Legislature(2019 - 2020)ADAMS 519
03/16/2020 01:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB235 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 235 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE BILL NO. 235
"An Act relating to allocations of funding for the
Alaska Workforce Investment Board; and providing for
an effective date."
Co-Chair Johnston invited the bill sponsor to the table.
3:38:53 PM
REPRESENTATIVE ADAM WOOL, SPONSOR, was before the committee
to discuss the re-authorization of the Technical Vocational
Education Program (TVEP). He reviewed the bill. He noted
there were testifiers online to answer questions.
Representative Wool read the Sponsor Statement:
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 235 would re-authorize the TVEP program for an
additional three years until fiscal year 2023. 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 235 to re-
authorize the TVEP program and keep thousands of
Alaskans ready for the high-demand careers our State
has to offer.
Representative Wool noted that the University of Alaska
(UA) was the largest recipient of the bill. He indicated
that some changes had been made in the House Labor and
Commerce Committee he did not wish to keep. He preferred to
return to the original version. The unemployment
contribution rate was changed because the unemployment
insurance fund was considered overfunded. He felt that the
problems brought on by the coronavirus could necessitate
using all the funding and he did not favor making any
changes to the Unemployment Insurance (UI) benefits.
3:41:36 PM
ASHLEY CARRICK, STAFF, REPRESENTATIVE ADAM WOOL, presented
the PowerPoint presentation titled HB 235: Technical
Vocational Education Program (TVEP) Re-Authorization dated
March 13, 2020.
Ms. Carrick turned to slide 1 titled TVEP Program
History:
Established under AS 23.15.830
Created in 2000 to provide non- competitive 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%.
Ms. Carrick continued to slide 2 titled Types of Training
TVEP Recipients Offer:
Aviation
Fisheries
Construction
Renewable Energy
Mining
Information Technology
Transportation
Health Care
Other Vocational Training
Ms. Carrick drew attention to slide 3 titled How TVEP
Funding Gets Distributed. She pointed to the box on the
right side of the flow chart and noted that it contained
the employee portion of funding for the TVEP program.
3:43:26 PM
Ms. Carrick turned to slide 4 titled 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 continued to additional recipients over time on
slide 5:
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 moved to slide 6 titled 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)
3:45:16 PM
Ms. Carrick advanced to the chart on slide 7 titled TVEP
Distributions Original Bill. She relayed that the chart
showed the TVEP distributions from FY 2018 through the
proposed distribution in FY 2021, which was included in the
House Labor and Commerce Committee version [prior committee
and current version] of the bill. Ms. Carrick adressed
slide 8 titled TVEP Distributions Version M, the current
version of the bill. She reviewed the explanation of
changes document from Version A to Version M:
The proposed committee substitute makes three substantive
changes to the original A version of House Bill 235:
• In Section 1, it changes the TVEP contribution rate
from .16 to .18 percent. This adds to the overall
available pool of TVEP funds. This change is found on
page 1, line 7 of version M.
• In Section 2, it extends the sunset date an additional
2 years. The program would now sunset on June 30,
2025, rather than 2023 as proposed in the A version.
This change is found on page 1, line 13 of the M
version.
• In Section 2, the M version proposes to add one new
allocation at 1.925% to the Kodiak Seafood and Marine
Science Center. This change is found on page 2, line
13.
• Allocations for other institutions, aside from
the University of Alaska, are slightly decreased.
These changed allocations are found on page 2,
lines 4-12.
• While allocations for most existing statutorily
designated institutions are reduced by 3.5% from
their current statutory amount, the change to the
TVEP rate found in Section 1 allows each
institution to see an increase in overall funds
disbursed. See attached Table #1.
• Section 3 adds a new subsection to AS 23.15.835.
This new subsection (i) directs that the
University of Alaska administer the funds
allocated to the Kodiak Seafood and Marine
Science Center for programing and capital
improvements consistent with AS 16.52.020. AS
16.52.020 spells out the duties of the Kodiak
Seafood and Marine Science Center. This change is
found on page 2, lines 14-18.
