Legislature(2023 - 2024)DAVIS 106
03/13/2024 08:00 AM House EDUCATION
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| Audio | Topic |
|---|---|
| Start | |
| HB55 | |
| HB274 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 55 | TELECONFERENCED | |
| *+ | HB 274 | TELECONFERENCED | |
| + | TELECONFERENCED |
HB 55-EXTEND WORKFORCE INVEST BOARD ALLOCATIONS
8:01:09 AM
CO-CHAIR ALLARD announced that the first 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."
8:01:36 AM
CO-CHAIR RUFFRIDGE moved to adopt the proposed committee
substitute (CS) for HB 55, Version 33-LS0360\R, A. Radford,
2/13/24, as the working document.
8:01:47 AM
REPRESENTATIVE PRAX objected.
8:01:49 AM
CO-CHAIR ALLARD invited Acting Commissioner Munoz to explain
Version R. She clarified that Acting Commissioner Munoz would
present neutrally.
8:02:48 AM
CATHY MUNOZ, Acting Commissioner, Department of Labor and
Workforce Development (DLWD), explained the committee substitute
(CS) for HB 55, Version R. She summarized the Alaska Technical
Vocational Education Program (TVEP), and briefly explained TVEP
funding. She stated that the Version R would change the
allocation from .16 to .25 and would generate approximately $10
million additional funding in the coming year. In Section 2,
she said, the program is extended to 2026 from 2024 and a new
destination is added to the new recipient, among other small
changes.
8:05:38 AM
REPRESENTATIVE PRAX questioned whether the allocation was being
increased by approximately 40 percent.
ACTING COMMISSIONER MUNOZ confirmed and reiterated that the
funding would be increased by roughly $10 million. In response
to a follow-up question, she relayed that a legislative audit
showed that approximately 8,800 people would benefit from the
program.
8:06:57 AM
CO-CHAIR RUFFRIDGE, in reference to the "flow of dollars,"
questioned if it is happening at the level that it should. He
asked whether the Alaska Workforce Investment Board (AWIB) is
capable of handling increased grant requests.
ACTING COMMISSIONER MUNOZ replied that AWIB oversees the State
Training and Employment Program (STEP), which is funded through
the same source of revenue, and she added that it is capable of
handling a competitive grant program through TVEP.
CO-CHAIR RUFFRIDGE asked whether the increase in the amount of
2.25 would be solvent.
ACTING COMMISSIONER MUNOZ replied that currently, the balance of
the unemployment insurance (UI) trust fund is $650 million.
8:09:47 AM
REPRESENTATIVE STORY asked Acting Commissioner Munoz to explain
how the new program would work and whether grants would be
authorized for other post-secondary institutions.
ACTING COMMISSIONER MUNOZ replied the job centers provide
individual training support through federal and state funding
and that funds would go out to training providers throughout the
state, not just the main recipients on the list.
REPRESENTATIVE STORY sought more explanation regarding
distribution to individual grants and institutions.
ACTING COMMISSIONER MUNOZ replied it would go to the individual
and their choice of institution; for example, if they chose to
go to a training in Palmer, an individual grant would be paid to
that institution.
8:11:56 AM
REPRESENTATIVE HIMSCHOOT asked whether Version R was written in
line with the recommendations in the audit.
ACTING COMMISSIONER MUNOZ recommended the question be directed
to the auditor.
8:13:30 AM
PALOMA HARBOUR, Director, Division of Employment and Training
Services, Department of Labor and Workforce Development,
answered questions during the hearing on HB 55 and noted that
she would speak to the way the program works. She said grants
are given to individuals who come through the job center looking
for employment and training. She said the grants can support
their training costs, housing, and transportation.
8:14:19 AM
REPRESENTATIVE PRAX asked whether there is an advisory board
that evaluates the program.
ACTING COMMISSIONER MUNOZ replied that AWIB regularly updates
the high demand jobs and where training support needs to be
targeted.
8:15:24 AM
CO-CHAIR RUFFRIDGE, in reference to the audit, asked Acting
Commissioner Munoz if she was confident that the named
recipients were accomplishing their goal of providing the
service at a level high enough to maintain their percentages.
