Legislature(2017 - 2018)BELTZ 105 (TSBldg)
01/25/2018 01:00 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Presentation: Aviation Advisory Board | |
| Presentation: Alaska Technical Vocational Education Program Update | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
January 25, 2018
1:32 p.m.
MEMBERS PRESENT
Senator Mia Costello, Chair
Senator Kevin Meyer
Senator Gary Stevens
Senator Berta Gardner
Senator Peter Micciche
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
PRESENTATION: AVIATION ADVISORY BOARD UPDATE
- HEARD
PRESENTATION: ALASKA TECHNICAL VOCATIONAL EDUCATION PROGRAM
(TVEP) UPDATE
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
LEE RYAN, Chair
Aviation Advisory Board
Unalakleet, Alaska
POSITION STATEMENT: Delivered an Aviation Advisory Board update.
GIDEON GARCIA, Member
Aviation Advisory Board and General Manager
Northern Air Cargo
Anchorage, Alaska
POSITION STATEMENT: Participated in the Aviation Advisory Board
update.
TOM GEORGE, Member
Aviation Advisory Board and Alaska Regional Manager
Aircraft Owners and Pilots Association
Fairbanks, Alaska
POSITION STATEMENT: Participated in the Aviation Advisory Board
update.
GREG CASHEN, Acting Commissioner
Department of Labor and Workforce Development (DOLWD)
Juneau, Alaska
POSITION STATEMENT: Delivered an update on the Alaska Technical
Vocational Education Program (TVEP).
PALOMA HARBOUR, Director
Administrative Services Division
Department of Labor and Workforce Development (DOLWD)
Juneau, Alaska
POSITION STATEMENT: Participated in the update on the Alaska
Technical Vocational Education Program (TVEP).
ACTION NARRATIVE
1:32:31 PM
CHAIR MIA COSTELLO called the Senate Labor and Commerce Standing
Committee meeting to order at 1:32 p.m. Present at the call to
order were Senators Stevens, Gardner, and Chair Costello.
Senators Meyer and Micciche arrived during the meeting.
^Presentation: Aviation Advisory Board
PRESENTATION: AVIATION ADVISORY BOARD
1:32:57 PM
CHAIR COSTELLO stated that the committee would continue the
discussion about Alaska's economy. The question today is how to
best train Alaskans for jobs. The Aviation Advisory Board would
also give a presentation to share Alaska's unique relationship
with the aviation industry and its importance in creating jobs.
She introduced and welcomed the presenters.
1:34:12 PM
LEE RYAN, Chair, Aviation Advisory Board, Unalakleet, Alaska,
said he is employed by Ryan Air, which his grandparents started
in 1953. He said his roots run deep in Western Alaska, but he's
had ample opportunity to travel throughout the state.
GIDEON GARCIA, Member, Aviation Advisory Board, said he is the
General Manager for Northern Air Cargo. The airline serves
customers from the North Slope to Western Alaska.
TOM GEORGE, Member, Aviation Advisory Board, said he is the
Alaska Regional Manager of the Aircraft Owners and Pilots
Association.
MR. RYAN stated that the goal today is to discuss the impact
that aviation has on the economy of Alaska. He began the
discussion highlighting his Junior year in high school when he
was exposed to both highway and ferry travel for the first time.
Up to that point he was only familiar with aviation travel. He
learned that the State of Alaska owns and operates a unique
transportation network that includes aviation, highways, marine
highway, and rail. That year he decided to learn about the
systems that make up Alaska's transportation network.
He reported that 82 percent of the communities in Alaska are not
on a road system and are only accessible by air. Alaska has 242
state-owned airports, two of which are international. The
Fairbanks International Airport and the Ted Stevens Anchorage
International Airport make up the Alaska International Airport
System. Alaska has six times more pilots and 16 times more
aircraft per capita than any other state.
