HOUSE BILL NO. 141 "An Act relating to allocations of funding for the Alaska Workforce Investment Board; and providing for an effective date." 2:41:29 PM REPRESENTATIVE ZACH FANSLER, SPONSOR, introduced himself. MARY SCHLOSSER, STAFF, REPRESENTATIVE ZACH FANSLER, introduced herself. Representative Fansler introduced the legislation. The bill was the renewal of funding allocations for ten programs through the Technical and Vocational Education Program (TVEP). The purpose of the funding was to put Alaskans back to work and into the job market. The program was regionally aimed at ten different institutions across the state. The institutions concentrated on the skills that were needed for the jobs in the region. He went through the ten programs and the allocations in the bill. 2:45:21 PM Senator von Imhof wondered whether TVEP analyzed the number of people obtained jobs after training, and whether those jobs were retained a year later. Representative Fansler replied in the affirmative. Senator Olson queried the reason for the change to the one- year extension. Representative Fansler replied that he assumed that there was a concern about changing the reporting requirements to ensure that the programs were adequately serving and accomplishing their tasks. He stressed that there was a hope to provide stable funding for the programs. He remarked that the programs depended on the funding. 2:50:23 PM Senator Olson stressed that the concern was about addressing the same issue in a year. Co-Chair MacKinnon queried information about the change to a one-year extension. Senator Hughes felt there was a varied cost per student. She felt that there would be consideration with recommendations of how to be sure that the dollars were well spent. The hope was that the funds would be used to assist students in preparation for needed jobs. She noted that there was funding for office training, but there may be redundancies in the programs. 2:55:01 PM Senator Micciche wondered whether there reporting requirements could be improved while the training was occurring as normal. Representative Fansler replied in the affirmative. Senator Micciche felt hoped that there may be a compromise on the length of effectiveness of the bill. Co-Chair MacKinnon announced that amendments were due the following day at noon. 2:58:09 PM DOUG WALRATH, DIRECTOR, NORTHWESTERN ALASKA TECHNICAL CENTER, NOME (via teleconference), spoke in support of the bill. 3:00:25 PM DENNIS DISHION, EXECUTIVE DIRECTOR, YUUT ELITNAURVIAT, BETHEL (via teleconference), he felt that a one-year sunset would be detrimental to the rural training centers. 3:02:23 PM ANNETTE CARUSO, EXECUTIVE DIRECTOR, SOUTHWEST ALASKA VOCATIONAL AND EDUCATION CENTER, KING SALMON (via teleconference), spoke in support of the bill, with a five- year reauthorization. 3:04:32 PM PEARL BROWER, ILISAGVIK COLLEGE, BARROW (via teleconference), supported the five-year extension in the bill. 3:05:24 PM FRED VILLA, ASSOCIATE VICE PRESIDENT, WORKFORCE PROGRAMS, UNIVERSITY OF ALASKA, FAIRBANKS (via teleconference), spoke in support of the bill. 3:07:23 PM CHERYL EDENSHAW, DIRECTOR, ALASKA TECHNICAL CENTER, KOTZEBUE (via teleconference), spoke in support of the five-year extension in the bill. 3:08:45 PM JOEY CRUM, SELF, ANCHORAGE (via teleconference), supported the current version of the bill, in order to determine the effectiveness of the programs. 3:11:23 PM CATHY LECOMPTE, DIRECTOR, ALASKA VOCATIONAL AND TECHNICAL CENTER, SEWARD (via teleconference), spoke in support of the bill. Co-Chair MacKinnon CLOSED public testimony. 3:13:07 PM GREG CASHEN, DEPUTY COMMISSIONER, DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT, introduced himself. PALOMA HARBOUR, DIRECTOR, DIVISION OF ADMINISTRATIVE SERVICES, DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT, introduced herself. Co-Chair MacKinnon queried comments regarding the reduction from five years to one year. Mr. Cashen replied that an extension of more than one year would allow for stability, and allow for examination of the performance measures. Co-Chair MacKinnon noted that there was approximately $12.5 million distributed between the programs. Ms. Harbour agreed. She stated that there was an average cost of $1215 per student, which was an affordable training program. Co-Chair MacKinnon queried the percentage of unemployment contributions overall. Ms. Harbour replied that she needed a moment to collect that information. 3:15:05 PM AT EASE 3:15:47 PM RECONVENED 3:15:53 PM Co-Chair MacKinnon restated her question. Ms. Harbour replied that the contribution that the employee made into TVEP was 0.16 percent of their taxable wage base, which was a maximum of $63.84 in 2017 per employee. She stated that the overall collection percentage in 2017 was approximately 11 percent of total unemployment insurance from employers and employees in 2017. Co-Chair MacKinnon queried comments on the assertion that there were no clearly defined goals for the program. Ms. Harbour replied that there were statutory requirements for reporting performance of the program. She noted that there was an examination of the fact that some performance measures were implemented at establishment, but did not fit the program. 3:18:38 PM Co-Chair MacKinnon wondered whether the investment board had created a master list of education opportunities in the state. Mr. Cashen replied that the Eligible Training Providers list had all the training providers in the state that may receive funding. Co-Chair MacKinnon remarked that there was training opportunities available in multiple regions in the state. She wondered whether there may be a duplication of services by providing additional state money. Ms. Harbour replied that the Workforce Investment Board outlined areas of high- demand occupations and industries to invest in training. The board did a review to determine a workforce demand, the training capacity, and the possible gaps. She stressed that the training did not meet the needs in the state. She did not believe that there was a program by program review. Co-Chair MacKinnon noted that the department had never quantified private training sources, so other similar training was available. Senator Olson wondered whether any for profit corporations that received TVEP funding. Ms. Harbour replied that TVEP funding was only available for not for profit entities. She furthered that there was the State Training and Employment Program (STEP) which had private entities that applied for that program. Senator Olson wondered whether the private entity received TVEP funding. Ms. Harbour replied in the negative; a private entity could only receive STEP funding. Co-Chair MacKinnon requested a list of recipients of STEP grant program. Ms. Harbour agreed to provide that information. Vice-Chair Bishop queried the list of all the Individual Training Accounts (ITA) recipients. Ms. Harbour agreed to provide that information Co-Chair Hoffman requested a list of the areas of the state with the highest unemployment rates. Ms. Harbour agreed to provide that information. Co-Chair MacKinnon stated that the fiscal notes needed to be corrected. 3:22:38 PM AT EASE 3:23:10 PM RECONVENED 3:23:19 PM JULI LUCKY, STAFF, SENATOR ANNA MACKINNON, explained the forthcoming fiscal notes. Co-Chair MacKinnon remarked that the numbers would be replicated in the out years, based on the number of years in the extension. HB 141 was HEARD and HELD in committee for further consideration. 3:26:32 PM AT EASE 3:28:05 PM RECONVENED 3:28:09 PM Co-Chair MacKinnon announced the following day's schedule. 3:28:33 PM RECESS 3:45:10 PM RECONVENED