Legislature(2021 - 2022)SENATE FINANCE 532
05/03/2021 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB100 | |
| SB9 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 100 | TELECONFERENCED | |
| + | SB 9 | TELECONFERENCED | |
| + | HB 69 | TELECONFERENCED | |
| + | HB 71 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE BILL NO. 100
"An Act relating to allocations of funding for the
Alaska Workforce Investment Board; and providing for
an effective date."
9:03:54 AM
Co-Chair Bishop noted that the committee would hear HB 100
for the first time and intended to set the bill aside.
9:04:22 AM
REPRESENTATIVE ADAM WOOL, SPONSOR, discussed HB 100, which
proposed a three-year reauthorization of the Technical
Vocational Education Program (TVEP). The program used .16
percent of unemployment insurance receipts and provided
grants around the state to many technical vocational
education programs. The total of the grant was
approximately $12 million and impacted thousands of
students. The largest recipient was the University of
Alaska (UA), which received 45 percent of the receipts,
which it distributed to various campuses around the state.
Other colleges and programs that received the funding
included the Alaska Vocational Technical Center (AVTEC) in
Seward, Alaska Technical Center in Kotzebue, and Iligsavik
College in Utqiagvik. He noted that the bill had been
unchanged in the other body. The program recipients and
funding amounts had remained unchanged since 2014.
9:06:23 AM
ASHLEY CARRICK, STAFF, REPRESENTATIVE WOOL, discussed the
presentation "Technical Vocational Education Program (TVEP)
Re-Authorization" (copy on file).
Ms. Carrick looked at slide 2, "TVEP Program History":
? Established under AS 23.15.830
? Created in 2000 to provide noncompetitive grant
assistance to education entities in Alaska that
delivered specific vocational/ technical training.
? In 2014, the Legislature increased the amount of
funds diverted to TVEP from 0.15% of unemployment
insurance to 0.16%.
? HB 100 seeks to re-authorize the program for another
3 years.
Ms. Carrick spoke to slide 3, "Types of Training":
TVEP Recipients Offer
? Aviation
? Fisheries
? Construction
? Renewable Energy
? Mining
? Information Technology
? Transportation
? Health Care
? Other Vocational Training
Ms. Carrick referenced slide 4, "How TVEP Funding Gets
Distributed," which showed a flow chart. She noted that the
unemployment insurance receipts were drawn from the
employee portion of checks and then diverted to the State
Training and Employment Program (STEP) and TVEP.
Ms. Carrick turned to slide 5, "TVEP Recipients Over Time":
In 2000:
University of Alaska: 52%
Kotzebue Training Center: 16%
Alaska Vocational Technical Center: 32%
In 2001:
University of Alaska: 63%
Kotzebue Training Center: 11%
Alaska Vocational Technical Center: 22%
Galena Project Education Training Center: 4%
In 2004:
University of Alaska: 55%
Kotzebue Training Center: 11%
Alaska Vocational Technical Center: 22%
Galena Project Education Training Center: 4%
Southwest Alaska Vocational Education Center: 4%
Yuut Elitnaurviat, Inc., People's Learning Center: 4%
Ms. Carrick considered slide 6, "TVEP Recipients Over Time
Cont.":
In 2008:
University of Alaska: 45%
Kotzebue Training Center- Alaska Technical Center: 9%
Alaska Vocational Technical Center: 17%
Galena Project Education Training Center: 4%
Southwest Alaska Vocational Education Center: 3%
Yuut Elitnaurviat, Inc., People's Learning Center: 9%
Delta Career Advancement Center, Partners for Progress
Delta, Inc.: 3%
Amundsen Educational Center: 2%
Northwestern Alaska Career and Technical Center: 3%
University of Alaska Southeast: 5%
Ms. Carrick displayed slide 7, "Current TVEP Recipients":
In 2014 and again in 2017:
Statewide: University of Alaska: 45%
Kotzebue: Alaska Technical Center: 9%
Seward: Alaska Vocational Technical Center: 17%
Galena: Galena Project Education Training Center: 4%
Dillingham: Southwest Alaska Vocational Education
Center: 3%
Bethel: Yuut Elitnaurviat, Inc., People's Learning
Center: 9%
Delta: Partners for Progress Delta, Inc.: 3%
Kenai: Amundsen Educational Center: 2%
Nome: Northwestern Alaska Career and Technical Center:
3%
Utqiagvik: Illisagvik College: 5% (Added in 2014)
9:10:08 AM
Ms. Carrick highlighted slide 8, "TVEP Distributions,"
which showed a chart. She drew attention to the far-right
column, which showed proposed distributions for FY 22. She
explained that even with the fluctuations during COVID-19
the previous year and draws from unemployment, there had
been a relatively stable source of funding for TVEP
recipients.
