Legislature(2017 - 2018)CAPITOL 106

04/05/2017 08:00 AM House EDUCATION

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08:03:24 AM Start
08:04:36 AM HB189
08:27:54 AM Presentation: Northwestern Alaska Career and Technical Center (nactec)
09:50:35 AM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 189 SCHOOL BUS INSPECTION FEES TELECONFERENCED
Heard & Held
-- Public Testimony --
+ Presentation: Northwestern AK Career & Technical TELECONFERENCED
Center
                    ALASKA STATE LEGISLATURE                                                                                  
               HOUSE EDUCATION STANDING COMMITTEE                                                                             
                         April 5, 2017                                                                                          
                           8:03 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Harriet Drummond, Chair                                                                                          
Representative Justin Parish, Vice Chair                                                                                        
Representative Zach Fansler                                                                                                     
Representative Ivy Spohnholz                                                                                                    
Representative Jennifer Johnston                                                                                                
Representative Chuck Kopp                                                                                                       
Representative David Talerico                                                                                                   
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Lora Reinbold (alternate)                                                                                        
Representative Geran Tarr (alternate)                                                                                           
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 189                                                                                                              
"An Act relating to program receipts; and relating to fees for                                                                  
school bus inspections."                                                                                                        
                                                                                                                                
     - HEARD & HELD                                                                                                             
                                                                                                                                
PRESENTATION:  NORTHWESTERN ALASKA CAREER AND TECHNICAL CENTER                                                                  
(NACTEC)                                                                                                                        
                                                                                                                                
     - HEARD                                                                                                                    
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 189                                                                                                                  
SHORT TITLE: SCHOOL BUS INSPECTION FEES                                                                                         
SPONSOR(s): REPRESENTATIVE(s) WILSON                                                                                            
                                                                                                                                
03/22/17       (H)       READ THE FIRST TIME - REFERRALS                                                                        
03/22/17       (H)       EDC, FIN                                                                                               
04/05/17       (H)       EDC AT 8:00 AM CAPITOL 106                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
REPRESENTATIVE TAMMY WILSON                                                                                                     
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Presented HB 189, as the sponsor.                                                                        
                                                                                                                                
HEIDI TESHNER, Director                                                                                                         
Administrative Services                                                                                                         
Department of Education and Early Development                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions  during the hearing of HB
189.                                                                                                                            
                                                                                                                                
ELWIN BLACKWELL, School Finance Manager                                                                                         
School Finance and Facilities Section                                                                                           
Department of Education and Early Development                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Answered questions  during the hearing of HB
189.                                                                                                                            
                                                                                                                                
DOUG WALRATH PhD, Director                                                                                                      
Northwestern Alaska Career and Technical Center                                                                                 
Nome, Alaska                                                                                                                    
POSITION   STATEMENT:     Provided   a  PowerPoint   presentation                                                             
entitled, "NACTEC NOME, ALASKA," dated 4/5/17.                                                                                  
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
8:03:24 AM                                                                                                                    
                                                                                                                                
CHAIR  HARRIET  DRUMMOND  called  the  House  Education  Standing                                                             
Committee  meeting  to  order  at   8:03  a.m.    Representatives                                                               
Drummond,  Parish, Talerico,  Kopp,  Johnston,  and Fansler  were                                                               
present at the  call to order.   Representative Spohnholz arrived                                                               
as the meeting was in progress.                                                                                                 
                                                                                                                                
               HB 189-SCHOOL BUS INSPECTION FEES                                                                            
                                                                                                                                
8:04:36 AM                                                                                                                    
                                                                                                                                
CHAIR DRUMMOND announced  that the first order  of business would                                                               
be HOUSE BILL NO. 189, "An  Act relating to program receipts; and                                                               
relating to fees for school bus inspections."                                                                                   
                                                                                                                                
8:05:02 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   TAMMY   WILSON,    Alaska   State   Legislature,                                                               
introduced HB 189, as the  sponsor, paraphrasing from the sponsor                                                               
statement,   which   read   as  follows   [original   punctuation                                                               
provided]:                                                                                                                      
                                                                                                                                
     HB 189 allows the  Department of Education to establish                                                                    
     by regulation  a fee  to cover the  cost of  the school                                                                    
     bus inspections required  under AS 14.09.030(b)(2). The                                                                    
     school bus operator will be charged this fee.                                                                              
                                                                                                                                