ACTING COMMISSIONER MUNOZ said the University of Alaska (UA)
does a fantastic job at directing TVEP money towards vocational
training, but she could not speak to some of the smaller schools
and would defer to the director on that question. She
emphasized the effectiveness of the program and noted that many
Alaskans are receiving training through these funds.
8:16:50 AM
CO-CHAIR ALLARD referenced funds not being distributed equally
amongst the state, and that Version R would be able to
"designate out" to the labor centers.
8:17:36 AM
CATHY LECOMPTE, Director, Division of Alaska Vocational
Technical Center (AVTEC), gave a PowerPoint, titled "Alaska
Vocational Technical Center Update" [hard copy included in the
committee packet] during the hearing on HB 55, and began by
providing an update on the division as shown on slides 2 and 3,
which read as follows [original punctuation provided]:
• Residential training center located in Seward,
Alaska
• Nationally accredited
• Student Success
• 90% Completion
• 90% Employment
• Little to no student loan debt
8:21:07 AM
MS. LECOMPTE noted slide 4, titled "AVTEC Serves a Statewide
Mission," showing a pie chart with a breakdown of student
participation from all economic regions and slide 5, titled "The
AVTEC Experience," which read as follows [original punctuation
provided]:
• Workplace simulation
• Crosscutting technical and employability skills
• Life Skills and employment assistance
• Clock hours, not credit hours
MS. LECOMPTE added that the students have a broad choice of
industries to choose from once they have completed their
training.
8:23:22 AM
MS. LECOMPTE continued on slides 6 through 8, titled "AVTEC
Training Programs," which read as follows [original punctuation
provided]:
• Alaska Maritime Training Center
• United States Coast Guard
• In-person and online
• Introduction to Nautical Skills for high
schools
• Alaska Culinary Academy
• Basic Culinary skills training
• Applied Technologies
• Diesel Heavy Equipment Technology
• Industrial Welding
• Business and Office Technology
• Accounting Technician
• Administrative Office Assistant
• Medical Office Assistant
• Networking Technician
• Office Assistant
• Energy and Building Trades
• Construction Technology
• Industrial Electricity
• Plumbing & Heating
• Refrigeration
8:26:32 AM
MS. LECOMPTE proceeded to slide 9, titled "Other Workforce
Training at AVTEC," which read as follows [original punctuation
provided]:
• Apprenticeships
• Related Technical Instruction
• IT Apprenticeship
• Senior Year to Career
• Customized Training
• Residential Building and Maintenance
MS. LECOMPTE moved to slide 10, titled "AVTEC-Technical
Vocational Education Program (TVEP) Funds," which showed an
illustration of the impact of the funds, to which TVEP funds
comprise 17 percent of the overall AVTEC budget. She continued
on slide 11, titled "TVEP Allocations," and drew attention to
the last column, titled "Investment Per Participant," that she
referred to as a "great return on investment." She concluded on
slide 11, titled "AVTEC Students Work in Priority Industries,"
which read as follows [original punctuation provided]:
• Alternative & Renewable Energy
• Construction
• Education
• Fisheries, Seafood & Maritime
• Healthcare • Information Technology
• Mining, Oil & Gas
• Service Industry
• Transportation
MS. LECOMPTE reiterated that training is provided to Alaskans to
choose the industry they wish to get into for their careers.
She welcomed questions from committee members.
8:29:33 AM
REPRESENTATIVE PRAX asked Ms. Lecompte whether someone does
outreach to the industries she serves.
MS. LECOMPTE confirmed that a staff of individuals reach out to
industry partners as well as high schools through their college
and career fairs.
REPRESENTATIVE PRAX referred to slide 10, noting the "other"
category on the pie chart and asked whether it was industry
funding.
MS. LECOMPTE explained that "other" is interagency agreements.
8:31:42 AM
REPRESENTATIVE STORY referred to the budget on page 10 and
inquired what impact losing 2 percent of TVEP funds would have.
MS. LECOMPTE responded that TVEP may lose approximately $2.3
million out of the budget, which may result in discontinuing
some of the programming offered.
ACTING COMMISSIONER MUNOZ added that if Version R were adopted,
then the overall allocation would increase because the
designation goes from .16 to .25.
8:33:23 AM
REPRESENTATIVE HIMSCHOOT reflected on slide 5 and asked for an
outline of the ratio of mental health counselors and career
guides to the number of students served.
