied  the  instructors                                                              
and used  the Dillingham  University construction  lab. Two  weeks                                                              
of intensive  construction training  prepared eight  local workers                                                              
to build tiny homes  in the villages. She wants  to replicate this                                                              
model in  other places.  This was a  partnership between  a number                                                              
of  different  agencies.  Another   customized  program  was  with                                                              
Trident  Seafoods. Trident  made  a customized  selection of  six-                                                              
week short  courses  from AVTEC's  menu for six  of its  incumbent                                                              
workers. The workers  received their customized training  to skill                                                              
up  in areas  specifically  selected  by  Trident, and  they  were                                                              
trained on-site at  the Seward campus. She said AVTEC  is ready to                                                              
launch the  short courses in  FY23 and  that it will  serve Alaska                                                              
well.                                                                                                                           
                                                                                                                                
1:49:51 PM                                                                                                                    
MS. LECOMPTE  pointed out  a picture of  students from  the Alaska                                                              
Military Youth  Academy on slide  13. The high school  teaches the                                                              
Introduction to  Nautical Skills, which is an  intensive [60-hour]                                                              
Maritime  Program course  offered to high  school students.  AVTEC                                                              
sent  an  instructor   to  the  Military  Academy   to  teach  the                                                              
intensive maritime  training course. This photo depicts  a part of                                                              
their  survival training;  it requires  students  to don  survival                                                              
suits,  learn   to  float,  and   survive  as  a   team.  Students                                                              
interested  in pursuing  a  maritime career  may  apply for  funds                                                              
through a Perkins  Grant which will pay for basic  training. Basic                                                              
training will  see students through  to the USCG system,  ready to                                                              
work on a tug, a barge, or a fishing vessel, or a ship.                                                                         
                                                                                                                                
1:51:07 PM                                                                                                                    
MS.  LECOMPTE   advanced  to   slide  14,  Alternative   Specialty                                                              
Training.   AVTEC  offers   related   technical  instruction   for                                                              
apprentices  in construction  and  healthcare. The  apprenticeship                                                              
program has  been around  for 20 years  for construction,  but the                                                              
addition of  healthcare is  recent. Related technical  instruction                                                              
is accessed  online; it  is available  whether the  apprenticeship                                                              
program is in plumbing, electrical, or drywall.                                                                                 
                                                                                                                                
MS. LECOMPTE  talked about specialty  training courses  offered at                                                              
the center.  Bus driver  training has been  offered for  20 years.                                                              
AVTEC trains the  trainers; the trainers return home  to teach bus                                                              
drivers  in their  districts. The  nautical skills  course. A  new                                                              
program  is  an  apprenticeship  in  information  technology  (IT)                                                              
networking,  CompTIA A+,  which  launched this  year.  AVTEC is  a                                                              
multi-employer  sponsor with four  apprenticeships; two  completed                                                              
their program,  and two  are still in  the program.  AVTEC focuses                                                              
on  cross-cutting skill  development,  which  makes the  trainee's                                                              
skill set applicable  to many industries rather than  just one. IT                                                              
networking is  the best example  of this. Everybody  has computers                                                              
and networks and  needs help troubleshooting.  This apprenticeship                                                              
model  allows someone  employed  to  get formal  training  without                                                              
leaving their  job or  community. It  gets them  into a  pay scale                                                              
that advances them throughout the apprenticeship program.                                                                       
                                                                                                                                
MS.  LECOMPTE  drew  attention  to the  "Senior  Year  to  Career"                                                              
graphic. She said  AVTEC is not a credit-based school.  AVTEC is a                                                              
clock-hour  school,  and  it is  difficult  to  meld  credit-based                                                              
students into  a clock-hour-based  system. However, AVTEC  made an                                                              
exception  to  its admission  policy  for  credit-based  students.                                                              
Previously, the  admission policy required  students to be  18 and                                                              
have  a  high school  diploma,  but  that  policy was  relaxed  to                                                              
accept students who:                                                                                                            
                                                                                                                                
