Legislature(2023 - 2024)DAVIS 106
01/31/2024 08:00 AM House EDUCATION
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| Audio | Topic |
|---|---|
| Start | |
| HB55 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 55 | TELECONFERENCED | |
HB 55-EXTEND WORKFORCE INVEST BOARD ALLOCATIONS
8:01:03 AM
CO-CHAIR ALLARD announced that the only order of business would
be HOUSE BILL NO. 55, "An Act relating to allocations of funding
for the Alaska Workforce Investment Board; and providing for an
effective date."
8:01:37 AM
REPRESENTATIVE ASHLEY CARRICK, Alaska State Legislature, as
prime sponsor, introduced HB 55 and briefly introduced the
Alaska Technical Vocational Education Program (TVEP). She spoke
of the program's history and its intention to provide
noncompetitive grant assistance to educational entities in
Alaska, delivering specific vocational and technical training
around the state. She paraphrased the sponsor statement to HB
55 [included in the committee packet] which read 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 55 would re-authorize the TVEP program for an
additional six years, until fiscal year 2030. 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 55 to re-
authorize the TVEP program and keep thousands of
Alaskans ready for the high-demand careers our State
has to offer.
8:04:45 AM
REPRESENTATIVE CARRICK added that there have been questions
around how TVEP funding gets distributed and noted there are
guests from the Department of Labor and Workforce Development
(DLWD) present. She proceeded to go through TVEP recipients and
that the current TVEP recipients include the list on HB 55 which
had not changed in over a decade. She explained that the amount
of distribution for TVEP changes from year to year, and last
year she noted there was a $12.8 distribution dependent on the
size of the employer contribution to the unemployment insurance
(UI) trust fund.
8:08:09 AM
STUART RELAY, Staff, Representative Ashley Carrick, Alaska State
Legislature, informed the committee that HB 55 is a three-
section bill, but the bulk is in Section 1. He paraphrased the
sectional analysis [included in the committee packet], which
read as follows [original punctuation provided]:
Section 1. AS 23.15.835(d)
Changes the sunset date for allocation of funds in
this section for the Alaska Workforce Investment Board
and the Technical Vocational Education Program until
June 30, 2030.
Designated recipients for this program, and the amount
they are designated include:
• University of Alaska, 45%
• Galena Interior Learning Academy, 4%
• Alaska Technical Center, 9%
• Alaska Technical Vocational Center, 17%
• Northwestern Alaska Career and Technical Center, 3%
• Southwest Alaska Vocational and Education Center, 3%
• Yuut Elitnaurviat, Inc. People's Learning Center, 9%
• Partners for Progress in Delta, Inc., 3%
• Amundsen Educational Center, 2%
• Ilisagvik College, 5%
Section 2. Retroactivity
If section one of this bill takes effect after June
30, 2024, section one is retroactive.
Section 3. Effective Date
Provides an immediate effective date.
8:11:02 AM
The committee took a brief at-ease at 8:11 a.m.
8:11:21 AM
MR. RELAY related that Ms. Cothren is online and would present a
PowerPoint.
8:11:38 AM
TERI COTHREN, Associate Vice President, Workforce Development,
University of Alaska System, joined the discussion on HB 55, and
presented a PowerPoint, titled "Technical Vocational Education
Program."
8:12:12 AM
MS. COTHREN moved to slide 2, titled "2024 Jobs Forecast," which
read as follows [original punctuation provided]:
Capitalizing on federal investment to strengthen
Alaska's future
• $1.2 trillion infrastructure bill workforce needed
for roads, bridges, ports, broadband, ferry system,
water, and wastewater projects
o CDL Drivers o Construction Managers
o Heat/Air/Ref Mechanics
o General Ops Managers
o Telecommunication Install/Rep
o Engineers & Engineering Techs
o Architects
o Welders
o Surveyors
o Facilities Repair & Management
o Business Services
• Job growth also anticipated in health care,
transportation, resource extraction, and energy
development
MS. COTHREN added that TVEP provides funding to train Alaskans
for these projects, mainly legacy jobs that would maintain
infrastructure long-term.
8:12:43 AM
MS. COTHREN moved to slide 3, titled "UA System," and she stated
the University system is the largest and most comprehensive in
the state and is key to meeting workforce needs.
