Legislature(2017 - 2018)BELTZ 105 (TSBldg)
04/11/2017 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB49 | |
| SCR10 | |
| SB85 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 49 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 85 | TELECONFERENCED | |
| += | SCR 10 | TELECONFERENCED | |
SB 85-AK WORKFORCE INVESTMENT BOARD;FUNDS
2:18:02 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of SB 85. She explained that this is the sunset
reauthorization for the Alaska Technical Vocational Education
Program, and the House passed the companion bill on Sunday. The
intention today is to hear the introduction of the Senate bill
and take public testimony.
2:19:09 PM
WESTON EILER, Staff, Senate Labor and Commerce Committee, Alaska
State Legislature, stated that SB 85 extends the Alaska
Technical and Vocational Education Program (TVEP). Funds for the
program come from employee contributions to the Unemployment
Insurance Trust Fund and are used for vocational education and
workforce development. The legislature established TVEP in 2000
and the distribution of the funds was split between the
University of Alaska, the Kotzebue Training Center, and the
Alaska Technical Center (AVTEC). The list has expanded since
then to include 10 training centers, including the University of
Alaska that receives 45 percent of the funds generated from the
assessments. For FY2017 this is estimated to be about $13.2
million. The committee is sponsoring the bill at the request of
the administration.
MR. EILER stated that Section 1 extends the program through June
30, 2020. Page 1, line 11, through page 2, line 6, lists the
recipients and percentage each receives as assigned by statute.
The funds are allocated as follows:
University of Alaska 45 percent
Galena Interior Learning Academy 04 percent
Alaska Technical Center 09 percent
Alaska Vocational Technical Center 17 percent
Northwestern Alaska Career & Technical Center 03 percent
Southwest Alaska Vocational & Education Center 03 percent
Yuut Elitnaurviat, Inc. People's Learning Center 09 percent
Partners for Progress in Delta, Inc. 03 percent
Amundsen Educational Center 02 percent
Ilisagvik College 05 percent
Section 2 addresses retroactivity to ensure there isn't a gap in
funding.
2:23:24 PM
GREG CASHEN, Deputy Commissioner, Department of Labor and
Workforce Development, Juneau, thanked the committee for
inviting Paloma Harbour and himself to give an overview of the
Technical and Vocational Education Program (TVEP).
He explained that SB 85 reauthorizes the allocation of TVEP
funds for three years. This program was established by the
legislature in 2000 to enhance the quality and accessibility of
job training throughout the state and to align training with
regional workforce demands. The program is funded through
employee contributions to the Unemployment Insurance Trust Fund.
The purpose is to ensure a statewide training infrastructure for
unemployed individuals, adults and youths, who may need training
to return to work. TVEP funds are distributed to technical and
vocational education training entities as designated by statute.
The program supports operating costs for training centers across
the state, including rural Alaska, and provides a range of
vocational training from entry-level courses to associate
degrees. In FY2016, the ten TVEP recipients were allocated $12.5
million and served 10,295 Alaskans. This translates to $1,215
per participant.
MR. CASHEN said TVEP effectively decreases unemployment and
increases graduation rates, employment and earnings, and Alaska
hire. He opined that a statewide network of training providers
is critical to developing an Alaska workforce and SB 85 is
necessary to educate and train Alaskans for Alaska jobs. He
displayed a chart showing the number of Alaskans that completed
the program in FY2012-FY2015 and the number that were employed
within a year of completing their training. He said success in
these programs gives students the skills and confidence needed
to start employment or seek additional training. Oftentimes
students will advance from one training provider to another as
they advance their skills.
MR. CASHEN displayed a chart showing the median wage for TVEP
participants 7-12 months after they exited the program. He
highlighted that many participants continue their training and
only work part time, which brings down the average. In FY2016,
the average earnings per participant one year before entering
TVEP training was $19,080 compared to $24,293 one year after
training. On average, the salary increase is 27 percent. The
cumulative earnings one year after TVEP training was $26 million
more than one year before TVEP training. Slides 8 and 9 list the
23 occupations of TVEP participants. He explained that the TVEP
program does not categorize the jobs as training related because
many of the trainings are broad employment skill programs that
will benefit the participant in a range of jobs. He cited the
examples of driver's education and Microsoft Excel.
2:29:09 PM
CHAIR COSTELLO referenced slide 9 and asked how he'd explain
that 30 people are employed in "unknown or unavailable"
occupations.
