SSTA - 4/13/95 SB 142 HUMAN RESOURCE INVESTMENT COUNCIL CHAIRMAN SHARP calls the Senate State Affairs Committee to order at 3:32 p.m. and brings up SB 142 as the first order of business before the committee. The chairman notes that the committee does not yet have a quorum, but will begin by taking testimony. Chairman Sharp calls the first witness. Number 020 BRAD PIERCE, Senior Policy Analyst, Office of Management & Budget, reads a written statement consisting of information contained in the transmittal letter from the governor. Number 098 MR. PIERCE reads a sectional analysis for SB 142. Number 190 SENATOR RANDY PHILLIPS expresses concern over the fiscal note, which is for a larger sum than last year's fiscal note. CHAIRMAN SHARP asks Mr. Pierce to explain why, since funding is being transferred from other sources, the fiscal note is not a zero fiscal note. The chairman notes that when he sees a fiscal note with money on it, that means additional funding. MR. PIERCE states there is no additional funding. This is transferring money from existing programs to the Governor's Office. SENATOR DUNCAN adds that the fiscal note he has shows interagency receipts. The funding source does not show under general funds, so he would assume the money is already in the budget, and is not a new expenditure. MR. PIERCE responds that is a correct observance. He states the fiscal note shows how the money is being transferred. SENATOR DUNCAN asks if there is any new money, since there will be one new position created by SB 142. MR. PIERCE replies that the cost of the new position is being absorbed. Number 222 SENATOR LEMAN comments that a four person staff for the council seems like a large staff. Also, he thinks a board of 23 to 26 members is very large, and may be unwieldy. Senator Leman asks if there will be a net savings from SB 142. Number 235 MR. PIERCE responds that a net savings over time is anticipated. At this time, there are three poorly-staffed councils. What SB 142 will do is give us one adequately-staffed council. However, the primary reason for SB 142 is not as a cost-saving measure: it is to increase effectiveness in job-training programs. SENATOR LEMAN would like to see larger fiscal savings, while still increasing efficiency. SENATOR RANDY PHILLIPS asks Mr. Pierce if he has a copy of last year's fiscal note. MR. PIERCE responds he probably has one in his office. He reiterates that the fiscal note is a zero fiscal note, and there will be no new expenditures due to SB 142. CHAIRMAN SHARP asks Mr. Pierce if the council will just serve in an advisory capacity in relation to the private industry councils (pic). MR. PIERCE replies that it will assume to functions of the Job Training Coordinating Council, which currently oversees the pics. Number 270 JERRY LEWIS, Executive Director, Governor's Council on Vocational & Career Education, states the council supports SB 142. He asks that the committee consider including the School to Work Transition Council under the umbrella of the Alaska Human Resource Investment Council. Mr. Lewis also suggests requiring that the chairperson of the Alaska Human Resource Investment Council be from the private sector. He also suggests not requiring every member of every council to attend all meetings, because he did not think that would be very workable. Number 311 SENATOR RANDY PHILLIPS notes that his staff just looked up the fiscal notes from last year: there were ten fiscal notes, and all of them were zero. He asks if there is a difference between last year's bill and this year's bill. MR. PEARCE responds that the bills are very similar; it is the same zero fiscal note. There are no new general fund monies. Number 319 CHAIRMAN SHARP asks Mr. Lewis about his recommendation that one of the co-chairpersons be from the private sector. MR. LEWIS replies that the Governor's Council on Vocational & Career Education is recommending that, instead of co-chairs, the new council have a chairperson and a vice-chairperson, with the chairperson from the private sector. Number 330 JAN TATLOW, Member, Private Industry Council, testifying from Matsu, states she is concerned with the composition of the council. She recommends that the three private industry councils in the state be given a seat on the new council to ensure a local linkage. Number 350 DEBRA CALL, Chairperson, Alaska Job Training Council, testifying from Anchorage, states she is a strong proponent of SB 142. Ms. Call thinks the current educational system is gearing students toward college education, but in reality, only a small percentage of students actually go to college. She hopes this legislation will help resolve the future for the students who do not go to college. Ms. Call also hopes SB 142 will help increase hiring and employment opportunities for state residents. MS. CALL states that consolidation of employment and training programs is also occurring on the national level and in other states. We need a state council to set priorities based upon employment needs and opportunities within the state. The existing councils are only serving the requirements of the federal programs which established the councils. Ms. Call states also, that it is her understanding that U.S. Senator Stevens is very supportive of this legislation. Number 412 SENATOR RANDY PHILLIPS asks Ms. Call if she has seen the fiscal note for SB 142. MS. CALL responds she does not believe there is a fiscal note. There will be no new general fund monies. Number 417 SENATOR LEMAN asks Ms. Call if 23-26 members is necessary. MS. CALL replies the number of members reflects the recommendation of the JTPA. SENATOR LEMAN asks if that number is similar to the number specified in last year's bill. MS. CALL thinks the number is similar. MR. PIERCE adds that last year's bill did not consolidate the three councils; it just created an additional council to oversee the three existing councils. The number of members does reflect the requirements of JTPA. MS. CALL agrees that the size of the council could be cumbersome. Number 451 MARY SHIELDS, testifying from Anchorage, informs the committee that she runs a contract employment service. Ms. Shields states she supports SB 142. She sees a lack of training opportunities for people who are out of highschool or have dropped out of college. She also sees a great many people returning to college for a second degree because they are unable to get a job, even though they have a college education. In trying to help people find work, she understands how hard it is to be laid of from an industry in decline and have to be retrained for a different industry. She has seen these problems in both the oil and the logging industries. Coordination of employment services will save time and money and will be more efficient. Number 498 MS. SHIELDS informs the committee that U.S. Senator Stevens supports SB 142. Number 500 TEENY METCALF, Alaska Job Training Council, Department of Community & Regional Affairs, testifying from Anchorage, states the department is in favor of SB 142. CHAIRMAN SHARP notes that the legislation will be held over until the next committee meeting. Number 510 SENATOR LEMAN asks what the language, "local public education" means. MR. PIERCE responds that refers to K-12 education. He believes that is a JTPA requirement. Number 520 CHAIRMAN SHARP states it is his intention to move SB 142 out at the next committee meeting.