REPRESENTATIVE  JOHNSTON  asked  whether  the  bill  affects  the                                                               
number of inspections.                                                                                                          
                                                                                                                                
REPRESENTATIVE T.  WILSON said inspections  occur twice a  year -                                                               
as  is already  in statute  - and  the bill  does not  change the                                                               
inspection process,  but only that  the fee  will be paid  by the                                                               
school bus operators.                                                                                                           
                                                                                                                                
REPRESENTATIVE   JOHNSTON   suggested  responsibility   for   the                                                               
inspections may be held by local - and not state - government.                                                                  
                                                                                                                                
REPRESENTATIVE T. WILSON said the intent  of the bill is to allow                                                               
the  Department  of  Education and  Early  Development  (EED)  to                                                               
charge the fee; however, school  districts may be able to address                                                               
this issue.                                                                                                                     
                                                                                                                                
REPRESENTATIVE FANSLER inquired as to the cost of inspections.                                                                  
                                                                                                                                
REPRESENTATIVE  T. WILSON  advised the  statute does  not address                                                               
the cost;  however, [Fiscal Note  Identifier:   HB 189-EED-SFF-3-                                                               
31-17]  indicated   further  details   would  be   determined  by                                                               
regulations.   The department could determine  a specific amount,                                                               
or the  current amount budgeted -  $210,000 - could be  used as a                                                               
baseline.   In  further response  to Representative  Fansler, she                                                               
said currently the state conducts  and pays for inspections.  The                                                               
bill would  allow the fee to  be charged to each  private vendor;                                                               
school bus inspections  are necessary but should not  be paid for                                                               
by the state.                                                                                                                   
                                                                                                                                
8:08:27 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE PARISH  surmised the intent  is to shift  the cost                                                               
of the  inspections from  the state to  the school  bus operators                                                               
and restated the question as to what inspections cost.                                                                          
                                                                                                                                
REPRESENTATIVE   T.   WILSON   observed   inspections   are   the                                                               
responsibility  of  the  operators,  as  are  safety  inspections                                                               
required of other  businesses.  She returned attention  to page 2                                                               
of the  fiscal note  and reported  there is  an average  of 1,055                                                               
buses inspected each  year and the department  would establish an                                                               
inspection  fee of  $175 per  bus,  per inspection.   In  further                                                               
response to  Representative Parish,  she confirmed the  fee could                                                               
be changed by regulation.                                                                                                       
                                                                                                                                
REPRESENTATIVE PARISH said his concern  is the safety of students                                                               
is the responsibility of the state.                                                                                             
                                                                                                                                
REPRESENTATIVE  T. WILSON  stressed  inspections  would still  be                                                               
required  without any  change --  the only  difference being  who                                                               
pays the fee.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  KOPP  observed one  way  or  another $147,000  is                                                               
going to be  paid by the state because if  EED establishes a fee,                                                               
school  bus operators  are going  to  negotiate the  cost of  bus                                                               
inspections into their contracts.                                                                                               
                                                                                                                                
REPRESENTATIVE T. WILSON agreed,  however, local school districts                                                               
may decide that  they have a better or more  affordable means for                                                               
fulfilling  the  inspection  requirement.    She  also  suggested                                                               
school bus operators may find efficiencies.                                                                                     
                                                                                                                                
8:13:48 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSTON  questioned who is ultimately  liable for                                                               
school buses.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  T.  WILSON  opined the  responsibility  falls  to                                                               
those  who have  contracts for  school bus  transportation.   The                                                               
related  statute may  have  been  enacted to  ensure  a level  of                                                               
safety through  state oversight.   However,  the statute  did not                                                               
provide for charging an inspection fee.                                                                                         
                                                                                                                                
REPRESENTATIVE JOHNSTON  advised private  contractors have  to be                                                               
bonded, and their  liability is probably in  partnership with the                                                               
local school district; she urged for  the line of liability to be                                                               
ascertained.                                                                                                                    
                                                                                                                                
CHAIR DRUMMOND questioned who performs the inspections.                                                                         
                                                                                                                                
REPRESENTATIVE T. WILSON said the department.                                                                                   
                                                                                                                                
