Legislature(2021 - 2022)BARNES 124
03/17/2021 05:45 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB100 | |
| HB121 | |
| HB45 | |
| HB100 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 100 | TELECONFERENCED | |
| *+ | HB 133 | TELECONFERENCED | |
| *+ | HB 121 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 45 | TELECONFERENCED | |
HB 100-EXTEND WORKFORCE INVEST BOARD ALLOCATIONS
5:47:58 PM
CO-CHAIR FIELDS announced that the first order of business would
be HOUSE BILL NO. 100, "An Act relating to allocations of
funding for the Alaska Workforce Investment Board; and providing
for an effective date."
5:48:12 PM
CO-CHAIR FIELDS opened public testimony on HB 100.
5:48:23 PM
BRYAN CRISP, Fire Chief, Nikiski Fire Department, shared that he
supports the reauthorization of Technical Vocation Education
Program (TVEP) funding. The Kenai Peninsula College benefits
from that funding, particularly its paramedic program, he
explained. The Nikiski Fire Department currently employees 21
people who were educated through this paramedic program.
Without this program, he continued, it would be very difficult
to find qualified employees in the area for the fire department.
He emphasized the importance of recruiting paramedics within
Alaska, which would require that the state provide accessible
and adequate education and training to interested individuals.
5:50:21 PM
JAY STINSON, President, Alaska Research Consortium, explained
that the Alaska Research Consortium (ARC) is a nonprofit that
advocates for sustainable fisheries, marine science, and
Alaska's "blue economy." He noted that the seafood industry is
Alaska's largest private employer, with over 60,000 employees.
Seafood is Alaska's number one manufacturing employer, he
continued, and contributes more that $162 million in taxes. He
said that ARC recently completed an 18-month study on the
workforce training needs of the Alaska seafood processing
industry, surveying over 46 seafood plant managers and 3 catcher
processer companies and encompassing 24 companies based in 25
communities and representing over 15,000 workers. He shared
that 88 percent of the survey participants responded that
additional training for seafood workers would be helpful for
business. Regarding HB 100 specifically, he noted that
annually, seafood workers contribute about $600,000 to the
state's TVEP fund but shared his understanding that very little
of these funds are used to benefit seafood workers. He stated
that ARC supports the reauthorization of TVEP funding but
emphasized that ARC would like the funds to be balanced in a way
that supports the seafood industry.
5:54:54 PM
CHRIS GUNDERSON, CEO, Denali Family Services, stated his support
of HB 100 and the reauthorization of TVEP funding. He shared
that Denali Family Services (DFS) benefits from this funding
through a partnership with the University of Alaska Anchorage
(UAA). Specifically, he added, this funding supports the
recreational therapist position shared jointly through UAA and
DFS. He said that this position provides guidance and support
to the Trailblazers program under DFS, which is a wilderness
therapy program for individuals aged 13 to 21 who experience
psychiatric disability. He explained that it provides human
support through connection with the Alaska wilderness, as well
as teaching practical outdoor skills and wilderness survival
skills. He highlighted that youth in this program have
experienced improved physical fitness, decreased psychiatric
disturbance, and increased self-confidence. He concluded by
asking the committee to support HB 100 to enable the continued
partnership of UAA and DFS and the work to support Alaska's
youth.
5:57:06 PM
CO-CHAIR SPOHNHOLZ asked Mr. Gunderson to describe how the
partnership works between DFS and UAA.
MR. GUNDERSON responded that the [recreational therapist]
position is partially based on loan on a non-pay basis at DFS,
and the individual provides guidance and technical support. He
emphasized that all of the TVEP funds are distributed to UAA to
support the position, and as part of the duties of the position,
the employee is outposted to DFS to support the Trailblazers
program.
CO-CHAIR SPOHNHOLZ thanked Mr. Gunderson for the work DFS is
doing to help youth in Alaska.
5:58:14 PM
KATHERINE MITCHELL, Member, Homer Marine Trades Association,
shared that she is speaking in favor of the marine training
coordinator position at Kenai Peninsula College (KPC) in Homer.
She said that KPC has been lucky to have a marine coordinator
and that it has made a huge difference. She explained that KPC
has been able to teach specialized classes in the marine trades
and that there have been over 30 young people who have gotten
jobs due to this education. She concluded that she supports HB
100 and supports the continuation of the marine training classes
in Alaska.
