01/23/2009 03:00 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| Overview: In-state Labor and Workforce Development | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
January 23, 2009
3:02 p.m.
MEMBERS PRESENT
Representative Kurt Olson, Chair
Representative Mark Neuman, Vice Chair
Representative John Coghill
Representative Bob Lynn
Representative Robert L. "Bob" Buch
Representative Lindsey Holmes
MEMBERS ABSENT
Representative Mike Chenault
OTHER LEGISLATORS PRESENT
REPRESENTATIVE Kyle Johansen
COMMITTEE CALENDAR
IN-STATE LABOR AND WORKFORCE DEVELOPMENT OVERVIEW
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
CLARK BISHOP, Commissioner
Department of Labor & Workforce Development (DLWD),
Juneau, Alaska
POSITION STATEMENT: Presented and answered questions during an
overview of the workforce development.
GUY BELL, Assistant Commissioner
Office of the Commissioner
Department of Labor & Workforce Development (DLWD)
Juneau, Alaska
POSITION STATEMENT: Presented answered questions during a
PowerPoint overview of Workforce development.
FRED ESPOSITO, Director
Alaska Vocational Technical Center (AVTEC)
Division of Business Partnership
Department of Labor & Workforce Development (DLWD)
Seward, Alaska
POSITION STATEMENT: Presented and answered questions during an
overview of the Alaska Vocational Technical Center (AVTEC).
MARK HAMILTON, President
Statewide Programs & Services
University of Alaska (UA)
Anchorage, Alaska
POSITION STATEMENT: Presented and answered questions during an
overview on the University of Alaska.
FRED VILLA, Associate Vice-President
Workforce Programs
University of Alaska Fairbanks (UAF)
Fairbanks, Alaska
POSITION STATEMENT: Presented a PowerPoint overview of the UA
Alaska Vocational Technical Center (AVTEC) program.
ACTION NARRATIVE
3:02:40 PM
CHAIR KURT OLSON called the House Labor and Commerce Standing
Committee meeting to order at 3:02 p.m. Representatives Buch,
Holmes, and Olson were present at the call to order.
Representatives Neuman, Coghill, and Lynn arrived as the meeting
was in progress.
^ Overview: In-state Labor and Workforce Development
3:02:53 PM
CHAIR OLSON announced that the first order of business would be
an overview on in-state Labor and Workforce Development with
presentations by the Department of Labor & Workforce
Development.
3:03:38 PM
CLARK BISHOP, Commissioner, Department of Labor & Workforce
Development (DLWD), began by introducing Guy Bell, Assistant
Commissioner of the DLWD. Commissioner Bishop offered to
provide a succinct overview and read a portion of a letter to
President Hamilton that he wrote several months ago to clarify
and solidify the DLWD's commitment to the legislature and the
State of Alaska. He characterized the letter's purpose as an
example of the DLWD's good faith effort in working with the
University of Alaska on workforce development. He read:
I'm seeking your support to develop a strategy for the
postsecondary systems for career and technical
education in the state to assure they are aligned to
train and educate our citizens without needless
duplication of programs and investments. I hope you
will join me in this endeavor to make sure that we
position the State of Alaska; to place the right
programs in the right places to assist Alaskans in
getting quality jobs in Alaska, maximizing Alaska
resident hire, and reducing the wages that are leaving
our state: 1.7 billion dollars last year.
COMMISSIONER BISHOP stated that the letter continues with
additional discussion on the Alaska Gas Inducement Act (AGIA)
training plan, and the K-12 linkage agreement to higher learning
for postsecondary and university. Additionally, the DLWD met in
August with President Hamilton and statewide chancellors to
discuss delivery of training in the state. He stated he also
works closely with Department of Education and Early Development
(EED) Commissioner LeDoux on workforce development issues. He
asked Assistant Commissioner, Guy Bell, to present a handout of
PowerPoint slides titled "Alaska Department of Labor & Workforce
Development".
3:07:47 PM
GUY BELL, Assistant Commissioner, Office of the Commissioner,
Department of Labor & Workforce Development (DLWD) referred to
slide 2, titled "Our Mission". He explained that the DLWD
consists of two functions: regulatory and workforce
development. He indicated that the Workforce development
component produces labor market information including
projections and analysis. He stated that the department
produces unemployment estimates, including issuing a monthly
press release on unemployment.
MR. BELL pointed out that while the number of unemployed is
rising, the state has seen some annual job growth, although it
has slowed. He noted that the DLWD provides employment
assistance through the Job Center Network and training and
education through the Alaska Vocational Technical Center
(AVTEC). Additionally, training is offered to trainers from a
variety of funding sources. Further, the DLWD's Division of
Vocational Rehabilitation (DVR) provides unemployment insurance
benefits compensation and assists people with disabilities to
obtain and maintain employment.