MR. RYAN stated that the Aviation Advisory Board has 11 members
that are appointed by the governor to serve three-year staggered
terms. Its purpose and function is to advise and provide
recommendations to the commissioner of the Department of
Transportation and Public Facilities and the deputy commissioner
of the Division of Statewide Aviation on public policy related
to the department's exercise of its aviation functions assigned
by law.
Aviation has three mission statements. The Department of
Transportation and Public Facilities mission statement is to
keep Alaska moving through service and infrastructure. The
Alaska International Airport System (AIAS) mission statement is
to keep Alaska flying and thriving. The Division of Statewide
Aviation (SWA) mission statement is to sustain and improve the
quality of life throughout Alaska.
MR. RYAN reviewed the organization and leadership of the
aviation system. Marc Luiken is the Commissioner of the
Department of Transportation and Public Facilities (DOTPF) and
John Binder is the Deputy Commissioner. The deputy commissioner
oversees both the International Airport System and Statewide
Aviation.
1:40:32 PM
MR. GARCIA stated that the Alaska International Airport System
(AIAS), which consists of the international airports in
Anchorage and Fairbanks, operates as a self-sustaining
enterprise system. The airlines that have signed on to be part
of the enterprise help fund it through user fees. The signatory
airlines include Alaska Airlines, FedEx, and UPS, among others.
In 2017 they contributed over $123 million in user fees.
He pointed out that the locations of the two airports are
geographically strategic. They are 9.5 hours from 90 percent of
the industrialized world, which makes them valuable for
refueling and cargo transfer. He displayed a map of routes that
are flown more than 140 times a year. It is heavily Pacific Rim
and domestic locations throughout the U.S.
1:41:49 PM
SENATOR MICCICHE asked why Anchorage has become such a hub for
international cargo. "Is it low landing fees, low fuel prices,
location, combination of those things or what are the primary
factors?"
MR. GARCIA replied it's a combination of those factors and they
are striving to keep that competitive edge.
He reviewed 2011 data to illustrate that AIAS is an economic
engine in Alaska. The airport system in Anchorage generates one
in ten jobs and in Fairbanks it's one in twenty.
CHAIR COSTELLO asked what airports AIAS competes with and if the
Aviation Advisory Board has looked at whether improvements in
technology may reduce or eliminate the use of Anchorage
International as a hub for refueling.
MR. GARCIA said they keep an eye on that; some airports have
tried for market share but so far, the airlines have come back
because Anchorage is strategically located, competitive, and
provides good service.
SENATOR STEVENS pointed out that airlines from the West Coast
can carry less fuel and more cargo if they can stop in Anchorage
to refuel.
MR. GARCIA agreed it's a tradeoff between weight and distance.
Carrying less and going further is the competitive edge they are
always watching.
SENATOR STEVENS asked if fuel prices are reasonable and how to
ensure they stay that way.
MR. RYAN replied the majority of jet fuel goes to the
international airport in Anchorage where there is a consortium
that keeps the price down. He referenced previous questions
about the importance of the system and explained that the likely
competitors do not have a system. The airport in Fairbanks
serves as an alternate if the need arises. Additionally,
international carriers can partner with a domestic carrier in
Anchorage to run transfers. This is a competitive advantage that
other states don't have.
1:46:43 PM
CHAIR COSTELLO asked him to explain the communication process
and procedure between the airport director who is appointed by
the governor, the signatories, the community such as the Lake
Hood Pilots Association, and the Aviation Advisory Board.
MR. RYAN responded that the key to the overall system and public
involvement is the communication process. He explained that, by
statute, the board doesn't necessarily deal with the signatories
or take up signatory issues at Fairbanks, Anchorage, and Lake
Hood. However, they do recognize the importance of advising the
commissioner and governor about aviation issues. They are an
avenue for getting the right people in the room and having
discussions about an aviation issue. He cited the example of the
Lake Hood lease renewal and acknowledged that there was a break
in communication in that instance.