6:00:09 PM
LUCINDA MARTIN, Member, Homer Marines Trade Association, stated
that the Homer Marines Trade Association supports HB 100. She
emphasized that the association supports the reauthorization of
TVEP funds primarily for UAA and the support of the continuation
of the workforce development coordinator at KPC. She
highlighted that the coordinator has made a significant impact
by increasing job readiness levels for students of the marine
trades at the college. She illustrated this by sharing that
over the last 18 months, 30 to 40 students have earned
certifications in the marine trades, which equates to
employability and increased wages. She said that the need for
employees in the marine trades industry is significant,
particularly as seasoned workers begin to retire. She explained
that it is important to educate workers of all ages in order to
find quality employment for these workers as soon as possible.
She concluded that this education makes a significant impact on
the Homer community and the fishing industry statewide, and
stated that she hopes the committee will support the
reauthorization of TVEP funds.
6:02:35 PM
JEFF JESSEE, Dean, College of Health, University of Alaska,
noted that he also serves as Vice Provost for Health Programs at
UAA. He shared that Alaska has a "tremendous" health workforce
shortage and that many customers have to hire travelers to fill
important health care positions. He emphasized that TVEP is a
critical component in funding university health care programs,
and that the funds help support UAA's nursing expansion,
physical therapy, and dietetics and nutrition, as well as help
purchase important materials such as mannequins for simulations.
He pointed to the significant education budget reductions as a
reason why TVEP funding is even more critical for UAA. He
concluded by urging the committee's support of HB 100.
6:04:06 PM
CO-CHAIR FIELDS asked what the average wait time is for admitted
students into the nursing program.
MR. JESSEE responded that it can be up to a couple of years.
The students are ranked based off of grade point averages (GPAs)
and test scores, so some students get in right away and others
may have to wait some time.
CO-CHAIR FIELDS asked how many students have been admitted to
the program but couldn't attend due to limited capacity.
MR. JESSEE responded that the program has approximately two to
three times the applicants that the program has the capacity
for.
CO-CHAIR FIELDS asked if the capacity increased and all
applicants were able to attend, to what extent that would limit
the need to hire travelers to come to Alaska and fill healthcare
positions.
MR. JESSEE responded that Alaska would be pretty close [to not
needing travelers].
6:05:12 PM
REPRESENTATIVE KAUFMAN asked what the graduation rate is for
students in the program.
MR. JESSEE replied that the program graduates 90 percent of
students and that student success is a high priority.
6:05:39 PM
REPRESENTATIVE NELSON asked if the 90 percent graduation rate is
due to the fact that students with higher GPAs are admitted into
the program quickly and do not have to wait as long to join.
MR. JESSEE responded that the program admits highly qualified
students, but also UAA employs highly skilled faculty and has
advanced facilities, such as the simulation center which allows
student nurses to practice procedures in a safe environment. He
stated that there is a systemwide commitment to student success.
6:06:44 PM
REPRESENTATIVE KAUFMAN asked what the average age is of the
typical applicant to the program.
MR. JESSEE responded that he would have to check, but guessed
that it is in the mid-20s.
6:07:04 PM
REPRESENTATIVE MCCARTY asked about Mr. Jessee's understanding of
the challenges for nurses who are entering the workforce.
MR. JESSEE responded that student nurses have to pass the
National Council Licensure Examination (NCLEX) upon graduation.
He shared that a high percentage of graduates do pass that exam,
and many student nurses already have job offers before
graduation because they have done clinicals in health care
facilities and have made connections. He emphasized that even
if a student doesn't pass the first time, that student will pass
eventually and will definitely become employed.
REPRESENTATIVE MCCARTY asked for clarification that Mr. Jessee
is saying that a high percentage of students pass the NCLEX the
first time and enter into the workforce.
MR. JESSEE responded yes, consistently over 85 percent of
students pass on their first attempt. However, COVID-19 has had
an impact on that success rate because it has been difficult to
provide health programs during the pandemic, he explained.
6:08:41 PM
CO-CHAIR SPOHNHOLZ opined that the nursing training program is a
great example of a public/private partnership where the training
is done in partnership with health care organizations across the
state. She asked if Mr. Jessee could share with the committee
how many education sites across the state provide nursing
education.
MR. JESSEE responded that UAA has 14 outreach sites throughout
Alaska. Additionally, there is a "pop-up" program in
Petersburg, Alaska, and while there is not a campus there, the
hospital sponsors students and provides the facilities for
instructors to teach local students through the nursing program.