MR. CASHEN said he would follow up with an answer after
consulting the research and analysis section, but his guess is
that it wasn't possible to match the training with an
occupation.
CHAIR COSTELLO referenced slide 8 and noted that the highest
number of employed are in office and administrative support
occupations. She asked if the employment numbers reflect the
area the participants received training.
PALOMA HARBOUR, Director, Division of Administrative Services,
Department of Labor and Workforce Development (DOLWD), Juneau,
said several training providers offer office support training.
Training such as business and office technology, Microsoft Excel
and Word, and medical office assistants might be put in the
administrative support category.
MR. CASHEN displayed a chart showing the TVEP distribution by
recipient from FY2015-FY2018. He explained that the FY2018
distribution assumes the current statutory allocation and is
based on the projected revenue in the fund. He highlighted that
when employment decreases, the revenue to the fund also
decreases.
MS. HARBOUR clarified that the $13.2 million cited when the bill
was presented was the estimate based on the original governor's
budget. It's closer to $12 million, based on revised revenue
projections. Revenue is down significantly because overall
employment is down.
SENATOR STEVENS asked which entity is the Seward Skill Center.
MS. HARBOUR said it's the Alaska Vocational Technical Center or
AVTEC.
SENATOR MEYER asked if University of Alaska refers to the system
and funds go to all the campuses.
MS. HARBOUR said it's for the system and the university prepared
a report that breaks down the amount of money that is awarded to
each of the campuses.
SENATOR HUGHES asked if a student could use TVEP funds at
Northern Industrial Training or other private sector training
programs.
MS. HARBOUR said the State Training and Employment Program
(STEP) provides workforce development grants to training
entities, and it provides grants to individuals to attend
various training programs. TVEP funds only go to the entities
listed.
CHAIR COSTELLO clarified that STEP is a competitive grant
program and the recipients of TVEP funds are listed in statute.
She understands there is some overlap.
2:34:59 PM
MR. CASHEN displayed slide 11 that provides performance details
by recipient, including the amount distributed and the number of
Alaskan adults and students served in FY2016.
CHAIR COSTELLO asked him to comment on the variation in the
funding. For example, the Amundsen Educational Center receives 2
percent of the funding and it serves 17 participants whereas the
Galena Interior Learning Academy receives 4 percent of the
funding and serves 260 participants.
MR. CASHEN said the department doesn't compare the individual
training centers for performance; they simply report the numbers
as required by statute.
CHAIR COSTELLO said the King Career Center in the Anchorage
School District doesn't receive any TVEP funds but K-12 students
in Galena and NACTEC are receiving assistance through TVEP. "Why
are we giving some training outfits money outside the BSA while
others have to perform within the base student allocation that
the legislature provides?"
2:37:47 PM
MS. HARBOUR restated that the purpose of the TVEP program is to
ensure a statewide training infrastructure. Through
conversations with prior commissioners she understands that it
wasn't affordable to have a career center like KCC in every
rural site, but conforming a boarding school with the vocational
technical infrastructure was a viable option. Students from
rural locations come to a central site to get workforce
development type training at a more affordable rate to the
state.
CHAIR COSTELLO asked why, despite the reporting requirements in
state law, the performance data on slide 12 includes no
information from the Galena Interior Learning Academy. She asked
if the information is missing because the recipients of these
state grants are public school students.
MS. HARBOUR said that's correct. Federal privacy laws prevent
the sort of matching that is done for the rest of the programs.
SENATOR STEVENS commented that it's an interesting point. It was
stated that the purpose of the program is retrain individuals
who are unemployed, but training high school students is a
little different. He asked how that combination can be
justified.
MS. HARBOUR clarified that the focus of the TVEP program is to
ensure a training infrastructure across the state, although it
can be used to retrain the unemployed. The idea is to train
people to replace the aging workforce as well as to retrain
individuals or keep them employed. For example, Ilisavik College
does a lot of retraining of individuals who are currently
employed but need to renew their certification.
CHAIR COSTELLO asked if the data on slide 12 is based on general
employment or employment in the area where the training was
received. She described that as an important distinction for
measuring the success of the institution.
MR. CASHEN said the data represents general employment. Because
some of the training is general workforce readiness, it's
difficult to match with an occupation.