MS. LECOMPTE replied there are two counselors dedicated to
providing mental health support, and there is a ratio of about 1
to 75. In addition, she said, there is a career counselor.
REPRESENTATIVE HIMSCHOOT referred to slide 11 and the "value we
are getting" for AVTEC, but she voiced her concern about the
Amundsen Educational Center program with an investment per
participant of $54,820.
ACTING COMMISSIONER MUNOZ deferred to the director of AWIB.
8:37:00 AM
DIRK CRAFT, Executive Director, Alaska Workforce Investment
Board, Department of Labor and Workforce Development, replied to
Representative Himschoot and explained that the reporting
requirements are laid out in statute and are all formula funded.
He stated that he could not speak to the specific institution.
8:38:43 AM
REPRESENTATIVE PRAX asked what Amundsen Educational Center
focused on.
MR. CRAFT noted that it was formerly New Frontier Vocational
Technical Center and focuses on training rural Alaskans for
entry-level positions.
8:39:44 AM
CO-CHAIR RUFFRIDGE asked whether the AWIB board ever withheld
the 20 percent from any of the programs since the previous
audit.
MR. CRAFT responded to his knowledge, no.
CO-CHAIR RUFFRIDGE [asked a question in reference to Section 5
of HB 55, Version R, which would amend AS 23.15.835(h) in terms
of an institution's failure to comply with certain subsections
of Title 23, including subsection (e), which lists requirements
of an expenditure and performance report]. He asked Mr. Craft
whether there were any programs that did not follow the items
"listed out in [subsection] (e)" or whether most programs follow
that to the letter of the law.
MR. CRAFT responded that the items in subsection (e) are
reporting requirements, and the information has been returned to
the research and analysis department to put into the annual
report.
CO-CHAIR RUFFRIDGE referred to the audit on the job and wage
information as a requirement and observed that the requirement
has not been removed in Version R. He asked whether it was a
requirement that should be removed or something the department
would add at some point going forward.
ACTING COMMISSIONER MUNOZ opined that it is a requirement she
would like to see as part of the annual reporting, and it could
be included in Version R.
CO-CHAIR RUFFRIDGE stated that it is currently a statutory
reporting requirement but expressed concern that none of these
programs in the next year would receive funds due to not being
able to do the things currently in statute.
8:43:25 AM
MR. CRAFT asked Co-chair Ruffridge to rephrase his question.
CO-CHAIR RUFFRIDGE read from the aforementioned subsection (e)
and explained that he was trying to find clarity as to how the
items in statute would be accomplished unless DLWD or the AWID
board were involved in the reporting.
MR. CRAFT, in reference to the reporting requirements listed out
in the aforementioned section, explained that AWIB manages 7 of
the 10 TVEP recipients which involves processing reimbursements
for the programs, but AWIB does not do direct monitoring of
those programs.
8:46:16 AM
CO-CHAIR RUFFRIDGE expressed uncertainly how the requirements of
[paragraphs] (1) through (3) could be accomplished without
assistance from the department. He noted that grantees are
struggling to accomplish things and performance metrics are
lacking.
ACTING COMMISSIONER MUNOZ said there is access to wage data
through the Employment Security Tax division. She stated she
would find out how it would work and added that it could be
connected in terms of performance measures.
8:48:20 AM
THOMAS LANCE, President, Alaska Research Consortium (ARC), gave
invited testimony in support of HB 55 and provided a background
of the Alaska Research Consortium and added that it collaborates
with public and private entities including AVTEC. He read from
Alaska Statutes Title 16, Chapter 52. He encouraged the passing
of HB 55 and to reauthorize TVEP to support the state's
workforce.
8:51:03 AM
The committee took a brief at-ease at 8:51 a.m.
8:51:29 AM
DON ETHERIDGE, Lobbyist, American Federation of Labor and
Congress of Industrial Organizations (AFL/CIO), gave invited
testimony during the hearing on HB 55. He offered his belief
that the STEP program should be expanded and stated that he
supported TVEP expansion. In reference to the $10 million
increase, he said he did not have a problem with a modest
increase, but "we need to keep a close eye on it."
8:54:08 AM
REPRESENTATIVE STORY asked Mr. Etheridge to elaborate on
competitive programs.