Ms. Carrick addressed Section 1 of the bill, which extended
the program reauthorization date to 2024. Section 1 also
included the list of ten recipients and the percentages of
funding distribution. She continued that Section 2 of the
bill contained a retroactivity clause and Section 3
included an effective date.
Senator Hoffman recalled that there was a termination
clause in the original program, and that the program had
been reauthorized numerous times. He thought the success of
the program was evident. He asked if the sponsor had
considered extending or removing the sunset date to create
a permanent program.
Representative Wool relayed that Senator Hoffman's question
had come up in the House Finance Committee as well. He
thought the reauthorization period allowed for time to
examine the list of funding recipients, which had not
changed in six or seven years. He thought the question was
whether the recipients should be locked in indefinitely and
pondered whether the funding numbers should be permanent.
Senator Wielechowski asked for an easily identifiable list
of participants at each institution and the number of
students that had successfully completed the program.
Ms. Carrick thought that the information was in the TVEP
annual report.
9:14:06 AM
AT EASE
9:14:55 AM
RECONVENED
Senator Wielechowski pointed out that the information was
contained in the TVEP annual Report (copy on file). There
was information on page 2 and performance data on page 6.
Co-Chair Bishop suggested that the next time the bill was
heard the committee could invite the Department of Labor
and Workforce Development (DOL) to address the topic.
Senator Wilson recalled that a previous bill had included
consideration of the constitutionality of TVEP funding and
referenced a letter from the Legislative Legal Department.
He wondered if the sponsor had received a memo regarding
the constitutionality of some of the vocational
rehabilitation programs that were privately funded.
Representative Wool was not aware of the constitutionality
of funding for private institutions versus public
institutions.
Ms. Carrick relayed that in having the bill drafted, the
sponsor and staff had not received any advice regarding the
constitutionality of the proposed funding.
Senator Wilson wanted a clear definition regarding the
constitutionality of the TVEP, the Alaska Scholars Program,
and others. He was concerned about the challenges that
could arise by funding the programs.
Senator von Imhof observed that two percent of the
allocation went to the Amundsen Education Center (AEC),
which was a faith-based non-profit educational and
vocational training school located in Soldotna. She thought
the term "faith-based" indicated there was a religious
component to the organization, which she thought could be
unconstitutional. She was curious as to why the public
funds were going to a faith-based organization.
Representative Wool stated that the question had come up
before regarding the efficacy of the program in Soldotna,
but no one had raised strong objection to the school since.
He thought there was public and private institutions on the
list of grant recipients. He stated he could work with the
Legislative Legal Department to gather more information on
the topic.
Senator Olson appreciated the intent of the bill. He wanted
to address the AEC, which had done a great deal of outreach
to people in his district. He was in support of the
educational outreach and thought the program was
successful.
Co-Chair Bishop commented that TVEP was a good program.
9:19:47 AM
TERI COTHREN, ASSOCIATE VICE PRESIDENT, WORKFORCE
DEVELOPMENT, UNIVERSITY OF ALASKA (via teleconference),
spoke in favor of the bill, which would provide critical
funding for short-term career and technical education
programs across the state. She asserted that the program
would support the state's economic recovery by re-scaling
and up-scaling Alaskans for employment.
