Legislature(2001 - 2002)
02/14/2002 01:37 PM Senate L&C
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* first hearing in first committee of referral
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+ teleconferenced
= bill was previously heard/scheduled
SB 252-EMPLOYMENT AND TRAINING PROGRAM/BOARD
CHAIRMAN BEN STEVENS called the Senate Labor & Commerce Committee
meeting to order at 1:37 p.m. and announced SB 252 to be up for
consideration.
MS. REBECCA GAMEZ, Deputy Commissioner, Department of Labor and
Workforce Development, said she would give an overview of STEP
and changes to the Alaska Human Resource Investment Council
(AHIRC) that are in SB 252 after Mr. Sanders' testimony.
MR. JIM SANDERS, Executive Director, Alaska Human Resources
Investment Council, said there are five issues in this bill and
the first one is the name change. Currently, it is called the
Alaska Human Resource Investment Council and this legislation
proposes to change it to the State Workforce Investment Board
(WIB). This would bring them in line with the Workforce
Investment Act and more clearly aligns them with the two Alaska
Workforce Investment Boards - the Alaska Mat-Su and the Balance
of State WIB.
Secondly, the AHRIC doesn't clearly convey the purpose of the
Council. Their mission says that they are a private public
leadership board that sets policy framework for the development
of Alaska's workforce. The proposed title is shorter and more
succinctly identifies the organization's purpose.
There are a number of housekeeping issues. Throughout the text of
the bill they would change the reference of "Council" to "Board"
and change references to the "Private Industry Council" to "Local
Workforce Investment Board".
The third issue is adding the Commissioner of Administration as a
non-voting member of the Board. He said that Juneau is one of
Alaska's major employers and the Commissioner of Administration
has a comprehensive knowledge of current and future employment
needs for the state employment system. He would be a valuable
asset to the Board in its deliberation and discussion of policy
issues. In addition, the Commissioner would benefit from a
greater exposure to the full spectrum of employment and training
issues that confront the state and are frequently discussed by
AHRIC.
The fourth issue is one of flexibility. Currently, AHRIC is
restricted to meeting three times a year and this would allow
them one more meeting per year [but not make it mandatory] giving
them the flexibility to address unexpected issues.
The fifth issue is in Section 9. The AHRIC advises the governor,
state and local agencies and the University of Alaska on
workforce issues and they propose adding "other training
entities". This reflects what they currently do with the Alaska
Vocational Technical Training Center, Charter College or the
Southwest Vocational Training Center.
The other change in section 9 is that the Board shall develop
standards that encourage agencies to contract for programs and
says, "meets local demands and maximizes the use of resources."
This is something that they already do. They want training and
employment to reflect regional needs and funds that are used are
used most effectively.
MS. GAMEZ said since 1989, STEP has trained thousands of
Alaskans. This is good because when people are working, they are
not drawing unemployment insurance benefits and it keeps wages in
the state. The collaboration with employers, unions and
industries adds value to the economic development, training and
apprentice programs throughout the state. She used the Hyder
Waterworks Project as an example of how STEP works in Alaskan
communities and it has an adult working-age population of 82.
Adult as defined by the U.S. census is 16 and above. So the Hyder
Waterworks Project employs about half of its population.
The U.S. Department of Commerce, through an Economic Development
and Administration Grant (EDA), paid 60 percent of the cost of
the facility; forty percent was raised locally. They applied for
a STEP grant for training and were award a $32,000 grant. The
University of Alaska Ketchikan provided onsite training for the
workers. She said that the federal funding programs are not as
flexible as this program is. Currently, the Hyder project is
capable of producing 140,000 bottles daily, although they produce
only 40,000 bottles. They are negotiating a contract with Sam's
Club right now. If that happens, they will want to train another
shift of workers.
MS. GAMEZ said the STEP delivery strategy is two-fold delivering
service through competitive grants into business needs and
through individual services largely delivered through the 22
Alaska job centers. A good example of the individual training
model is Kathleen Basinger of Fairbanks. She has supported two
kids by herself on a low paying job. She knew she needed to
improve her skill level. After she graduated, she took her kids
to Disneyland showing them that hard work pays off and that self-
sufficiency and success is a good thing.
Another example is Mr. Glen Shortsmith from Sterling. He had been
on and off unemployment insurance. He needed and wanted full-time
work. Through the Kenai Peninsula job center, he was able to get
an individual grant for $550, which allowed him to get his
commercial driver's license. He is now a full-time driver and he
feels secure with the job that he has.
The competitive grant process is delivered through non-profit
businesses, for-profit businesses, apprenticeship programs and
education institutions, wherever the need is identified. Right
now 300 Alaskans out of the 1,100 in training are training for
high paying union jobs thanks to the STEP program. They also
deliver services through competitive grants to large and small
businesses for local workforces at communities around the state.
Bulk fuel tanks are now being replaced in Alaska. These tanks
used to be imported from outside businesses and now they are
being manufactured in Nome. These are a couple of examples of
success stories of STEP in Alaska. She showed them a map of the
communities that are impacted by STEP training.
She said that STEP has been a pilot program since its inception
in 1989 and this temporary nature has been an on-going challenge.
It needs to be predictable and stable for future generations.
SENATOR AUSTERMAN asked if there was a report that lists the
total number of people who are served through the program.
MS. GAMEZ said they had the data compiled and pending the audit
they were planning on getting this information out to the
committee members. She offered to get that information to them
sooner.
CHAIRMAN STEVENS asked her to provide them the information. She
said absolutely.
SENATOR TORGERSON asked if she eliminated the sunset entirely.
She replied that there was no automatic review of the program,
but it would be done through the annual audits the department
goes through or any special audits that may be raised.
SENATOR AUSTERMAN asked if the Local Workforce Investment Board
was separate from the main board.
MS. GAMEZ replied that the way the Workforce Investment Act is
set up there is a state board, the Alaska Human Resource
Investment Council; there are two local board, the Anchorage Mat-
Su area and the other is the Balance of State area. In addition
to those boards, there are local advisory councils in many of the
communities throughout the states for the job centers. She said
the language replacing the Private Industry Council with the
Local Workforce Investment Board mirrors the Workforce Investment
Act. Private industry councils don't technically exist any more.
SB 252 was held for further work.
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