CHAIR COSTELLO observed that one of the institutions receives
over $14,000 per student but just 50 percent are employed 1 year
after exiting the program. She asked if there's a way to link
the money spent per student with the success of the program to
keep an institution from using the money for things other than
training, such as replacing a roof.
MS. HARBOUR said the statute requires the money to be
distributed to the entities at listed percentages. The
department simply prepares a report to inform the legislature of
the performance of each institution. It is solely within the
legislature's purview to make any changes.
MR. CASHEN concluded the PowerPoint presentation and reminded
members that the annualized median wage after exit data is an
estimate of an annual salary. He also noted that the FY2016 TVEP
report in the packets provides more detail per recipient. It
also includes other performance outcomes such as improved
graduation rates and college credits earned while in high
school.
2:45:06 PM
CHAIR COSTELLO opened public testimony on SB 85.
2:45:36 PM
FRED VILLA, Associate Vice President, Workforce Programs,
University of Alaska Fairbanks, encouraged the committee to
reauthorize the TVEP program. He described it as a critical
investment in Alaska's future, particularly in economic and
workforce development. Responding the Senator Meyer's question,
he explained that the university receives a single allocation to
the UA System. The funds are used to shape and enhance workforce
development programs and to help graduates find employment once
they complete both credit and noncredit programs. These include
occupational endorsements, certificates, associate and bachelor
degrees, as well as some post-graduate degrees and
certifications.
He explained that the university has established some guidelines
for investing in programs for workforce development for the
state. The first area is pre-college programs that connect youth
with career paths that help prepare them for the academic rigors
associated with technical education and training in the
postsecondary arena. The second area is in academic
certification and degree programs that prepare students for
careers. The third area is professional development and
continuing education for those people who already have careers
and those looking to transition to another career. To this end,
the university provides grants to high-demand career and
technical education programs and partnerships for industry-
specific, on-the-job and classroom training.
MR. VILLA explained that the primary criterion for the
investment is that it is a high-demand job identified by the
Alaska Workforce Investment Board. They also look at the
economic and community development priorities for different
regions across the state. Another consideration is career
pathways that provide a series of connected education and
training programs and support services to prepare individuals
for a career and to advance successfully to higher levels of
education and employment.
He highlighted that all the programs the university invests in
have an industry advisory committee to guide the programs,
ensure they meet employer requirements, and help graduates gain
employment. Some of the priority careers the UA TVEP funding
supports include health sciences, mining process technology,
manufacturing occupations, and transportation distribution and
logistics. The university is also investing in the culture of
education and teacher preparation, and the agriculture, food,
and natural resources cluster that encompasses fisheries,
energy, and environmental sciences. The university is leveraging
registered apprenticeship programs with competency-based
training with university credits, and it is expanding its web-
based and simulation technologies and growing other partnerships
and concurrent enrollment opportunities for students to get into
the workplace earlier.
The Alaska Department of Labor and Workforce Development
projects that 65 percent of Alaskans will need postsecondary
education or training to meet Alaska's workforce needs by 2025.
If the university is to continue to develop the workforce of
tomorrow, TVEP will be critical.
MR. VILLA referenced an earlier question about the data on slide
12 and enumerated the challenges of reporting that data. He said
one challenge is that people employed in certain areas of
government or the self-employed don't appear in DOLWD employment
statistics. Another challenge is that a student may complete a
course in one area but not graduate that year because their
degree is in another area and they haven't completed that course
of study. He related the example of the process technology
program that was developed in response to attrition of oil and
gas workers on the North Slope. When the university looked at
increasing the investment in that program they found that just
70 percent of graduates were employed out of the program.
Further analysis showed that many of the program beneficiaries
were employed in the mining industry, wastewater treatment, and
power generation. Well over 85 percent were working in an
industry with the knowledge and skills that they developed in
the training program, but it wasn't in that individual industry
sector. He described that as a major success and opined that it
gives some clarity to the questions regarding the exit data.
2:54:41 PM
CHAIR COSTELLO asked if West High School's process technology
program is funded through the university's TVEP grant or through
the base student allocation.
MR. VILLA said the university doesn't provide any direct funding
for that program but they have partnered with regional training
centers. The Kenai Peninsula College process technology program
is an example.
CHAIR COSTELLO asked him to comment on how the university's TVEP
funds have changed over the years.
