Legislature(2021 - 2022)BELTZ 105 (TSBldg)

01/24/2022 01:30 PM Senate LABOR & COMMERCE

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Audio Topic
01:43:29 PM Start
01:44:23 PM University of Alaska Presentation on Workforce Development Programs
02:30:54 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ University of Alaska President Pat Pitney TELECONFERENCED
Presentation on Workforce Development Programs
+ Bills Previously Heard/Scheduled TELECONFERENCED
                    ALASKA STATE LEGISLATURE                                                                                  
          SENATE LABOR AND COMMERCE STANDING COMMITTEE                                                                        
                        January 24, 2022                                                                                        
                           1:43 p.m.                                                                                            
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Joshua Revak, Vice Chair                                                                                                
Senator Peter Micciche                                                                                                          
Senator Gary Stevens                                                                                                            
Senator Elvi Gray-Jackson                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Mia Costello, Chair                                                                                                     
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
UNIVERSITY OF ALASKA PRESENTATION ON WORKFORCE DEVELOPMENT                                                                      
PROGRAMS                                                                                                                        
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
No previous action to record                                                                                                    
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
PAT PITNEY, Interim President                                                                                                   
University of Alaska                                                                                                            
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Delivered a presentation on Workforce                                                                     
Development Programs.                                                                                                           
                                                                                                                                
TERI COTHREN, Associate Vice President                                                                                          
University of Alaska                                                                                                            
Anchorage, Alaska                                                                                                               
POSITION STATEMENT: Participated in the presentation on                                                                       
Workforce Development Programs.                                                                                                 
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
1:43:29 PM                                                                                                                    
VICE CHAIR JOSHUA REVAK called the Senate Labor and Commerce                                                                  
Standing Committee meeting to order at 1:43 p.m. Present at the                                                                 
call  to order  were Senators  Gray Jackson,  Micciche, and  Vice                                                               
Chair Revak.  Senator Stevens  arrived during  the course  of the                                                               
meeting.                                                                                                                        
                                                                                                                                
^University  of  Alaska  Presentation  on  Workforce  Development                                                               
Programs                                                                                                                        
   UNIVERSITY OF ALASKA PRESENTATION ON WORKFORCE DEVELOPMENT                                                               
                            PROGRAMS                                                                                        
                                                                                                                                
1:44:23 PM                                                                                                                    
VICE   CHAIR  REVAK   announced  the   committee  would   hear  a                                                               
presentation on  Workforce Development Programs by  University of                                                               
Alaska Interim President Pat Pitney.                                                                                            
                                                                                                                                
1:44:52 PM                                                                                                                    
PAT PITNEY,  Interim President, University of  Alaska, Anchorage,                                                               
Alaska, began the presentation by  explaining that the University                                                               
of Alaska  is Alaska's system  of higher education. It  has three                                                               
universities in  Anchorage, Juneau, and Fairbanks:  UAA, UAS, and                                                               
UAF. Each has  a different mission: UAF is research;  UAA is open                                                               
access,  comprehensive;  and  UAS  is  regional.  Combined,  they                                                               
provide  a breadth  of programs  from workforce  credentialing to                                                               
doctoral  degrees. The  community campuses  throughout the  state                                                               
provide  leadership advocacy  and are  an important  component of                                                               
the whole, particularly in the workforce development sector.                                                                    
                                                                                                                                
PRESIDENT  PITNEY related  that  since she  accepted the  interim                                                               
position,  her focus  has  been  to build  stability  for the  UA                                                               
system, which  will foster  confidence and  trust in  meeting the                                                               
needs  of the  state. These  include: meeting  Alaska's workforce                                                               
needs through increased skill  and degree attainment; world-class                                                               
nationally competitive research, which  is an economic engine for                                                               
the state; and more cost effective operations.                                                                                  
                                                                                                                                
She  displayed   slide  4  and   cited  the  following   data  to                                                               
demonstrate that postsecondary education pays:                                                                                  
                                                                                                                                