CHAIR COSTELLO asked him to explain the Lake Hood lease
situation.
MR. RYAN related that the Lake Hood Seaplane Base is a general
aviation and small commercial airport within the grounds of the
International Airport System. When 13 slips came up for lease on
Lake Spenard, a company worked with the Anchorage International
Airport to put these unimproved leases to bid for a 25-year
term. It went through all the channels including public notice
and everything was quiet. Questions didn't come up until the
community saw development on Lake Spenard that has a 10-year
waiting list for slips and a history of no commercial
development. Commercial activity has been limited to Lake Hood.
This dispute came about because of a lack of communication
between the international airport and the community.
CHAIR COSTELLO said it's a priority of hers to improve
communication between the airport, community councils, and the
user group. Having you here today to answer questions brings
that to light and puts it on the record, she said.
SENATOR GARDNER commented that it was surprising that people
didn't hear about this because Spenard has a very active
community council and the airport manager attends the community
meetings and makes regular reports.
MR. RYAN said the advisory board's advice to the department was
to hold a separate community meeting on this issue and find a
way to move forward and ensure it never happens again.
1:53:51 PM
MR. RYAN turned to the slide titled "Putting Alaska in
Perspective.
SENATOR GARDNER noted that Juneau, too, is an international
airport. She asked the impact of being categorized as such.
MR. RYAN explained that Juneau as an international airport
because it has international flights. Being municipally run, it
qualifies for federal airport improvement funding. The city
charges landing or fuel-flowage fees to have an enterprise like
AIAS. He noted that Alaska has about 25 municipal airports.
CHAIR COSTELLO asked if the Department of Commerce, Community
and Economic Development, Division of Community and Regional
Affairs works with communities to make sure they are aware of
any federal dollars they may be eligible to receive.
MR. RYAN said he would follow up with an answer.
CHAIR COSTELLO asked if the advisory board follows the condition
of airports and if the aviation statistics included any
Department of Defense airports in the state.
MR. RYAN replied the board does follow the condition of
airports. Rural airports are scored for federally funded
projects through the Airport Performance Evaluation Process
(APEP) and paved airports are scored through the Pavement Mass
Index (PMI). State-owned airports that qualify for a federal
project must be maintained for 20 years to live up to the grant
assurances. Military airports are counted among the more than
700 registered airports in the state, but they run under their
own premise.
He displayed a state map with colored dots depicting the state
operated, municipal, private, military, and road system airports
throughout the state. He highlighted the overall efficiency of
the system. In 2017, the aviation network operating costs
totaled about $38.3 million. That is an increase of about $8.3
million, much of which is attributed to better tracking of
facility expenses. The 19 certified airports account for about
$23 million of that annual cost and the non-certified airports
accounted for $7 million. In rural Alaska, each airport on the
map represents $35,000 to $50,000 a year to maintain and
operate. But their economic impact and the multiplier is far
greater. They serve the oil and gas industry, fishing industry,
mining, health and social services, and education.
CHAIR COSTELLO asked if someone like the McDowell Group or ISER
has done a study on the economic impact of the aviation
industry.
MR. RYAN deferred the question until later in the presentation.
2:00:58 PM
MR. GEORGE supplemented the information on the rural airport
system. He explained that the 240 state-owned airports are made
up of a mixture of gravel and paved airports, seaplane bases,
and one heliport. The regional FAA certificated airports support
aircraft with more than 30 passenger seats. Of the 25 regional
airports in the state, 19 are state operated. The airport in
Kotzebue is an example. It has multiple runways and provides the
only year-round access to the community of 3,000. These airports
have crash, fire, and rescue support and are typically more
expensive to operate.
He displayed a picture of the Koyukuk community airport that
provides the only year-round access to this city on the Yukon
River. The runway is gravel. He displayed a picture of the Gold
King Creek backcountry airstrip and stressed the importance of
these airstrips to provide access to remote areas and former
industrial sites. Locals generally do maintenance, not DOTPF.
