Legislature(2003 - 2004)

04/30/2004 09:12 AM Senate FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                                                                                                                                
     CS FOR HOUSE BILL NO. 123(FIN)                                                                                             
     "An Act relating to the allocation of money appropriated to                                                                
     the Alaska Workforce Investment Board; and providing for an                                                                
     effective date."                                                                                                           
                                                                                                                                
                                                                                                                                
This  was the first  hearing  for this  bill in  the Senate  Finance                                                            
Committee.                                                                                                                      
                                                                                                                                
Co-Chair Wilken  stated this bill, sponsored by Representative  Carl                                                            
Moses "adds the Southwest  Alaska Vocational and Education Center in                                                            
King Salmon  to the  roster of  entities eligible  to receive  money                                                            
under the technical vocational education program."                                                                              
                                                                                                                                
TIM BENINTENDI,  Staff  to Representative  Carl  Moses, noted  three                                                            
changes were made to the  original version of the bill. One reflects                                                            
the name change  from the Alaska Human Resources Investment  Council                                                            
to the Alaska  Workforce Investment  Board. The second change  makes                                                            
the effective  date July  1, 2004, and the  third change  eliminated                                                            
the inclusion  of the Bethel People's  Learning Center contained  in                                                            
the original version of the bill.                                                                                               
                                                                                                                                
Mr.  Benintendi   reiterated   Co-Chair  Wilken's   statement.   Mr.                                                            
Benintendi added this would  provide the Southwest Alaska Vocational                                                            
and  Education Center  (SWAVC)  a four  percent share  of  available                                                            
funds through  the workforce development program,  thus reducing the                                                            
amount  available to  the University  of Alaska  to 59 percent.  The                                                            
University of  Alaska does not oppose this legislation,  which would                                                            
provide $183,000 to SWAVC for operating expenses.                                                                               
                                                                                                                                
Mr. Benintendi  informed  this funding  is generated  from the  one-                                                            
tenth  of one  percent  assessment collected  from  each  employee's                                                            
contribution  to the unemployment  insurance fund for the  technical                                                            
vocational  education program  within  the Department  of Labor  and                                                            
Workforce Development.                                                                                                          
                                                                                                                                
Mr.  Benintendi   assured   this  legislation   would  not   require                                                            
additional  general funds. The SWAVC  would join the Galena  Project                                                            
Education  Vocational  Center, the  Kotzebue Technical  Center,  the                                                            
Alaska Vocational  Technical Center and the University,  in eligible                                                            
recipients of these funds.                                                                                                      
                                                                                                                                
Mr. Benintendi  stated  the SWAVC is  located in  a region in  which                                                            
economic  fisheries disasters  have  been declared  in three of  the                                                            
last eight years. An emphasis  has been placed on retraining workers                                                            
from fisheries  related activities  to other occupations  that would                                                            
enhance employment.  In the two-year operation of  the Center, SWAVC                                                            
has provided  services  to over 900  area residents.  The region  is                                                            
"ripe with potential" for  new oil and gas development as manifested                                                            
by the  recent passage of  SB 265 and SB  266. Mining opportunities                                                             
also exist and demonstrate a need for skilled workers.                                                                          
                                                                                                                                
Senator  Dyson  asked   about  training  for  commercial   operators                                                            
licenses as  referenced in the sponsor  statement. He asked  if this                                                            
pertains to truck drivers or vessel operators.                                                                                  
                                                                                                                                
Mr. Benintendi replied the training is for truck drivers.                                                                       
                                                                                                                                
Senator Dyson  then referenced computer hardware training  and asked                                                            
if software training would be available.                                                                                        
                                                                                                                                
Mr. Benintendi  understood the intent  is to expand into  the entire                                                            
information technology field.                                                                                                   
                                                                                                                                
Senator Dyson asked the training programs currently offered.                                                                    
                                                                                                                                
Co-Chair  Wilken  directed Senator  Dyson's  attention  to a  report                                                            
listing the Center's mission  statement and highlighting the current                                                            
activities and goals of the program [copy on file.]                                                                             
                                                                                                                                