- are in high school,                                                                                                           
- are 17 years old,                                                                                                             
- have earned all their credits for graduation but have not                                                                     
  received their diplomas, and                                                                                                  
- want to start their vocational training.                                                                                      
                                                                                                                                
AVTEC enrolled local  high school students in the  welding program                                                              
in January because  they finished high school and  were waiting to                                                              
graduate. AVTEC  prefers students  finish all high  school credits                                                              
before enrollment.  AVTEC discourages  students who are  one class                                                              
away from  graduation but  will accept  them if  the class  can be                                                              
completed online.  Administrators  find students become  engrossed                                                              
in  their coursework  at  AVTEC and  do not  make  time to  finish                                                              
their high  school coursework. This program  has not had  a lot of                                                              
enrollments,  but it  is increasing  each year  as students  learn                                                              
about it.  It is a good fit  for homeschooled students;  they tend                                                              
to finish  early, and  they are eligible  to use their  allocation                                                              
of education funds to get started at AVTEC.                                                                                     
                                                                                                                                
1:55:14 PM                                                                                                                    
MS. LECOMPTE  advanced to slide  15, which showed pictures  of new                                                              
AVTEC training programs.  The image in the upper  left-hand corner                                                              
depicts  facilities and  building  maintenance.  The upper  right-                                                              
hand  corner  is  a  photo  of  the  new  industrial  machine  and                                                              
mechanic   training  class   focusing   on  machining,   precision                                                              
measurement tools,  layout, blueprint reading, CAD,  3-D printing,                                                              
quality control, and  basic welding. This is another  example of a                                                              
cross-cutting  skillset  offered  at  AVTEC. The  picture  in  the                                                              
lower right-hand  corner shows  a student  enrolled in  the 6-week                                                              
business office  skills class. The  business office  skills module                                                              
is offered as  a hybrid course, online for asynchronous  study and                                                              
in-person   classroom    study.   The   topics    cover   business                                                              
foundations,  entrepreneurial and  small business skills,  project                                                              
management,   financial   literacy,    and   personal   leadership                                                              
development. This  module will be  online in the fall  and offered                                                              
to  individuals   working  in  offices  or  wanting   to  start  a                                                              
business.  The  picture  in the  lower  left-hand  corner  depicts                                                              
Yamaha  training. This  was a  collaboration  with the  university                                                              
under the  Alaska Maritime  Education Consortium  project  and now                                                              
with  the University  of  Alaska Anchorage  (UAA)-Kenai  Peninsula                                                              
College. She reported  that a marine electronics  expert was hired                                                              
today. She  expressed excitement  to stand  the Yamaha  program up                                                              
with this new instructor.                                                                                                       
                                                                                                                                
1:57:33 PM                                                                                                                    
SENATOR MERRICK asked about the fee structure at AVTEC.                                                                         
                                                                                                                                
MS. LECOMPTE answered  that the fee structure is per  term for the                                                              
long-term programs listed on slide 4:                                                                                           
                                                                                                                                
- $2400 90-day tuition                                                                                                          
- $4800 two-term tuition                                                                                                        
- $350 one-time technology fee for access to the                                                                                
  Internet/network.                                                                                                             
                                                                                                                                
- Fees for student services: sauna, ceramics lab, fitness                                                                       
  center, gym, and rock wall.                                                                                                   
- Fees for books, supplies, and consumables vary depending                                                                      
  on the area of study.                                                                                                         
                                                                                                                                
1:59:18 PM                                                                                                                    
SENATOR DUNBAR  asked two questions.  First, the state  expects to                                                              
receive  a lot  of federal  Bipartisan  Infrastructure money,  and                                                              
with it,  the state will  need more skilled  labor. He  asked what                                                              
AVTEC's enrollment  constraints are. He asked whether  AVTEC could                                                              
expand to  create more skilled  tradespeople in the  coming years.                                                              
Second, he inquired  about AVTEC's relationship with  trade unions                                                              
and whether  a path exists for  students to move from  AVTEC right                                                              
into a trade union or union apprenticeship.                                                                                     
                                                                                                                                