The designation of "off-field operations" describes areas that
have no airport infrastructure, are not supported by DOTPF, but
are important for commercial, industrial, and recreational uses.
The aircraft that operate in this environment generally came
from an airport, so it is a link in the system.
2:04:25 PM
MR. GEORGE discussed funding the construction, expansion, and
development of airports. Like all states, Alaska relies on the
FAA Airport Improvement Program (AIP) as the principal funding
source to build or expand airports. The FAA pays 90-95 percent
of the capital costs. It's a good deal but the airport must be
built to federal standards. That's not always the best fit for
Alaska and often increases costs. Another factor in accepting
federal money is that the state must sign a sponsor agreement to
live up to 39 grant assurances. One of those is a signed
agreement to support the operation of the runway for 20 years or
longer. The state received $222.5 million in AIP grants in
FY2017 and a similar amount is expected this fiscal year.
CHAIR COSTELLO asked if data is kept on the airports that aren't
usable due to lack of maintenance. She clarified that she wasn't
asking about temporary closures for things like snow on the
runway.
MR. GEORGE deferred the question to the department. He added
that the FAA has made changes in the last year on how to report
runway conditions, which has increased the notices to airmen
(NOTAMs) that a runway is closed.
CHAIR COSTELLO asked if the Aviation Advisory Council works with
the Medallion Foundation. She opined that any discussion about
aviation safety in Alaska needs to involve that organization.
MR. GEORGE said there isn't an official connection, but the
board is well aware of the work the foundation does.
MR. RYAN added that it brings up a good point and is an
opportunity for the Aviation Advisory Board to work more closely
with the Medallion Foundation. He noted that he and Mr. Garcia
work for airlines that are members of that organization and that
his dad is the chair of the Medallion Foundation.
2:09:28 PM
SENATOR GARDNER asked if the $222.5 million in AIP grants was
used for both capital projects and operating funds.
MR. GEORGE replied AIP grants are primarily capital money to
expand or build new airports.
SENATOR MICCICHE asked if state law requires ongoing maintenance
of an airstrip that is permitted on state land. The business or
industry that applied for the permit may have closed or moved
on, but the airstrip continues to be used for other reasons.
MR. GEORGE said he isn't aware of a statutory requirement. Last
year DOTPF established a working group that looked at
backcountry airstrips. They found they receive considerable use.
He offered to follow up with a copy of the report. A surprising
finding was the number of people who indicated they use
backcountry airstrips year-round. He opined that the next step
is to focus on the different landowners that have state-
permitted airstrips.
SENATOR MICCICHE expressed interest in seeing the report.
CHAIR COSTELLO asked Mr. George to send the report to her office
and she would distribute it to the committee members.
MR. GEORGE turned to the slide showing cost and revenue options
to operate in the system. Overall, the annual operating cost for
the 240 airports is about $35 million; $23.3 million goes to the
19 regional hubs, $7.7 million goes to the remaining 220
airports, and the statewide aviation infrastructure costs about
$4 million.
He explained that the aviation community contributes about $10
million toward the overall operating costs. The two general
sources are $5.3 million for lease, tiedown, and other fees and
the other is $4.6 million in motor fuel tax. Proposed revenue
additions include a $1.4 million leasing program that is on hold
and $9.3 million in increased motor fuel tax. The latter is a
bill going through the process this year. He acknowledged that
supporting the rural airport system is a significant impact on
the general fund and opined that more than just the aviation
community benefits from airports.
2:15:59 PM
SENATOR STEVENS asked for clarification that the cost for bypass
mail is a separate matter and is not part of the discussion
about the cost to operate airports.
MR. GEORGE said that's correct.
MR. RYAN added that the bypass system equalizes the price of
mail to the nonpriority rate paid in the Lower 48 for delivery
over a road system. The airline is subsidized to the point that
it can deliver nonmail freight and passengers at a reasonable
price.