There is one additional change to the A version in the
retroactivity clause (section 4). All sections of the
bill, including the newly proposed changes in Section
1 and Section 2, and the added Section 3, will take
effect retroactively if the bill does not take effect
by June 30, 2020.
3:49:39 PM
TERI COTHREN, ASSOCIATE VICE PRESIDENT, UNIVERSITY OF
ALASKA, ANCHORAGE (via teleconference), highlighted the
University of Alaska Technical Vocational Education
Program PowerPoint presentation dated March 16, 2020.
Ms. Cothren moved to Slide 2 titled UA Provides 92 Percent
of Postsecondary Education in Alaska She offered that UA
was the most comprehensive provider of workforce
development in the state through three separately
accredited universities and 13 community campuses depicted
on the map. She turned to Slide 3 titled UA TVEP Process:
Competitive RFP Process
Funding Priorities:
Aligned with TVEP statutes
Responsive to industry
Strategic one-time infrastructure/equipment
investments
Develops and enhances partnerships
Ms. Cothren indicated that UA managed the TVEP funds as a
single allocation to the UA system and was administered
through a competitive Request for Proposal (RFP) process by
the UA Workforce Development Committee. The committee
included representatives from each university and the
Alaska Workforce Investment Board executive director. The
proposals must demonstrate the ability to generate match
funding and a plan to maintain the program beyond TVEP
funding. The TVEP funds were short-term and meant to
initiate or enhance workforce development programs.
3:51:40 PM
Ms. Cothren addressed the pie charts on Slide 4 titled UA
FY 19 TVEP $4.9M Funding Distribution. She pointed to the
pie chart on the right and highlighted that the funding
supported high priority industries. She offered that the
health industry received the largest percentage at 34
percent, which was in alignment with the industry being the
fastest growing in the state in 2019. The Resources and
Energy category represented 18 percent and included oil,
gas, and mining industry support. She noted the 14 percent
distribution to the Fisheries, Seafood, and Maritime
category. She mentioned the graph on the right side of the
slide that showed TVEP support in all of Alaskas economic
regions.
Ms. Cothren discussed Slide 5 titled UA TVEP FY 19
Outcomes:
Adults served = 4,216
High school students served = 276
Total students served = 4,492
Supports UA's ability to be responsive to
Alaska's high-demand industries
Oil & Gas
Mining
Health
Aviation
Maritime
Ms. Cothren remarked that the following slides provided
specific examples of how TVEP supported UAs ability to be
responsive to high demand industries. She qualified that
the TVEP funding was not the only funding UA invested in
support of the industries.
3:53:07 PM
Ms. Cothren continued to Slide 6 titled Oil & Gas TVEP
Investments & Outcomes:
INVESTMENTS
Expand access to fabrication, manufacturing,
And 3D printing
Improve welding program alignment across
campuses
Develop/deliver BS degree in Occupational
Safety & Health
Lease of state-of-the art shop and classroom
space for process technology
Well Control training
OUTCOMES
Time Period FY 17 through FY 19
TVEP Investment $1.9 million
Graduates 1,937
Ms. Cothren turned to Slide 7 titled: Oil & Gas Student
Success:
UAF Process Technology Student Ryan McCarty
As a journeyman carpenter, Ryan was looking to
change careers and interested in becoming a
process operator. After completing his first two
semesters in the program Ryan interned over the
summer with Alyeska at Pump Station 9, gaining
valuable experience. During his third semester,
Ryan applied and was hired by Petro Star at their
new Fairbanks fuel terminal. He will be
graduating with a Process Technology A.A.S.
degree spring 2020 while already working in the
industry.