     Median earnings:                                                                                                         
        • $35,328 for high school graduates                                                                                     
        • $44,619 for Alaskans with an associate's                                                                              
        • $57,708 for those with a bachelor's                                                                                   
        • $77,402 for holders of graduate or professional                                                                       
          degrees                                                                                                               
                                                                                                                                
PRESIDENT PITNEY  said the focus  and attention  on postsecondary                                                               
education -  from technical programs to  graduate programs, makes                                                               
a difference  to a person's  life and  a large difference  to the                                                               
state's economy.                                                                                                                
                                                                                                                                
1:48:20 PM                                                                                                                    
She related that Alaska has  been challenged for the last several                                                               
years  because  the  population  is  flat  and  the  working  age                                                               
population  is  declining. She  asked  Teri  Cothren if  she  had                                                               
anything to add.                                                                                                                
                                                                                                                                
1:48:52 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
1:49:56 PM                                                                                                                    
VICE  CHAIR  REVAK reconvened  the  meeting  and recognized  Teri                                                               
Cothren.                                                                                                                        
                                                                                                                                
1:50:28 PM                                                                                                                    
TERI COTHREN, Associate Vice  President of Workforce Development,                                                               
University  of  Alaska,  Anchorage, Alaska,  confirmed  that  the                                                               
declining access to a skilled  workforce is a challenge. She said                                                               
there  are  very good,  high-pay  jobs  available throughout  all                                                               
regions  of  the state.  Alaska  will  be  in a  better  position                                                               
economically  if more  Alaskans  become  interested in  obtaining                                                               
training  to  increase their  skill  level  for those  jobs.  The                                                               
university is  positioning itself to  offer both short  and long-                                                               
term programs  that will train  Alaskans for the jobs  both today                                                               
and in the future.                                                                                                              
                                                                                                                                
1:51:45 PM                                                                                                                    
PRESIDENT PITNEY  turned to slide  6 that depicts the  percent of                                                               
UA graduates  working in  Alaska. She said  UA has  analyzed nine                                                               
different   industry  sectors,   one   of   which  is   workforce                                                               
development.  Across all  sectors, 96.3  percent of  UA graduates                                                               
working in  Alaska are residents.  For comparison,  residency for                                                               
all Alaska  workers in  these occupation  areas is  79.3 percent.                                                               
She displayed a  map of the state to show  that UA graduates work                                                               
throughout  Alaska  according  to  the  nine  industry  workforce                                                               
reports.                                                                                                                        
                                                                                                                                
She deferred  to Ms. Cothren  to discuss the Department  of Labor                                                               
and  Workforce Development  (DOLWD)  2022 Jobs  Forecast and  the                                                               
federal Infrastructure Bill.                                                                                                    
                                                                                                                                
1:53:24 PM                                                                                                                    
MS. COTHREN said  she does not know how much  Alaska will receive                                                               
from the Infrastructure Bill, but  the initial analysis indicates                                                               
that  it will  be more  per capita  than any  other state.  It is                                                               
therefore important to  partner to prepare Alaskans  for the jobs                                                               
this  funding  will  require.  This  includes  ensuring  students                                                               
obtain cross-cutting skills they can utilize long term.                                                                         
                                                                                                                                
She  mentioned   the  UA  construction  programs   at  the  three                                                               
universities  and  highlighted  that  those  occupations  require                                                               
cross-cutting skills for  mining, maritime, oil &  gas, and other                                                               
key industry sectors to the  state's economy. Because the funding                                                               
will  spread over  five  years, she  said there  is  a window  to                                                               
prepare and be  strategic to leverage existing  assets across the                                                               
state's six  economic regions to  prepare and train  Alaskans for                                                               
these jobs. She  pointed out that a number of  the jobs listed on                                                               
slide  8  require  short  term  training  while  others  such  as                                                               
construction management take  longer. She noted that  many of the                                                               
university  programs  that  support  construction  in  particular                                                               
already exist.  What is  needed is to  increase awareness  to get                                                               
Alaskans  involved  in  these  training   programs.  It  is  also                                                               
important to increase  awareness about access to  funding such as                                                               
federal  student aid.  She highlighted  that  while Alaska  ranks                                                               
50th  for completing  FAFSA applications  for financial  aid, the                                                               
research shows  that students who complete  the FAFSA application                                                               
are  40   percent  more  likely   to  enroll   in  post-secondary                                                               
education.                                                                                                                      
                                                                                                                                