SENATOR STEVENS said bypass mail is extremely important to
Alaskan communities and the carriers and he'd like follow up
information on how it is working.
MR. RYAN said a lot of people would be very excited to
participate in that discussion.
2:17:44 PM
MR. RYAN turned to the slide that highlights aviation and
airline business challenges. He mentioned the bypass mail system
and said the goal of airlines in Alaska is to help people living
in nonurban areas have access to goods that are readily
available to people living in Anchorage, Fairbanks, or Juneau.
In Alaska, 75,000 people live off the road and marine highway
systems and 82 percent of the communities in Alaska are only
accessible by air. Operating a business in Alaska is very
expensive. For example, Ryan Air has invested $11 million in
facilities infrastructure and significantly more than that in
aircraft infrastructure. "Our goal as businessmen is to provide
a service to our people but doing it to try and run a business
as well." The federal rules and regulations are extensive, and
the pilots must be highly trained. There are remote access
issues, increased building costs, and the environment is
extreme. He highlighted that the economic downturn has had a
decided impact on the aviation industry.
CHAIR COSTELLO asked it's difficult to attract pilots.
MR. RYAN responded there is not as much prestige associated with
being a pilot as in years past. It's difficult to attract pilots
and the barriers to becoming a pilot are high. Training is
expensive, it's a technical job with a lot of regulations, and
there are few aviation schools in Alaska. We need more
partnerships with the Department of Labor, Native corporations,
and the Association of Village Council Presidents (ACCP), he
said.
SENATOR STEVENS asked how many pilots the university is
producing and what can be done to increase that number.
MR. RYAN said the university's Industry Advisory Council brought
that to the attention of the new director of the university's
aviation program. He hasn't received an answer, but he would
follow up with more information.
CHAIR COSTELLO asked if new FAA regulations or training
requirements are presenting challenges.
MR. RYAN said yes. He related that after a large aircraft
accident on the East Coast the FAA initiated a new requirement
for [14 CFR part] 121 certified air carriers like Northern Air
Cargo and Alaska Airlines. Those airlines are required to have
two crew members that have flown 1,500 hours and have the
airline transport pilot certification (ATP) rating. A lot of
copilots didn't qualify and that created a domino effect that
rippled to Western Alaska.
SENATOR GARDNER referred to the slide showing cargo volumes for
selected airports and asked why cargo levels are falling.
MR. GARCIA confirmed that the volumes have been flat to down for
most of the selected airports depicted on the slide. King Salmon
and Dillingham were exceptions because of good fishing. During
the 2017 commercial salmon season, about 1.7 million pounds was
flown out of Norton Sound communities. The value of the salmon
was about $2.8 million. He noted that cargo volumes in and out
of Deadhorse peaked in 2015 because the Haul Road experienced
closures.
He turned to aviation challenges going forward. Some fleet
changes include international wide-body aircraft that may affect
refueling in Anchorage. Modernization is also occurring. Alaska
Airlines is bringing on new 737-700 freighters which will change
the lift capability and provide more resources. There will be
infrastructure challenges as well. Alaska Airlines has major
capital projects underway with a new hanger in Anchorage and
security upgrades in Kotzebue and Nome. He also spoke to the
challenges air carriers face related to ever-increasing federal
requirements. He related that a new National Environmental
Policy Act (NEPA) determination has added another layer of
federal environmental review of projects. The Alaska Region FAA
is working with DOTPF helping to make this process as smooth as
possible.
2:32:17 PM
MR. RYAN thanked the committee and expressed optimism about the
economy and keeping Alaska connected by the movement of goods
and services. He concluded that to have a healthy network it
takes aviation, the highway system, the marine highway, and rail
working together.
CHAIR COSTELLO thanked the presenters and observed that what
came through is that aviation touches every area of the state.
She reiterated her intention to continue the conversation about
improving communication between the community and the Anchorage
airport.