Ms. Cothren moved to Slide 8 titled Mining - TVEP
Investments and Outcomes
INVESTMENTS
Delivery of hard skills mine training camps
Millwright program expansion dual
Enrollment and statewide delivery through
partnerships
OUTCOMES
Time Period FY 17 through FY 19
TVEP Investment $704 thousand
Graduates 335
Ms. Cothren spoke to Slide 9 titled Health Sciences TVEP
Investments and Outcomes:
INVESTMENTS
High-demand health program development
and/or expansion
State-of-the-art simulators and
instructional technology
Student-centered advising, tutoring, and
summer bridge programs
Pre-medicine programs
OUTCOMES
Time Period FY 17 through FY 19
TVEP Investment $4 million
Graduates 2,011
Ms. Cothren noted that Health Care was one of the states
largest expanding industries and UA was working diligently
to meet the demand. The TVEP funding contributed
significantly to the success of graduating over 2000
students in nursing and health science programs.
3:56:52 PM
Ms. Cothren discussed Slide 10 titled Aviation TVEP
Investments and Outcomes:"
INVESTMENTS
Airplanes, equipment, and technology upgrades
Flight simulator
Aviation maintenance apprenticeships
OUTCOMES
Time Period FY 17 through FY 19
TVEP Investment $290 thousand
Graduates 382
Ms. Cothren offered that 82 percent of Alaskan communities
were not served by roads and relied heavily on aviation as
a primary source of transportation.
Ms. Cothren moved to Slide 11 titled "Maritime TVEP
Investments and Outcomes:"
INVESTMENTS
Maritime program development and expansion
Development of career awareness resources
Equipment and technology upgrades
Portable maritime training to expand access
OUTCOMES
Time Period FY 17 through FY 19
TVEP Investment $2 million
Graduates 3,000
3:58:36 PM
Ms. Cothren highlighted Slide 12 titled "Maritime Student
Success
UAF Alaska Sea Grant
Seafood Processing Leadership Institute Completer Sam
Nothstine
Sam Nothstine, an expediter at Kwik'pak Fisheries
in Emmonak, Alaska, received professional
development in seafood processing to enhance his
leadership skills in preparation for advancement
in the industry.
Ms. Cothren provided concluding remarks associated with
Slide 13 titled Conclusion:
UA strongly supports the reauthorization of TVEP (HB
235) This allows us to address Alaska's workforce
needs by:
Creating and supporting pathways to
postsecondary education
Delivering high-demand programs
Providing professional development for the
existing workforce
3:59:37 PM
Representative Sullivan-Leonard noted the maritime
investments. She asked where the training took place. She
wondered whether the Alaska Vocational Technical Center
(AVTEC) provided the training. Ms. Cothren responded that
AVTEC was a TVEP recipient that provided maritime training.
She furthered that UA provided maritime training through
the Ketchikan campus, Bristol Bay Campus in Dillingham,
Kodiak Community College, Homer through the Kenai Peninsula
campus, Prince William Sound, and Mat-Su Community
Colleges. The maritime training program was dispersed over
the states 34,000 miles of coastline.
Representative Sullivan-Leonard mentioned that the Kodiak
Seafood and Marine Science Center (KSMSC) was listed as a
new recipient. She wondered whether it was the same entity
as Kodiak College and if the entity would be competing for
funding with the college. Ms. Cothren answered that the
center was part of University of Alaska Fairbanks, College
of Fisheries and Ocean Science. The programs offered at the
center was through the Alaska Sea Grant. She indicated that
it was a complimentary program and not in competition with
other programs. The program had been in existence and
offered training in seafood processing.
4:02:22 PM
Co-Chair Foster referred to the Kodiak Seafood Marine
Science Center and asked if the center was funded by UA.
Ms. Cothren responded in the affirmative. She reminded the
committee that over the years the Sea Grant program
received TVEP funding through UA's internal process, for
programs that were delivered through KSMSC. Co-Chair Foster
asked how much the Kodiak Science Center received from the
University and what the total budget was. Ms. Cothren
deferred the answer.
