Legislature(2007 - 2008)SENATE FINANCE 532
02/22/2008 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB249 | |
| HB226 | |
| SB230 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 230 | TELECONFERENCED | |
| + | SB 249 | TELECONFERENCED | |
| + | HB 61 | TELECONFERENCED | |
| + | HB 226 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE BILL NO. 226
"An Act repealing the termination of the state training
and employment program; and providing for an effective
date."
10:04:56 AM
REPRESENTATIVE JOHN COGHILL, SPONSOR, introduced HB 226,
related to the State Training and Employment Program (STEP).
This program puts unemployment insurance (UI) money into
grant capacity to train and re-train workers within Alaska.
The current version of the bill would sunset the program in
2018 and requires the Department of Labor (DOL) to provide a
review of the program. The review will look at union and
non-union entities, publish a report and make
recommendations.
Representative Coghill explained that DOL has set up a task
force to develop the report to be presented to the Alaska
Legislature in early 2009. He expressed his confidence in
the Department. The program is designed for workers who have
paid into UI and who cannot afford to pay for their own
training or re-training.
10:08:21 AM
Representative Coghill wanted workers to have access to the
program as it effectively helps to get young people and
hard-to-place people back into the workforce. He said that
the grant process currently is very complex. The process has
been streamlined this year. He recommended extending the
program out to 2018 with an annual review.
10:10:26 AM
Co-Chair Stedman referred to an audit made of the program
and asked if the issues brought up in the audit had been
resolved. Representative Coghill replied there were still
issues with the grant process. The Commissioner of DOL has
begun to deal with the issues by changing the application
process and how allocations are made.
10:11:25 AM
GUY BELL, ASSISTANT COMMISSIONER AND DIRECTOR, DIVISION OF
ADMINISTRATIVE SERVICES, DEPARTMENT OF LABOR AND WORKFORCE
DEVELOPMENT, spoke in support of HB 226. He said the program
has demonstrated success for over 19 years and has served
over 23,000 Alaskans. The program is evaluated annually. The
most recent report indicates that more than 94% of trainees
were employed within 12 months of receiving the training.
Those people earned over $71 million in the year following
their training, an increase of 35% over their pre-training
earnings. Over 90% of 2003 participants were still Alaska
residents in 2006. The Department supports the on-going
annual review which has begun, supervised by David Stone,
the Deputy Commissioner of the Department of Labor and
Workforce Development.
10:14:19 AM
ANN WILLIAMS, HUMAN RESOURSES ADMINISTRATOR AND TRAINING
COORDINATOR, KLEBS MECHANICAL INC. (KMI), ANCHORAGE
(TESTIFIED VIA TELECONFERENCE), spoke in opposition to HB
226. She emphasized that unless there are major revisions,
KMI would like to see STEP sunset. She gave an overview of
KMI experience with the program. They partnered with another
business to provide joint job training for approximately 80
underemployed and potentially at-risk construction workers.
The vision was to achieve stable employment of a diverse and
well-trained local construction force. The program was a
success.
Ms. Williams said their experience with the administration
of the program was not as successful. The requirements for a
private employer were a burden. She listed restrictions,
especially removal of payment for instructor fees.
10:18:05 AM
Ms. Williams believed that KMI was one of the few private
employers who received a STEP grant. Immediately upon
completion, the grant program was restructured and
effectively eliminated the possibility of future private
employer funding. She said it is well understood that the
STEP grant program has allocated the vast majority of its
training money to organized labor while purporting to
provide training opportunities to any Alaskan with need.
STEP is funded by the UI contributions of all Alaskans and
should be accessible to all.
10:19:24 AM
JEANNINE PROVOST, GRANTS MANAGER, ALASKA LABORERS TRAINING
SCHOOL (ALTS) (TESTIFIED VIA TELECONFERENCE), spoke in favor
of HB 226. She spoke about the positive impact of the
program on the construction workforce. Alaska Laborers
Training School trains about 300 people per year through
STEP, focusing on preparing the workforce in the
construction industry. Outreach includes members of the
union as well as other Alaskans, most of whom come from
remote rural areas of the State. Training requests come from
village councils. Statistically speaking, 50% or more of the
individuals served are from minority populations and over
45% are from areas outside of Anchorage, Fairbanks and
Juneau. The program's success rate has consistently been
above 87%.
