Legislature(2007 - 2008)HOUSE FINANCE 519
01/31/2007 01:30 PM House FINANCE
| Audio | Topic |
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| Start | |
| Overview: Alaska Department of Labor and Workforce Development | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
HOUSE FINANCE COMMITTEE
January 31, 2007
1:41 p.m.
CALL TO ORDER
Co-Chair Meyer called the House Finance Committee meeting to
order at 1:41:04 PM.
MEMBERS PRESENT
Representative Mike Chenault, Co-Chair
Representative Kevin Meyer, Co-Chair
Representative Bill Stoltze, Vice-Chair
Representative Harry Crawford
Representative Mike Hawker
Representative Reggie Joule
Representative Mary Nelson
Representative Bill Thomas, Jr.
Representative Les Gara
MEMBERS ABSENT
Representative Richard Foster
Representative Mike Kelly
ALSO PRESENT
Charles "Click" Bishop, Acting Commissioner, Alaska
Department of Labor and Workforce Development; Guy Bell,
Director, Division of Administrative Services, Department of
Labor and Workforce Development; Representative Bob Buch;
Representative Mark Neuman
PRESENT VIA TELECONFERENCE
None
GENERAL SUBJECT(S):
^OVERVIEW: ALASKA DEPARTMENT OF LABOR AND WORKFORCE
DEVELOPMENT
The following overview was taken in log note format.
Handouts will be on file with the House Finance Committee
through the 25th Legislative Session, contact 465-6814.
After the 25th Legislative Session they will be available
through the Legislative Library at 465-3808.
TIME SPEAKER DISCUSSION
1:42:08 PM CLARK "CLICK" Introduced members of the Department.
BISHOP, ACTING
COMMISSIONER
OF LABOR AND
WORKFORCE
DEVELOPMENT
1:43:41 PM GUY BELL, Referred to a handout, "Alaska
ASSISTANT Department of Labor and Workforce
COMMISSIONER, Development FY 08 Operating Budget
DEPARTMENT OF January 31, 2007" (copy on file). He
LABOR AND quoted from Governor Palin's State of
WORKFORCE the State speech, as seen on page 2 of
DEVELOPMENT the handout.
1:45:20 PM Mr. Bell Shared the Department of Labor and
Workforce Development's (DLWD) mission
depicted on page 3 of the handout.
1:45:51 PM Mr. Bell Highlighted key program accomplishments
portrayed on page 4.
1:46:52 PM Commissioner Emphasized the Department's goal of
Bishop having a 2 percent reduction in the
rate of lost workday accidental
injuries and illnesses.
1:47:57 PM Mr. Bell Reviewed the FY 08 budget of $176.9
million as shown on page 5.
1:48:35 PM Mr. Bell Related the challenges to the
Department as depicted on page 6. He
spoke of the number of nonresidents
working in the state, which has
increased from 18.4 percent to 19.1
percent in 2005 due to the vibrant
economy and the shortage of skilled
workers in the state.
1:50:47 PM Co-Chair Meyer Pointed out that there were 25,600
Alaskans unemployed, yet almost 4,000
nonresident workers came to Alaska for
jobs. He suggested putting Alaskans to
work before recruiting nonresidents.
He wondered if the issue is non-skilled
workers. Commissioner Bishop replied
that he believes that Alaskan employers
could do a better job of reaching out
to resident skilled workers. He also
suggested ways to close the gap on the
nonresident numbers and ways to utilize
Alaskans.
1:52:38 PM Representative Asked how many of those nonresidents
Thomas are returning college students. Mr.
Bell addressed how those students are
tracked. He added that it is more
likely that students will stay in
Alaska if they go to college in Alaska.
1:53:53 PM Vice-Chair Requested data on General Education
Stoltze Development (GED) diplomas. Mr. Bell
informed the committee about ways GED
data can be requested. Vice-Chair
Stoltze asked how unemployment was
defined and whether the people were
actively seeking employment or were
seasonal employees. Mr. Bell said
about 5,600 are seasonal employees.
1:55:51 PM Commissioner Suggested sorting unemployment data by
Bishop "trade group". Vice-Chair Stoltz said
complete information makes for better
decisions.
1:56:39 PM Representative Mentioned his experience with the iron
Crawford workers apprenticeship program. There
is a seasonal need to move to where the
jobs are and that means a loss of jobs
to the state.