Ms. Cothren spoke to highlights from the presentation
"University of Alaska Technical Vocational Education
Program, " (copy on file). As a TVEP recipient, UA used its
funds as a single allocation within the system. The program
was administered through a competitive request for fund
proposal or grants process. The program provided industry-
specific, on-the-job, and classroom training that addressed
high demand and regional workforce needs. She thought the
program increased collaboration and was responsive to
industry.
Ms. Cothren cited that UA utilized TVEP to train 4,320
Alaskans in FY 20 for jobs in mining, oil and gas,
fisheries, seafood, maritime, construction, Internet
Technology, health, aviation and more. She cited that in FY
20 the average cost per participant among all TVEP
recipients was $1,349. The University had averaged a cost
of $1,300 per participant, with nearly 78 percent being
employed following training. Some programs had as much as
89 percent employment in the state after graduation with
increased wage growth. She listed successes in the
certified nurse's assistant program.
9:22:47 AM
Senator Wielechowski considered the numbers cited and
thought the average per participant at the AEC was $11,890.
He wondered why the amount was so much higher than the
other educational centers.
Representative Wool thought the numbers were calculations
of how much funding the institution received divided by the
number of graduates, and the AEC had a low number of
graduates. He pondered that the program reauthorization was
an opportunity to examine the numbers and make changes if
needed. He did not have historical data on the center and
thought bigger institutions would have better average
numbers.
Senator von Imhof looked at page 6 of the TVEP annual
report, which had performance measurements. She saw that
various post-program employment rates ranged from 45
percent to 63 percent, rather than the 80 percent or 90
percent she had heard.
Co-Chair Bishop affirmed that the AEC was showing an 86
percent employment rate after 12 months.
Senator von Imhof commented that if the state was giving
public money to a religious institution, it should be
consistent across all sectors including K-12 education.
9:26:13 AM
Senator Wielechowski looked at page 2 of the TVEP annual
report, which indicated that the center was getting
$249,700, which equated to $11,890 per participant compared
to the average of near $1,300. He acknowledged that the
success rate of the center was good but thought it was a
good topic for evaluation.
Co-Chair Bishop thought it would be helpful to include DOL
in the future discussion, and the department could talk
about the specific careers that participants were being
trained for.
Senator Olson thought the success rate was more important
to consider than to ponder questions of constitutionality.
He thought the matter had been addressed. He was concerned
that there was not as much emphasis on the success rate of
the Amundson Center as compared to some other institutions.
Senator von Imhof asked if there was any funding going to
the Kenai Peninsula College (KPC). She understood there was
a technical center in Nome and asked how it was faring.
Ms. Cothren detailed that there was funding that went to
KPC as well as its Kachemak Bay Campus in Homer. Currently
the funding went towards a technical program as well as
some health programs.
Co-Chair Bishop added that the KPC was also home to Mining
Training and Petroleum Institute. He noted there were
different segments in UA that performed better than others.
The mining industry employed 88 percent of the graduates
out of the mining training program.
Senator von Imhof asked about the Northwest Alaska Career
and Technical Center in Nome. She noted there were 31
students that attended in 2020. She asked how the students
fared and if was a good place to stay versus in Soldotna.
She wondered what was being offered in Soldotna that was
not offered in Nome.
Co-Chair Bishop thought there was invited testimony that
could address Senator von Imhof's question.
9:30:46 AM
DOUG WALRATH, DIRECTOR, NORTHWESTERN ALASKA CAREER AND
TECHNICAL CENTER, NOME (via teleconference), supported the
reauthorization of the TVEP funding. He thought the program
provided autonomy and flexibility to meet the unique needs
of each regions priority industries. He mentioned in-region
workforce development and sued healthcare training as an
example of a top priority. The Norton Sound Health
Corporation was the largest regional employer in the Nome
census area. The corporation provided dual-credit high
school training, and industry certification, which
transitioned high school students into healthcare jobs.