MR. VILLA said the percentage of TVEP funding the university has
received has varied through the years, largely based on the
number of recipients. Fortunately, the legislature helped to
stabilize the funding by increasing the total amount of money
available to the recipients. He opined that that employing that
same mechanism could ensure that the identified training centers
don't suffer a reduction should additional recipients be
identified now or in the future.
CHAIR COSTELLO asked if he provided a list of entities that
receive TVEP funding through the university.
MR. VILLA said no, but 50 grants were disbursed across the
system in 2017, which included virtually every campus.
CHAIR COSTELLO asked if the university has a memorandum of
agreement (MOA) with the Fairbanks Pipeline Training Center.
MR. VILLA said yes; in 2008 the legislature directed that a
portion of the university receipts should pass through to that
organization. The allocation at that time was $882,400. The MOA
stipulates that the training center is accountable for reporting
training data that is required in the current legislation.
SENATOR STEVENS asked where he could find the administrative and
overhead costs of the programs that receive TVEP grants through
the university.
MR. VILLA explained that the University System pays one support
person $130,000 to help administer the TVEP program. Beyond that
there may be grants for faculty, equipment, and first-time,
continuation, or one-time funding. First-time funding is usually
to setup a program that has been identified as in high demand.
Continuation funding is to test that program is viable and to
find long-term funding. One-time funding is for technical and
equipment upgrades to current standards. The university
generally does not do capital funding.
SENATOR STEVENS asked if information about the administrative
and overhead costs can be found in the reports of the grantees.
MR. VILLA indicated he didn't hear the question.
CHAIR COSTELLO said Senator Steven's asked if the university's
TVEP grant recipients use any of the funding for capital
projects.
MR. VILLA said not that he recalls in recent history.
3:04:24 PM
DR. PEARL BROWER, President, Ilisagvik College, Barrow, stated
that Ilisagvik is Alaska's only tribal college and its only
independent community college. Last fall Ilisagvik was rated the
number two community college in the nation, and Alaska's number
one community college. It is a public institution that is
accredited by the Northwest Commission on Colleges and
Universities.
DR. BROWER said she is testifying in support of SB 85
reauthorizing the Technical and Vocational Education Program,
but for five years as stated in the House legislation. The five-
year extension is important because it provides time for forward
thinking and planning for the future. Ilisagvik joins the nine
other organizations that are part of the program. The common
mission is to provide quality workforce development education to
support the needs of Alaskans. She reported that in FY2016,
Ilisagvik served 696 unduplicated adult students and 32
unduplicated high school students. The 2016 performance measures
show that 82.7 percent of their TVEP-funded students were
employed one year after exit or the end of the program. The
median wage was over $24,000 7-12 months after exit.
Using the TVEP funding, Ilisagvik offers training opportunities
across the state and provides residents the ability to be
credentialed, to get a job, or to advance in their current job.
She highlighted that many Ilisagvik students are employed and
they need to be recertified to maintain employment. The college
works directly with employers to assess need and provide a
skilled workforce. Without the current structure of TVEP funding
Ilisagvik could not reach as many Alaskans or provide as many
workforce training opportunities as it does today. She
emphasized the importance of continuing to make education a
priority.
CHAIR COSTELLO advised that the House bill reauthorizes the
program for five years, whereas SB 85 has a three-year
extension.
SENATOR STEVENS asked what jobs Ilisagvik graduates get for
$24,000 7-12 months after exit.
DR. BROWER suggested Kathy Leary respond to the question. She
said in general, most of the students are already employed and
attend school to get certification or continuing education for
things like wastewater treatment or water treatment or in the
health field.
3:09:06 PM
KATHY LEARY, Ilisagvik College, Barrow, said she doesn't know
the formula that is used to determine the median wage, but many
of the jobs that students receive after they finish their
training are short-term and project-specific. If they were
employed full time the reported wage would probably be higher.
SENATOR STEVENS said he might ask the department what
"annualized median wage after exit" means because $48,000 is
substantial.
MS. LEARY added that Ilisagvik College tries to maximize costs
by putting as many people in a class as possible, including
people who are also working and paying into the fund.
CHAIR COSTELLO asked Ms. Leary if she had general testimony on
the bill.
MS. LEARY stated that whenever possible Ilisagvik shares the
cost of instruction with employers. She cited training for jobs
in wastewater treatment as an example. She explained that they
support the five-year extension because it provides more
stability and helps with scheduling programs.
