HB 235-AK WORKFORCE INVESTMENT BOARD:ALLOCATIONS  3:51:19 PM CHAIR SPOHNHOLZ announced that the next order of business would be HOUSE BILL NO. 235, "An Act relating to allocations of funding for the Alaska Workforce Investment Board; and providing for an effective date." 3:51:59 PM REPRESENTATIVE ADAM WOOL, Alaska State Legislature, as prime sponsor, introduced 235 and delivered the sponsor statement, which read in its entirety as follows [original punctuation provided]: In 2000, the Alaska Legislature established the Technical Vocational Education Program (TVEP). This program is administered by the Alaska Workforce Investment Board and utilizes a portion of Unemployment Insurance receipts to provide grants to career and technical education providers across the State. The TVEP program impacts thousands of students by offering industry-specific training opportunities that help Alaskans get to work. HB 235 would re-authorize the TVEP program for an additional three years until fiscal year 2023. The program currently has ten recipients which include the University of Alaska, the Alaska Vocational Technical Education Center, the Alaska Technical Center, as well as other technical education providers across the State. These programs train Alaskans for industry- specific jobs in sectors such as fishing, transportation, health, mining, and construction. Please join me in supporting House Bill 235 to re- authorize the TVEP program and keep thousands of Alaskans ready for the high demand careers our State has to offer. 3:53:51 PM ASHLEY CARRICK, Staff, Representative Adam Wool, Alaska State Legislature, provided a PowerPoint presentation, entitled "HB 235: Technical Vocational Education Program (TVEP) Re- Authorization," on behalf of Representative Wool, prime sponsor. She directed attention to slide 2, "TVEP Program History." She informed the committee that TVEP was created in 2000 to provide competitive grant assistance to education entities in Alaska that delivered specific vocational and technical training. The program was established under AS 23.15.830 [Alaska Technical and Vocational Education Program Account] and sunsets every three years. In 2014, the legislature increased the amount of funds diverted to TVEP from .15 percent of unemployment insurance to .16 percent. The types of training that TVEP recipients offer include aviation, fisheries, construction, renewable energy, mining, information technology, transportation, health care, and other vocational training (slide 3). Ms. Carrick turned attention to a flow chart on slide 4, entitled "How TVEP Funding Gets Distributed." She pointed out that both STEP and TVEP programs are funded through unemployment insurance receipt contributions. She went on to say that the STEP/TVEP portion come directly from the employee portion of the contribution to unemployment insurance, while the employer portion is deposited into the UI trust fund account. The STEP/TVEP portion are designated general funds. 3:57:04 PM REPRESENTATIVE HANNAN referring to the "STEP/TVEP Portion" box on the flow chart, asked if $103.74 is dollars or millions. MS. CARRICK said that she does not know. CHAIR SPOHNHOLZ offered her understanding that it is $103.74 dollars. 3:57:55 PM MS. CARRICK resumed her presentation. She paraphrased slides 5- 6, entitled "TVEP Recipients Over Time," which read as follows [original punctuation provided]: In 2000:  University of Alaska: 52% Kotzebue Training Center: 16% Alaska Vocational Technical Center: 32% In 2001:  University of Alaska: 63% Kotzebue Training Center: 11% Alaska Vocational Technical Center: 22% Galena Project Education Training Center: 4% In 2004:  University of Alaska: 55% Kotzebue Training Center: 11% Alaska Vocational Technical Center: 22% Galena Project Education Training Center: 4% Southwest Alaska Vocational Education Center: 4% Yuut Elitnaurviat, Inc., People's Learning Center: 4% In 2008:  University of Alaska: 45% Kotzebue Training Center- Alaska Technical Center: 9% Alaska Vocational Technical Center: 17% Galena Project Education Training Center: 4% Southwest Alaska Vocational Education Center: 3% Yuut Elitnaurviat, Inc., People's Learning Center: 9% Delta Career Advancement Center, Partners for Progress Delta, Inc.: 3% Amundsen Educational Center: 2% Northwestern Alaska Career and Technical Center: 3% University of Alaska Southeast: 5% MS. CARRICK directed attention to slide 7, entitled "Current TVEP Recipients," which read as follows [original punctuation provided]:   In 2014 and again in 2017:  Statewide: University of Alaska: 45% Kotzebue: Alaska Technical Center: 9% Seward: Alaska Vocational Technical Center: 17% Galena: Galena Project Education Training Center: 4% Dillingham: Southwest Alaska Vocational Education Center: 3% Bethel: Yuut Elitnaurviat, Inc., People's Learning Center: 9% Delta: Partners for Progress Delta, Inc.: 3% Kenai: Amundsen Educational Center: 2% Nome: Northwestern Alaska Career and Technical Center: 3% Utqiagvik: Illisagvik College: 5% (Added in 2014) 4:00:17 PM REPRESENTATIVE STUTES asked if the Illisagvik College in Utqiagvik is part of the University of Alaska system. She also asked what Partners for Progress Delta, Inc. is. MS. CARRICK said Illisagvik College is a private institution that's not part of the UA system and Partners for Progress is a vocational center. MS. CARRICK returned attention to the table exhibited on slide 8, entitled "TVEP Distributions." She explained that the table displays the current TVEP distributions including the proposed distributions for FY2021 for each of the recipients. 4:01:16 PM REPRESENTATIVE STORY asked Ms. Carrick to highlight the changes, if any, from 2017. MS. CARRICK asked if Representative Story is referring to the percent of distribution or the actual dollar amount. REPRESENTATIVE STORY said the percent of distribution, if any has changed. MS. CARRICK reported that percentages have not changes since 2014. She explained that there was a reauthorization in 2017 that kept the current percentages. The only change, she said, is that the governor's supplemental budget offers additional funding from the unemployment insurance base to bolster this year's distribution, which is why it's slightly higher than the formula. CHAIR SPOHNHOLZ asked how much higher. 