MR. BELL outlined the DLWD's regulatory component such that the
DLWD assures workers are paid fair compensation for work
performed. Additionally, the Occupational Safety and Health
program helps to assure that workers have a safe workplace.
Other DLWD regulatory functions include inspections of
mechanical devices including pressure vessels, boilers, and
elevators for safety. He offered that the Division of Workers'
Compensation and Workers' Compensation Appeals Division helps to
assure a fair adjudication of workers' compensation disputes
between workers and employers. Lastly, the DLWD also collects
and monitors unemployment insurance taxes, he stated.
3:10:29 PM
MR. BELL explained that slide 3, titled "Alaska's Dynamic Labor
Market", focuses on what is happening in the labor market. He
highlighted substantial activity in the labor market not just
with the number of jobs, but also with changes in the labor
market. He pointed out that while Alaska employers hired over
250,000 "new-to-the-firm" workers, about 87,000 individuals
moved in and out of Alaska during the period from July 1, 2006
to June 30, 2007. He indicated that Alaska has a significant
seasonal economy. In some job sectors, a 15 percent change is
realized in the number of workers between January and July each
year. He cautioned that Alaska has an aging workforce
illustrated by the approximately 18 percent of Alaskan workers
between the ages of 51 and 65 who will soon retire.
MR. BELL referred to slide 4, titled "Nonresident Workers -
Resident Opportunities," and highlighted that in 2006,
nonresident workers earned $1.7 billion in wages, which
represents approximately 13 percent of total wage and salary
earnings in the state. He explained these figures were
calculated using the permanent fund dividend data. He clarified
that these jobs were not just low wage jobs, but also included
high wage jobs. He noted that the oil and gas industry employs
approximately 29 percent nonresident workers who earned
approximately $365 million.
3:12:27 PM
COMMISSIONER BISHOP reiterated that $1.7 billion in wages "left
the state" last year. He offered his belief that while the
state cannot capture all the nonresident earnings, it can do a
better job. He said, "I think we could grow our economy in the
time of recession if we can get more residents into these jobs."
He recalled conversations he held with business owners around
the state who would like to sell more goods and services in-
state. He opined that the state could set a target to try to
recapture $700 million in wages currently being earned by
nonresidents. He emphasized his strong advocacy for
apprenticeship programs.
3:13:44 PM
MR. BELL referred to slide 5, titled "Alaska's Skills Mismatch,
The case for training". He explained that 22,000 Alaskans are
seeking jobs each month, which includes the unemployed, and the
underemployed. He defined the underemployed as those who are
completely outside the workforce for a variety of reasons
including those who do not think that a job exists for them.
Meanwhile, he lamented the state is importing workers to the
tune of about $78,000 per year. He stated that nearly 20
percent of Alaska's workers are nonresidents. He surmised that
training is needed for Alaskans to qualify for the jobs
currently held by nonresidents, especially the skilled jobs. He
noted that one of the department's roles is to provide training,
whether the training is through the UA system or is offered by
other training providers.
MR. BELL referred to slide 6 titled "Alaska's Youth".
Previously, the DLWD did not engage with Alaska's youth, but
over the past 4 or 5 years the DLWD has been increasingly more
active in investing and preparing youth for careers, he stated.
He offered statistical information, such that 11,000 new Alaskan
18-year-olds enter the workforce each year, while at the same
time, 4,000 Alaskan youth, ages 16-19 are not in school and are
not working. He cautioned that problems also exist with in-
state graduation rates. Additionally, only 62 percent of high
school graduates remain in the state for training or employment,
while the rest leave the state. He emphasized that once a
student leaves the state to attend college or for training that
he/she is less likely to return to the state.
MR. BELL noted that student migration information can be tracked
through the permanent fund dividend applications. Thus, he
opined providing the education or training in the state for
Alaskan students can result in a significant return on the
investment. He stated that a significant number of Alaskans
over the age of 18 do not possess a high school diploma or a
General Equivalency diploma (GED). However, he noted that the
DLWD works to assist students in obtaining adult basic education
(ABE) services.
3:16:34 PM
COMMISSIONER BISHOP interjected, recalling his experience in
statewide travel to places like Barrow and Kenai last fall, that
the ABE offices are working at maximum capacity to assist
students obtain their GED.