MS. COTHREN  said UA also  partners with the Department  of Labor                                                               
and  Workforce  Development  (DOLWD)  and local  job  centers  to                                                               
increase  access to  USDOL Workforce  Innovation Opportunity  Act                                                               
funding  that  provides  wraparound  services  and  helps  remove                                                               
barriers   to  Alaskans   accessing  jobs   training.  She   said                                                               
engagement  with   industry  partners  can  be   strengthened  by                                                               
utilizing labor market data to  identify gaps and emerging needs,                                                               
and  this  requires  strategic investment.  She  noted  that  the                                                               
January 2022  issue of DOLWD's  Trends magazine  highlighted that                                                               
job growth  is also anticipated  in health  care, transportation,                                                               
public schools, and oil and mining exploration and development.                                                                 
                                                                                                                                
1:58:13 PM                                                                                                                    
VICE CHAIR REVAK asked about enrollment trends in the UA system.                                                                
                                                                                                                                
PRESIDENT  PITNEY replied  there are  fewer students  than a  few                                                               
years ago.  She noted that  UA saw significant reductions  in the                                                               
budget seven of  the last eight years and is  requesting a modest                                                               
budget  increase  this  year.  UA lost  one-third  of  its  state                                                               
funding  or $100  million  in general  fund.  That combined  with                                                               
COVID  has resulted  in lower  enrollment.  UA reduced  a lot  of                                                               
programs, but  maintained those  that are  most connected  to the                                                               
high-demand  jobs in  the state.  Some programs,  such as  health                                                               
care, have  capacity constraints, while others  have the capacity                                                               
to  handle   additional  enrollment.   A  few  areas   will  need                                                               
investment,  whereas others  just  need a  link  to students  and                                                               
increased awareness that the jobs  will be there and the skillset                                                               
for those jobs  will last beyond this boom.  She highlighted that                                                               
workers are  not drawn to  Alaska as they  were in the  past when                                                               
wages were substantially higher than in the Lower 48.                                                                           
                                                                                                                                
PRESIDENT PITNEY  said three factors  point to the need  to train                                                               
Alaskans with the  skillsets for Alaska jobs: 1)  the working age                                                               
population is  declining; workers  are not  drawn to  Alaska like                                                               
they were in  the past because the  substantial wage differential                                                               
no  longer exists;  and every  state  is getting  money from  the                                                               
infrastructure bill so workers are less likely to relocate.                                                                     
                                                                                                                                
2:01:07 PM                                                                                                                    
SENATOR MICCICHE  noted that  he heard  much of  this information                                                               
when President  Pitney presented to the  Education Committee this                                                               
morning.  He  recounted that  UA  has  experienced a  35  percent                                                               
reduction in enrollment,  which is more than  11,000 students. He                                                               
expressed  concern about  the  unprecedented  loss and  suggested                                                               
members review the presentation from this morning.                                                                              
                                                                                                                                
VICE CHAIR REVAK  asked if more Alaskans who  have graduated high                                                               
school are  going out  of state  for post-secondary  education as                                                               
opposed to attending UA.                                                                                                        
                                                                                                                                