MS. LECOMPTE responded  to the first question,  stating vocational                                                              
and technical  education differs  from an  English class  that can                                                              
be held in a  lecture hall with a 100-student  capacity. AVTEC has                                                              
12 welding  booths. Classes  start in August  and January  and can                                                              
accommodate  about 20  welders. Welding  is just  an example,  but                                                              
the  principle applies  to all  long-term programs  at AVTEC.  She                                                              
said  capacity is  limited  by  capital investments,  noting  that                                                              
many investments  have been  made at AVTEC.  She mentioned  that a                                                              
brand-new diesel,  heavy technology lab, and  other infrastructure                                                              
were built with  investments. The investments are  finite, so that                                                              
is why  AVTEC seeks  to work  in tandem  with other  postsecondary                                                              
providers.   She  cited   the  AVTEC   and   Bristol  Bay   Native                                                              
Corporation partnership  as an example  of an effective  alliance.                                                              
She said the Bristol  Bay campus lab was empty because  it did not                                                              
have an  instructor; she noted  that finding career  and technical                                                              
education  instructors  is  challenging.  The Bristol  Bay  Native                                                              
Corporation  recruited  students,   pulled  in  an  employer  that                                                              
needed  houses built,  and forged  a coalition  with AVTEC.  AVTEC                                                              
trained  the  students from  that  region  using the  Bristol  Bay                                                              
campus. She  said AVTEC needs to  form more coalitions  like this.                                                              
AVTEC seeks  more partnerships like  Yamaha and the  UAA Community                                                              
and  Technical  College   (CTC).  She  noted  that   AVTEC  has  a                                                              
relationship with  the UA Ketchikan campus for  maritime training.                                                              
Postsecondary  providers need  to figure  out how to  collaborate,                                                              
share resources and  experts, and deliver training  to all regions                                                              
of  the state.  She expressed  her  opinion  that it  will take  a                                                              
joint effort  from postsecondary  education providers to  meet the                                                              
upcoming demand  for skilled labor.  The problem is  that training                                                              
centers either have  the facility or the instructor.  Schools must                                                              
work  together collectively  and collaboratively  to get  teachers                                                              
in the classroom and training students to meet labor needs.                                                                     
                                                                                                                                
2:03:41 PM                                                                                                                    
MS.  LECOMPTE  responded  to  Senator  Dunbar's  second  question,                                                              
stating AVTEC works  closely with unions. She said  that AVTEC had                                                              
a  very   tight  relationship   with  Ironworkers,   Plumbing  and                                                              
Pipefitters,  and IBEW  in  the past.  AVTEC  had an  articulation                                                              
agreement  with   IBEW  that  allowed  students   exiting  AVTEC's                                                              
electricity  program   to  receive   1,000  hours  towards   their                                                              
apprenticeship. She  expressed a wish to renew  that relationship;                                                              
it's an opportunity  for the students. She listed  several reasons                                                              
a trade  union may  not have  an open  pathway for AVTEC  students                                                              
exiting their  programs. She said  paths between trade  unions and                                                              
AVTEC form  a great relationship  because it gives students  a leg                                                              
up.  Students start  in  one place,  take  what  was learned,  and                                                              
stack it in  the next place. Whether  it be a union  or whether it                                                              
be as  an apprenticeship  on the  job. She  said AVTEC  works very                                                              
closely  with  unions.   I  just  hired  an  AVTEC   graduate  who                                                              
graduated ten  years ago from the  welding program. He  was in the                                                              
pipefitters union and is now back at AVTEC teaching.                                                                            
                                                                                                                                
2:05:16 PM                                                                                                                    
SENATOR BISHOP  asked if there are  plans to bring back  LPN, CNA,                                                              
and RN programs.                                                                                                                
                                                                                                                                