3:13:43 PM
ANISHIA ELBIE, Co-Executive Director, Southwest Alaska
Vocational and Education Center (SAVEC), King Salmon, said she
is speaking in support of SB 85 to reauthorize the funding for
the Alaska Workforce Investment Board, but with the five-year
extension that the House passed. She pointed out that as taxable
wages decline, TVEP will have a $1.2 million shortfall. Should
the 3 percent distribution continue, SAVEC's receipts will
decrease $39,600 in FY2018. She said that as taxable wages
decline throughout the state and workers are displaced, it will
be more important for workforce training to continue. She
highlighted that fishing and support industries are critical to
Alaska's economy. SAVEC is working to improve seafood processing
industries and is emphasizing Alaska hire. This has been a
problem in the Bristol Bay region. The Bristol Bay Borough has
93.8 percent nonresident hire, Dillingham has 84.6 percent
nonresident hire, and the Lake and Peninsula Borough has 91.3
percent nonresident hire. She estimated that is more than 3,300
jobs and $29 million that could have stayed in the state and
multiplied in local and state economies.
She listed the entities that SAVEC partners with to fund
workforce training. Since fall 2016, SAVEC has trained 198
adults in 28 separate courses. She noted that the committee
heard that 74.8 percent of SAVEC trainees are employed 1 year
after exit. SAVEC training has contributed greatly to the local
and state economy. According to the state's September 14 wage
report, SAVEC's 115 HAZWOPER refresher trainees contributed over
$5 million to the state's economy in the first year after
training. SAVEC and the other regional training centers are
committed to training Alaskans for Alaskan jobs.
3:19:06 PM
DOUGLAS J. WALRATH, Ph.D., Director, Northwestern Alaska Career
and Technical Center (NACTEC), Nome, Alaska, testified in
support of reauthorizing TVEP. He stated that the regional
training center network that is supported through TVEP funding
provides autonomy and flexibility to meet the unique needs of
each region's priority industries.
He said NACTC's approach is unique and was developed at the
grassroots level about 15 years ago to meet the regional needs
and address high dropout rates. The approach was to develop
vocational and workforce development training at the high school
level. Five years before TVEP funding was available to NACTC,
the graduation rate in the Bering Strait School District
averaged 39 percent.
Addressing the question about cost per student in urban versus
rural areas, he pointed out that students from the 15 villages
outlying Nome would be without the opportunity to receive
vocational training if it weren't for the Regional Training
Center network. The average cost to fly from a regional village
to Nome for training is $485.
DR. WALRATH explained that NACTC partnered with the Norton Sound
Health Corporation to meet their needs for certified nurse aides
(CNA) and village health aides. A series of courses were
developed to expose students to health care careers in high
school that lead to vocational training programs and
certification for CNA and ETT (emergency trauma technician). The
success rate for certification and summer employment is 93
percent. Without this partnership, students would need to leave
the area for this training. This is an opportunity for local
training that has a high success rate.
DR. WALRATH said another high priority in the region is driver
education training. Responding to the earlier question about
matching training to the specific area of employment, he related
that two health aides and a village police safety officer (VPSO)
took Driver Education training from NACTEC and got the licenses
that were required for their work, but their area of employment
doesn't match that training. He concluded his comments
emphasizing the importance of the outreach to high school
students in this region. "It's a wise use of funds."
3:25:20 PM
CHAIR COSTELLO informed members that the bill packets have
copies of the TVEP report. Northwestern Alaska Career and
Technical Center is on page 18.
[CHAIR COSTELLO held SB 85 in committee.]
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 49 - Background Document - MID Fee Analysis.pdf |
SL&C 4/11/2017 1:30:00 PM |
HB 49 |
| HB 49 - Fiscal Note.pdf |
SL&C 4/11/2017 1:30:00 PM |
HB 49 |
| HB 49 - Background Document - Leg. Audit Sunset.pdf |
SL&C 4/11/2017 1:30:00 PM |
HB 49 |
| HB 49 - Leg. Research - Board of Direct Entry Midwives.pdf |
SL&C 4/11/2017 1:30:00 PM |
HB 49 |
| HB 49 - Sponsor Statement.pdf |
SL&C 4/11/2017 1:30:00 PM |
HB 49 |
| HB 49.PDF |
SL&C 4/11/2017 1:30:00 PM |
HB 49 |
| CS SCR 10 (L&C) - Ver. O.PDF |
SL&C 4/11/2017 1:30:00 PM |
SCR 10 |