1:57:31 PM Mr. Bell Pointed to page 7 of the handout, which
depicts a challenge to the Department -
loss of federal funding and increasing
costs. Retirement cost increases are
the main cost driver. The challenge is
to maintain services with increasing
costs.
1:59:10 PM Co-Chair Meyer Asked if some federal funding was lost
last year. Mr. Bell said it was in the
unemployment insurance program which is
driven by volumes, which were down.
Slide 8 shows the elimination of 53
full-time positions due to reduced
federal funding. The Department is
requesting general fund increments to
offset federal funding reductions and
is looking at paring back services.
2:00:47 PM Co-Chair Asked if the Department is proposing to
Chenault use state general funds to pay for
costs to PERS for state employees that
are funded through a federally funded
program. Mr. Bell said that is
correct. He explained that the
unemployment insurance program
historically has been funded with
federal money and this budget proposal
would inject general fund into that
program to maintain levels of service
to those seeking unemployment insurance
benefits. Co-Chair Chenault asked if
there were any federal funds available
to cover retirement costs. Mr. Bell
replied that the unemployment insurance
program is workload driven and the job
service program is allocated on a
declining percentage formula.
2:02:57 PM Mr. Bell Explained page 9, which described how
the Department addresses preparing
Alaska's youth for the workforce.
2:04:11 PM Commissioner Addressed the dropout rate of Alaskan
Bishop students - less than 60 percent
graduate high school. He shared his
own experience with positive benefits
of vocational education programs.
2:05:42 PM Co-Chair Meyer Agreed that vocational education
programs are important.
2:06:03 PM Vice-Chair Inquired how successful the
Stoltz commissioner would be in implementing
the Department's vocational education
goals. Commissioner Bishop stated that
he would be very successful. He
pointed to his good working
relationship with the university
system.
2:07:21 PM Mr. Bell Referred to page 10 - "Improving the
success of Alaska's students". He
shared some of the focuses of Alaska
Youth First. He informed the committee
of the successes of the King Career
Center.
2:10:17 PM Representative Asked if the $4.3 appropriation is a
Hawker single appropriation spread throughout
various functions in the budget. Mr.
Bell replied that it is in one spot in
the Division of Business Partnerships
under Business Services on page 22 of
the budget short form. He clarified
the $4.3 amount for Representative
Hawker.
2:11:39 PM Mr. Bell Highlighted the Alaska Vocational-
Technical Center located in Seward, as
explained on page 11. He mentioned
other training centers included in
grant funding.
2:12:49 PM Co-Chair Asked how Savec in King Salmon was
Chenault funded. Mr. Bell explained that the
allocation for Savec was determined
through the Technical Vocational
Education Program, a special account in
the general fund that is distributed by
a formula set by the legislature.
Savec receives 4 percent of that
allocation each year. The Department
is a pass-through agency for those
dollars.
2:13:36 PM Mr. Bell Spoke about the State Training and
Employment Program (STEP) shown on page
12. He termed it a very successful
program which would expire on June 30,
2008, unless extended by the
legislature.
2:15:18 PM Mr. Bell Highlighted gas pipeline workforce
preparation programs as shown on page
13. The focus is on training for jobs
available today. He discussed the
Fairbanks Joint Pipeliner Training
program funding, which has been very
successful, and the funding for a
Fairbanks Training Facility.
Commissioner Bishop added that the
Pipeliner Training is proven, does
work, and is his commitment to the
industry.
2:18:01 PM Representative Pointed out that many workers will be
Joule leaving jobs in their communities to
take pipeline jobs. He suggested
working with communities to fill jobs
that are left unfilled. Commissioner
Bishop said that is the same discussion
he had with his staff earlier today.
He agreed that those jobs had to also
be considered.
2:20:20 PM Mr. Bell Emphasized the Alaska hire commitment
by the developers of the gas pipeline.
2:21:19 PM Mr. Bell Explained a graph on page 14, which
compares the unemployment rate in the
U.S. and Alaska between 1996 and 2006.
2:22:16 PM REPRESENTATIVE Spoke of a concern about reaching young
MARK NEUMAN adults in rural Alaska at risk for
dropping out. He wondered who would
teach those students job skills.