He explained that many of the major hospitals also provide
substantial financial support to the program, and these
contributions are dependent upon how many graduates the program
produces.
6:10:34 PM
DOUG WALRATH, Director, Northwestern Alaska Career and Technical
Center (NACTC), shared that NACTC focuses training on Alaska's
priority industries, the main five being health care,
construction, transportation, hospitality/tourism, and seafood
harvesting and processing. He shared that Norton Sound Health
Corporation (NSHC) is the largest regional employer and health
care is a significant priority for NACTC. He continued that
NSHC partners with NACTC to provide dual-credit high school
courses, such as introduction to health careers and emergency
trauma training. He shared that TVEP funding supports health
care education with advanced technical training for high school
students, which transitions these students immediately into
employment as certified nurse aides, village health aides, and
in the future, personal care attendants. He added that TVEP
funding would also support a large project near Nome at Graphite
Creek, which has been designated a high priority infrastructure
project by the federal government. The creek is the largest
known graphite deposit in the United States, he explained, and
would have application for electric vehicles and lithium-ion
batteries of all types. He reiterated that TVEP funding would
support the training required for this project. In addition,
the driver education training in Nome would be supported by TVEP
funding. He shared that the Division of Motor Vehicles (DMV)
office in Nome shut down a few years ago, and so NACTC applied
to become a third-party DMV affiliated driving school so that it
can educate and train commercial drivers. He restated NACTC's
support of HB 100.
6:13:12 PM
MARK ZEISET, Member, Homer Marines Trade Association, stated
that he supports HB 100 and shared that the Homer Marines Trade
Association has seen high school students in Homer attend the
marine technology classes and, in some cases, these students
have been able to enter directly into the workforce. He shared
that there are other cases where students who are already
employed are able to get promoted due to the education received
from the classes.
6:14:29 PM
TOM BRICE, University of Alaska Fairbanks (UAF) Alumni
Association, recalled that the UAF Alumni Association met with
members of the committee in February 2021 and wanted to follow
up on that meeting. On behalf of the UAF Alumni Association's
Legislative Advocacy Committee, he expressed his support of HB
100. The proposed bill would continue the Technical Vocation
Education program for another three years, which he opined is a
program that greatly benefits Alaskans since its inception in
2000. Due to the university's crucial role in training Alaska's
workforce, he continued, it has received a large portion of TVEP
funds in the past and this helps the university system support a
number of important industries in the state, like maritime and
health care. He stated that the reauthorization of TVEP funds
would allow the universities across Alaska to continue to
educate Alaska's workforce and keep Alaskans employed.
6:16:51 PM
CO-CHAIR FIELDS, after ascertaining that there was no one else
who wished to testify, closed public testimony on HB 100.
6:17:19 PM
REPRESENTATIVE MCCARTY said he believes in the TVEP program. He
asked about the efficacy of the allocations of the funds and if
a different allocation or a different duration of the program
should be considered. He shared his understanding of an example
in Delta Junction, Alaska, where the average participant seemed
to receive $80,000, but stated that it appears that the number
should be $8,000 annually.
6:18:56 PM
ASHLEY CARRICK, Staff, Representative Adam Wool, Alaska State
Legislature, on behalf of Representative Wool, prime sponsor of
HB 100, noted that the figure that Representative McCarty
referenced on the TVEP Annual Report [included in the committee
packet] for Partners for Progress in Delta Junction referred to
participants having a median income earning of $80,000 after 1
to 12 months of employment. She stated that that figure does
seem anomalous and that she did follow up with the Department of
Labor and Workforce Development (DLWD) to ask about that number.
She shared that DLWD initially also thought that it might be a
typo, but after extensive investigation by the department's
Research Analysis Division and by the individuals who compiled
the TVEP report, it was determined that the number was not
inaccurate. She said that it is important to note that many
students entering this program already have extensive technical
training. She explained that it is difficult to compare TVEP
recipients on any metrics because TVEP funds are distributed
differently depending on the recipient, and some receive a
disproportionate amount compared to others. The funds are
distributed to these recipients, but do not necessarily
represent all of the funding given to TVEP recipients. She
added that it is also worth noting that the TVEP report states
that the average median income for Ilisagvik College graduates
is $49,000 annually, and this is reflective of being in a rural
community with a high average wage. She reiterated that this is
not necessarily a useful metric by which to compare recipients.
6:21:33 PM
CO-CHAIR SPOHNHOLZ noted that the TVEP Annual Report shows that
the Amundsen Educational Center had an average cost per pupil of
almost $12,000. She asked if someone could describe why the
cost is so high.