MS. LECOMPTE  answered that  it is difficult  to say  for certain,                                                              
but  probably.  AVTEC  plans  to  bring  back  a  CNA  program  in                                                              
collaboration  with the  Covey  Academy in  Anchorage.  Providence                                                              
Alaska Medical  Center and other  healthcare providers  shifted to                                                              
standing  up their  own in-house  training. She  said that  it was                                                              
her understanding  the reason the  health campus in  Anchorage was                                                              
so successful previously  was that it had grant funds  to stand it                                                              
up; it had  resources to support  it. She said research  has begun                                                              
to  bring  back  a  health  campus,   and  research  needs  to  be                                                              
conducted  to determine  demand  and interest  in partnering.  She                                                              
emphasized  that  the  question   comes  down  to  resources.  She                                                              
apologized for the inconclusive answer.                                                                                         
                                                                                                                                
SENATOR BISHOP  responded that  is fine. He  said he had  a little                                                              
hand in starting  the RN program with Fred Esposito,  the director                                                              
of AVTEC, back then.                                                                                                            
                                                                                                                                
2:08:08 PM                                                                                                                    
SENATOR  BJORKMAN  commented  on the  excitement  surrounding  the                                                              
Yamaha outboard program.  He asked to hear a little  bit about the                                                              
Yamaha program and the opportunities that it provides.                                                                          
                                                                                                                                
MS. LECOMPTE said  funds were allocated to the  university for the                                                              
Fisheries, Seafood,  and Maritime Initiative. Part  of those funds                                                              
was  allocated to  the  Alaska  Maritime Education  Consortium  to                                                              
stand up  a Yamaha  training program. This  included setting  up a                                                              
"train the  trainer" center  at the  Prince William Sound  College                                                              
(PWSC), and  the expansion  for this  facility is underway.  AVTEC                                                              
gave PWSC some money to give the project a boost.                                                                               
                                                                                                                                
MS.  LECOMPTE  explained  that  three  satellite  Yamaha  outboard                                                              
training   centers  are   planned,  one   in  Ketchikan,   one  in                                                              
Dillingham, and  one yet to be  determined. AVTEC has  three years                                                              
to spend  the funds. AVTEC secured  funding and got  an instructor                                                              
and some  equipment to start  a program  too. Students will  get a                                                              
chance to work on engines from 9 horsepower to 250 horsepower.                                                                  
                                                                                                                                
MS. LECOMPTE  said Homer wanted  a program  too. It made  sense to                                                              
put a program  in Soldotna since the instructor-coordinator  lives                                                              
in Soldotna. Students  from Homer, Seward, and  other areas around                                                              
the state  can reside in  Soldotna housing.  There was an  idea to                                                              
get  a big  toy hauler  to take  Yamaha outboard  training on  the                                                              
road, hauling  it around  the state to  conduct classes.  That's a                                                              
big dream. To  start, AVTEC will have satellite  programs, and the                                                              
main training program will be in Prince William Sound.                                                                          
                                                                                                                                
2:11:10 PM                                                                                                                    
SENATOR BJORKMAN  commented  on housing issues  across the  state.                                                              
He  asked if  AVTEC had  difficulty finding  housing for  students                                                              
and staff in Seward.                                                                                                            
                                                                                                                                
MS. LECOMPTE  answered yes,  but AVTEC has  the William  E. Dunham                                                              
Hall dormitory, which  houses 128 students, and  the Fourth Avenue                                                              
dormitory,  which houses  48 students.  She  said three  apartment                                                              
complexes  have one-bedroom  to four-bedroom  units. All  of those                                                              
accommodations  are at capacity.  One of those  units is  a 4-plex                                                              
set aside  to rent to incoming  staff until they  find alternative                                                              
accommodations. A person  has to hang around and get  the word out                                                              
to find a place  to live in Seward. By the time  a place is posted                                                              
online, it's gone.  AVTEC student housing is full,  but it's not a                                                              
problem yet.                                                                                                                    
                                                                                                                                