8:16:13 AM                                                                                                                    
                                                                                                                                
HEIDI  TESHNER,   Director,  Administrative  Services,   EED,  in                                                               
response to  Chair Drummond,  explained currently  the department                                                               
contracts with  "resurrection auto" to conduct  inspections twice                                                               
per  year; should  HB 189  be  enacted, the  cost of  inspections                                                               
would affect both school districts  and contractors because there                                                               
are  district-operated   school  buses   and  contractor-operated                                                               
school buses.                                                                                                                   
                                                                                                                                
8:17:40 AM                                                                                                                    
                                                                                                                                
ELWIN  BLACKWELL,  School  Finance Manager,  School  Finance  and                                                               
Facilities Section,  EED, in response to  Chair Drummond, further                                                               
explained   the   Anchorage   School  District   (ASD)   operates                                                               
approximately  122  buses  and  Reliant  Transportation  operates                                                               
approximately 181 school buses.                                                                                                 
                                                                                                                                
CHAIR  DRUMMOND asked  whether the  department contracts  to have                                                               
all the buses inspected.                                                                                                        
                                                                                                                                
MS. TESHNER said correct.                                                                                                       
                                                                                                                                
8:18:40 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SPOHNHOLZ  clarified   [Fiscal  Note  Identifier:                                                               
HB189-EED-SFF-3-31-17]  indicates the  costs  that are  currently                                                               
being paid by  the state are moved either to  school districts or                                                               
to contractors.   She pointed out the fiscal  note cost estimates                                                               
are:   $95,600 in  fiscal year  2019 (FY 19);  $97,000 in  FY 20;                                                               
$107,900 in FY 21.  Further,  the fiscal note indicates the state                                                               
would collect fees to implement the program.                                                                                    
                                                                                                                                
REPRESENTATIVE JOHNSTON asked EED  to provide inspection data and                                                               
whether  safety  violations have  been  routinely  reported.   In                                                               
addition, she  questioned whether the contractor  [performing the                                                               
inspections] is a certified school bus inspector.                                                                               
                                                                                                                                
MR. BLACKWELL  said the  contractor hired by  the state  has been                                                               
trained as a  school bus inspector; the same  contractor has been                                                               
doing the  inspections for approximately 10-15  years and follows                                                               
specific criteria.                                                                                                              
                                                                                                                                
REPRESENTATIVE JOHNSTON asked whether  a local garage or mechanic                                                               
could  satisfy the  requirements  for the  inspections and  avoid                                                               
travel costs.                                                                                                                   
                                                                                                                                
MS. TESHNER offered to provide the data requested.                                                                              
                                                                                                                                
REPRESENTATIVE PARISH  observed the bill  does not provide  for a                                                               
change   in   the   contractor  who   is   currently   performing                                                               
inspections.                                                                                                                    
                                                                                                                                
MS. TESHNER agreed.                                                                                                             
                                                                                                                                
8:23:40 AM                                                                                                                    
                                                                                                                                
CHAIR  DRUMMOND asked  the  bill sponsor  whether  the number  of                                                               
inspections  per year  is sufficient,  or whether  one inspection                                                               
per year would be adequate.                                                                                                     
                                                                                                                                
REPRESENTATIVE  T. WILSON  noted the  intent of  the bill  is not                                                               
just who pays  for the inspections but to point  out some regions                                                               
have public  bus transportation  systems that are  not inspected,                                                               
and public  safety issues  are not  a topic  of discussion.   She                                                               
opined  if   inspections  were  determined  by   "local  control"                                                               
inspections  of school  buses and  of  public transportation  may                                                               
increase.   Data from the  department - indicating the  number of                                                               
past  violations -  may be  informational, but  the liability  is                                                               
held  by   the  local  government,  school   districts,  and  bus                                                               
operators.  The  primary intent is to extract  the government out                                                               
of  the  process,   and  to  look  for  cost   savings  and  more                                                               
flexibility in student transportation.                                                                                          
                                                                                                                                
CHAIR  DRUMMOND related  some  school  districts have  difficulty                                                               
finding school  bus drivers to  train; further, she  was informed                                                               
ASD is  cooperating with the  public transit system  in Anchorage                                                               
[to provide student transportation].                                                                                            
                                                                                                                                
