Legislature(2001 - 2002)

01/25/2002 02:47 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                  HOUSE FINANCE COMMITTEE                                                                                       
                     January 25, 2002                                                                                           
                         2:47 PM                                                                                                
                                                                                                                                
 TAPE HFC 02 - 16, Side A                                                                                                       
                                                                                                                                
 CALL TO ORDER                                                                                                                
                                                                                                                                
 Representative Con Bunde, Vice-Chair called the House                                                                          
 Finance Committee meeting to order at 2:47 PM.                                                                                 
                                                                                                                                
 MEMBERS PRESENT                                                                                                              
                                                                                                                                
 Representative Con Bunde, Vice-Chair                                                                                           
 Representative Eric Croft                                                                                                      
 Representative John Davies                                                                                                     
 Representative Bill Hudson                                                                                                     
 Representative Ken Lancaster                                                                                                   
 Representative Carl Moses                                                                                                      
                                                                                                                                
                                                                                                                                
 MEMBERS ABSENT                                                                                                               
                                                                                                                                
 Representative Eldon Mulder, Co-Chair                                                                                          
 Representative Bill Williams, Co-Chair                                                                                         
 Representative Richard Foster                                                                                                  
 Representative John Harris                                                                                                     
 Representative Jim Whitaker                                                                                                    
                                                                                                                                
                                                                                                                                
 ALSO PRESENT                                                                                                                 
                                                                                                                                
 Ed Flanagan, Commissioner, Department of Labor and Workforce                                                                   
 Development;                                                                                                                   
                                                                                                                                
 PRESENT VIA TELECONFERENCE                                                                                                   
                                                                                                                                
 There were no teleconference testifiers.                                                                                       
 GENERAL SUBJECT (S):                                                                                                         
                                                                                                                                
 Missions and Measures:                                                                                                         
     Department of Labor and Workforce Development                                                                              
                                                                                                                                
The following overview was taken in log note format.  Tapes                                                                     
and handouts will be on file with the House Finance                                                                             
Committee through the 22nd Legislative Session, contact 465-                                                                    
2156. After the 22nd Legislative Session they will be                                                                           
available through the Legislative Library at 465-3808.                                                                          
                                                                                                                              