CHAIR  BJORKMAN said  the committee  welcomes  the opportunity  to                                                              
work with  AVTEC in meeting  the mission of workforce  development                                                              
and partnering  with businesses  and industry to  generate skilled                                                              
workers  to move  Alaska's  economy  forward. The  legislature  is                                                              
interested in doing  this. He said to let the  committee know what                                                              
it can  do to  help meet the  mission. The  committee will  do its                                                              
best to make it happen.                                                                                                         
                                                                                                                                
2:13:45 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
^PRESENTATION(S):   Northwestern  Alaska   Career  and   Technical                                                              
Center                                                                                                                          
 PRESENTATION(S): Northwestern Alaska Career and Technical Center                                                           
                                                                                                                                
2:14:32 PM                                                                                                                    
CHAIR BJORKMAN  reconvened the  meeting and  asked Mr.  Walrath of                                                              
Northwestern  Alaska Career  and Technical  Center to put  himself                                                              
on the record.                                                                                                                  
                                                                                                                                
2:14:42 PM                                                                                                                    
DOUGLAS  WALRATH,   Director,  Northwestern   Alaska   Career  and                                                              
Technical  Center,   Nome,  Alaska,   presented  an   overview  of                                                              
(NACTEC),  spoke  to  workforce   challenges  and  solutions,  and                                                              
answered questions.  He said he  is joining the meeting  from Nome                                                              
Beltz High School  and that it warms his heart that  the Labor and                                                              
Commerce Committee  is meeting  in the Beltz  Room of  the Capitol                                                              
Building.                                                                                                                       
                                                                                                                                
MR.  WALRATH began  the slide  presentation, stating  NACTEC  is a                                                              
partnership  between  the  Nome,  Nome  public  schools,  and  the                                                              
Bering  Strait School  District.  NACTEC is  in its  20th year  of                                                              
operation.  State  funds  from the  Department  of  Education  and                                                              
Early  Development   (DEED)  and  the  Department   of  Labor  and                                                              
Workforce  Development  (DOLWD)   support  NACTEC.  In  the  upper                                                              
right-hand  corner, a  map  shows over  50  rural villages  NACTEC                                                              
served  over the  past  20 years,  but predominately,  the  center                                                              
serves the  population in  the Bering  Strait region.  That region                                                              
includes  everything from  the Seward  Peninsula as  far north  as                                                              
Shismaref on  the Chukchi Sea,  as far  west as Diomede  Island in                                                              
the  middle of  the Bering  Strait,  Gambell and  Savoonga on  St.                                                              
Lawrence  Island in  the Bering  Sea, St.  Michael, Stebbins,  and                                                              
from where  the Iditarod  mushers come in  at Unalakleet  and loop                                                              
around  Norton   Sound.  NACTEC  has  a  two-week,   variable-term                                                              
residential  programming  primarily. Students  pull  out of  their                                                              
high  school classes,  travel  to Nome  for  a two-week  intensive                                                              
career  and technical  education, and  then return  home to  their                                                              
regular studies.                                                                                                                
                                                                                                                                
2:17:52 PM                                                                                                                    
MR. WALRATH  advanced to slide 2,  stating NACTEC has  a workforce                                                              
development mission  that aligns  training with Alaska's  priority                                                              
industries. He reviewed slide 2:                                                                                                
                                                                                                                                
                 Workforce Development Mission:                                                                                 
                                                                                                                                
      • NACTEC delivers variable term (2-4 week intensive                                                                       
        formats)  residential  CTE  programs   aligning  with                                                                   
        priority  industries:   Healthcare,   Transportation,                                                                   
        Construction,   Hospitality   &    Tourism,   Seafood                                                                   
        Harvesting    &    Processing,    Natural    Resource                                                                   
        Development.                                                                                                            
                                                                                                                                
        • DMV 3rd Party Examiner/Approved D.E. School                                                                           
                                                                                                                                
MR.  WALRATH said  that NACTEC  is  a Division  of Motor  Vehicles                                                              
(DMV)  approved,  noncommercial  driving  school  and  third-party                                                              
examiner for  road tests.  Most students  from remote  villages do                                                              
not have  access to  vehicles or  training, so  getting a  license                                                              
along  with a  high  school diploma  is  essential for  employment                                                              
purposes.                                                                                                                       
                                                                                                                                