REPRESENTATIVE  T.  WILSON  acknowledged   options  may  well  be                                                               
available using  public transportation systems already  in place;                                                               
however, the  liability issue  remains a  concern, and  to ensure                                                               
children get to school in the safest way possible.                                                                              
                                                                                                                                
8:27:47 AM                                                                                                                    
                                                                                                                                
[HB 189 was held over.]                                                                                                         
                                                                                                                                
^PRESENTATION:   Northwestern Alaska Career and  Technical Center                                                               
(NACTEC)                                                                                                                        
 PRESENTATION:  Northwestern Alaska Career and Technical Center                                                             
                            (NACTEC)                                                                                        
                                                                                                                              
8:27:54 AM                                                                                                                    
                                                                                                                                
CHAIR DRUMMOND announced  that the final order  of business would                                                               
be  a  presentation  from  the  Northwestern  Alaska  Career  and                                                               
Technical Center (NACTEC).                                                                                                      
                                                                                                                                
8:28:03 AM                                                                                                                    
                                                                                                                                
DOUG  WALRATH  PhD,  Director,  Northwestern  Alaska  Career  and                                                               
Technical Center  (NACTEC), informed the committee  he has served                                                               
as the director of NACTEC for  eight years.  [NACTEC] is the Nome                                                               
Census  Area Regional  Training Center  that began  in 2003-2004,                                                               
and  that delivers  over 30  vocational  training programs,  also                                                               
known   as  technical   education.     The  center   operates  in                                                               
partnership with  the Bering Strait  School District  (BSSD), and                                                               
Nome Public Schools (NPS), and  was founded to effectively reduce                                                               
high school dropout  rates.  He noted the  Nome-Beltz High School                                                               
was built in 1966 as a  vocational boarding school and BSSD, NPS,                                                               
and the Regional Learning Center  program collaborated to restore                                                               
vocational  aspects to  each school  district.   Further,  NACTEC                                                               
offers  variable term  residential  programs,  which are  courses                                                               
between one and  four weeks in length, from  August through June.                                                               
In  2008, a  new 26-bed  student dormitory  was built  (slide 1).                                                               
Slide 2  was a map  that illustrated Nome  is a regional  hub for                                                               
the Bering  Strait and Norton  Sound regions, thus  NACTEC serves                                                               
students  from  as  far  north  as  Shishmaref,  west  to  Little                                                               
Diomede,  Gambell,  and  Savoonga,  south  to  Stebbins  and  St.                                                               
Michael,  and  east to  Unalakleet  and  Shaktoolik; however,  90                                                               
percent of  its students come  from BBSD  and NPS.   [NACTEC] has                                                               
partnerships  with  55  villages   and  other  school  districts,                                                               
including  Chugach  School  District, and  he  provided  examples                                                               
(slide 3).  Dr.  Walrath opined partnerships create opportunities                                                               
for students.                                                                                                                   
                                                                                                                                
8:33:11 AM                                                                                                                    
                                                                                                                                
DR. WALRATH advised  NACTEC is a small  organization and provided                                                               
an organizational chart, describing  the responsibilities of each                                                               
position,  and noting  that he  oversees  a program  coordinator,                                                               
five instructors,  a counselor,  adjunct faculty,  and classified                                                               
staff (slide 4).   [NACTEC's] mission and  vision statements were                                                               
provided on  slides 5 and  6, and  focus on students'  life, work                                                               
readiness, academic and career awareness  skills, and work ethics                                                               
for independent living with a healthy cultural identity.                                                                        
                                                                                                                                