2:35:44 PM
At ease
^Presentation: ALASKA TECHNICAL VOCATIONAL EDUCATION PROGRAM
UPDATE
PRESENTATION: ALASKA TECHNICAL VOCATIONAL EDUCATION PROGRAM
UPDATE
2:40:04 PM
CHAIR COSTELLO reconvened the meeting and welcomed Acting
Commissioner Greg Cashen and Administrative Services Director
Paloma Harbour to address the question of how to best train
Alaskans for jobs, with specific focus on the Alaska Technical
Vocational Education Program (TVEP). She listed the individuals
who were listening online and available to answer questions.
2:41:16 PM
GREG CASHEN, Acting Commissioner, Department of Labor and
Workforce Development (DOLWD), Juneau, introduced himself and
Ms. Harbor and thanked the committee for the invitation to
provide an update on the Technical Vocational Education Program
(TVEP). The latest report was transmitted to the legislature
this morning and is available on the Alaska Workforce Investment
Board website. He also offered to answer specific questions
about training for aviation.
ACTING COMMISSIONER CASHEN stated that TVEP was established by
the legislature in 2000. The purpose was to enhance the quality
and accessibility of job training throughout the state and to
align training with regional workforce demands. The program is
funded by employee contributions to the unemployment insurance
trust fund. TVEP funds are distributed to technical and
vocational education entities throughout Alaska as designated by
statute. A statewide network of training providers is critical
to developing an Alaskan workforce for Alaska's jobs, he said.
He explained that TVEP serves youth and adults; ensures a
statewide training infrastructure; supports operating costs for
centers across the state, including rural Alaska; and provides a
wide range of vocational training from entry-level to associates
degrees. In FY2017, the ten TVEP recipients were allocated $13.3
million serving 10,168 Alaskans at a cost per participant of
$1,307. The program is effective in increasing graduation rates,
employment, earnings, and Alaska hire.
ACTING COMMISSIONER CASHEN turned to performance highlights and
warned that the data the department reports relies on data that
employers submit for unemployment insurance (UI) reporting.
Because the self-employed are not covered by UI and the federal
government has a separate UI program, employment and wage data
is not available for these groups.
He displayed a chart that shows the number of distinct Alaskans
served by TVEP recipients since FY2012 and how many of those
individuals were employed within the year after completing their
training.
2:44:43 PM
SENATOR STEVENS asked if the individuals were employed in the
field of their training.
ACTING COMMISSIONER CASHEN replied this data doesn't reflect
that level of granularity; it is overall employment data.
SENATOR GARDNER summarized her understanding the exit data
reflects the number of people who participated and completed the
program and the blue line reflects the people who were employed
a year after completing the program. The difference may, in
part, be explained by those who completed a program that doesn't
report employed people such as fishermen or federal workers.
ACTING COMMISSIONER CASHEN said that's right.
CHAIR COSTELLO asked if TVEP provides training for people who
may become federal workers or fishermen, and if the gap reflects
people who didn't find a job or those the department isn't able
to track.
2:46:28 PM
PALOMA HARBOUR, Director, Administrative Services Division,
Department of Labor and Workforce Development (DOLWD), Juneau,
explained that the gap reflects those individuals the department
couldn't identify with the unemployment insurance data. They
wouldn't show up for any number of reasons such as working for
the federal government, in the military, self-employed, or
continuing their training.
CHAIR COSTELLO asked if the department tracks how long a
graduate continues to be employed.
MS. HARBOUR replied the data is reported quarterly so they could
report on the number of quarters the graduates were employed, if
asked.
ACTING COMMISSIONER CASHEN related that many of the Alaskans
served by TVEP are just beginning their training. Success in
these programs gives participants the skills and confidence they
need to enter employment or seek additional training. Many
students go from one training provider to another to advance
their skills.