        • AVTEC    Maritime:    USCG    certified    training                                                                   
          (certifications)                                                                                                      
                                                                                                                                
2:18:45 PM                                                                                                                    
MR.  WALRATH said  NACTEC  had enjoyed  a  partnership with  AVTEC                                                              
since  2017.  There  is  USCG  approval  to  deliver  certificated                                                              
training  programs in  Nome through  AVTEC.  The NACTEC  classroom                                                              
and  city  of  Nome  pool  are  approved  training  locations.  An                                                              
instructor  from  Seward  traveled   to  Nome  to  offer  maritime                                                              
training  in   December.  Three-quarters   of  that   training  is                                                              
provided  in Nome, everything  except the  fire training  portion.                                                              
NACTEC will  continue with that  same population of  students down                                                              
to AVTEC  in April to complete  the certificated training.  It's a                                                              
great  program  and  partnership.  It provides  the  students  the                                                              
opportunity to  live in  the dorms at  AVTEC. It's an  opportunity                                                              
for high school  students to lose  the fear of the unknown  and to                                                              
increase the likelihood of their success in the future.                                                                         
                                                                                                                                
        • UAF-CTC: FAA approval Aviation Maintenance (dual                                                                      
          credit)                                                                                                               
                                                                                                                                
        • Healthcare: HLTH 105 to PCA/CNA/Health Aide                                                                           
                                                                                                                                
MR.  WALRATH  said  healthcare  is  probably  the  most  developed                                                              
strand. NACTEC offers,  in partnership with UAF  Northwest Campus,                                                              
Norton  Sound  Health  Corporation,   and  Kawerak,  Inc.,  a  CNA                                                              
course. NACTEC  has offered it for  20 years since  its inception.                                                              
The  course begins  with  Health 105,  an  Introduction to  Health                                                              
Field,  and exposes  the students  to  health careers.  Graduating                                                              
seniors  are  targeted  for  training.  They  walk  the  stage  at                                                              
graduation, and  a week  later, those students  are at  NACTEC for                                                              
personal care attendant  (PCA), CNA, or health  aide training. PCA                                                              
and  the  health   aide  training  are  village-based   employment                                                              
positions. The CNA requires moving to Nome.                                                                                     
                                                                                                                                
2:21:23 PM                                                                                                                    
MR.  WALRATH advanced  to slide  3, stating  NACTEC aligns  career                                                              
and   technical   education   training    (CTE)   with   workforce                                                              
development   needs.  A  few   big  topics   in  Nome   include  a                                                              
congressional appropriation  for over $600 million  to construct a                                                              
deep draft port.  A workforce development summit was  held in Nome                                                              
to prepare  for the workforce  needs of  that project. Nome  has a                                                              
population of 3,700  citizens. Construction is scheduled  to begin                                                              
in 2024.  In the next  few years 800  people are expected  to work                                                              
on  that  project. That  is  huge  for  Nome. Another  project  is                                                              
Graphite  Creek,  designated  as  high priority  status  in  2021.                                                              
Graphite  Creek  is  located  40  miles  from  Nome.  Graphite  is                                                              
important  for   battery  production.  The  principal   amount  of                                                              
graphite in  the world  comes from China.  This is an  opportunity                                                              
to reduce dependency  on foreign minerals. Production  could start                                                              
as soon as 2027 or 2030.                                                                                                        
                                                                                                                                
MR.  WALRATH highlighted  some of  NACTEC's  training programs  in                                                              
picture format on  slides 4 and 5. He explained  the pictures were                                                              
taken from a training program this past October:                                                                                
                                                                                                                                