4:03:43 PM
ANUPMA PRAKASH, PROVOST, EXECUTIVE VICE CHANCELLOR, UAF,
FAIRBANKS (via teleconference), indicated that the Kodiak
Seafood Marine Science Center had four UA faculty and staff
members that provided training and workforce development
support for small business, seafood processing, and
fisheries sciences support. The direct TVEP funding had
ranged from $1.3 million to $1.7 million.
Co-Chair Foster referred to the conclusion on the slide
deck and noted that UA strongly supported reauthorization
of TVEP. He wondered if the University had taken a position
on the newest bill version, adding the KSMSC as a direct
recipient. Provost Prakash responded that the TVEP program
had benefitted the university in supporting workforce
development. The center had been a beneficiary of the TVEP
funding. She emphasized that UA was supportive of
reauthorization of TVEP funding and for a longer duration.
She reiterated that UA had an internal management process
and a competitive process for the funding. She understood
that the science center was added as a separate line item.
Co-Chair Foster commented that KSMSC was added in the prior
committee. He expressed concern that previously UA
supported the center and with its addition as a separate
line item, UAs allocation was not decreased. He reported
that the separate line item appropriation resulted in all
the other vocational technical schools taking a 45 percent
reduction. He asked the sponsor to comment.
Representative Wool replied that the center was a facility
and not a program by itself. He expounded that there were
TVEP funds already going into programs offered at the
facility. He was apprehensive with the additional line
item. In order to fund the line item increase, UI was
increased from .16 percent to .18 percent. All the other
recipients took a deduction in percentages, but due to the
overall pot of money increasing other recipients funding
increased despite the loss of a fraction of a percentage
point. He preferred keeping the original line items with
the initial percentage breakdown. He pointed out that
originally, the universitys TVEP funding had been reduced
over time from 55 percent to 45 percent. Each time a new
recipient was added funding was taken from the university.
He noted that UA funded many recipients. He understood that
TVEP had a seafood processing component and believed that
it could be more robust. There would be other programs
that would receive seafood processing funding and pointed
to the seafood processing management component. He was not
an expert in the funding details and wanted to adopt the
original appropriations. He voiced his opposition to
increasing the draw from the UI pool.
4:11:30 PM
Representative Josephson clarified that the adjustment to
the amount of employee contribution made in the prior
committee was a fraction of one percent. Representative
Wool responded that the employee contribution would not
change rather the amount drawn from the overall pool of
money. He further explained that the UI fund was paid into
by employers and .16 percent of the funds were for TVEP.
The prior committee raised the percentage rate to .18
percent to increase the pool from $13.4 million to $15.1
million. The larger sum enabled reducing all the
recipients a fraction of a percentage to fund KSMSC.
Representative Josephson asked what the impact was. He
wondered if the action acted as a surtax on employees'
wages or increased the draw from the fund. Representative
Wool responded that it impacted the draw from the overall
fund. Representative Josephson asked if the bill was
sustainable. Representative Wool replied that according to
testimony from Department of Labor and Workforce
Development (DOL) the increase was considered sustainable.
However, he worried that things had changed recently with
the Coronavirus outbreak and he thought a lot more people
could become unemployed. Representative Josephson expressed
confusion. He cited language that suggested the amount
collected from employees increased. He read the words
shall collect from each employee. He deduced that the
amount collected from the employees increased. He wondered
how the language was interpreted.
Co-Chair Johnston indicated someone from Department of
Labor and Workforce Development was available.
Representative Wool acknowledged the language. He referred
to the flow chart on his presentation. He commented that a
portion of the wages were capped and was recalculated each
year. He deferred to DOL to provide the answer.
4:15:54 PM
HANNAH LAGER, ADMINISTRATIVE SERVICES DIRECTOR, DEPARTMENT
OF LABOR AND WORKFORCE DEVELOPMENT, OFFICE OF MANAGEMENT
AND BUDGET, OFFICE OF THE GOVERNOR (via teleconference),
responded that under the legislation the employee TVEP
portion would increase from .16 percent to .18 percent.
