Legislature(2021 - 2022)ADAMS 519
04/22/2022 01:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB172 | |
| SB10 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 172 | TELECONFERENCED | |
| + | SB 10 | TELECONFERENCED | |
| + | TELECONFERENCED |
CS FOR SENATE BILL NO. 10(FIN) am
"An Act establishing a grant program to provide to
essential workers and laid-off workers the tuition and
fees to attend certain postsecondary institutions."
2:09:11 PM
SENATOR TOM BEGICH, SPONSOR, introduced the legislation. He
read from prepared remarks.
Whether delivering our groceries or caring for our
young children, picking us up from the airport or
cleaning our offices, over the past two years,
frontline workers and those laid off as a direct
result of the pandemic have experienced great
hardship.
Frontline workers have been the ones who made
significant sacrifices - sometimes at great risk to
themselves and their loved ones.
Included in your bill packet and available on Basis is
a study published by the Occupational and
Environmental Medicine Journal which reported that
over 20% of grocery store employees tested positive
for COVID-19.
SB 10 Free Tuition for Frontline and Laid Off
Workers is the right step in showing our gratitude and
thanks to those who experienced the worst of the
pandemic.
It's clear that everyone has fallen behind and as we
continue on this road of recovery, let's use the
federal relief funds given to our state to directly
help those most impacted.
SB 10 provides an avenue for financial support to
those who wish to continue their education and prepare
for a future in a post-COVID world.
Data from the US Department of Labor clearly shows us
that higher education attainment equates to higher
weekly earnings.
2:13:56 PM
In the UA Workforce Report, also included in your bill
packet and available on Basis, the median earnings for
those with just a high school diploma is $35,328 while
those with a bachelor's degree earn, on average,
$57,708 a year. Education truly matters.
This same UA report states that 96.3% of working
graduates are Alaskan residents - going to school in
Alaska keeps you in Alaska.
As we have continued to hear about our state's
struggles with teacher retention and our need to
locally grow high quality educators, I think about
those 1,000 paraprofessionals with some college, ready
and poised to take advantage of an investment in their
education. This bill will help anyone who's been on
the frontline work toward the next iterative of their
career.
This bill focuses on leveraging federal dollars
through a targeted program.
1.If an Alaskan meets eligibility requirements
such as established residency and proof of
negative employment impact due to COVID, they
must apply for inclusion in this program by
December 31st of this year.
2.They then have 4 years to complete their
training.
3.Annually, they must show positive forward
progress to continue receiving support.
4.After the program sunsets in 2026, the
legislature will receive a final report in 2027.
By providing a path for frontline workers to earn a
post-secondary education in Alaska, we will stop the
attrition of Alaska's future.
In a moment, my staffer will read the sectional
analysis, but please allow me to highlight of the
legislation:
Changes were made to the eligibility criteria to
allow folks who were laid off as a direct result
of the pandemic to take advantage of the grant
program. Additional changes to eligibly criteria
were made to include a more comprehensive
definition of frontline or essential worker. The
legislation now references the definition of
"essential worker" established under the March
27th Health Mandate from Governor Dunleavy
entitled, the Alaska Essential Services and
Critical Workforce Infrastructure Order. This
document is comprehensive in its description of
"essential worker" and includes folks like mail
carriers, grocery store clerks, Uber drivers, and
many, many others. This is also why Legislative
Legal chose to use the term "essential" worker
versus "frontline" worker.
The essential grant program is available for all
state-supported postsecondary education programs
like AVETC and UA certificates programs.
Folks must first complete a FASFA application,
which makes them eligible for the thousands of
dollars in federal grant support for education,
making this a "last dollar" program.
The final program report and repeal dates were
updated in House Education as this is a time
limited program targeted to help folks recover
from the pandemic.
2:15:47 PM
Vice-Chair Ortiz appreciated the intent of the bill. He
asked if there were provisions built into SB 10 that
ensured eligible people were made aware of the program.