- A driver's education program.                                                                                                 
- A full-motion-based truck driving simulator. He said the                                                                      
  simulator allows  the driver  to choose  from a  bus, a  semi, a                                                              
  concrete truck, or a snowplow.                                                                                                
- The heavy equipment simulator center. NACTEC has nearly a                                                                     
  million-dollar,  full-motion-based  simulator  center  supported                                                              
  almost exclusively by business and  industry contributions using                                                              
  the Alaska education  tax credit program. NACTEC has  a bunch of                                                              
  wonderful local partners that allow  students to use their heavy                                                              
  equipment to  experience what  it feels like  move some  dirt or                                                              
  grade a road.                                                                                                                 
                                                                                                                                
2:24:52 PM                                                                                                                    
MR.  WALRATH said  slide  5 takes  a  pictorial  look at  NACTEC's                                                              
Fisheries/Seafood/Maritime Industries strand. It shows:                                                                         
                                                                                                                                
- Swimming training, which begins every morning in the city of                                                                  
  Nome pool. Almost all NACTEC's students  live on cold water, and                                                              
  there  is  a high  death  rate  on  the water  in  this  region.                                                              
  Learning to swim  is a life skill that is  increasingly becoming                                                              
  important for future employment opportunities.                                                                                
- Emergency training. These students are practicing a formation                                                                 
  that can be spotted from the air if the ship were abandoned.                                                                  
- Scuba training. It is difficult to find a population of                                                                       
  students with the skill set to participate in this course.                                                                    
- Fisheries and Seafood Industries course. NACTEC does an                                                                       
  egg-take project  on the  Snake River.  This  photo was  taken a                                                              
  couple  of  miles  from  the  student  dormitory.  He  said  the                                                              
  dormitory houses 26 students, which  is NACTEC's capacity during                                                              
  training  programs. The  students  get to  work with  biologists                                                              
  from  the  Norton Sound  Economic  Development  Corporation  and                                                              
  Alaska  Department  of Fish  and  Game  (ADF&G) to  learn  about                                                              
  careers through hands-on, real-world training.                                                                                
                                                                                                                                
2:26:39 PM                                                                                                                    
MR.  WALRATH  reviewed  slide  6   to  explain  some  of  NACTEC's                                                              
challenges and issues:                                                                                                          
                                                                                                                                
     • Nome Housing shortage/Utilities                                                                                          
        • Heating Fuel $7.20/gallon                                                                                             
                                                                                                                                
     • Certified Teachers  shortage                                                                                             
                                                                                                                                
     • Rural Services  DMV Closure                                                                                              
                                                                                                                                
     • DEED Residential Stipends                                                                                                
                                                                                                                                
     • Flat funded since FY15                                                                                                   
                                                                                                                                
     • Alaska Education Tax Credit                                                                                              
                                                                                                                                
2:29:57 PM                                                                                                                    
MR. WALRATH reviewed  slide 7, Alaska Education  Tax Credit (ETC).                                                              
He  listed  these  NACTEC  partners:  Trident  Seafoods,  American                                                              
Seafoods,  Glacier Fish  Company,  At-Sea Processors  Association,                                                              
Norton  Sound   Economic  Development   Corporation,   and  Bering                                                              
Straits  Native   Corporation.   These  organizations   have  been                                                              
NACTEC's  partners for  ten  or more  years  and have  contributed                                                              
$1.5  million  or more  to  programs  since  FY10. He  listed  the                                                              
various  types of  tax  credits and  a little  bit  about how  tax                                                              
credits work.  NACTEC works  aggressively  to secure business  and                                                              
industry partnerships.                                                                                                          
                                                                                                                                
2:33:08 PM                                                                                                                    
MR. WALRATH summarized  the impacts of legislative  changes to the                                                              
Alaska Education Tax Credit on slide 8:                                                                                         
                                                                                                                                
     • ETC: Business/Industry less Education Contributions                                                                      
                                                                                                                                
MR.  WALRATH said  NACTEC  had seen  fewer  business and  industry                                                              
contributions. It's  not all doom  and gloom because  the decrease                                                              
in  business and  industry contributions  was offset  by a  larger                                                              
amount  of available  federal dollars.  He drew  attention to  the                                                              
change because NACNEC found the ETC of great value.                                                                             
                                                                                                                                