MR. ETHERIDGE replied that the original intent was to make it a
grant system, but it changed when it went through the process.
REPRESENTATIVE STORY asked whether the intention was to go to
post-secondary training institutions or to individual grants.
MR. ETHERIDGE said the original idea was to go out to different
nonprofit training groups so they could bring in the funds that
are hard for them to come up with.
8:55:46 AM
REPRESENTATIVE HIMSCHOOT asked Mr. Etheridge if he was aware of
any vocation or career technical education centers opened in the
last 20 years since the program was created.
MR. ETHERIDGE stated that he was not aware.
REPRESENTATIVE HIMSCHOOT asked Mr. Etheridge whether he had
heard of the Prince of Wales Vocational and Technical Education
Center.
MR. ETHERIDGE responded that he had but did not follow what the
program was doing.
8:56:42 AM
CO-CHAIR ALLARD asked Mr. Etheridge whether he knew that the
Alaska Job Center Network has added 7 percent.
MR. ETHERIDGE expressed his belief that it should be under STEP.
8:57:23 AM
The committee took a brief at-ease at 8:57 a.m.
8:58:35 AM
REPRESENTATIVE STORY questioned that the bill stated that the
money is supposed to go to institutions that are doing post-
secondary or vocational education, and when she thought of the
Alaska Job Center Network, she did not think of it as an
institution that is putting together programs, and she pointed
out that the money is supposed to help support programs.
ACTING COMMISSIONER MUNOZ responded that she did not think the
job centers are institutions but the ability exists to provide
direct training support through the job centers.
REPRESENTATIVE STORY observed that by statute, the money should
be going to institutions; therefore, she was hesitant to accept
Version R.
ACTING COMMISSIONER MUNOZ suggested there could be an amendment
added to clarify things.
9:01:15 AM
REPRESENTATIVE PRAX removed his objection to the motion to adopt
Version R.
9:01:26 AM
REPRESENTATIVE STORY objected.
9:01:30 AM
The committee took an at-ease from 9:01 a.m. to 9:02 a.m.
9:02:42 AM
REPRESENTATIVE STORY removed her objection.
9:02:48 AM
CO-CHAIR ALLARD announced her intention to hold over HB 55.
9:03:09 AM
The committee took a brief at-ease at 9:03 a.m.
9:03:48 AM
CO-CHAIR ALLARD announced there being no further objection,
Version R to HB 55 was adopted as the working document.
[HB 55 was held over.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB55.SponsorStatement.Version A.pdf |
HEDC 3/13/2024 8:00:00 AM |
HB 55 |
| HB55 Sectional Analysis.pdf |
HEDC 3/13/2024 8:00:00 AM |
HB 55 |
| HB55A.pdf |
HEDC 3/13/2024 8:00:00 AM |
HB 55 |
| HB55 Fiscal Note #1 DEED-SSA.pdf |
HEDC 3/13/2024 8:00:00 AM |
HB 55 |
| HB55 Fiscal Note #2 DLWD-WIB.pdf |
HEDC 3/13/2024 8:00:00 AM |
HB 55 |
| HB55 Fiscal Note #3 DLWD-UI.pdf |
HEDC 3/13/2024 8:00:00 AM |
HB 55 |
| HB55 Fiscal Note #4 DLWD-AVTC.pdf |
HEDC 3/13/2024 8:00:00 AM |
HB 55 |
| CSHB 55(EDU) LS-0360\R .pdf |
HEDC 3/13/2024 8:00:00 AM |
HB 55 |
| HB274 Transmittal Letter.pdf |
HEDC 3/13/2024 8:00:00 AM |
|
| HB274A.pdf |
HEDC 3/13/2024 8:00:00 AM |
HB 274 |
| HB274 - Sectional Analysis.pdf |
HEDC 3/13/2024 8:00:00 AM |
HB 274 |
| DOLWD-AVTEC House Education Committee .pdf |
HEDC 3/13/2024 8:00:00 AM |
|
| HB274 Fiscal Note DEED-SSA.pdf |
HEDC 3/13/2024 8:00:00 AM |
HB 274 |
| HB274 DEED Presentation 03 13 24.pdf |
HEDC 3/13/2024 8:00:00 AM |
HB 274 |