Legislature(2013 - 2014)SENATE FINANCE 532
02/10/2014 09:00 AM Senate FINANCE
| Audio | Topic |
|---|---|
| Start | |
| SB93 | |
| SB71 | |
| HB193 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 93 | TELECONFERENCED | |
| + | SB 71 | TELECONFERENCED | |
| + | HB 193 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE BILL NO. 93
"An Act extending the unemployment contributions for
the Alaska technical and vocational education
program."
9:06:58 AM
Senator Olson explained that The Technical and Vocational
Education Fund (TVEP) authorized under AS 23.15.840 sunsets
on June 30, 2014. He felt it was important legislation,
because there were some capital projects that were
considered, based on the passage of the legislation.
DAVID SCOTT, STAFF, SENATOR DONNIE OLSON, stated that SB 93
extends the sunset date to June 30, 2024. In 2000 the
Alaska Legislature created the Training and Vocational
Education Program to provide financial assistance to
support facilities throughout the state that provide
technical and educational programs for industry specific
training. Alaska was experiencing unemployment rates that
were reaching to above 50 percent of the national average
in 2008. With large projects on the horizon, there was a
clear need for a trained, resident work force. The TVEP
program was extended to provide training to Alaskan
residents to help reduce the unemployment rate and put
Alaskan residents to work. Figures released on March 14,
2013 by the Department of Labor and Workforce Development
(DLWD) indicated that unemployment rates in Alaska for
December of 2012 were 6.6 percent, while the national
average was 8.1 percent. Alaska has had a consistent lower
rate than the national average for the past forty-six
months, indicating the effectiveness of this program. Funds
for the TVEP program are appropriated from amounts the
state collects in unemployment insurance contributions at a
rate of 0.15 percent and are allocated according to
statute. The more we can train our youth, as they enter the
work force, the more we will re-enforce the desirability of
staying in Alaska as part of a highly skilled, resident
work force. The last five years has shown this Fund works.
We can double the effectiveness with ten more years. He
stated that there were three fiscal notes attached to the
bill. He also noted some documents that were included in
the members' files.
Senator Dunleavy noticed that the sunset date was June 30,
2014, and wondered if the reauthorization would be the same
date. Mr. Scott assumed that the bill would need to be
amended to include an immediate effective date.
Senator Dunleavy observed that there may be adjustments to
the actual funding, if the effective date fell on a
different fiscal year than the sunset date.
Co-Chair Meyer wondered if the funding was strictly from
the private sector. Mr. Scott responded in the affirmative.
Co-Chair Meyer asked if the bill requested an increase in
funding. Mr. Scott replied that the bill was only intended
to renew the program.
9:11:29 AM
KAREN CLEARY, PROJECT DIRECTOR, VOCATIONAL AND TECHNICAL
EDUCATION CENTER, PRINCE OF WALES, testified in support of
SB 93. She requested that the Prince of Wales Vocational
and Technical Center be added to the list of qualified
regional technical centers to receive the funding referred
to in SB 93, in the same percentage as the other regional
technical centers of 3 percent.
Co-Chair Meyer wondered what percentage of funding that the
Prince of Wales Vocational and Technical Center received.
Ms. Cleary responded that they were not currently on the
list, because it was a new center.
Senator Olson queried the population of Klawock. Ms. Cleary
replied that Klawock had 750 people, and Prince of Wales
Island had approximately 5,500 people. The technical center
served the entire island.
Senator Olson wondered if Prince of Wales Island had jet
service. Ms. Cleary responded that there was ferry service,
and small commuter aircrafts.
Senator Olson wondered if there was a dormitory to house
students for the technical center. Ms. Cleary replied that
the initial objective for the center was to offer courses
for the residents of the island. She furthered that it was
intended for the students to build a dormitory on site at a
later date.
Senator Olson queried the selection process for the
teachers. Ms. Cleary replied that there were some teachers
that were employed through the school district, and there
were also some distance learning options through the
University of Alaska (UA).
Senator Bishop wondered what kind of courses were to be
offered in the technical center. Ms. Cleary replied there
was an extensive needs assessment before the building
plans. She stated that there were courses for mining
safety; welding; health care professions; and water and
wastewater treatment certifications for municipalities. She
stressed that the technical center would be tailored
specifically to the needs of the municipalities and the
industry on Prince of Wales Island.
Senator Bishop wondered if there were industry
partnerships. Ms. Cleary replied that there were many
industry partners on the board of directors, and she
explained that they were waiting for the 501 C3
authorization from the federal government to use the Alaska
corporate tax structure to encourage industry partnerships.
Co-Chair Meyer wondered what types of mining occurred in
Prince of Wales Island. Ms. Cleary responded that there was
intent to open gold and rare earth mines. She stated that
the mines were in the permitting stages, and were already
hiring personnel.