DR.  WALRATH  continued to  explain  a  24/7 residential  program                                                               
needs  a certain  structure to  ensure that  students are  making                                                               
positive  choices and  he described  the school's  daily schedule                                                               
beginning  at  6:00  a.m.  through 10:30  p.m.    Activities  and                                                               
classes include:   room inspections,  mealtimes, swimming  at the                                                               
city  pool,  American Red  Cross  first  aid certification,  core                                                               
training  classes, community  activities, chores,  homework time,                                                               
and  private/room time.   He  detailed each  aspect to  emphasize                                                               
what  the  students  are  gaining  from  each  experience.    The                                                               
training available at  NACTEC was listed on  a document entitled,                                                               
"2016-2017 NACTEC  Training Calendar," provided in  the committee                                                               
packet.    After  the  block  of training  time,  at  3:30  p.m.,                                                               
students  transition to  one  hour of  career  skills and  career                                                               
counseling,  during  which  students make  a  connection  between                                                               
their  training  and  their  life goals,  with  support  from  an                                                               
employment  security specialist  at the  Nome Alaska  Job Center.                                                               
In  the  evening, students  continue  with  life skills  such  as                                                               
cooking  and cleanup  duties, evening  activities, homework,  and                                                               
lights  out at  10:30  p.m. (slide  7).   He  suggested the  most                                                               
important element of the two-week  program is the element of Life                                                               
Skills/Independent Living,  such as conflict  resolution, chores,                                                               
parenting with baby  simulators, all which are  scored (slide 8).                                                               
Turning to  the topic of  programming, Dr. Walrath  said training                                                               
is  based  around  Alaska's  priority  industries:    healthcare,                                                               
construction, transportation, seafood  harvesting and processing,                                                               
hospitality and  tourism, education, information  technology, and                                                               
natural resource  development (slide 9).   As an aside,  he noted                                                               
NACTEC  originally  delivered   high  school  training  programs,                                                               
however, it  became evident that  programs needed to  commence at                                                               
the  junior  high  level,  thus there  are  shorter  junior  high                                                               
programs  for eighth  grade students  who come  with a  chaperone                                                               
from  home.    Experiences  available  through  the  junior  high                                                               
programs are  with the  Army Air  National Guard,  public safety,                                                               
firefighting, aviation,  and nursing with hands-on  training.  He                                                               
advised  junior high  participants enter  high school  with a  21                                                               
percent  advantage  over  those  who haven't  participated  at  a                                                               
younger age (slide 10).                                                                                                         
                                                                                                                                
8:46:05 AM                                                                                                                    
                                                                                                                                
DR. WALRATH explained each training  strand offers a student both                                                               
dual  credit,  certification,  or  a value-added  element.    For                                                               
example, the  Healthcare strand includes the  foundational course                                                               
of first  aid and CPR,  and then  guides students to  more senior                                                               
courses  such  as  Introduction to  Health  Careers  (slide  11).                                                               
Therefore, students  who graduate from the  Healthcare strand may                                                               
continue  to postsecondary  training  in  nursing and  healthcare                                                               
fields,  return   to  their   villages  as   trained,  employable                                                               
certificated  workers, and  attain a  higher level  of employment                                                               
than previously  available.   He gave an  example of  a student's                                                               
successful career  path from healthcare aide  to practitioner and                                                               
described further training available to  students and adults at a                                                               
local  health provider  (slides  12-13).   Within  the strand  of                                                               
Construction, he detailed and  provided several anecdotal stories                                                               
of  "real world"  projects between  2010 and  2015; for  example,                                                               
construction students  built a 12-foot by  16-foot safety shelter                                                               
in the  village of  Solomon, and students  use a  heavy equipment                                                               
student simulator  that was converted  from a recreation  area in                                                               
2009-2010  with funds  sourced through  the Alaska  Education Tax                                                               
Credit  (slide  14).    He   directed  attention  to  information                                                               
provided  in  the  committee  packet,   and  further  noted  real                                                               
experiences with heavy equipment for  the students trained on the                                                               
simulator ranged from moving snow to asphalt paving (slides 15-                                                                 
17).     The  Hospitality  and   Tourism  strand  has   a  Native                                                               
Arts/Business,  Marketing, and  Entrepreneurship focus  on topics                                                               
such  as  bone  carving,  skin   sewing,  and  traditional  kayak                                                               
construction  and use,  which are  topics  that attract  interest                                                               
from students (slides  18-19).  In fact, in 2016,  the students -                                                               
guided by an  elder - built a King Island  style kayak, the first                                                               
built in  30 years,  and additional  information was  included in                                                               
the committee packet  (slides 19-20).  Also,  students learn from                                                               
elders  the  arts of  skin  sewing  hats  and mittens  and  ivory                                                               
carving, and the  marketing thereof (slide 21).   Included in the                                                               
Hospitality  and   Tourism  strand  is  earning   a  food  worker                                                               
certification and learning aspects  of food service in commercial                                                               
settings (slide  22).  The  Transportation strand  is highlighted                                                               
by  aviation,  driver  education  for autos,  and  boater  safety                                                               
certifications; he  acknowledged many students attend  NACTEC for                                                               
driver education because they may  not have driving opportunities                                                               
in  their  villages, and  a  diploma  and  a driver  license  are                                                               
prerequisites  to  enter  the  world   of  work  (slides  23-24).                                                               
[NACTEC] is  a Division  of Motor  Vehicles (DMV),  Department of                                                               
Administration,  approved  third-party  road  test  examiner  and                                                               
thereby in  FY 16  tripled the licenses  and permits  attained by                                                               
students   and  adults   (slide   25).     Finally,  within   the                                                               
Transportation  strand,  aviation   training  includes  [airframe                                                               
and/or powerplant (A&P)] mechanic  training and he noted students                                                               
are in  the process  of rebuilding  a 1962  Piper Colt,  from the                                                               
frame  to the  engine.    He advised  there  is private  industry                                                               
support for  aviation training  (slide 27).   Students  were also                                                               
recently   involved   in    assisting   a   visiting   historical                                                               
organization disassemble  a World  War II  era B25  bomber (slide                                                               
28).    The  last  training   strand  he  discussed  was  Seafood                                                               
Harvesting and Processing programs  which are supported by Norton                                                               
Sound  Seafood Products,  the Norton  Sound Economic  Development                                                               
Corp.,  and other  partners.   Slide 30  illustrated students  in                                                               
various related activities, such  as egg collecting and capturing                                                               
fish.   Also included  in the aforementioned  strand is  a water-                                                               
and land-based Arctic survival element (slide 30).                                                                              
                                                                                                                                