Senator Begich replied in the negative. He explained that
the program would be promoted through the American
Federation of Labor and Congress of Industrial
Organizations (AFL-CIO) and other entities. He noted that
there was some funding in the bill for the Alaska
Commission on Postsecondary Education (ACPE) to address the
content of the bill and would likely have ideas on how they
would promote the bill.
Representative Edgmon supported the bill. He looked at the
effective dates and observed it would be in effect for the
next five to six years. Senator Begich replied
affirmatively. Representative Edgmon asked if essential
worker was defined in statute. Senator Begich pointed to
lines 8 through 11, on page 3 of the bill and explained the
definition was clearly defined in statute. He noted that
the definition of essential worker" was included in the
Alaska Essential Services and Critical Workforce
Infrastructure Order, which was included in the members
bill packets (copy on file). He furthered that Legislative
Legal Services changed the term from frontline worker to
essential worker and tied it to the Infrastructure Order of
April 10, 2020.
2:19:54 PM
Representative Thompson understood that if a person quit
their job during the COVID pandemic they would not be
eligible. Senator Begich cited the top of page 2 of the
bill and answered that the worker had to be laid off and if
the person had quit by their own choice, they would not be
eligible.
Representative Carpenter asked why essential workers
currently employed had the same priority as other workers
who were laid off and were either essential or non-
essential. Senator Begich responded that the program was
designed to focus on individuals that were harmed by the
pandemic due to loss of employment. The harm was posed by
either temporarily or permanent lay off or exposure to
COVID 19 by being required to stay working. The program was
an acknowledgement to workers who would take the risk to
remain in their job or had remained due to financial
considerations. The program equated the dual damages done
by the pandemic of either losing work or exposure to the
significant health risk. He thought that many people would
choose not to take advantage of the program.
2:22:34 PM
Representative Carpenter believed that everyone had an
equal risk to get the illness. He thought it had been a
question of timing.
Co-Chair Merrick asked for a review of the sectional
analysis.
LOKI GALE TOBIN, STAFF, SENATOR BEGICH, provided a review
of the sectional analysis (copy on file):
Section 1. Establishes an Essential Worker and Laid-
Off Worker Grant Program as new uncodified law of the
State of Alaska. Directs the Alaska Commission on
Postsecondary Education (ACPE) to develop in
regulation a post-secondary tuition grant program and
award grants to essential workers employed at the
start of or during the declared federal public health
emergency or those who were temporarily or permanently
laid off as a direct consequence of the declared
federal public health emergency.
Directs ACPE to establish policies and procedures for
application and admission to the program, including
consulting the Department of Health and Social
Services and reviewing the Alaska Essential Services
and Critical Workforce Infrastructure Order in
determining applicant eligibility.
Section 2. Establishes an Essential Worker and Laid-
Off Worker Grant Program Report as new uncodified law
of the State of Alaska and directs ACPE to submit the
report of program efficacy to the Alaska State
Legislature on or before December 31st.
Section 3. Repeals Section 1 on June 30, 2026.
Section 4. Repeals Section 2 on June 30, 2027.
2:24:26 PM
Representative Josephson asked if the program qualified for
Coronavirus State and Local Fiscal Recovery Funds (SLFRF)
Program backfill.
Senator Begich replied in the affirmative. Representative
Josephson asked for verification that the Senator wanted
the committee to modify the fiscal note to change the fund
source to SLFRF funding. Senator Begich referenced a prior
fiscal note control code ZGjKM [published fiscal impact
fiscal note 5 (FN5 (EED) by the Department of Education and
Early Development and the Senate Rules Committee, for the
Alaska Commission on Postsecondary Education (ACPE)] and
indicated that the fiscal note had been adopted by the
Senate. He explained that the fiscal noted used SLFRF money
as the fund source along with a minimal amount of
interagency receipts funding from ACPE. He recommended the
committee adopt the fiscal note and assured the committee
that he had discussed the issue with the administration,
and it would be an appropriate use of the federal funding.