He displayed a chart showing the median wage for a TVEP
participant 7-12 months after they exited the program, which is
the statutory performance measure. Because it reflects just six
months of wages, they also included the median wage for the full
year after exit. He noted that individuals who work part time
bring down the average. He displayed a graph showing the average
income for a TVEP recipient the year before they entered the
TVEP program compared to the year after they exited the program.
On average, participants saw a 13 percent salary increase. He
displayed a slide showing the total earnings for all FY2016 TVEP
participants the year before entering the TVEP program compared
to the year after training. He highlighted that, as a result of
the TVEP program, $22 million in wages was added to the Alaska
economy.
CHAIR COSTELLO asked if fulltime students receive a salary or
stipend while enrolled in TVEP.
MS. HARBOUR replied it depends on the student. They could be
working part time while attending training, but many of the
programs are fulltime during the day.
2:50:26 PM
ACTING COMMISSIONER CASHEN displayed slides showing the top
occupations in which TVEP participants were employed and the
occupations with the highest total jobs. He reported that the
top ten occupations listed mirror the employment outcomes of
TVEP participants. It shows that TVEP programs are successfully
preparing Alaskans for Alaska's jobs.
CHAIR COSTELLO pointed out that aviation is not listed. She
asked if the combined employment numbers reflect the total
number of student who exited the programs and were employed for
FY2017.
ACTING COMMISSIONER CASHEN said that's correct. He added that
aviation is incorporated in the transportation data.
He said the committee requested information last year about the
occupations that might be categorized as Office and
Administrative Support Services. He explained that occupations
include business and office technology, which are high-demand
occupations that are critical to businesses. He noted that Ms.
Harbour worked as an administrative assistant for 15 months
before she was promoted to a budget position that may have been
categorized as related to her math degree. He displayed a list
of the remaining occupations in which TVEP participants were
employed. An additional nine participants were employed in
occupations that could not be categorized.
ACTING COMMISSIONER CASHEN displayed a table that shows the TVEP
distribution by recipient since FY2016. He noted that the FY2019
distribution will be the second year of declining funding for
recipients. TVEP revenue declines when overall employment and
wages in Alaska decline.
2:53:40 PM
CHAIR COSTELLO asked the name of the most recent recipient.
ACTING COMMISSIONER CASHEN replied Ilisagvik College was added
in 2014. That increased the contribution from unemployment
insurance to 0.16 percent.
He displayed a slide that detailed by TVEP recipient the funds
distributed and number of Alaskans served in FY2017. He noted
that some TVEP recipients serve youth, some serve adults, and
many serve a mix.
SENATOR GARDNER observed that TVEP funding comes from wages and
as wages fall the funding falls and that is a time when more
people might need the services.
ACTING COMMISSIONER CASHEN said that's correct.
He displayed a slide of employment and wage data by TVEP
recipient for FY2016 program participants based on the statutory
performance measures. It identifies the percentage of
participants that worked in the fourth quarter after they
completed training. He pointed out that given the seasonality of
Alaska jobs, looking at just three months for employment
outcomes will not provide an adequate picture. The median wage
measure is equally flawed because it represents six months of
wages instead of a year and it focuses on particular quarters
after exit, not the full year.
CHAIR COSTELLO asked if the department tracks how and on what
the TVEP recipients spend their money.
ACTING COMMISSIONER CASHEN replied the department requests
budgets in the grant agreement for each TVEP recipient.
MS. HARBOUR confirmed there is a budget on the grants the
department administers, and it shows some detail about how the
money is spent. The department doesn't have those details for
the Galena Learning Academy or the university because it doesn't
administer those grants. However, the Department of Education
and the university could probably provide it if requested.
CHAIR COSTELLO asked if all the students pay tuition or if some
of the grant is used for student fees.
ACTING COMMISSIONER CASHEN replied all the institutions are
tuition-based.
