HOUSE BILL NO. 141 "An Act relating to allocations of funding for the Alaska Workforce Investment Board; and providing for an effective date." 2:07:26 PM Co-Chair Foster relayed that the bill was last heard on Monday, March 16, 2017 when public testimony was closed. There were no amendments from committee members. 2:07:49 PM MARY SCHLOSSER, STAFF, REPRESENTATIVE FANSLER, briefly reminded the committee that HB 141 allocated funding for the Alaska Workforce Investment Board, which had 10 benefactors under the Alaska Technical and Vocational Education Program (TVEP). 2:09:11 PM Vice-Chair Gara reviewed the fiscal notes. He relayed that the fiscal impact note from the Department of Education (DEED) FN1 (EED) in the amount of $478.8 thousand in Designated General Funds (DGF) was allocated to Student and School Achievement in FY 2018. He turned to the fiscal impact note from the University of Alaska (UA) FN4 (UA) in the amount of $5386.6 million DGF allocated to Budget Reductions/Additions System Wide in FY 2018. He moved to the new Department of Labor and Workforce Development (DOL) fiscal impact note in the amount of $4210.1 million DGF that was allocated to Workforce Development in FY 2018. He addressed another new fiscal impact note from DOL in the amount of $2034 million allocated to the Alaska Vocational Technical Center (AVTEC) in FY 2018. He pointed to another new fiscal note from DOL in the amount of $408.9 thousand DGF allocated to Unemployment Insurance in FY 2018. 2:11:22 PM Representative Wilson asked whether the fiscal notes reflected the reductions in the governor's amended budget because the state did not receive as much unemployment as expected. Ms. Schlosser responded in the affirmative. Representative Wilson deduced that the fiscal notes reflected the "new amounts in the governor's budget that were adjusted." She wondered how the fiscal notes were maintained at the same level in the out years when unemployment increased. 2:12:08 PM PALOMA HARBOUR, ADMINISTRATION SERVICES DIRECTOR, DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT, explained that the fiscal note simply reflected that the program was extended for five years. The out-year amounts would change based on the amount in the fund but was impossible to predict. The amounts would be "trued up" each year. She affirmed that the fiscal notes reflected the governor's amended TVEP amounts based on a lower fund balance than originally projected. 2:13:01 PM Co-Chair Seaton MOVED to report HB 141 out of Committee with individual recommendations and the accompanying fiscal notes. [The bill was set aside for further consideration and no action was taken]. Representative Wilson OBJECTED. Representative Wilson explained her objection. She felt that many changes had taken place with the "whole program" and unemployment that affected the bill. She had also "been approached by some different schools" engaged in training that were not listed as benefactors in the bill. She opined that an action to report the bill out of committee was premature. Vice-Chair Gara asked whether the funding from the Unemployment Insurance Trust Fund in the fiscal notes for FY 19 were accurate and would need adjusting in future years. Ms. Harbor answered affirmatively and confirmed that it would be adjusted each year based on the fund balance. Vice-Chair Gara commented that previously changes to the educational institutions covered under the bill were attempted, but the more institutions that were covered the less funding each institution received. He noted that amendments were due, and none were received. He preferred to move the bill out of committee unaltered. 2:14:59 PM Co-Chair Foster acknowledged that there were many other entities that would like to be on the benefactor list and some present benefactors that wanted more funding. He thought that discussions regarding funding recipients would be "extensive." He related that whether the matter was revisited in a future session or the bill was moved out of committee was a "policy call." The department wanted to "advance a clean bill" during the current session. 2:15:47 PM Representative Tilton reported that she had also been contacted by a some of the institutions and asked to hold the bill for further discussion. 2:16:23 PM Co-Chair Foster asked what would happen if the bill was not adopted in the current year. Ms. Schlosser responded that if the legislature did not allocate the funds the money would remain in the fund. She added that the issue was time sensitive. Co-Chair Foster surmised that if the bill was not adopted the funds would not be distributed to any vocational school. Ms. Schlosser responded affirmatively. Co-Chair Foster commented that he was not objecting to changing recipients, but the action could "result in a Pandora's Box" allowing time to run out. He mentioned saving the discussion for the following session. He restated that the decision was up to the will of the committee. 2:18:02 PM Representative Thompson asked what might happen if the money was not distributed. He wondered whether any of the institutions would close. Ms. Schlosser responded that many of the smaller vocational schools received the "majority" of its funding through the program. She voiced that they would either close or "drastically" reduce services. Representative Wilson believed that temporarily holding the bill in committee was not threatening adoption in the current session. Vice-Chair Gara relayed from previous experience that the attempt to add more schools ended "in a long battle." He felt that the discussion was "legitimate" but worried that a "full policy debate" would threaten current action on the bill and jeopardize funding. He suggested delaying the discussion. 2:20:26 PM AT EASE 2:20:55 PM RECONVENED Co-Chair Foster indicated he would set the bill aside. HB 141 was HEARD and HELD in committee for further consideration.