2:26:10 PM
AT EASE
2:27:46 PM
RECONVENED
Senator Begich clarified that the updated fiscal note
published fiscal note 7 (FN7 (EED) for DEED, ACPE included
an Other fund source, but countered that federal receipts
should be designated as the fund source. He deferred
further answer to the commission to discuss the funding and
its fiscal note.
Co-Chair Merrick noted the department would review the
fiscal note after invited testimony.
Representative Carpenter cited the fund source on the
fiscal note, number 1007 Inter Agency Receipts (IA) (Other)
and asked it that represented the SLFRF funds.
Representative Merrick asked the representative from APEC
to review the fiscal note and clarify the funding issue.
Senator Begich interjected that the goal was to expend
federal receipts. He disclosed that he had discussed two
different fiscal notes and apologized for the confusion. He
clarified that the SLFRF fund source code was 1269.
2:29:35 PM
SANA EFIRD, EXECUTIVE DIRECTOR, ALASKA COMMISSION ON
POSTSECONDARY EDUCATION, DEPARTMENT OF EDUCATION AND EARLY
DEVELOPMENT, clarified that the commission submitted two
fiscal notes; number 7 and published fiscal note 6 (FN6
(EED) appropriated to the Alaska Student Loan Corporation
(ASLC). She pointed to the Other receipts on fiscal note
6 [fund code 1106] and indicated that they were receipts
that funded the cost of ASLC programs administered by ACPE.
She elaborated that initially the commission had included
Unrestricted General Funds (UGF) on its prior fiscal notes
because ACPE assumed it lacked the authority to expend the
federal relief funds but discovered that they would be able
to accept and receipt the federal relief funds if they were
appropriated.
Representative Carpenter asked for an explanation of the
receipts specified on FN7. Ms. Efird drew the committee's
attention first to FN6. She relayed that in accordance with
AS 14.42.170, the employees of ACPE shall serve as staff
for the Alaska Student Loan Corporation. As an enterprise
agency of the State of Alaska, ASLC funds the positions and
related work of ACPE through ASLC Receipts. Since the new
duties associated with the essential workers grant program
were not associated with ASLC, the fiscal note reflected a
reduction in ASLC receipts in the first year. The ASLC
receipts were received by the commission in its operating
budget. She pointed to FN7 showing a fund source change in
FY 23 to reflect the positions aligning with the duties of
the essential worker grant program to be paid with the
corresponding correct fund source. She reminded the
committee that the commission had originally identified the
funding source incorrectly as UGF General Funds (GF) and
could be replaced with the federal SLFRF relief funds. The
fund code for IA receipts 1007 was used in FN7 that
reflected the technical aspect of how the finds flowed into
the operating budget of the student loan corporation and
was allocated to the component that had the employee
positions.
2:33:13 PM
Senator Begich would provide a copy of FN 5 that was
adopted on the Senate floor. He requested the committee use
the approach FN5 used because it designated the federal
funding. He commented that lacking the federal funding
source, the program would not be funded if the bill was
adopted.
Ms. Efird pointed out that the positions were not new, the
fiscal note reflected a realignment of the work of the
positions to be funded correctly by the fund sources
covering the program. The fiscal note merely reflected a
change in the fund source.
Co-Chair Merrick moved to invited testimony.