8:13:08 AM
MS. COTHREN moved to slide 4, titled "UA's Impact on Alaska's
Workforce," and she explained that on the slide is a summary of
27,000 graduates' employment outcomes from a recent project with
a DLWD research analysis. The outcomes also highlighted the
importance of "training our own," she said.
8:13:50 AM
MS. COTHREN moved to slide 5, titled "TVEP Supports Workforce
Development," featuring fiscal year 2023 (FY 23) UA Outcomes.
The slide read as follows [original punctuation provided]:
• UA's 45% allocation trained 57% of students served
by TVEP
o 4,844 students trained o 1,294 high school students
received college credit
o 80% employed 1-12 months after exit
• UA's competitive grant process adheres to these
priorities:
o Supporting programs aligned to high-demand
priorities identified by the Alaska Workforce
Investment Board
o Training that leads to employment, retention, or
career advancement
o Developing or strengthening partnerships
8:14:33 AM
MS. COTHREN moved to slide 6, featuring an overview of the
industries supported from the University of Alaska's TVEP
funding. She added that all six of Alaska's economic regions
are served. She continued on slide 7, titled "Technical
Vocational Education Program." The slide featured a chart that
showed how efficiently the funds are utilized to train Alaskans.
She concluded on slide 8, which highlighted the University of
Alaska's strong support of the reauthorization to TVEP to
provide a stable funding source to address Alaska's growing
workforce needs.
8:15:58 AM
REPRESENTATIVE PRAX asked whether funding came from any other
sources.
MS. COTHREN replied absolutely.
REPRESENTATIVE PRAX asked whether Ms. Cothren had an estimate on
funding from business industries.
MS. COTHREN replied yes, there are many industry partners that
are actively engaged through advisory counsels for programs.
The partners also donate equipment that is kept up to date to
industry standards, and in addition, the partners support
students with tuition.
8:17:51 AM
REPRESENTATIVE STORY drew attention to the audit report and
asked Ms. Cothren whether she had seen it.
MS. COTHREN confirmed she had.
REPRESENTATIVE STORY said that in the audit report, it displays
by formula how funds are distributed, and the intent is to be
looked at each year according to the needs. She asked Ms.
Cothren for her reflections.
MS. COTHREN offered an explanation from the University of Alaska
perspective in how it approached the distribution of its 45
percent of the TVEP allocation.
8:21:58 AM
KRIS CURTIS, Legislative Auditor, Division of Legislative Audit,
answered questions during the hearing on HB 55. She read from
an audit report, titled "A Special Review of the Department of
Workforce Development, Technical Vocational Education Program."
She walked the committee through the document, [included in the
committee packet], starting on page 3 where she summarized
background information. She pointed out that on page 4, the ten
TVEP providers identified in statute are listed. The entities
are also listed in HB 55, she added. On page 5, she noted the
training providers' locations are listed by economic region.
She advanced to page 13 where she pointed out Exhibit 5 featured
training expenditures grouped by industry, with health being the
largest training category. On Exhibit 6, she explained that
approximately 8,000 individuals were reported to be trained
during fiscal year 2022 (FY 22). She noted some individuals
were counted more than once if they received more than one type
of training; therefore, the actual number was 6,688 individuals
trained during FY 22.
8:25:28 AM
MS. CURTIS proceeded to page 14 of the audit report. She said a
request had been made that the audit include an evaluation of
the training providers. She advanced to page 21 of the audit
report, where she explained TVEP's impact on the balance of the
IU fund and the impact on employer tax rates. She said two
recommendations were made, but the first one was for legislature
to consider repealing the direct funding. Secondly, it had been
found that seven of the ten providers during 2022 were underpaid
due to miscalculations. The miscalculations totaled an
underpayment of $666,500 which reduced TVEP related services.
8:32:14 AM
CO-CHAIR ALLARD interjected, "This is a lot to unpack."
8:32:32 AM
REPRESENTATIVE HIMSCHOOT referred to page 21 regarding the
solvency credit being assessed 10 times. She asked whether it
is something that is calculated every year.
MS. CURTIS replied that the solvency and reserve rate are
evaluated each year.
REPRESENTATIVE HIMSCHOOT offered an observation that without HB
55, all programs currently funded with TVEP would cease for a
year until "things got sorted."
MS. CURTIS replied the bill sponsor might have more insight, but
offered her understanding that the funds remain in TVEP, and
annually, the legislature appropriates the funds for the
program.
