04/09/1998 08:13 AM House STA

HB 330 - EXTEND STATE TRAINING AND EMPLOYMENT PROG                             
                                                                               
Number 0004                                                                    
                                                                               
CHAIR JAMES announced the first order of business is HB 330, "An               
Act repealing the termination date of the state training and                   
employment program; and providing for an effective date," sponsored            
by the House Rules Standing Committee.                                         
                                                                               
Number 0007                                                                    
                                                                               
DWIGHT PERKINS, Special Assistant, Office of the Commissioner,                 
Department of Labor came before the committee to provide                       
information on the State Training and Employment Program (STEP).               
Mr. Perkins read the following statement:                                      
                                                                               
"The STEP was enacted in 1989 as a temporary, two-year pilot                   
program.  Its success has led to the legislature's extending its               
existence three more times in subsequent years.  With its last                 
extension in 1996, STEP became a permanent program but remains                 
subject to a sunset provision.  Since its last extension, STEP has             
made great strides in addressing the legislative concerns with the             
program.                                                                       
                                                                               
"State Training and Employment Program is financed with a 0.1                  
percent contribution from employees' share of unemployment                     
insurance.  The STEP job training provided with this small                     
contribution to the Unemployment Insurance Trust Fund results in               
more working Alaskans and a decreased need to pay out unemployment             
insurance benefits. State Training and Employment Program also                 
assists Alaskans who need to upgrade their job skills in order to              
maintain their employability.                                                  
                                                                               
"In Fiscal Year 97, more than 1,500 individuals were enrolled in               
STEP, an increase of 500 enrollees over the previous year.  In one             
year, STEP clients have reduced claims for unemployment insurance,             
resulting in about a $1.5 million saving to the Unemployment                   
Insurance Trust Fund.  Along with the increased use of the program,            
STEP administrators were successful in reducing federal recapture              
of Unemployment Insurance Trust Funds by 60 percent while holding              
administrative costs below 20 percent."                                        
                                                                               
MR. PERKINS noted he has Arbe Williams, Director, Division of                  
Administrative Services, Department of Labor, and representatives              
from the Department of Community and Regional Affairs with him to              
speak on financial matters.                                                    
                                                                               
Number 0025                                                                    
                                                                               
CHAIR JAMES asked if there were any questions of the Department of             
Labor.                                                                         
                                                                               
Number 0026                                                                    
                                                                               
REPRESENTATIVE MARK HODGINS remarked this is pretty cut and dried,             
he indicated he wanted to move HB 330.                                         
                                                                               
Number 0029                                                                    
                                                                               
CHAIR JAMES called on Mary Shields via teleconference.                         
                                                                               
Number 0031                                                                    
                                                                               
MARY SHIELDS, General Manager, Northwest Technical Services, said              
she is absolutely in favor of HB 330.                                          
                                                                               
CHAIR JAMES asked Ms. Shields if she minded if the committee moved             
the bill.                                                                      
                                                                               
MS. SHIELDS replied not at all.                                                
                                                                               
Number 0033                                                                    
                                                                               
REPRESENTATIVE HODGINS made a motion to move HB 330, with                      
individual recommendations and attached fiscal notes.  Hearing no              
objections, HB 330 moved from the House State Affairs Standing                 
Committee.