9:11:05 AM                                                                                                                    
                                                                                                                                
DR.  WALRATH directed  attention to  slide 31,  which illustrated                                                               
three of  fifteen students who  have begun classes at  the Alaska                                                               
Vocational  Technical Center  (AVTEC) in  Seward in  a "handhold"                                                               
transitions program;  the transitions  program was  instituted to                                                               
increase students'  chances for  success when enrolling  at AVTEC                                                               
or another postsecondary program.   In order to document NACTEC's                                                               
impact  on  its region,  four  graphs  provided supporting  data,                                                               
beginning with  slide 32, which illustrated  increased enrollment                                                               
on a  trimester schedule from  2003-2004 through 2015-2016.   The                                                               
first six  years enrollment at  NACTEC averaged 241  students and                                                               
when compared  to BSSD graduation  rates, he concluded  that BSSD                                                               
graduation rates increased  after NACTEC was founded.   As NACTEC                                                               
attendance  increased,   graduation  rates  at   affected  school                                                               
districts  - as  a whole  -  steadily improved,  and the  dropout                                                               
rates decreased  from an  average of double-digit  rates.   As an                                                               
aside,  he  advised  studies  show  "the cost  of  a  dropout  is                                                               
$292,000..." thus  reduced dropout  rates have made  a difference                                                               
of  $8.5  million  per  graduating   class  over  a  lifetime  of                                                               
earnings.   Further,  EED and  NACTEC data  from 2011-2014  shows                                                               
students  who have  attended  NACTEC have  a  graduation rate  22                                                               
percent higher  than the BSSD  population of students as  a whole                                                               
(slides  33-35).   Dr. Walrath  directed attention  to additional                                                               
documents in  the committee  packet and  showcased a  student who                                                               
became a  UAF scholar  in construction management,  as well  as a                                                               
student who became a certified BSSD teacher (slides 36-37).                                                                     
                                                                                                                                
9:23:45 AM                                                                                                                    
                                                                                                                                
DR. WALRATH closed with recommendations  for continued success at                                                               
NACTEC, which  include:  Alaska  Education Tax  Credit, currently                                                               
under a  2018 sunset, needs to  be extended; increase to  Carl D.                                                               
Perkins vocational  funding; legislation  promoting collaborative                                                               
approaches  between school  districts  (slide 38).   Further,  he                                                               
pointed  out NACTEC  high  school and  junior  high programs  are                                                               
operating  at  93  percent  of  capacity;  in  fact,  the  center                                                               
receives  almost twice  the number  of applications  than can  be                                                               
accommodated.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  JOHNSTON  noted  NACTEC   showed  a  decrease  in                                                               
enrollment in 2016 and asked what occurred.                                                                                     
                                                                                                                                