PRESIDENT  PITNEY replied  those  numbers have  not changed  very                                                               
much. The  biggest challenge is  that more students  are choosing                                                               
to not  continue any  type of education  beyond high  school. She                                                               
acknowledged  that  uncertainty  about  financial  aid  certainly                                                               
plays a part.  The Alaska Performance Scholarship  and the Alaska                                                               
Education Grant  were up in  the air at  the end of  last session                                                               
and that  left a  lot of people  who had enrolled  up in  the air                                                               
about  whether they  would receive  funding. She  emphasized that                                                               
stability is essential  to repair the damage that  the last eight                                                               
years of  uncertainty has done.  She noted that  COVID compounded                                                               
the problem but it was not as large a factor as anticipated.                                                                    
                                                                                                                                
2:05:21 PM                                                                                                                    
PRESIDENT PITNEY turned  to slide 9 to discuss  how the Technical                                                               
and  Vocational  Education   Program  (TVEP)  supports  workforce                                                               
development. She  explained that the Alaska  Workforce Investment                                                               
Board provides funding  to the University of Alaska  and 14 other                                                               
providers for 1-2 year career  technical education (CTE) courses.                                                               
She  reported  that in  FY2020,  UA  trained  50 percent  of  CTE                                                               
students  statewide. High  school students  participating in  the                                                               
middle  college program  receive  college credit  for taking  CTE                                                               
courses.  Because   UA  is  the  university   system  for  higher                                                               
education, it stretches from the  community college and technical                                                               
college  mission through  PhD programs.  The infrastructure  bill                                                               
will make a particular difference for these short term courses.                                                                 
                                                                                                                                
MS.  COTHREN  added  that  the university  system  uses  TVEP  to                                                               
deliver  career  and technical  education  programs  and to  help                                                               
maintain lab space and equipment,  which is important to continue                                                               
to  meet  current  industry  standards.   TVEP  funding  is  also                                                               
strategically  invested to  meet emerging  needs. For  example, a                                                               
program that is currently receiving  funding is training electric                                                               
vehicle  technicians. Electric  vehicle use  is expanding  in the                                                               
state and UA  is trying to get  ahead of that curve  to meet that                                                               
workforce demand.                                                                                                               
                                                                                                                                
2:08:30 PM                                                                                                                    
SENATOR  GRAY-JACKSON  asked  if  high school  students  who  are                                                               
receiving college credits while in  high school are continuing to                                                               
post-secondary education.                                                                                                       
                                                                                                                                
PRESIDENT  PITNEY  replied a  much  higher  percentage of  middle                                                               
college  students  are going  on  to  college  and quite  a  high                                                               
percentage are staying in Alaska.  She posited that taking middle                                                               
college courses  takes some of  the fear out of  transitioning to                                                               
college.                                                                                                                        
                                                                                                                                
She  displayed  pictures  representing   the  nine  UA  workforce                                                               
reports  in administration  and finance,  aviation, construction,                                                               
fisheries  and marine  science,  health, information  technology,                                                               
mining,  oil  and  gas,  and teacher  education.  She  urged  the                                                               
committee to  look at the  reports which are updated  every other                                                               
year.                                                                                                                           
                                                                                                                                
2:10:51 PM                                                                                                                    
PRESIDENT   PITNEY  directed   attention  to   the  list   of  UA                                                               
construction programs  at the three universities  listed on slide                                                               
11.                                                                                                                             
                                                                                                                                
MS.  COTHREN added  that UA  is partnering  with school  district                                                               
construction programs  to strengthen  the path for  secondary and                                                               
post-secondary education.  She cited the example  in Juneau where                                                               
the  Southeast Career  Education campus  partners with  the local                                                               
housing authority  and school district  to train high  school and                                                               
post-secondary students  to build houses locally.  The funds from                                                               
the sale  of those houses are  used to benefit the  community and                                                               
to  reinvest in  the  program for  continued sustainability.  She                                                               
noted  that  welding  is  an  example  of  another  popular  dual                                                               
enrollment technical education program.                                                                                         
                                                                                                                                