 LOG SPEAKER              DISCUSSION                                                                                        
                                                                                                                                
      TAPE HFC 02 - 16    DEPARTMENT OF LABOR AND WORKFORCE                                                                   
      SIDE A              DEVELOPMENT                                                                                       
000 ED FLANAGAN,         Discussed the Employment Security                                                                      
     COMMISSIONER,       Division. He noted that the there has                                                                  
     DEPARTMENT OF LABOR been an increase to 34.7 percent of the                                                                
     AND WORKFORCE       number of registered clients that are                                                                  
     DEVELOPMENT         receiving service though an Alaska Job                                                                 
                         Center. He noted that the centers are                                                                  
                         largely self-service.                                                                                
     Commissioner        Noted that some of the federal measures                                                                
     Flanagan            are useful but some do not reflect                                                                     
                         performance according to state needs.                                                                
19   Commissioner        Provided members with a copy of their                                                                  
     Flanagan            Strategic Plan for the Employment                                                                      
                         Security Division (copy on file). The                                                                  
                         overall mission is to exceed the                                                                       
                         expectations of Alaskan employers,                                                                     
                         workers and job seekers.                                                                             
34   Commissioner        Reviewed the timeliness of first payments                                                              
     Flanagan            issued within 35 days. The federal                                                                     
                         benchmark is 95 percent. They are at 97.2                                                              
                         percent.                                                                                             
52   Commissioner        Referred to measures on training adult                                                                 
     Flanagan            job participants. The federal target is                                                                
                         for 66 percent placement. They are at 60                                                               
                         percent. He felt that the measure could                                                                
                         be improved. He observed that only the                                                                 
                         baseline has been established. They                                                                    
                         projected a 1 percent increase.                                                                      
99   Commissioner        He maintained that the measure: the                                                                    
     Flanagan            percentage of survey respondents rating                                                                
                         the UI services adequate or higher needed                                                              
                       to be changed.                                                                                         
118 Commissioner         He observed that a new survey would                                                                    
     Flanagan            discover the number of employers                                                                       
                         satisfied.                                                                                           
150 Commissioner         Reviewed measures for the Division of                                                                  
     Flanagan            Administrative Services. He observed that                                                              
                         the number of late penalties incurred for                                                              
                         payroll or vendor payments have been less                                                              
                         than .1 percent or 33 - 34 out of 33,400.                                                            
164 Commissioner         Observed that the average time taken from                                                              
   Flanagan            a workers' Compensation hearing has                                                                      
                         decreased. The department intends to                                                                   
                         attempt to add an additional Citizen's                                                                 
                         Panel.                                                                                               
190 Vice-Chair Bunde     Questioned if the results of the panels'                                                               
                         hearings would be helpful to the                                                                       
                        subcommittee.                                                                                         
202 Commissioner         Noted that the state is only accountable                                                               
     Flanagan            for cases concerning state employees. The                                                              
                         decisions are approximately 50/50.                                                                   
210 Commissioner         Noted that there has been progress on                                                                  
     Flanagan            Fishermen's Fund claims. Claim processing                                                            
                          time has been reduced from 68.7 to 23.7                                                               
                          days.                                                                                               
 229 Commissioner         Noted that the number of uninsured injury                                                             
      Flanagan            cases have been decreased from 117 in                                                                 
                          FY98 to 19 in FY01. They project 15 cases                                                             
                          in FY02.                                                                                            
 251 Commissioner         Second injury fund determination has been                                                             
      Flanagan            reduced. He explained that insurers pay                                                               
                          into the Fund to remove the disincentive                                                              
                          to hire a previously injured employee.                                                                
                          The beginning salary for injured rehired                                                              
                          employees comes from the Fund. The money                                                              
                          comes from insurers and penalties.                                                                  
 279 Commissioner         Reviewed measures for the Division of                                                                 
      Flanagan            Labor Standards and Safety. He noted that                                                             
                          lost workday injury and illness has been                                                              
                          targeted. The number of lost workdays is                                                              
                          difficult to account due to different                                                                 
                          definitions. Lost workday incidents are                                                               
                          measurable; however there is a time lag                                                               
                          on the data. They only have numbers for                                                               
                          1999. An additional research analyst in                                                               
                          the OSHA program would allow them to have                                                             
                          their own measure. He noted that the                                                                  
                          number is being reduced by approximately                                                              
                          3 percent a year.                                                                                   
 322 Vice-Chair Bunde     Questioned if the reduction in the                                                                    
                          logging industry was considered [as a                                                                 
                          contributing factor]. Commissioner                                                                    
                          Flanagan responded that they try to                                                                   
                          account for that in the number of                                                                     
                          incidents. More discussion ensued                                                                     
                          regarding the measure. Illness rates are                                                              
                          per 100 full-time workers.                                                                          
 345 Commissioner         Discussed the percentage of wage claims                                                               
      Flanagan            settled. He observed that 50 percent of                                                               
                          the claims are settled with a collection.                                                             
                          Employers go out of business or leave the                                                             
                          state in some incidences. The program is                                                              
                          general fund supported and there is a                                                                 
                          lack of resources. He did not know the                                                                
                          number of cases per year. He explained                                                                
                          that many of the employers have gone                                                                  
                          bankrupt.                                                                                           
 378 Commissioner         Noted that the number of boiler and                                                                   
      Flanagan            pressure vessel inspections completed                                                                 
                          compared to the backlog has not gone                                                                  
                          beyond 65,000. He acknowledged the need                                                               
                          to reduce the backlog. One plumbing                                                                   
                          inspector has passed qualifications to                                                                
                          assist with boiler inspections. He                                                                    
                          stressed the importance of assuring                                                                   
                          safety. He expressed concern with                                                                   
                         elevator inspections. There is only one                                                                
                         inspector. There are 850 - 900 elevators                                                               
                         with a backlog of 300 elevators. There is                                                              
                         a plan to address the issue under                                                                      
                         legislation introduced by Representative                                                               
                         Murkowski. The untapped revenue from                                                                   
                         backlog could pay for two positions.                                                                 
422 Representative       Questioned if inspections could be                                                                     
     Hudson              contracted to relieve the backlog.                                                                   
429 Commissioner         Noted that there are some contractors for                                                              
     Flanagan            the large vessels, which the state                                                                     
                         certifies. The cost is greater for                                                                     
                         contracting than it would be for in-state                                                              
                         inspectors.                                                                                          
431 Representative       Expressed concern with the safety factor.                                                            
     Hudson                                                                                                                     
439 Commissioner         Noted that the economy of scale would not                                                              
     Flanagan            allow the state to get out of the                                                                      
                         business.                                                                                            
441 Commissioner         The wages of clients served by the                                                                     
     Flanagan            Division has increased from $17,000 in                                                                 
                         1998 to $20,425 in FY01. The Division                                                                  
                         anticipates a 2 percent annual increase.                                                             
469 Commissioner         Noted that the disability determination                                                                
     Flanagan            service has had a backlog. The backlog                                                                 
                         has been decreased. There is not                                                                       
                         currently a measure to track this item.                                                              
489 ADJOURNMENT          The meeting was adjourned at 3:30 PM                                                                 

Document Name Date/Time Subjects