Amendment #1: This amendment  would restore language in the original                                                            
version of the bill and  would include the Bethel Yuut Elitnaurviat,                                                            
Inc.  People's Learning  Center  as an  eligible  recipient of  four                                                            
percent of  the funding available  through the technical  vocational                                                            
education program.                                                                                                              
                                                                                                                                
Senator Hoffman  moved for adoption  and deferred to Ms.  Vanasse to                                                            
speak to the motion.                                                                                                            
                                                                                                                                
Co-Chair Wilken objected for an explanation.                                                                                    
                                                                                                                                
JANELLE VANASSE,  Yuut Elitnaurviat, Inc. People's  Learning Center,                                                            
testified via  teleconference from  an offnet location in  Bethel to                                                            
"discuss the value  of the amendment". She informed  that the Yukon-                                                            
Kuskokwim region  has been identified  as the poorest in  the State;                                                            
yet has great  opportunity for workforce  development. Despite  high                                                            
poverty  rates,  jobs  are  available  in  the  region,  up  to  300                                                            
positions at any time.  The issue is that the local residents do not                                                            
have the  education and training  to fill  the higher wage  jobs. To                                                            
address  this, nine agencies,  including the  Alaska National  Guard                                                            
and the largest  school district in the region, the  City of Bethel,                                                            
the   University  of   Alaska,   and  the   Yukon-Kuskokwim   Health                                                            
Corporation,  and the Native  corporations,  have joined efforts  to                                                            
provide training to the  local workforce. This is important not only                                                            
for  the quality  of life  of  workers, but  also  for the  economic                                                            
development of the region.                                                                                                      
                                                                                                                                
Ms. Vanasse  assured that the training  to be provided is  in fields                                                            
identified  as high priority and because  jobs are available  within                                                            
the region.  She listed education  and early childhood development,                                                             
construction trade,  health care, and aviation. Local  employers who                                                            
are willing  to invest in the training  of local workers  drive this                                                            
project.  This project  would  be sustainable  and  would utilize  a                                                            
variety of funding sources.  Once the facility is fully operational,                                                            
nine funding sources would sustain operations.                                                                                  
                                                                                                                                
Ms.  Vanasse  stated  the  purpose  of  this  legislation  and  this                                                            
amendment  is "investing  in this  as a  model of the  State."   The                                                            
commissioners of the Department  of Labor and Workforce Development,                                                            
the  Department   of  Education  and   Early  Development   and  the                                                            
Department of Community  and Economic Development have characterized                                                            
the Center as  a valuable pilot project that should  be invested in.                                                            
                                                                                                                                
Ms. Vanasse reported that  although the intent is to construct a new                                                            
facility, services are  being provided currently. Programs are being                                                            
developed and  delivered utilizing any available locations.  Because                                                            
of this  ability, the  Center is  currently serving  over 300  local                                                            
residents.                                                                                                                      
                                                                                                                                
Ms.  Vanasse stressed  that  including the  Center  in the  programs                                                            
eligible  for funding  through  the technical  vocational  education                                                            
program would be a "solid investment in the State".                                                                             
                                                                                                                                
Senator Bunde  congratulated  the witness on  the efforts made  with                                                            
this  project. Many  community  colleges  utilized  the practice  of                                                            
"storefront  education"   whereby  classes  were   held  at  various                                                            
available  locations near  the people  in need of  the training.  He                                                            
asked  if the  facility were  constructed  whether  the practice  of                                                            
locating classes near the students would discontinue.                                                                           
                                                                                                                                
Ms. Vanasse  replied  that the  opportunity to  "mobilize  training"                                                            
would remain.  However,  only inadequately  equipped facilities  are                                                            
currently available  for some training such as nursing  courses. The                                                            
new facility would  have a nursing laboratory equipped  with gurneys                                                            
and other  necessary  equipment.  Construction  trades also  require                                                            
"hands  on"  training  that  is  not  available  in  the  classrooms                                                            
currently used. She predicted  that distance training would continue                                                            
with travel to the Center  required only for those courses requiring                                                            
the equipped facilities.                                                                                                        
                                                                                                                                