DR.  WALRATH  explained NACTEC  lost  nearly  30 percent  of  its                                                               
undesignated   general  fund   (UGF)   funding  over   2015-2016;                                                               
therefore, a teaching  position was lost as well  as two training                                                               
programs.    As a  result,  new  and existing  partnerships  with                                                               
Native corporations  supplemented funding, school  district funds                                                               
were redirected,  and about  one-fourth of  the lost  funding was                                                               
offset.   However, a loss  of 50  students resulted.   In further                                                               
response  to   Representative  Johnston,   he  said   gun  hunter                                                               
education has been  taught and may be again within  the strand of                                                               
Arctic survival and outdoor leadership and guiding.                                                                             
                                                                                                                                
REPRESENTATIVE PARISH  praised the increases in  graduation rates                                                               
and asked whether long-term outcomes are known.                                                                                 
                                                                                                                                
DR.  WALRATH  expressed  hope  a   longitudinal  study  could  be                                                               
undertaken;  in  fact,  the  certified  nursing  assistant  (CNA)                                                               
training program was tracked locally  on a limited basis, and two                                                               
years ago,  of 40  students who have  completed the  CNA training                                                               
program,  58   percent  were  working  at   Norton  Sound  Health                                                               
Corporation  and\or  were  involved in  scholarships  for  higher                                                               
education.   Further,  records at  UA Fairbanks  Northwest Campus                                                               
showed  67 percent  of the  trainees  continued to  postsecondary                                                               
education.                                                                                                                      
                                                                                                                                
9:32:22 AM                                                                                                                    
                                                                                                                                
CHAIR DRUMMOND  clarified NACTEC seeks research  to follow former                                                               
students into their careers; EED does not provide data.                                                                         
                                                                                                                                
DR. WALRATH  affirmed NACTEC would  benefit from reporting  by an                                                               
outside agency [on related data].                                                                                               
                                                                                                                                
CHAIR  DRUMMOND  recalled  a  longitudinal  study  to  develop  a                                                               
database  and  follow  Alaska   school  system  students  through                                                               
postsecondary education  and into  the work world  was suspended.                                                               
She  expressed concern  that flat  funding has  caused a  loss of                                                               
instructors at  NACTEC.  She  reviewed a current proposal  in the                                                               
legislature  that would  cut $69  million from  the base  student                                                               
allocation and would further impact NACTEC programs.                                                                            
                                                                                                                                
DR. WALRATH acknowledged cuts to  UGF led to impacts on programs;                                                               
funding  of  the  Carl Perkins  Career  and  Technical  Education                                                               
Improvement Act  was new to  NACTEC this school year,  and Norton                                                               
Sound   Economic  Development   Corporation   and  other   Native                                                               
corporations  are  utilizing  the  Alaska  Education  Tax  Credit                                                               
program to  leverage support.   However, student  enrollment will                                                               
go up  based on students'  interest, but  cuts may not  allow the                                                               
expansion of  opportunities to NSD  students in  a nonresidential                                                               
setting.                                                                                                                        
                                                                                                                                
CHAIR DRUMMOND surmised  NACTEC facilities are not  used as fully                                                               
as they were in the past.                                                                                                       
                                                                                                                                
DR. WALRATH clarified last year  NACTEC scaled back and Sitnasuak                                                               
Native  Corporation   provided  funds  for  a   driver  education                                                               
position;  however,  it  is  a  time-consuming  process  to  seek                                                               
additional funding sources as the  amount of funding shrinks.  In                                                               
further response to  Chair Drummond, he acknowledged  more of his                                                               
time is devoted to grant writing and partnership outreach.                                                                      
                                                                                                                                
CHAIR DRUMMOND agreed the Alaska  Education Tax Credit program is                                                               
critical  and she  pledged  to  introduce a  bill  to extend  the                                                               
sunset date.   She asked  for the  percentage of students  in NPS                                                               
and BSSD that NACTEC can "reach."                                                                                               
                                                                                                                                
DR. WALRATH  said BSSD last  year had  63 percent in  high school                                                               
training programs;  82 percent including junior  and high school.                                                               
[BSSD] represents  15 villages and  89 percent of  the population                                                               
in the region.                                                                                                                  
                                                                                                                                
CHAIR DRUMMOND  questioned whether NACTEC could  have served more                                                               
students given sufficient funding and instructional capacity.                                                                   
                                                                                                                                