Commissioner Bishop said the Department
is working on that problem. He spoke of
his experience with training in rural
Alaska.
2:24:25 PM Representative Asked for an explanation of "business
Hawker services" in the Department's budget
document. Mr. Bell stated that
business services deals with State
Training and Employment Program (STEP)
and with federal receipts. He further
explained the $32 million in federal
receipts and business services, money
that comes from the U.S. Department of
Labor Employment Training
Administration, a combination of
formula money and money derived from
competitive awards.
2:26:31 PM Representative Asked where that money goes. Mr. Bell
Hawker replied that $3 million goes to High
Need Youth. Two or three million
dollars goes to the Adult Program - job
services and training for out of work
adults. Some of the money goes to the
Dislocated Worker Program, and Rapid
Response Program, which deals with
imminent closures of work sites.
2:28:27 PM Representative Asked what the unallocated cut target
Hawker in general funds is. Mr. Bell replied
$2.5 million. Representative Hawker
noted that the existing general fund is
slightly under $12 million. Mr. Bell
replied that the total budget request
is $30 million in general funds.
Representative Hawker asked where Mr.
Bell envisions finding $2.5 million of
efficiencies. Mr. Bell replied
throughout the department.
Representative Hawker spoke of his
expertise with the human services
budget where almost all general fund
money is leveraged with matching money.
He wondered if that is also true for
the Department of Labor and Workforce
Development. Mr. Bell said it is true
in a number of areas such as Vocational
Rehabilitation and Adult Basic
Education.
2:30:30 PM REPRESENTATIVE Voiced appreciation for the
BOB BUCH Commissioner's service to the state.
He said the state is not doing a very
good job of transferring education
facilities to jobs. He requested ideas
for turning around the poor graduation
rate and lack of job-trained young
adults. Commissioner Bishop suggested
that having more jobs would help.
2:33:01 PM Representative Pointed out that the current way the
Nelson foundation formula is written, three
major categories comprise 20 percent of
the state's allocation: special needs,
bi-lingual, bi-cultural education, and
vocational technical. She maintained
that any one of those areas could take
up 20 percent of a district's budget.
She asked what a better target might be
for vocational technical needs under a
new foundation formula. Commissioner
Bishop suggested more vocational
opportunities in the high school. He
deferred to Mr. Bell for funding
details. Mr. Bell suggested an
alternate funding outside of the
Department of Education and outside of
the foundation formula, such as an
investment program with the Department
of Labor or through the Governor's
Office.
2:35:36 PM Representative Suggested auditing the Department of
Gara Labor's budget to weed out duplication
and waste. He wondered how long that
would take. Mr. Bell maintained that
the answer is not auditing, but rather
to look at the services provided and
ask how they can continue on an
adequate level, and cut operating costs
without impact on the public. He
suggested looking at operating more
efficiently through the use of
technology.
2:38:07 PM Representative Suggested avoiding duplication and
Gara waste when examining the Department's
budget. He asked about the closing of
an Anchorage job training office. Mr.
Bell thought it was a consolidation of
two programs where positions were
eliminated. Representative Gara
wondered if the outcome was successful.
Mr. Bell thought it was.
2:40:07 PM Representative Inquired about making training
Gara facilities and housing available to
adults from rural areas. He wondered
about housing assistance. Mr. Bell
reported a high success with bringing
people from around the state to the
pipeline training program.
Commissioner Bishop stated that 43
percent of the pipeline training group
came from outside the
Fairbanks/Anchorage area. He agreed
that new housing facilities will be
needed for new programs.
2:42:14 PM Representative Spoke of opportunities the Department
Joule has ahead of it to redefine vocational
education. He suggested a new high
school vocational training structure,
such as is done in Europe. He
described what it could potentially do
for rural areas. Commissioner Bishop
agreed.
2:44:37 PM Representative Mentioned his experience as an
Crawford organizer for the iron workers' union.
He recalled the loss of office workers
over time. He suggested it would be
difficult to find efficiencies in some
areas that have been already cut back
and stretched too thin. Commissioner
Bishop said he could provide
information about the wage/hour
department Representative Crawford was
referring to. He voiced concern about
the consequences of making severe cuts.
ADJOURNMENT
The meeting was adjourned at 2:46 PM.
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