2:12:59 PM                                                                                                                    
PRESIDENT PITNEY mentioned a few  of the construction programs to                                                               
demonstrate  the breadth  of  offerings including:  Refrigeration                                                               
and Heating  Technology, Structural Technology,  and Occupational                                                               
Safety and Health                                                                                                               
                                                                                                                                
PRESIDENT   PITNEY  reviewed   the   UA   Workforce  Report   for                                                               
Construction.  She   highlighted  that  97  percent   of  working                                                               
graduates of  UA construction programs  are Alaska  residents; 85                                                               
percent  obtain employment  in the  first year  after graduation;                                                               
and five years after completing  the training the average wage is                                                               
$72,000.                                                                                                                        
                                                                                                                                
MS. COTHREN said  another example related to  construction is how                                                               
UA is  addressing the  statewide need for  drivers who  possess a                                                               
commercial  driver's  license (CDL).  They  are  needed to  drive                                                               
school buses and  in construction, mining, and oil  and gas. This                                                               
is  a  high  demand  area  that  will  be  accentuated  with  the                                                               
additional  transportation needs  related  to the  Infrastructure                                                               
Bill. She explained that the  UAA Career and Technical College in                                                               
Anchorage became  a testing  site so that  students can  obtain a                                                               
CDL while they are in  another program such as diesel technology.                                                               
All they have to do is  submit their paperwork to the Division of                                                               
Motor  Vehicles  (DMV)  to get  their  license  instated  without                                                               
additional testing.  Because students are sometimes  reluctant to                                                               
leave their rural area to visit an  urban hub to obtain a CDL, UA                                                               
is sending instructors to DMV  approved sites and partnering with                                                               
industries to use  their trucks and their harbor  area outside of                                                               
seafood season where there is space  to drive the truck. Up to 12                                                               
students can be trained locally and in a short period of time.                                                                  
                                                                                                                                
2:16:08 PM                                                                                                                    
PRESIDENT PITNEY reviewed the nine UA Workforce Reports:                                                                        
                                                                                                                                
Administration  and  Finance has  33  programs.  While it  varies                                                               
depending  on  the degree  attained,  graduates  earn on  average                                                               
$63,000 per  year. She highlighted  that graduates of  the Public                                                               
Administration Program earn $100,000 per year.                                                                                  
                                                                                                                                
Aviation has 11  programs and graduates can expect to  earn up to                                                               
$73,000 per year.                                                                                                               
                                                                                                                                
Fisheries  and Marine  Science has  21 programs  that serve  this                                                               
industry. In the  past 10 years, 975 students  have graduated and                                                               
94 percent  of the  graduates working in  this sector  are Alaska                                                               
residents. She noted  that the fisheries technician  program is a                                                               
short  course that  has been  robust  the last  three years.  The                                                               
mariculture program is under construction.                                                                                      
                                                                                                                                
The  Health   sector  has  50  programs.   On  average,  clinical                                                               
graduates earn  $64,000 per year and  behavioral health graduates                                                               
earn  $52,000  per  year.  The first  year  after  graduation  82                                                               
percent  of  clinical  graduates  and 57  percent  of  behavioral                                                               
health  graduates   are  working   in  health  care   and  social                                                               
assistance fields. The dental assistant  and certified nurse aide                                                               
programs  are  short  courses while  the  nursing  program  takes                                                               
longer.  She  noted  the capacity  constraints  in  this  sector,                                                               
particularly in nursing.                                                                                                        
                                                                                                                                
2:18:53 PM                                                                                                                    
SENATOR MICCICHE  said the  nursing program  is excellent  and it                                                               
has had  capacity issues  for 40  years. He  asked at  what point                                                               
will UA increase the capacity of  the nursing program to meet the                                                               
demand.                                                                                                                         
                                                                                                                                
PRESIDENT PITNEY replied that in  the 1998-2000 timeframe, UA set                                                               
out to  increase the number of  nurses in the program  from about                                                               
70  to about  230 per  year. The  health care  area has  over 750                                                               
graduates   per  year,   from  certified   nurse  assistants   to                                                               
administrators. Those programs grew  consistently until 2014 when                                                               
the successive  and dramatic budget  reductions began.  That made                                                               
it difficult to grow.                                                                                                           
                                                                                                                                