DR.  WALRATH   returned  attention   to  the   committee  handout                                                               
entitled, "2016-2017  NACTEC Training Calendar," and  pointed out                                                               
the training calendar is "very packed, throughout the year."                                                                    
                                                                                                                                
9:40:29 AM                                                                                                                    
                                                                                                                                
CHAIR  DRUMMOND returned  to driver's  education and  asked where                                                               
students take driver permit tests.                                                                                              
                                                                                                                                
DR. WALRATH related NACTEC is  working to set up village proctors                                                               
so the  permit test can  be provided  in villages in  the future.                                                               
In  further response  to  Chair  Drummond, he  said  NACTEC is  a                                                               
third-party   examiner,   so   it  can   administer   road   test                                                               
examinations in addition to DMV in Nome.                                                                                        
                                                                                                                                
REPRESENTATIVE KOPP said the program  is inspiring and provides a                                                               
needed  model  for  education in  Alaska,  especially  as  NACTEC                                                               
partners  with the  private sector  to  advance local  residents'                                                               
employability  in rural  communities of  the state,  supported by                                                               
funding through the Alaska Education Tax Credit program.                                                                        
                                                                                                                                
DR.  WALRATH   related  the   Southwest  Alaska   Vocational  and                                                               
Education  Center (SAVEC)  is a  [Rapid Response  Training Center                                                               
for  Training  and  Workforce Development  located  on  the  King                                                               
Salmon Air Force Base in  Bristol Bay]; regional training centers                                                               
are also  supported by Alaska Technical  and Vocational Education                                                               
Program  (TVEP)   funding.    He  agreed   industry  funding  has                                                               
established  workforce development  in many  areas of  Alaska; in                                                               
addition, education  at the  local level costs  less and  "we can                                                               
develop the folks who will care for others in our regions ...."                                                                 
                                                                                                                                
9:45:16 AM                                                                                                                    
                                                                                                                                
CHAIR DRUMMOND  recalled her  visit to NACTEC  and to  the Alaska                                                               
Vocational Technical Center (AVTEC),  and suggested the committee                                                               
organize a  similar tour  over the upcoming  interim.   She asked                                                               
about the  funding of  the boarding school  and whether  the idea                                                               
was  originally  conceived and  funded  by  NPS and  BSSD  school                                                               
districts.                                                                                                                      
                                                                                                                                
DR.  WALRATH  explained   [residential]  school  stipends  became                                                               
available around 2013-2014.   [NACTEC's] application was accepted                                                               
for  residential  school  stipends   through  EED,  which  offset                                                               
students' living  expenses.  Currently, NACTEC  has three primary                                                               
funding sources:  residential school  stipends, TVEP funding, and                                                               
the education  tax credits that  are a mechanism by  which NACTEC                                                               
can solicit  funding [from private  sources].  He  advised NACTEC                                                               
previously  had four  funding sources,  including UGF  funds, but                                                               
now  is  left to  three  sources,  all  of which  are  critically                                                               
important.  In  further response to Chair  Drummond, he confirmed                                                               
UGF funds disappeared entirely on June 29, [2016].                                                                              
                                                                                                                                
DR. WALRATH  further explained  TVEP grants  are provided  by the                                                               
Department of  Labor &  Workforce Development  and are  funded by                                                               
unemployment  insurance contributions.   In  further response  to                                                               
Chair  Drummond,  he  said  some other  middle  and  high  school                                                               
facilities  similar to  NACTEC include  the Voyage  to Excellence                                                               
program, Chugach  School District;  Star of the  Northwest Magnet                                                               
School, Northwest  Arctic Borough School District;  EXCEL Alaska,                                                               
Kuspuk School District.                                                                                                         
                                                                                                                                
9:50:35 AM                                                                                                                    
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Education Standing Committee meeting was adjourned at 9:50 a.m.                                                                 

Document Name Date/Time Subjects
HB189 Sponsor Statement 3.24.17.pdf HEDC 4/5/2017 8:00:00 AM
HB 189
HB0189A 3.24.17.PDF HEDC 4/5/2017 8:00:00 AM
HB 189
HB189 Fiscal Note EED 3.31.17.pdf HEDC 4/5/2017 8:00:00 AM
HB 189