9:16:20 AM
Senator Olson asked if the technical center was involved
with the Ketchikan Technical Institute. Ms. Cleary
responded the center was not directly involved with that
institute, because they were a self-contained college. She
furthered that there were plans to partner with the
institute in the future.
Vice-Chair Fairclough remarked that the percentages total
to 100 percent, so adding another entity to the program
would result in extracting percentages from other
organizations.
Co-Chair Kelly felt that there was a flaw in the list of
technical centers. He furthered that the list included UA
and UAS. He stated that the universities were included,
because UAS did not have programs that included some
programs that were offered on other campuses. He felt that
removing UAS from the list would not impact their funding,
because they would receive funding through the overall UA
budget.
Senator Olson stated that he remembered those political
discussions.
9:19:55 AM
KATHY LEARY, TRAINING MANAGER, ILISAGVIK COLLEGE, BARROW,
testified in support of SB 93. She requested that Ilisagvik
College be included in the list of regional training
centers to receive funding. She stated that the Ilisagvik
College offered various forms of training, including 247
classes, which served a total of 1877 students. She
stressed that the total included duplicate numbers, because
some students took more than one certification to enhance
employment capability. In addition to short-term classes,
the college offered its regular vocational and technical
education programs for heavy equipment, electrical,
plumbing, welding, commercial driver's licenses, and other
various certifications within the industry.
9:24:03 AM
Co-Chair Meyer wondered if she had a recommended percentage
Ms. Leary responded that she would like 10 percent for her
program.
Senator Olson remarked that UA did not have an operating
budget that included Ilisagvik College. He wondered how
many students were transfer students, and where from they
were transferring. Ms. Leary responded that many students
were from the North Slope villages, and much of the
training was conducted in those villages. She announced
that there were students from the Northwest Arctic region
villages. She stressed that the college tried to
consolidate the classes in order to leverage the cost of
the classes.
Senator Olson wondered if students must be native in order
to be admitted to the college. Ms. Leary replied that
admissions were open to anyone, and explained that the
college received federal funds based on a number of native
students attending the college.
Senator Olson surmised that the college was open to native
and non-native students. Ms. Leary agreed with that
summation.
Senator Bishop asked for a couple of examples of the
college's industry partnerships, and if they were in-kind
or cash partnerships. Ms. Leary responded that the college
partnered with many companies in the industry, including
Umiak and Arctic Slope Regional Corporation (ASRC) Energy
Services and contracts with producers to provide personnel.
She stated that the college provided instruction, and the
industry usually provided travel and lodging, or vice
versa.
Senator Bishop queried the college's relationship with the
North Slope Borough. Ms. Leary responded that there was
extensive work with the borough and its employees whenever
requested.
9:29:55 AM
Co-Chair Meyer queried the employment success of the
graduates of the center. Ms. Leary replied that the
students were generally successful. The students that were
in intended for the Alaska Trucking Association (ATA)
industry were granted a Commercial Driver's License (CDL),
so they had a better chance of placement.
CHARLES EDWARDSON, SOUTHERN SOUTHEAST ALASKA TECHNICAL
EDUCATION CENTER, KETCHIKAN (via teleconference), testified
in support of SB 93. He remarked that the center was fully
staffed and a strong current student base. He announced
that the center had been in operation for over two years,
and had $3.3 million state capital appropriation
investment. The center was completed in 2010 with the
construction academy trainees and apprentices. The center
had served nearly 100 Ketchikan residents annually for the
two prior years. The center was awarded a grant from the
state to administer the Ketchikan Construction Academy. The
first group of trainees from the center graduated in May
2013. The center was working collaboratively with UA in
Ketchikan and local school districts. He stated that the
center provided a continuum of services that included all
Southeast Alaska learners who chose vocational training as
a career path. The center's goal was to be included in the
bill's funding at 3 percent. He stated that the inclusion
would allow the center to spread the programs to the entire
community. He announced that there would be a dormitory
complete in April 2014, and was funded by a $2.2 million
grant from the state through the capital budget. He
stressed that the center worked with the industry. The
industry had expressed challenges with recruiting and
retaining residents because of workforce behaviors. He
stated that the center's dormitory would have a fully
staffed social services department that would address
workforce behaviors.
9:38:30 AM
Senator Olson asked if Mr. Edwardson would be in favor of
including his center in the TVEP program, and wondered how
that would be balanced with the private sector funding. Mr.
Edwardson replied that the governor had a bill that would
allow private industry to invest directly into vocational
training centers for direct services. He stressed that the
center currently had a federal funding stream that allowed
the center to leverage with state funds. He felt that
reallocating the funding formula was a delicate issue, but
the history of the bill reflected expansion. He remarked
that the unemployment tax increase was a direct result of
vocational training.