She referred to the flow chart on slide 4 of the sponsors
presentation that showed the employees paycheck would not
be affected. The increase changed the spilt between the
TVEP portion and the UI fund portion.
Representative Josephson interpreted the answer as the
check to the unemployed person would decrease.
Representative Wool ascertained that the portion for TVEP
increased, causing the amount for UI to decrease. The net
result of the paycheck did not change. He asked Ms. Lager
to confirm his statement. Ms. Lager responded in the
affirmative.
4:17:25 PM
Representative Merrick asked how many new recipients
applied for the TVEP funding and how KSMSC was chosen. Ms.
Carrick responded that applying for TVEP funding was a non-
competitive process for the recipients. However, the
university distributed its portion via a competitive
proposal process. She deferred to the university to further
answer the question.
Representative Merrick understood that there were many more
institutions that wanted to be added to the list. She
wondered how many had applied and why the Kodiak center was
chosen. Representative Wool replied that the list in
statute had not changed in several re-authorization cycles.
The legislature added new recipients to the list. He
furthered that UA could distribute its TVEP funding within
the university system in any manner it desired. He
reiterated that the center was added in the prior
committee.
Ms. Carrick added that if Representative Merrick's question
was whether there were other programs that wished to be
added to the list Representative Wools office had not
received any new requests other than the center in Kodiak.
However, the office had heard from program recipients
across the state requesting increased funding.
4:20:27 PM
Co-Chair Foster asked for the rational of the previous
committee as to why KSMSC was singled out of the
Universitys allocation and rather than reduce the
Universitys appropriation every other entity had their
allocation reduced. Representative Wool replied that it was
the desire of individuals in Kodiak to fund the program
through the center itself. He commented that UA had not
funded the specific program slated for the funding at the
center, so the allocation was not from UAs TVEP funding.
He deferred to Ms. Cothren for further clarification.
Ms. Cothren responded that UA had funded some programs at
the center through its competitive internal process since
2012. She listed the programs. She offered that one was the
Alaska Seafood Leadership Institute and the other program
was the Seafood Processing Training Program funded in 2015.
In the current years process, an additional request was
submitted for coordination and additional curriculum
development and training through the Kodiak center. It had
been recommended for funding and would go through the UA
president as part of the approval process.
4:23:25 PM
Co-Chair Foster wondered why funding was decreased from
everyone except for the University. He argued that if there
was going to be a reduction everyone should at least share
the reduction. He agreed with returning to the prior
version of the bill.
Vice-Chair Ortiz asked whether the previous committee
offered the other recipients an opportunity to speak to the
3.5 percent reduction and how it would impact their
programs. Representative Wool explained that even though
the percentages were reduced, their amounts still increased
due to the increase to .18 percent that increased the
overall pot of money. However, he reiterated the
importance of not reducing the fund at the current time.
Vice-Chair Ortiz asked how the additional funding would
support the center and whether the prior committee engaged
in the discussion. Representative Wool did not recall that
many program details were provided.
4:26:30 PM
Co-Chair Foster acknowledged that the .18 percent increase
increased all the recipients funding; however, the
vocational school in his district (Northwest Alaska Career
and Technical Center in Nome) had asked for an increased
allocation from 3 percent to 5 percent for many years. He
relayed that he advised against cracking open the formula
and noted having to hold back his districts increase
requests through the years. Currently, the previous
committee had cracked open the formula and created
issues. He relayed discussions with a Senator [not named]
and they concluded the best path forward was to keep the
bill clean and slightly increase the funding percentage
for everyone. The addition of a new recipient meant the
increase was not as large as expected. He asserted that all
recipients should share in the same reduction percentage,
but ultimately, he preferred a clean bill.