10:22:09 AM
CHRIS HARMON, INTERNATIONAL BROTHERHOOD OF ELECTRICAL
WORKERS (IBEW), JUNEAU, spoke in favor of HB 226 and
described how the training money helped him. He said he
would not have been able to complete the apprenticeship
without the grant, as he had to be away from home for five
terms of 7 weeks each for 8,000 hours of on-the-job
training.
Senator Thomas asked about his training. Mr. Harmon said he
trained about 1400 hours in the classroom in addition to the
on-the-job training. Co-Chair Stedman asked if the training
was beneficial. Mr. Harmon listed expenses. Senator Olson
asked how many people are affected by the program. Mr.
Harmon knew of twenty or so apprentices in Juneau who are
recipients of the program.
10:25:29 AM
ROBERT CESAR, APPRENTICE ELECTRITION, IBEW, JUNEAU, spoke in
favor of HB 226. Mr. Cesar, who is a single father of an ill
child, was not able to receive assistance from STEP due to
administrative problems. He had financial problems and the
STEP grant would have been greatly beneficial. He urged the
Committee to extend the program.
Senator Dyson asked if he had been asked to come and testify
and if he received help preparing his testimony. Mr. Cesar
said it was suggested he come at an IBEW union meeting and
he was given help with preparation.
Senator Elton acknowledged Mr. Cesar's struggle as the
father of a child with a bone marrow transplant. Mr. Cesar
said Senator Elton and other Legislators had helped.
10:29:49 AM
TOM BRICE, ALASKA DISTRICT COUNCIL OF LABORERS, JUNEAU,
spoke in favor HB 226.
Senator Olson referred to earlier testimony that the STEP
program was only targeting special interest groups and asked
Mr. Brice's opinion. Mr. Brice thought the doors are open to
anyone who can show they have a viable accounting system and
can show they are doing real training. He cited a non-union
program that has been successful. His organization trains
both union and non-union individuals.
10:33:02 AM
BARBARA HUFF TUCKNESS, DIRECTOR OF GOVERNMENTAL AND
LEGISLATIVE AFFAIRS, TEAMSTERS LOCAL 959, spoke in favor of
HB 226. She said Teamsters Local 959 has both union and non-
union training programs. The progams are funded through
joint efforts in negotiations with the employers that Local
959 has collective bargaining agreements with. Local 959
also attempts to reach out to employers that were not part
of the collective bargaining agreement. The tech engineer
program, a four-year apprentice program for surveyors, has
spent extra time and effort reaching out to individuals
around the State. The cost of housing has been a major issue
because of the six-week training program; STEP funds have
helped with that.
10:35:18 AM
REBECCA LOGAN, PRESIDENT, ASSOCIATED BUILDERS AND
CONTRACTORS OF ALASKA (TESTIFIED VIA TELECONFERENCE), spoke
in support of HB 226. She pointed out the discrepancies in
the program reflected in previous testimony: a private
employer not being able to use funds for instructors while
individuals use the same money for travel and housing.
Associated Builders and Contractors supports the program but
urges some clean-up before the program is extended.
10:36:49 AM
Co-Chair Stedman asked Mr. Bell to address concerns brought
up in testimony. He asked him to also have the audit issues
raised prepared for a future Committee meeting.
Mr. Bell stated that DOL uses a competitive grant proposal
process to receive and process applications. The independent
evaluation committee does not evaluate on a union/non-union
basis but on the overall quality of the proposal. The
distribution of grants over the past years has been reviewed
and presented to the Legislature. The Department recognizes
the criticisms and intends to resolve them. He invited
critics to participate in the task force that is being
developed.
10:40:16 AM
Co-Chair Stedman pointed out that more work will be needed
on fiscal notes.
HB 226 was HEARD and HELD in Committee for further
consideration.
10:40:40 AM
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