Mr. Walrath continued that Nome was poised for several
large projects addressing national interests. He mentioned
a $379 million appropriation for an Arctic deep draft port
in Nome. In January, the federal government had designated
a high priority infrastructure project 40 miles from Nome
involving a graphite deposit. He mentioned driver education
training and cuts that had eliminated the Nome Division of
Motor Vehicles (DMV) office. The career and technical
center in Nome provided the only adult and high school
driver education training and was a DMV-approved road
tester in the region.
Mr. Walrath addressed Senator von Imhof's question
regarding leaving the region for training. He discussed the
importance of getting a driver's license. He thought it was
critically important to make early outreach to develop a
technically skilled workforce.
Senator von Imhof appreciated the explanation from Mr.
Walrath and understood there were specialty locations
around the state. She mentioned ship piloting in Seward.
She asked about the use of program funds in high schools
and wondered if it was appropriate. She wondered if the
program funding was comingling with Department of Education
and Early Development funds. She understood vocational
technical training started in the high school years and
asked if TVEP had traditionally funded high school students
as opposed to adults.
9:34:51 AM
Senator Olson thought exposure to vocational education
opportunities was important for high school students. He
discussed continuing education after high school without a
break and the importance of exposure to vocational
education. He asked Mr. Walrath about the 35 percent
employment achievement at the center in Nome as opposed to
some other programs.
Mr. Walrath noted that across all TVEP recipients, there
was a population of both adults and high school students
served. He acknowledged there was disparity and thought one
could see the impact of local decision-making. He cited a
research study from 2009 that indicated that prior to TVEP,
the graduation rate in the Bering Straits region averaged
about 38 percent. He asserted that TVEP had engaged
students and kept them in school on a graduation pathway.
He discussed engaging courses that led to health care jobs
such as certified nurse's aide (CNA). He thought the
percentage of employment was lower as the number of high
school program participants was higher. He discussed the
increase in graduation rate. He thought the impact was
profound based on the small investment.
Mr. Walrath added to Senator Olson's remarks about getting
high school students through training and participants
engaging in continuing education in the summer right after
high school as opposed to waiting.
9:38:30 AM
Senator Olson considered that the previous year had been
complicated by the COVID-19 pandemic, and asked what Mr.
Walrath expected for participation the following year in
the district.
Mr. Walrath cited the TVEP report, and the impacts of the
pandemic as shown in participation numbers for the year. He
thought looking at data from the prior three years would be
more accurate. He mentioned sending instructors to villages
and hoped the numbers would climb the following year.
Co-Chair Bishop commented that the state was on the
precipice of benefitting from an eight-year federal
infrastructure bill. He thought it was good timing for the
committee to consider HB 100 because the infrastructure
work would call for an increased workforce. He was thankful
that there was a workforce delivery system in place to meet
the demand.
Senator Olson pointed out that Nome deep port projects
seemed to be progressing. The majority of funding had been
secured from federal sources. He anticipated a fair amount
of construction in the Nome area in the following seven to
eight years.
Senator von Imhof thought TVEP was an excellent program
that she fully supported and agreed with Co-Chair Bishop
regarding training the next generation of the workforce.
She wanted to ensure that the program was being used as
intended. She had received emails that pondered whether the
program funding was being used as intended and spent on
workforce development. She thought an audit or deeper dive
could provide information on details. She pondered
competing programs. She offered to forward the comments on
to Co-Chair Bishop.
9:42:56 AM
Co-Chair Bishop OPENED and CLOSED public testimony.
Co-Chair Bishop mentioned there was an amendment deadline
for Wednesday, May 5 at 5:00 o'clock p.m.
HB 100 was HEARD and HELD in committee for further
consideration.