2:34:52 PM
TERI COTHREN, UNIVERSITY OF ALASKA, ANCHORAGE (via
teleconference), relayed that the university supported the
bill. She provided context for the bill. She explained that
the University of Alaska (UA) was Alaskas system for
higher education and included three separately accredited
universities, each with distinct missions and were
responsible for 13 community campuses that extended access
to education in all six economic regions of the state. She
communicated that combined the system was the most
comprehensive workforce provider ranging from shorter
certificated programs to Associate, Bachelor, and Graduate
Degrees. The university offered career pathways to
healthcare, early childhood and teacher education, law and
public safety, transportation, and business specific to SB
10. She relayed that growing a strong workforce was the
core of the universitys mission. The bill enabled UA to
train more workers and support the states economic
recovery. She referred to UA workforce reports (copy on
file) that demonstrated graduate and employment outcomes
over a 10 year period. The university partnered with the
Department of Labor and Workforce Development (DLWD) to
publish the reports. She conveyed that the reports
demonstrated the value of training and education. The data
showed that earning potential and upward mobility increased
with increased education. She spoke to other benefits
including lower unemployment rates, reduced needs for
government support services, improved health, and reduced
crime rates. She noted the critical importance to upskill
and reskill the Alaska workforce to address the states
labor shortages of skilled workers. She shared demographic
data from DLWD that pointed to Alaskas flat population
growth. She added that Alaskas working population had fell
substantially in the last decade as the large retirement
population began aging out of their jobs and taking their
years of experience with them. She shared that for nine
consecutive years more people had left the state than had
moved to Alaska especially in the 30's to 40's age groups
that represented the prime working age and likely had
school age children that in turn, filled the workforce
pipeline. She believed that the bill would help address
skilled labor shortages and grow Alaskas workforce in
skilled employment and help individuals to advance their
careers.
2:39:35 PM
DON ETHERIDGE, ALASKA AFL-CIO, testified in support of the
legislation. He shared that many front line workers and
first responders had been greatly impacted by the pandemic.
He confirmed that the AFL-CIO would work to spread the word
upon passage of the legislation. He spoke of the impact to
frontline workers and first responders during the pandemic
who had not been able to spend much time with their
families and were repeatedly quarantined. They were
repeatedly exposed to the virus, but they had to keep
working. He stated the program gave workers a hand-up and
not a hand-out. The bill would give people opportunity and
a chance to improve their own lives.
2:42:05 PM
Co-Chair Merrick noted the committee had received FN5. She
asked for comment by the sponsor or department.
Ms. Efird spoke to FN5. She explained that reflected in the
personal services line the fund switch from the Alaska
Student Loan Corporation to the FY 22 request [The fiscal
note was from 2021 and would be updated to reflect FY 23
request.] The fiscal note showed the reduction of 1.5
positions from the ASLC receipts and swapped it with
federal relief funds. She noted that in the first year the
allocation was for the cost for 1.5 full-time equivalent
(FTE) Financial Aid Operations Analyst and Financial Aid
Specialist to oversee setup, implementation, process
awards, communicate with students and schools, and for
Information Technology (IT) staff to support system setup
and implementation in the amount of $187.5 thousand.
Subsequently, the commissions personal services costs
would reduce and represent the costs of .6 FTE position
reflected in the outyears that would reduce further to a
0.5 FTE position. The change showed up in the funding
source adding back student loan receipts that would reflect
the positions reverted to working on ASLC duties. She added
that the initial annual IT system maintenance cost was $10
thousand and the cost to promulgate regulations and to
implement the new grant program totaled $6 thousand. She
drew attention to the one-time capital outlay to implement
and expand the application portal of the Alaska Student Aid
Portal for a cost of $65.5 thousand. The total amount of
$2.5 million in grants was limited per fiscal year.
Representative Edgmon was trying to trace the bill's
journey. He noted FN5 reflected the bill's introduction in
FY 2021. He noted the two updated fiscal notes to 2022 and
asked for clarity on the fiscal notes.
Senator Begich clarified that his preference was to specify
the federal funding source. The prior years fiscal note
that passed out of the Senate Rules Committee had the
desired funding source. He elucidated that when the bill
was heard in the House Education Committee new fiscal notes
were ordered but the fiscal notes had not been updated to
reflect the actions of the Senate nor the House Education
Committee's action to change the effective date to a 4 -
year program. He discussed FN5 to clarify that the intent
was to use the federal funding source. He hoped the
committee would adopt a fiscal note reflecting the SLFRF
federal fund source and extend the program by one
additional year to maintain the programs length of 4
years. He noted that an updated fiscal note would reflect
the intention of the sponsor, the Senate, and the House
Education Committee.
2:49:19 PM
Representative Edgmon understood the explanation. He
surmised that adopting the fiscal note gave a directive to
the legislature that the fiscal note should include the
federal relief funds and the bills original intent.