     • Workforce shortage (Visa process)                                                                                        
                                                                                                                                
MR. WALRATH  said the  Bering Strait  School District  travels far                                                              
and  wide  in the  recruitment  season.  Teachers'  contracts  are                                                              
offered  earlier  and  earlier.  There is  an  increasingly  large                                                              
number of  teachers coming  in on  a VISA  process, many  from the                                                              
Philippines.                                                                                                                    
                                                                                                                                
     • Cost of Living: Housing, utilities                                                                                       
                                                                                                                                
2:34:58 PM                                                                                                                    
MR. WALRATH  said he does  not claim to  have all the  answers but                                                              
offered these solutions on slide 9:                                                                                             
                                                                                                                                
     • Teacher Licensure:                                                                                                       
        • Lifetime Certificates  Other States                                                                                   
                                                                                                                                
     • DEED Boarding School Stipends                                                                                            
        • Statutory funding increase                                                                                            
                                                                                                                                
     • Rural Services                                                                                                           
        • DMV  Business Partner Contracts                                                                                       
          • 3 or 5 year renewal process                                                                                         
        • Power Cost Equalization (PCE)                                                                                         
                                                                                                                                
2:37:29 PM                                                                                                                    
SENATOR BISHOP said  kudos to Mr. Walrath. He said  to keep up the                                                              
good work.                                                                                                                      
                                                                                                                                
2:37:58 PM                                                                                                                    
CHAIR  BJORKMAN  asked  Mr.  Walrath to  explain  more  about  the                                                              
change to  the Alaska  Education Tax Credit  program and  how that                                                              
caused  a  decrease  in  partnerships  between  the  industry  and                                                              
NACNEC.                                                                                                                         
                                                                                                                                
2:38:15 PM                                                                                                                    
MR.  WALRATH said  the legislation  change cost  the partners  who                                                              
contributed. He  said the limit  was $5  million and was  cut back                                                              
to $1 million. NACTEC  was fortunate to have a  number of partners                                                              
step forward  to make contributions  totaling $300,000. This  is a                                                              
significant contribution  to a program  the size of  NACTEC, which                                                              
is now  $2.5 million.  A $300,000  contribution cost the  partners                                                              
$50,000  to make.  The  same contribution  now  costs $150,000  to                                                              
claim  a $150,000  credit  instead  of a  $250,000  credit with  a                                                              
$50,000   out-of-pocket   contribution.   The  ETC   program   was                                                              
wonderful  for NACNEC,  and  at  the time,  NACNEC  built a  full-                                                              
motion-based,  8-machine,  heavy  equipment simulator  center.  He                                                              
believed that  nearly all the  contributions came from  the Alaska                                                              
Education  Tax  Credit  program.   NACNEC  shopped  around  rather                                                              
widely when  that opportunity came  up. Around that time  that oil                                                              
production  was   decreasing,  and   the  price  per   barrel  was                                                              
decreasing.  Necessity is  the  mother of  invention,  and it  was                                                              
clear  that NACNEC  needed  to go  out and  aggressively  pursuing                                                              
that.                                                                                                                           
                                                                                                                                
2:40:12 PM                                                                                                                    
SENATOR  BJORKMAN  thanked  Ms.  LeCompte  and  Mr.  Walrath.  The                                                              
committee stands  ready to support  both centers in  their mission                                                              
and  wants to  ensure  they have  the  resources  needed to  train                                                              
workers to meet industry needs.                                                                                                 
                                                                                                                                
2:41:03 PM                                                                                                                    
There  being no  further business  to come  before the  committee,                                                              
Chair Bjorkman  adjourned the Senate  Labor and Commerce  Standing                                                              
Committee meeting at 2:41 p.m.                                                                                                  

Document Name Date/Time Subjects
1.27.23 AVTEC Presentation .pdf SL&C 1/27/2023 1:30:00 PM
AVTEC Presentation to SL&C
01.27.23 NACTEC Presentation.pdf SL&C 1/27/2023 1:30:00 PM
NACTEC Presentation to SL&C