SENATOR GARDNER observed that there is a wide range in the
percent employed after exit. Amundsen Educational Center is the
highest at 82 percent and the Northwestern Alaska Career and
Technical Center (NACTC) is 34 percent. She asked if they know
why there's such a difference.
ACTING COMMISSIONER CASHEN explained that NACTC trains primarily
youths under age 18 so some of those people may have gone on to
additional training.
CHAIR COSTELLO commented that it would be valuable to look at
the data five years out. She asked if there is a philosophy
embedded in the program about the best time for training,
because it seems that it would be beneficial if students exited
high school with some of these skills.
ACTING COMMISSIONER CASHEN said the department only tracks
statutorily required statistics, but the university may track
that information. He reiterated that some students go on to
additional training and it may be in an entirely different area.
CHAIR COSTELLO mentioned the process technology track at West
High and the training program at King Career Center. She said
she's always thought it would make sense to offer ground school
in high school because it integrates a lot of different content
matter. She asked if DOLWD works closely with the Department of
Education and Early Development (DEED).
ACTING COMMISSIONER CASHEN answered yes; the department is
currently working with the Alaska Workforce Investment Board,
the Department of Education, and the University of Alaska to
update the Career and Technical Education Plan that was created
in 2010.
CHAIR COSTELLO expressed interest in having a discussion
sometime this session about the Career and Technical Education
Plan.
ACTING COMMISSIONER CASHEN mentioned training opportunities at
the regional training centers, King Career Center, Mat-Su Career
and Tech High School in Wasilla, and Hutchinson Career Center in
Fairbanks.
3:04:24 PM
ACTING COMMISSIONER CASHEN displayed a slide that showed the
percentage of employed within a year after exit and their median
wage for that year. He said the Research and Analysis Section
reports that in 2016 federal civilian employees in Alaska
totaled 15,200 and the payroll was $1.2 billion. The number of
uniformed military was 21,000. The department does not know if
any of these individuals received training from TVEP recipients.
SENATOR GARDNER asked if he was talking about "other TVEP
performance measures" and the measure he's talking about is
wages.
MS. HARBOUR explained that the first slide shows the statutory
measures, which is one year after exit. The current slide shows
employment any time during the year following exit. On the wage
information, the statutory measure is the median wage from
months 7-12 after exit. The current slide shows the median wage
for the full year after exit.
SENATOR GARDNER summarized that the measure is wages and the
question is over what period.
MS. HARBOUR agreed. She added that given Alaska's high
seasonality, she thought these better reflect outcomes.
SENATOR STEVENS commented that Delta seems to be doing very well
with an average wage of $42,000. He asked what Delta trains
students to do.
ACTING COMMISSIONER CASHEN said construction and mining are
probably the primary drivers. The Delta Mine Training Center is
there.
ACTING COMMISSIONER CASHEN returned to the PowerPoint and
displayed a slide that provides an update of the work the
department has done since last session with the Alaska Workforce
Investment Board (AWIB) to review and potentially change the
TVEP performance measures and reporting requirements. The AWIB
executive director has been working with the head of the
executive committee to identify improvements for program
accountability. Department staff have been meeting with the
committee monthly since early summer to review the current
reporting challenges. The final recommendations will be reviewed
by the full board at its May meeting.
He thanked the committee for the opportunity to present.
SENATOR STEVENS requested follow-up information on pilot
training.
ACTING COMMISSIONER CASHEN shared that the Galena Interior
Learning Academy provides private pilot ground school, flying,
and Arctic survival. The Northwestern Alaska Career and
Technical Center (NACTEC) in Nome provides aviation, airframe,
and power plant mechanic training. He added that the department
has started working with some of the airlines that presented
earlier on an apprenticeship program for commercial pilots and
A&P mechanics. He offered to follow up with a more specific
conversation.
3:11:44 PM
There being no further business to come before the committee,
Chair Costello adjourned the Senate Labor and Commerce Standing
Committee meeting at 3:11 p.m.
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