Senator Begich answered in the affirmative.
Representative Carpenter supported the action. He thought
it would be the proper use of the remaining pandemic relief
federal funds. He had some concerns with the language in
the bill, but he fully supported the funding source.
Senator Begich wanted to reinforce Representative
Carpenters statements. He emphasized that the intent of SB
10 was to fund the bill with federal relief funds that were
designated for relief and economic recovery. He believed
the bill would become law if the changes were made.
Representative Thompson asked about the criteria to receive
the grants. He pointed to the language temporarily or
permanently laid off. He thought the bill was a good idea
and increased people's employment opportunities. He was
concerned about the term temporary and asked what the
criteria was regarding temporary layoff.
2:52:11 PM
Senator Begich replied that ACPE would be responsible for
looking at the letter of the law and establish the
regulations. He stressed that the clear intent was to
include temporarily and permanently.
Ms. Efird added that the department would work with DOL to
outline and identify regulations that interpreted
temporarily and permanently.
Representative Carpenter asked what money or programs the
Department of Commerce, Community and Economic Development
(DCCED) or DLWD already had in place to help workers laid
off during the pandemic.
Co-Chair Merrick stated they could reach out to the
departments.
Representative Thompson asked if the bill included
apprenticeship programs. Senator Begich answered that AVTEC
and certificated programs that were part of the University
of Alaska, AVTEC, or programs funded through the state were
eligible.
2:54:51 PM
Representative Edgmon referenced a prior testifiers
statistics related to the states population losses and
worker declines. He requested further testimony regarding
the significance of SB 10 assisting in arresting some of
the decline. He was aware of the population loss taking
place in Alaska and the significance of the population
losses in prime working and school age Alaskans. He wanted
the bill placed in context of the larger issue.
Senator Begich responded that the Senate Labor and Commerce
Committee had requested a special hearing on the bill
because the committee wanted to highlight the employment
loss issues that happened in Alaska during the pandemic. He
revealed that if an individual worked in a high income
earning bracket the job loss had bounced back but lower
income earning jobs were still down 25 percent. He agreed
that the data underscored Representative Edgmons points.
He highlighted that lower income workers that were exposed
to COVID at higher rates, had contracted the more severe
variant, and suffered earning losses, fell behind and never
did recover. He emphasized that the bill was specifically
aimed at the group, so they did not give up on Alaska. He
commented that the situation was out of the workers
control. He believed that the state was in a situation
currently, where billions of dollars were forthcoming, and
the state lacked the workforce to meet the demands of the
resource. He offered to provide the committee the workforce
and demographic data.
CSSB 10(FIN)am was HEARD and HELD in committee for further
consideration.
Co-Chair Merrick reviewed the schedule for the following
Monday.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 10 v. D Sectional Analysis 2.28.2022.pdf |
HFIN 4/22/2022 1:30:00 PM |
SB 10 |
| SB 10 v. D Sponsor Statement 2.28.2022.pdf |
HFIN 4/22/2022 1:30:00 PM |
SB 10 |
| SB 10 v. D Supporting Document Essentail Workers and COVID Infection.pdf |
HFIN 4/22/2022 1:30:00 PM |
SB 10 |
| SB 10 v. D Supporting Document Union calls on state to treat Alaska grocery workers as first responders ADN.pdf |
HFIN 4/22/2022 1:30:00 PM |
SB 10 |
| SB 10 v. D Supporting Document Univ. of Alaska - Workforce Reports Summary.pdf |
HFIN 4/22/2022 1:30:00 PM |
SB 10 |
| HB 172 Public Testimony Rec'd by 042222.pdf |
HFIN 4/22/2022 1:30:00 PM |
HB 172 |
| HB172 GCDSE Letter of Support for April 2022_V1.0.pdf |
HFIN 4/22/2022 1:30:00 PM |
HB 172 |
| SB 10 Supporting Document 032722.pdf |
HFIN 4/22/2022 1:30:00 PM |
SB 10 |