4:28:53 PM
Representative Tilton asked if it were the intention of UA
to further allocate funding to the Kodiak Seafood and
Marine Science Center even though the entity would have its
own line item or allow them to operate solely on its line
item funding. Additionally, she wondered what other
entities on the statutory participant list UA funded out of
its 45 percent TVEP allocation. Ms. Cothren responded that
the University had a successful internal process that
welcomed applications from any programs from within the
university system. She added that the line item situation
and how it would be managed was new to the university. The
university needed to consider how best to manage the
situation and maintain the intent of TVEP to provide
workforce training. She noted that the university partnered
and leveraged resources with the other TVEP recipients but
maintained its 45 percent allocation within university
programs.
4:32:19 PM
Ms. Lager referred to [FN 2 (DOL)] the published Department
of Labor and Workforce Development (DOL) fiscal note
allocated to the Workforce Investment Board. She reported
that $4.690 million was included in the governors FY 21
amended request and $649 thousand was associated with the
legislation. She referred to page 3 of the fiscal note
analysis that contained a chart of updated TVEP funding
distribution.
Ms. Lager moved to [FN 3 (DOL)] the published DOL fiscal
note allocated to Workforce Development. [Secretary Note:
Ms. Lager mistakenly referred to the fiscal note as number
4.] She reported that the $80.9 thousand appropriation
remained unchanged from the original version of the bill.
4:33:30 PM
MILES BAKER, LEGISLATIVE LIAISON, UNIVERSITY OF ALASKA (via
teleconference), referred to the fiscal note by the
University of Alaska [FN6 (UA)]. He delineated that the
governor's amended budget already included $6.225 million
based on the current statutory TVEP formula. However, the
current version of the legislation would add a statutory
allocation for the Kodiak Seafood and Marine Science Center
(KSMSC), which is a component of the College of Fisheries
and Ocean Science (CFOS) at University of Alaska Fairbanks
(UAF). Therefore, the changes in the prior committee added
$1.006 million to the universitys appropriation for a
total of $7.231 million. The amount was projected out to
2025.
4:35:39 PM
LACEY SANDERS, ADMINISTRATIVE SERVICES DIRECTOR, DEPARTMENT
OF EDUCATION AND EARLY DEVELOPMENT, OFFICE OF MANAGEMENT
AND BUDGET, OFFICE OF THE GOVERNOR (via teleconference),
referred to the fiscal note [FN1 (DEED)] by the Department
of Education and Early Development (DEED) allocated to
Student and School Achievement. She explained that the
governors amended budget included an appropriation of $553
thousand in grant funding to the Galena City School
District for the Galena Interior Learning Academy based on
the current statutory allocation of 4 percent. The bill
reduced the statutory distribution to Galena Interior
Learning Academy from 4 percent to 3.860 percent, but the
action resulted in an overall increase of $41.6 thousand
bringing the fiscal note total to $595 thousand.
4:37:00 PM
Co-Chair Johnston OPENED Public Testimony.
4:37:42 PM
NICOLE KIMBALL, PACIFIC SEAFOOD PROCESSORS ASSOCIATION
(PSPA), ANCHORAGE (via teleconference), supported the
current version of the bill. She spoke to the significant
economic impact that the seafood industry had on the state.
She emphasized that it was imperative for the industry to
have a skilled workforce available in rural communities
throughout the state. She indicated that the industry
endeavored to fill the highly skilled positions with
Alaskans and the "key" to accomplish in-state hire was the
availability of local training. She referred to a letter by
the association in members' packets (copy on file) She
revealed that the industry was requesting that the seafood
worker TVEP contributions were "more aligned" with the
funding spent on seafood training. She reported that TVEP
funding currently spent on seafood training was
approximately 10 percent of the annual contribution;
seafood workers contributed $600 thousand annually and only
$60 thousand was spent on seafood training. She believed
that the line item designation to KSMSC ensured more
funding for seafood processing training. She assumed that
the legislature was familiar with the facility, which was
built in the 1990. She detailed that the center's mission
was established by the legislature to provided research and
training for the seafood industry and was the only training
center of its kind in the state.