She related  that the  Department of  Health and  Social Services                                                               
(DHSS)  has  contracted  with  UAA to  help  recruit  and  retain                                                               
faculty in  the nursing  program. It is  a one-time  contract and                                                               
the university  is asking for  that funding in this  budget. This                                                               
will provide stability  for the program and  the university could                                                               
then  start to  focus on  the capacity  issue. She  noted that  a                                                               
nursing degree is  a four-year program so it will  take that long                                                               
to begin to move the dial  in the right direction. She added that                                                               
the loss in enrollment due to  COVID amplified the effects of the                                                               
budget reductions.                                                                                                              
                                                                                                                                
2:23:05 PM                                                                                                                    
SENATOR MICCICHE asked if UA  had ever approached the legislature                                                               
with targeted  funding requests. For example,  a specific request                                                               
for $1.8 to increase the nursing  program to fill a specific gap.                                                               
He wondered  whether being more  direct and targeted in  making a                                                               
request  might result  in more  support from  the legislature  to                                                               
lean on the administration.                                                                                                     
                                                                                                                                
2:24:13 PM                                                                                                                    
SENATOR STEVENS joined the committee.                                                                                           
                                                                                                                                
PRESIDENT  PITNEY said  she can  show  specific requests  through                                                               
FY2017  that did  exactly that  for a  number of  programs. There                                                               
were specific requests when the  nursing program was expanded and                                                               
when the  process technology  program was  being built.  When the                                                               
budget reductions started, the university  as a whole reallocated                                                               
funding   to  things   like  education,   health  programs,   and                                                               
educators, but doing that meant other areas were cut further.                                                                   
                                                                                                                                
PRESIDENT PITNEY said  the rest of the reports  are excerpts. She                                                               
offered to answer questions.                                                                                                    
                                                                                                                                
2:26:13 PM                                                                                                                    
VICE CHAIR  REVAK said  he was  pleased to see  the focus  on the                                                               
programs that Alaska needs most.                                                                                                
                                                                                                                                
MS.  COTHREN  thanked  the  committee for  its  interest  in  the                                                               
workforce initiatives.                                                                                                          
                                                                                                                                
2:27:02 PM                                                                                                                    
SENATOR  MICCICHE  commented  that  he  supports  the  university                                                               
system and  has a  vision for where  the state can  go and  it is                                                               
reliant on a  trained workforce. He encouraged  the presenters to                                                               
keep  their  spirits   up  and  help  legislators   to  help  the                                                               
university.                                                                                                                     
                                                                                                                                
VICE CHAIR REVAK commented that  the last several years have been                                                               
challenging for the university and he appreciates their efforts.                                                                
                                                                                                                                
SENATOR STEVENS commented  that higher education is  in bad shape                                                               
now and  he wanted to encourage  everyone to get the  word out to                                                               
young  people in  Alaska that  a college  education will  improve                                                               
their lives in almost every way.                                                                                                
                                                                                                                                
SENATOR GRAY-JACKSON  commented that she  would like to  see more                                                               
incentives for  young people  to graduate high  school and  go to                                                               
college.  One  barrier is  cost  and  the legislature  should  do                                                               
something about that.                                                                                                           
                                                                                                                                
2:30:54 PM                                                                                                                    
There being  no further  business to  come before  the committee,                                                               
Vice  Chair  Revak  adjourned  the   Senate  Labor  and  Commerce                                                               
Standing Committee meeting at 2:30 p.m.                                                                                         

Document Name Date/Time Subjects
UA Workforce Development Presentation - 1.24.22.pdf SL&C 1/24/2022 1:30:00 PM
UA Workforce Report - Construction, November 2020.pdf SL&C 1/24/2022 1:30:00 PM