9:42:31 AM
FRED VILLA, UNIVERSITY OF ALASKA, FAIRBANKS (via
teleconference), explained that that the University of
Alaska Technical Education program provided grants for high
demand career and technical education for industry specific
on-the-job and classroom training. The TVEP funds were
managed as a single allocation to initiate or enhance high
priority workforce development programs. The funding must
meet the following criteria within UA's allocations: 1)
high demand or regional workforce needs; 2) increased
access and flexibility of training delivery; 3) improved
persistence of educational progress associated with
workforce development; and 4) formal collaboration across
the university system by expanding partnerships. The three
priority areas that UA specifically provided through
educational pathways which included dual credit; technical
preparation for students transitioning from high school,
military, or other walks of life; economic development; and
addressed the high demand jobs identified by the Alaska
Workforce Development Board as state priority industries.
The funding distribution was such that any application
within the university and university partnerships must meet
the criteria vetted through the university campus; ranked
and tiered; and then presented to a committee that
discusses, negotiates, and evaluates the program to
determine the state, university, and regional priorities.
Those recommendations were presented to the president, who
then authorizes the allocations.
Co-Chair Meyer referred to a question from Co-Chair Kelly,
and felt that the 5 percent allocation for UAS was properly
addressed.
Co-Chair Meyer CLOSED public testimony.
9:52:11 AM
GREY MITCHELL, ASSISTANT COMMISSIONER, DEPARTMENT OF LABOR
AND WORKFORCE DEVELOPMENT, introduced himself.
WANETTA AYERS, DIRECTOR, DIVISION OF BUSINESS PARTNERSHIPS,
DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT, introduced
herself.
Mr. Mitchell announced that the Department of Labor (DLWD)
supported the reauthorization of TVEP. He remarked that
DLWD did not want to participate in the discussion
regarding who should share in the fund. He stressed that
DLWD would like to see some elements in the governor's
proposed legislation that included articulation agreements
for dual credits and reporting accountability requirements
for TVEP recipients.
Co-Chair Meyer noted that there were many new groups that
asked to be a part of TVEP, and queried DLWD's viewpoint on
those additional groups. Mr. Mitchell responded that DLWD
did not have a position with respect to those parties'
request. He stressed that DLWD was in a precarious
position, because AVTEC, which is part of DLWD, is a TVEP
recipient. He remarked that DLWD was careful to distance
itself from the discussion, because of the possible
conflict of interest.
Vice-Chair Fairclough looked at the fiscal note and
remarked that flat funding was anticipated. She wondered if
DLWD had anticipated additional revenues from the
unemployment tax. Mr. Mitchell replied that the fiscal note
assumed no changes in the unemployment contributions. He
furthered that it was difficult to calculate exact
unemployment contributions, so rather than determine an
inaccurate calculation, the fiscal note assumed no changes
from the FY 14 level.
Vice-Chair Fairclough requested that DLWD provide more
accurate proposed numbers. She felt that the increase in
wage and income should be reflected in the fiscal note. Mr.
Mitchell replied that DLWD was currently composing a chart
that would display accurate numbers.
9:58:12 AM
Senator Bishop agreed with Vice-Chair Fairclough, and
wondered if there could be an analysis of projected job
growth for Southeast and the North Slope.
Co-Chair Meyer wondered if the training areas were
adequately covered across the private and public training
centers. Mr. Mitchell responded that DLWD had an inventory
of the training providers in the state. He stressed that
training was critical to a strong workforce in Alaska.
Ms. Ayers announced that the issue of training
infrastructure in new places was the reason for the
increase in requests for funding. She stated that part of
the oversight was to advise the governor and legislature.
Co-Chair Meyer desired to see the report. He wanted to be
sure that the state was getting value from the technical
education training centers.
Senator Hoffman noted that the total training participants
had been identified, and saw that those participants were
employed in Alaska just one year after training. He
wondered if the additional reporting requirements
specifically for TVEP, and asked if the requirements
included better information to evaluate the existing
programs that were receiving funds. Mr. Mitchell replied
that there would be a report for the dual-credit
arrangements that the training providers would have. He
stressed that high school students should have the
opportunity to participate in the vocational training
programs to earn college or high school credit. He remarked
that, in Alaska, four out of five jobs do not require a
college degree.
10:04:32 AM
Senator Olson inquired the administration's position on
changing the rate. He remarked that the rate was
reauthorized to curb some of the former unemployment rates.
Mr. Mitchell replied that the administration wanted to
maintain the rate as it was currently producing information
to show what the impact would be.
Senator Olson understood that the program had been fully
funded, but then was suspended because of the current
unemployment rate. Mr. Mitchell responded that Senator
Olson may be referring to the reduction in the unemployment
insurance tax that occurred during the previous legislative
session. He agreed that the Unemployment Insurance Trust
Fund was healthy, and stated that the formulas from the
previous legislative session allowed for some refunds to
employers.
Senator Bishop stated that the refunds were issued to
employers and employees.
Senator Olson announced that TVEP was a successful program.
He felt their success should be rewarded with more success.
SB 93 was HEARD and HELD in committee for further
consideration.