6:22:06 PM
REPRESENTATIVE ADAM WOOL, Alaska State Legislature, as prime
sponsor of HB 100, addressed the question from Co-Chair
Spohnholz and responded that he can look at the amount of money
that the program received and how many graduates there were and
"do the division," which he stated he imagines is what Co-Chair
Spohnholz did to get the cost per pupil. He said that 11
students served at $249,000 at the Amundsen Educational Center.
He explained that he hasn't talked to anyone at the center, but
thinks that it is similar to the situation in Delta Junction.
He added that the Delta Junction Partners for Progress had a low
sample number of students to determine the numbers seen in the
report, and reiterated that many of these students already have
extensive technical training, which can warp the median annual
earning figure as these individuals are at a higher earning
level when they enter the program.
CO-CHAIR SPOHNHOLZ asked if anyone from DLWD would be able to
answer her question. She shared the math that she did on each
of the programs and noted that the Amundsen Educational Center
is an outlier.
6:24:17 PM
GREG CASHEN, Assistant Director, Grants, Alaska Workforce
Investment Board, Office of the Commissioner, Department of
Labor & Workforce Development, provided clarification that [the
department's Research & Analysis staff] compiled data that is
provided by each of the regional training centers to arrive at
the numbers presented on the TVEP report. He explained that
Amundsen is a small training center, and instructors cost the
same if they are teaching a small number of students as they
would if these instructors were teaching a large number of
students. He said that the department could investigate it to
see if there is any more important information to glean, and he
could share that information with the committee. He reiterated
that the training center is very small, and said that he thinks
the center primarily teaches office technology, and that the
type of training that the center provides should be viewable in
the report.
6:25:40 PM
CO-CHAIR SPOHNHOLZ opined that it's important for TVEP to get
reauthorized for a longer period of time for the purpose of
fiscal stability and certainty for organizations. She shared
her understanding that it's important to look at the return on
investment of TVEP funds in various communities, and noted that
she feels very strongly that the committee [should not] suggest
that rural communities are the same as urban communities. There
are higher costs in rural communities and there are good reasons
for that, she opined, and she thinks that the rural way of life
in these communities should be preserved. She expressed her
concern that some of these rural programs have a cost that is
"six times higher" than other programs, when many of these less
expensive programs are also effective at delivering training
throughout the state. She said that UAA promotes workforce
development programs successfully across the state and has seen
its percentage of TVEP funds decline in a way that she thinks
undermines the state's ability to train and develop workers.
She concluded that she supports HB 100, but said that the
Amundsen Education Center deserves more investigation.
6:27:09 PM
REPRESENTATIVE MCCARTY stated that he concurs with Co-Chair
Spohnholz. He said that he understands that there are a lot of
variables to consider, but doesn't think that the variables are
matching well, and that there is more information needed to
understand those variables. He restated that he supports the
TVEP program, but said that he suggests that the committee
reduce the duration of the reauthorization of the funds from
three years to one or two years.
6:28:06 PM
REPRESENTATIVE KAUFMAN questioned if the committee would like to
pass HB 100 with the proposed time period that would reauthorize
the TVEP funds until 2024. He considered that there may be
other opportunities, some of which are fleeting, to address
certain needs that would not be able to be addressed should the
reauthorization be "locked in" for that duration. He echoed
Representative McCarty's thoughts and suggested that the
committee consider a shorter reauthorization duration in order
to be able to respond more quickly and to further investigate
the committee's questions.
6:28:56 PM
CO-CHAIR FIELDS commented that he will not support a shorter
reauthorization. He offered the example of NACTC in Nome, which
cannot hire and retain high quality staff if there is only a
one-year authorization and replacement revenue is not available.
He shared his understanding that when considering Alaska's rural
facilities, that kind of uncertainty would devastate the
program.
HB 100-EXTEND WORKFORCE INVEST BOARD ALLOCATIONS
7:24:03 PM
CO-CHAIR FIELDS announced that the final order of business would
be a return to HOUSE BILL NO. 100, "An Act relating to
allocations of funding for the Alaska Workforce Investment
Board; and providing for an effective date."
7:24:06 PM
REPRESENTATIVE SCHRAGE moved to report HB 100 out of committee
with individual recommendations and the accompanying fiscal
notes. There being no objection, HB 100 was reported out of the
House Labor and Commerce Standing Committee.