4:41:00 PM
DAVID REES, FACILITATOR, ALASKA BUSINESS EDUCATION COMPACT,
EAGLE RIVER (via teleconference), spoke in support of the
bill. He reported that the compact explored ways of tying
the education system with workforce needs and was familiar
with all the training centers in the state. He spoke about
the benefits of the TVEP program reaching every part of
Alaska and noted that the funding kept the training updated
and relevant. He exemplified TVEPs contribution to
transitional training to military graduates and the dual
credit program for high school students. The compact
strongly supported the TVEP program and the partnerships
its supported to get Alaskans into Alaskan jobs.
4:44:57 PM
SHANNON CARROLL, TRIDENT SEAFOODS, GIRDWOOD (via
teleconference), called in support of the CS version of the
bill. He reported that Trident was a family owned business
that operated 10 shore based facilities throughout the
state and employed 6 thousand workers annually. He
concurred with Ms. Kimballs testimony. He noted that the
state TVEP funding received a substantial contribution
from seafood workers in the amount of approximately $600
thousand annually, but seafood training funding was
minimal; only 10 percent of the total contribution. He
believed that increased TVEP funding for the state's
seafood workforce allowed the industry to hire more
Alaskans and benefit the long-term economy of Alaskas
costal communities and the entire state.
4:46:10 PM
Representative Carpenter asked if the training was done in
partnership with industry. He wondered if his business
contributed to some of the seafood training. Mr. Carroll
answered that he could only speak to his company and
indicated that Trident had provided in-kind contributions
or paid upfront for training opportunities at KSMSC and
characterized the involvement as a partnership with the
center.
Representative Wool asked Mr. Carroll about the potential
effects the increased UI draw would place on the
unemployment needs of the industry. Mr. Carroll was unable
to accurately comment and believed it was a policy decision
for the legislature. He noted the industry's support to
maintain a skilled workforce. He understood that the
situation created some tradeoffs.
4:48:15 PM
DOUG WALRATH, NORTHWESTERN ALASKA CAREER AND TECHNICAL
CENTER, NOME (via teleconference), supported HB 235 and
thanked the bill sponsor and his staff for putting the bill
forward. He relayed that TVEP provided essential funding
and support to a network of regional training centers
that provided autonomy and flexibility to meet regional
industry needs. He appreciated the increase in the
contribution. He was concerned that the addition of a new
UA program would counter the impact of a UI increase that
distributed the burden across the regional network. He
contended that the Alaska Workforce Investment Board was
better suited to make recommendations for adding other
recipients. He informed the committee that UA programs were
designated as UA TVEP recipients while DOL recognized
regional training centers such as AVTEC as exempt
recipients. He recommended eliminating the new addition of
a UA program as a separate TVEP recipient and believed the
action created an inequity. He favored the TVEP
reauthorization.
Vice-Chair Ortiz asked if Mr. Walrath supported the
distribution in the current CS. Mr. Walrath supported the
UI percentage increase but did not support the addition of
a new entity to the training centers distribution. He
thought that the distribution amount would decrease due to
the impending economic downturn caused by the COVID 19
virus since the UI contribution was based on the amount of
employment. He furthered that due to the downturn in oil
and gas in 2017, the distribution was decreased in 2018 and
2019 and still had not returned to 2017 levels.
