Legislature(1997 - 1998)
1998-01-16 House Journal
Full Journal pdf1998-01-16 House Journal Page 2070 HB 330 HOUSE BILL NO. 330 by the House Rules Committee by request of the Governor, entitled: "An Act repealing the termination date of the state training and employment program; and providing for an effective date." was read the first time and referred to the State Affairs, Labor & Commerce and Finance Committees. The following fiscal notes apply: Zero fiscal notes (2), Dept. of Community & Regional Affairs, 1/16/98 Zero fiscal note, Office of the Governor, 1/16/98 Zero fiscal note, Dept. of Labor, 1/16/98 The Governor's transmittal letter dated January 12, 1998, appears below: "Dear Speaker Phillips: The state training and employment program (STEP) has demonstrated its value as one means to help Alaskans achieve worthwhile employment. I transmit this bill to continue this vital program, now due to sunset on June 30, and maintain it in permanent law to ensure it will be available to Alaskans in the future. 1998-01-16 House Journal Page 2071 HB 330 The STEP was enacted in 1989 as a temporary, two-year pilot program. Its success led to the Legislature extending its existence three more times in subsequent years. With its last extension, in 1996, the STEP became a permanent program, but remains subject to a sunset provision. Since its last extension, the STEP has made great strides in addressing legislative concerns with the program. This program is financed with a 0.1 percent contribution from employees' share of unemployment insurance. The STEP job training provided with this small contribution to the unemployment fund results in more working Alaskans and a decreased need to pay out unemployment insurance benefits. The program also assists Alaskans who need to upgrade their job skills in order to maintain their employability. In fiscal year 1997, more than 1,500 individuals were enrolled in the STEP, an increase of 500 enrollees over the previous year. In one year, STEP clients have reduced claims for unemployment insurance resulting in about a $1.5 million saving to the unemployment insurance trust fund. Along with the increased use of the program, the STEP administrators were successful in reducing federal recapture of unemployment insurance trust funds by 60 percent while holding administrative costs below 20 percent. It makes good sense to ensure the future existence of the STEP. The program enjoys widespread support from both labor and industry because it offers a vital component of a healthy economy -- preparing Alaskans for good jobs. Sincerely, /s/ Tony Knowles Governor"