8:34:43 AM
CO-CHAIR ALLARD offered her understanding that HB 55 is
overriding the state statute that is currently in place.
MS. CURTIS replied she did not believe it was a legal issue.
CO-CHAIR ALLARD sought clarification that what is in statute has
not been followed by TVEP.
MS. CURTIS said there are two conflicting issues in statute, and
one overrode the other.
CO-CHAIR ALLARD stated that HB 55 is not law currently and
statute has not been followed.
MS. CURTIS stated the statute shown as part of HB 55 will
terminate June 30.
CO-CHAIR ALLARD asked Ms. Curtis to follow up on award funds.
MS. CURTIS replied that there are a lot of training providers
within the state, and they do not have the ability to apply to
participate in TVEP.
8:37:06 AM
CO-CHAIR RUFFRIDGE stated that he appreciated the work Ms.
Curtis does, and her audits bring much clarity and context to
the issues.
8:37:46 AM
REPRESENTATIVE STORY commented that the report is very thorough,
and she expressed curiosity about contributions to the general
fund.
MS. CURTIS said there is the second recommendation that
addresses that issue to the DWLD's commissioner to pursue
available avenues.
REPRESENTATIVE STORY mentioned the solvency fund and how it is
calculated.
MS. CURTIS explained that once the monies are diverted from the
UI fund into the TVEP fund, they are not part of the calculation
of the solvency.
8:41:31 AM
CO-CHAIR ALLARD asked Ms. Curtis whether she was testifying on
behalf of the director of the unemployment division.
MS. CURTIS replied, "I am your legislative auditor." She added
this is the conclusion of the audit report.
8:42:01 AM
REPRESENTATIVE MCCORMICK said he had never heard an audit before
and circled back to the idea that "things are unfair." From a
regional perspective, he asked Ms. Curtis how she would define
unfair.
MS. CURTIS replied that a big thing is to look at how to audit
for equity.
8:44:12 AM
CO-CHAIR RUFFRIDGE asked Ms. Curtis whether there are other
programs in statute she comes across in the auditing process
that direct by statute grant or state government funds, or if
this is a unique program.
MS. CURTIS explained that it is a unique program and stated she
had done many legislative committee meeting reviews. She added
that the report mentions comments by the governor, and he voiced
his concern that this would be a one-time fix while the grant
program got up and going, and he was not supportive of bypassing
a public process.
8:45:53 AM
PALOMA HARBOUR, Director, Department of Labor and Workforce
Development, clarified that the UI taxes in Alaska are
contributed by both employer and employee, and TVEP is a
diversion of the employee's contribution. She added that those
employees have training opportunities to help them get
reemployed.
CO-CHAIR ALLARD announced that HB 55 was held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB0055A.pdf |
HEDC 1/31/2024 8:00:00 AM |
HB 55 |
| HB055 SponsorStatement.Version A.pdf |
HEDC 1/31/2024 8:00:00 AM |
HB 55 |
| HB055 SectionalAnalysis.Version A.pdf |
HEDC 1/31/2024 8:00:00 AM |
HB 55 |
| HB055 Backup.TVEP Audit 30104.pdf |
HEDC 1/31/2024 8:00:00 AM |
HB 55 |
| HB055 EED-SSA-12-15-23.pdf |
HEDC 1/31/2024 8:00:00 AM |
HB 55 |
| HB055 DOLWD-WIB-01-26-24.pdf |
HEDC 1/31/2024 8:00:00 AM |
HB 55 |
| HB055 DOLWD-UI-01-26-24.pdf |
HEDC 1/31/2024 8:00:00 AM |
HB 55 |
| HB055 DOLWD-AVTEC-01-26-24.pdf |
HEDC 1/31/2024 8:00:00 AM |
HB 55 |
| HB055 Backup - TVEP Funding Flow Chart.pdf |
HEDC 1/31/2024 8:00:00 AM |
HB 55 |
| HB055 Backup - TVEP Audit 30104.pdf |
HEDC 1/31/2024 8:00:00 AM |
HB 55 |
| HB055 Presentation - University of Alaska 1.30.24.pdf |
HEDC 1/31/2024 8:00:00 AM |
HB 55 |
| HB055 Support Document - FY23 AWIB Technical and Vocational Report.pdf |
HEDC 1/31/2024 8:00:00 AM |
HB 55 |