4:02:44 PM REPRESENTATIVE WOOL offered his understanding that it was the additional allocation to Alaska Vocational Technical Center (AVTEC) of 4 million dollars. 4:03:22 PM REPRESENTATIVE HANNAN asked if the average annual wage in Alaska has fluctuated in the last four years and how that affects the TVEP program. REPRESENTATIVE WOOL deferred to Lennon Weller. 4:04:24 PM LENNON WELLER, Economist/Unemployment Insurance Actuary, Research & Analysis Section, Department of Labor & Workforce Development, in response to Representative Hannan, confirmed that the taxable wage base fluctuates. He said that four years ago, there were two years of decline in the taxable wage base; however, over the last several years it has been steadily increasing at approximately $600 per year, which should continue into the near future. REPRESENTATIVE HANNAN asked what happens "when we have a specific budget line item that's increasing one of the parties receiving the TVEP distributions, how does that go into the calculations to everybody else's allocations. Does it skew them - do they still get the same percentage and AVTEC's just getting that specific $4,000 but that's part of their 17 percent or is that additional to their 17 percent." MS. CARRICK offered to follow up with the requested information. She offered her understanding that because this was funding in the supplemental and this formula is in statute, "they would still receive however much they would have received through the formula. In addition, they are also receiving the funds the governor has added in the supplemental." 4:06:48 PM REPRESENTATIVE STORY pointed out that there are more career tech programs coming online in Alaska. She asked at what point they should get added to TVEP. She said this is a question that will need to be looked at thoroughly in the future. REPRESENTATIVE WOOL in response to Representative Hannan, explained that TVEP is only one funding source for the entities, adding that they all receive funding from other sources. 4:10:11 PM TERI COTHREN, Associate Vice President, Workforce Development, University of Alaska, provided a PowerPoint presentation, entitled "University of Alaska Technical Vocational Education Program." She informed the committee that the presentation will offer an overview of how TVEP is managed at the university and provide examples of what the funds are used for, as well as the outcomes it contributes to. She stated that UA is one of the most comprehensive providers of workforce development, delivering 92 percent of postsecondary education in Alaska through three separately accredited universities and 13 community campuses. UA manages it's TVEP funds as a single allocation within the university system. The program is administered through a competitive RFP process by the UA workforce development committee. The funding is distributed as the result of a process that is inclusive of all campuses and programs in the UA system that meets the following funding priorities: align with TVEP statutes, responsive to the industry, strategic one-time infrastructure/equipment investments, and develops and enhances partnerships. It is also requested that the proposals demonstrated the ability to garner match funding or a plan for maintaining the program beyond TVEP funding. Specifically, TVEP is to be used at the university as a short-term funding source to initiate or enhance workforce development programs. MS. COTHREN directed attention to two charts on slide 4, entitled "UA FY19 TVEP - $4.9M Funding Distribution." She pointed out that TVEP supports high priority industries in Alaska, including the health industry at 34 percent. Furthermore, funding is distributed across all six economic regions of the state. She continued to slide 5, noting that UA TVEP served a total of 4,492 students in FY19. She proceeded to give specific examples from slides 6-12 of how TVEP supports UA's ability to be responsive to Alaska's high demand industries, as follows [original punctuation provided]: Oil & Gas TVEP Investments & Outcomes  INVESTMENTS ? Expand access to fabrication, manufacturing, and 3D printing ? Improve welding program alignment across campuses ? Develop/deliver BS degree in Occupational Safety & Health ? Lease of state-of-the art shop and classroom space for process technology ? Well Control training OUTCOMES Time period: FY17-19 TVEP Investment: $1.9M Graduates: 1,937 Mining TVEP Investments & Outcomes  INVESTMENTS ? Delivery of hard skills mine training camps ? Millwright program expansion dual enrollment and statewide delivery through partnerships OUTCOMES Time Period: FY17-19 TVEP Investment: $704K Graduates: 335 Health Sciences TVEP Investments & Outcomes  INVESTMENTS ? High-demand health program development and/or expansion ? State-of-the-art simulators and instructional technology ? Student-centered advising, tutoring, and summer bridge programs ? Pre-medicine programs OUTCOMES Time Period: FY17-19 TVEP Investment: $4M Graduates: 2,011 Aviation TVEP Investments & Outcomes  INVESTMENTS ? Airplanes, equipment, and technology upgrades ? Flight simulator ? Aviation maintenance apprenticeships OUTCOMES Time Period: FY17-19 TVEP Investment: $290K Graduates: 327 Maritime TVEP Investments & Outcomes  INVESTMENTS ? Maritime program development and expansion Development of career awareness resources ? Equipment and technology upgrades ? Portable maritime training to expand access OUTCOMES Time Period: FY17-19 TVEP Investment: $2M Graduates: 3,000 MS. COTHREN, in conclusion, turned to slide 13. She stated that UA strongly supports the reauthorization of TVEP. State funding, including TVEP, will continue to be critical to UA's ability to create pathways, deliver programs, and provide professional development to meet Alaska's workforce needs. 4:19:44 PM REPRESENTATIVE FIELDS questioned whether the university tracks both completions and employment in industries of training. MS. COTHREN said the university works with research and analysis at the Department of Labor & Workforce Development (DLWD) to look at those metrics. She said the annual TVEP report that the legislature receives is specific to TVEP but also speaks to employment and wage outcomes for TVEP. REPRESENTATIVE FIELDS sought to clarify whether the measurement among TVEP programs is consistent across recipients. MS. COTHREN confirmed that. 4:20:43 PM CHAIR SPOHNHOLZ announced that HB 235 was held over.