4:52:16 PM
PAULA CULLENBERG, EXECUTIVE DIRECTOR, ALASKA RESEARCH
CONSORTIUM, ANCHORAGE (via teleconference), indicated that
the consortium was formed 3 years prior to support the
seafood industry and the KSMSC in response to the
universitys proposal to close the science center. The
university ultimately decided to maintain the center
spurred in part by the legislatures support via HR 10 [HR
10 - Kodiak Seafood and Marine Science Center House
Resolve 10 - 10/05/2018]. She delineated that the mission
of the center established in Title 16 was to support the
state's economy through training and research in support of
the seafood industry. She indicated that the group proposed
the addition of the science center as a direct recipient of
TVEP funding in support of its mission. She relayed the
struggles of trying to carry out the mission and develop
core and stable funding for a seafood workforce development
program. She reported that the Alaska Research Consortium
(ARC) was currently in the process of assessing the
workforce training needs of the seafood industry. The study
was funded by federal and industry match dollars. The ARC
interviewed plant and HR managers from 22 communities
representing 16,000 workers in Alaska. She reported that 87
percent of the survey participants favored more workforce
training in priority areas such as quality control,
sanitation, refrigeration training, leadership and
supervisory skills, regulatory compliance, technical
processing, and safety training. She offered to share
additional details of the survey. She continued that UA
testified to its open competitive process for TVEP funding
that included a small amount of funding for KSMSC but had
not provided enough core funding to build the program. She
thought that ARCs request for dedicated TVEP funding to
build and maintain the seafood program seemed reasonable
considering the $600 thousand contribution to the TVEP
fund. She reiterated her support for the CS version of the
bill.
4:57:13 PM
Co-Chair Foster cited Ms. Cullenbergs testimony regarding
UAs previous discussions to close the science center. He
wondered when those discussions had occurred. Ms.
Cullenberg replied that the discussions took place in 2016
and 2017 when UA was facing large budget reductions. She
reported that the industry and community of Kodiak lobbied
in favor of the center. She elaborated that the university
proposed a private/public partnership and ARC was formed as
a non-profit in response. Ultimately, the university
maintained operation of the center but lacked enough
faculty and staff support to appropriately build the
program.
4:58:48 PM
ANISHIA ELBIE, EXECUTIVE DIRECTOR, SOUTHWEST ALASKA
VOCATIONAL AND EDUCATIONAL CENTER, KING SALMON (via
teleconference), spoke in support of the bill. She shared
that the Southwest Alaska Vocational and Educational Center
(SAVEC) was a regional training center and non-profit that
had benefited from the TVEP program since it had been added
in 2005. The center believed in the guiding principles of
preparing Alaskans for Alaskan jobs and providing
vocational education tied to the workforce. She reported
that the commercial fishing industry in Bristol Bay had the
highest percentage of non-Alaskan hire, ranging from 80 to
90 percent. She relayed that SAVEC leveraged TVEP funds
with the local Bristol Bay Economic Development Corporation
and added $250 thousand for training that included anything
related to fishing and its support industries. She
advocated for the noted percentage increase but wanted to
see the KSMSC deleted from the bill as an added recipient.
5:01:33 PM
Co-Chair Johnston CLOSED Public Testimony.
Co-Chair Johnston indicated that Amendments were due by
Tuesday, March 17, 2020 by 5:00 p.m.
5:02:41 PM
Representative Josephson wondered at what point the UI
percentage increase affected the amount available for
unemployed workers. Representative Wool deduced that
Representative Josephson was referring to the difference
between .16 percent and .18 percent. He pointed out that
it represented the difference between $13.4 million and
$15.1 million which was $1.7 million. He responded that the
amount in the pool reflected the contribution percentage
and the rate of employment and unemployment and its effects
on the fund. He explained that for a period of time
employment was lower and unemployment was higher causing
the fund to shrink. Eventually, a number of the unemployed
left the state and the fund increased somewhat. The fund
reacted to levels of employment and unemployment; it
decreased because of less people working and paying into
the fund or unemployment increased. He was concerned that
the draw down would increase, and the payout would decrease
due to COVID 19 in the future. He was uncertain when the
increase to .18 percent might affect UI benefits.
5:05:15 PM
Co-Chair Foster commented that he was concerned about the
future possibility of other programs being separated from
the university and receiving its own line item, yet UAs
allocation remained unchanged. He wanted to see a list of
the UAs TVEP funding recipients.
Representative Wool interjected that UAs budget had been
cut and was under pressure from $25 million in cuts for the
following three years. The reductions played a role in its
prior proposal to close the science center and placed
pressure on any future funding for it.
Co-Chair Johnston further discussed committee business.
HB 235 was HEARD and HELD in committee for further
consideration.