9:43:18 AM
AT EASE
9:46:30 AM
RECONVENED
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 100 Backup ATC Support Letter.pdf |
HFIN 4/14/2021 9:00:00 AM SFIN 5/3/2021 9:00:00 AM |
HB 100 |
| HB 100 Backup Galena City School District Support Letter.pdf |
HFIN 4/14/2021 9:00:00 AM SFIN 5/3/2021 9:00:00 AM SFIN 5/14/2021 1:00:00 PM |
HB 100 |
| HB 100 Backup City of Kenai Fire Support Letter.pdf |
HFIN 4/14/2021 9:00:00 AM SFIN 5/3/2021 9:00:00 AM |
HB 100 |
| HB 100 UA Presentation 3.15.21.pdf |
HL&C 3/15/2021 6:30:00 PM HL&C 3/17/2021 5:45:00 PM SFIN 5/3/2021 9:00:00 AM SFIN 5/14/2021 1:00:00 PM |
HB 100 |
| HB 100 Backup Intro Presentation 041421.pdf |
HFIN 4/14/2021 9:00:00 AM SFIN 5/3/2021 9:00:00 AM |
HB 100 |
| HB 100 Backup NACTEC Support.pdf |
HFIN 4/14/2021 9:00:00 AM SFIN 5/3/2021 9:00:00 AM SFIN 5/14/2021 1:00:00 PM |
HB 100 |
| HB 100 Backup TVEP Annual Report FY20.pdf |
HFIN 4/14/2021 9:00:00 AM SFIN 5/3/2021 9:00:00 AM SFIN 5/14/2021 1:00:00 PM |
HB 100 |
| HB 100 Backup UA Result Report.pdf |
HFIN 4/14/2021 9:00:00 AM SFIN 5/3/2021 9:00:00 AM SFIN 5/14/2021 1:00:00 PM |
HB 100 |
| HB 100 Backup UA Results Overview.pdf |
HFIN 4/14/2021 9:00:00 AM SFIN 5/3/2021 9:00:00 AM SFIN 5/14/2021 1:00:00 PM |
HB 100 |
| HB 100 Backup UAFAA Support Letter.pdf |
SFIN 5/3/2021 9:00:00 AM |
HB 100 |
| SB 9 Sectional Analysis version A 2-10-21.pdf |
SFIN 5/3/2021 9:00:00 AM SL&C 2/12/2021 1:30:00 PM |
SB 9 |
| SB 9 Title 4 Review Report 02.2019.pdf |
SFIN 5/3/2021 9:00:00 AM SFIN 1/19/2022 1:00:00 PM SL&C 2/12/2021 1:30:00 PM |
SB 9 |
| SB 9 Letter of Support combined as of 2.10.21.pdf |
SFIN 5/3/2021 9:00:00 AM SL&C 2/12/2021 1:30:00 PM |
SB 9 |
| SB 9 Letter of Support MSHF.pdf |
SFIN 5/3/2021 9:00:00 AM SL&C 3/3/2021 1:30:00 PM |
SB 9 |
| SB 9 Opposition Mat-Su Borough.pdf |
SFIN 5/3/2021 9:00:00 AM SL&C 3/10/2021 1:30:00 PM |
SB 9 |
| SB 9 Sectional Analysis version B 2.10.21.pdf |
SFIN 5/3/2021 9:00:00 AM SJUD 3/29/2021 1:00:00 PM |
SB 9 SB9 Sectional Analysis Version B |
| SB 9 Sponsor Statement ver B.pdf |
SFIN 5/3/2021 9:00:00 AM SJUD 3/29/2021 1:00:00 PM |
SB 9 SB9 Sponsor Statement |
| SB9 ALL Public Testimony February 10- April 7.pdf |
SFIN 5/3/2021 9:00:00 AM |
SB 9 |
| SB 9_Title4Pres_Senate_FIN_5.2021.pdf |
SFIN 5/3/2021 9:00:00 AM |
SB 9 |
| HB 100 Backup SFIN UA Presentation.pdf |
SFIN 5/3/2021 9:00:00 AM |
HB 100 |