Senator  Bunde understood  the  need  for equipped  facilities,  but                                                            
cautioned that with the  establishment of a centralized location, it                                                            
becomes  more  convenient  for the  instructors  to remain  at  that                                                            
location rather than "reach out" to students.                                                                                   
                                                                                                                                
Senator Dyson  surmised that allocating funds to one  or both of the                                                            
vocational technical education  centers would result in less funding                                                            
available for the University.                                                                                                   
                                                                                                                                
Mr. Benintendi  responded  that the funding  would be received  from                                                            
the  University  portion  of  the  technical  vocational   education                                                            
program.                                                                                                                        
                                                                                                                                
Senator Dyson asked the  activities of the University that would not                                                            
be funded if this legislation were adopted.                                                                                     
                                                                                                                                
Mr. Benintendi deferred to the University of Alaska.                                                                            
                                                                                                                                
PETE KELLY,  Director, Government  Relations, University  of Alaska,                                                            
testified in support of  this bill and the amendment. The University                                                            
would  accommodate  the reductions  to  its budget.  The  University                                                            
supports the workforce  development efforts in those  areas affected                                                            
by  this  legislation,  and  the  University  supports  delivery  of                                                            
services  to residents  of  those  regions.  This legislation  is  a                                                            
viable method to accomplish this.                                                                                               
                                                                                                                                
Co-Chair Green  qualified she did not support this  legislation. She                                                            
asked the status of the  People's Learning Center and questioned the                                                            
ability   for  students   to  achieve  certification   without   the                                                            
establishment of the Center.                                                                                                    
                                                                                                                                
Senator  Hoffman  replied that  no structure  currently  exists  and                                                            
deferred to Ms. Vanasse.                                                                                                        
                                                                                                                                
Ms.  Vanasse   responded  that  many   organizations  were   already                                                            
attempting to fill the  "workforce development gap", but the results                                                            
would be limited.  It was agreed that  existing successful  programs                                                            
would  be combined  into a  new system.  The existing  programs  are                                                            
continuing and  expanding, regardless that the new  facility has yet                                                            
to be constructed.                                                                                                              
                                                                                                                                
Co-Chair  Green wanted to  know how the funding  would be  expended.                                                            
She pointed out that in  many areas of the State, nursing assistance                                                            
and other  vocational training  is provided  by the high schools  as                                                            
part of the regular curriculum.  These programs do not require a new                                                            
learning center and those  communities are not requesting additional                                                            
funding from the legislature  to provide the same services. She also                                                            
was unsure  why funding  should be  appropriated  for a Center  that                                                            
does not exist. She also  wanted to know why the request is only for                                                            
FY 05 and FY 06.                                                                                                                
                                                                                                                                
Mr. Benintendi  replied this is the  cycle in which the allocations                                                             
are   made,  once   the   appropriation   has  been   granted.   The                                                            
appropriation is made annually.                                                                                                 
                                                                                                                                
Co-Chair  Green asked  if  the provisions  of this  legislation  are                                                            
passed every two years.                                                                                                         
                                                                                                                                
Senator  Kelly responded  that this legislation  corresponds  to the                                                            
lapse date  of the original program  established approximately  four                                                            
years prior.                                                                                                                    
                                                                                                                                
Ms. Vanasse stressed the  potential of the Bethel center to serve as                                                            
a model, particularly before the construction of a new facility.                                                                
                                                                                                                                
                                                                                                                                
SFC 04 # 101, Side B                                                                                                            
                                                                                                                                
                                                                                                                                
Co-Chair  Wilken  removed  his  objection  to the  adoption  of  the                                                            
amendment  with  the  understanding  that  the  bill  would  not  be                                                            
reported  from   Committee  at  this   hearing.  He  expressed   the                                                            
University should review the impacts of the reduced funding.                                                                    
                                                                                                                                
Without further objection Amendment #1 was ADOPTED.                                                                             
                                                                                                                                
Mr. Benintendi  commented that the  sponsor supports the  amendment.                                                            
                                                                                                                                
Co-Chair Wilken ordered the bill HELD in Committee.                                                                             
                                                                                                                                

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