3:17:09 PM
MR. BELL referred to slide 7 titled, "FY 10 Operating Budget is
$175.2 million", which he said illustrates that the General Fund
(GF) portion of the DLWD operating budget represents a very
small portion of the overall GF budget. He said that slide 8,
titled "Training System at a Glance" is a pictorial
representation of the DLWD training system, which he
characterized as focused entirely on jobs. He stated that the
K-12, secondary, postsecondary education, employment service,
grantees, and Workforce Investment Board are all about getting
people into jobs. Therefore, the partnerships with industry are
so critical since industry is also focused on same core:
getting people into jobs and careers, he noted. Slide 9, titled
"State Entity Partnerships" expands on the partnerships within
the state such that the University of Alaska uses DLWD data and
projections, he stated. He further noted that the DLWD reports
on overall system performance through its annual training
program performance report. He suggested the report would be
forthcoming to the legislature in February 2009. He pointed out
that the department has a significant involvement in the
coordination of training and articulation agreements. He noted
that Mr. Villa will later explain how his students can
articulate to university programs.
MR. BELL highlighted partnerships with the Department of
Education and Early Development (EED). He explained that the
DLWD has been involved more extensively than in the past in
career and technical education and training. While he pointed
out that the activity is largely through grants, career and
technical education and training is also offered through
construction academies scattered throughout the state. The DLWD
also distributed legislatively funded career guides to schools,
he advised.
3:19:34 PM
COMMISSIONER BISHOP pointed out that the DLWD and EED have been
traveling together in-state to promote workforce development.
He related that last fall he traveled with the EED commissioner
to dedicate a new school in White Mountain, then traveled on to
Nome to dedicate new housing for student living at the Northwest
Campus - NacTech. He reported that the Nome facility offers a
great model such that educators can bring students in from the
region for two to four week intensive training programs and also
house them in the same facility. He opined that the NacTech
facility also affords exceptional shop space.
3:20:32 PM
MR. BELL continued his presentation by characterizing the
WorkKeys® assessments and the career readiness certificate (CRC)
as yet another successful partnership between the EED and DLWD.
He explained that the DLWD provides WorkKeys® assessments
through the Job Center Network, a comprehensive employability
skills assessment tool designed to help employers and
individuals develop better work skills. He noted the DLWD has
seen some progress and success by students who have developed
their skills through the preparatory work. He explained that
the WorkKeys® assessments in reading, applied math, and locating
information provides workers with skills that translate into
work readiness for employers. He commented that a number of
employers currently recognize the certificate as a valuable
component of the student's resume. He further noted that the
DLWD works with the Department of Commerce, Community, &
Economic Development (DCCED) and also with the Department of
Transportation & Public Facilities (DOTPF) on workplace
development issues. He pointed out that Commissioner Bishop
also advocates for apprenticeship opportunities on public
construction projects.
3:22:04 PM
COMMISSIONER BISHOP expanded on the apprenticeship programs. He
offered that the DLWD has been successful in helping to review
the formula for apprenticeship on DOT/PF projects containing
Federal Highway Administration (FHWA). He offered his belief
that the requirement on DOTPF projects represents the only
mandatory apprenticeship utilization in the state. He further
outlined that his goal is to expand the scope of apprenticeships
into the Federal Aviation Administration (FAA). This will take
federal legislation to accomplish, but the department has been
working on apprenticeship utilization at the FAA for over a
year, he related.
3:22:24 PM
MR. BELL referred to slide 10, titled "Private Sector
Partnerships", noting that the DLWD has also developed close
relationships with a number of private sector partners. The
slide lists a small number of partnerships, which he reviewed.
He pointed out the Workforce Investment Board is private sector
driven and sets the overall workforce development policy for the
state. The Regional Advisory Councils provide region-specific
input to the Workforce Investment Board, he stated. He
highlighted that the gasline training steering committee helped
Commissioner Bishop to develop the Gasline Strategic Training
Plan (GSTP), which has been developed largely by the private
sector.
3:23:09 PM
COMMISSIONER BISHOP explained that the DLWD brought two new
entities to the table: the Denali Pipeline Group and
TransCanada Alaska Pipeline Group to participate in the Gasline
Strategic Training Plan (GSTP) as the state moves forward with
the planning process.
3:23:37 PM
MR. BELL explained that the construction academies are
partnerships between school districts, Associated General
Contractors (AGC), and local homebuilder associations whose
purpose is to deliver construction training to high school
students and adults after hours in the same facilities. He
praised the partnerships, stressing the importance of these
partnerships to make the construction academies work. He stated
that thus far the academies have been successfully implemented
in Anchorage, the Matanuska-Susitna Borough, Fairbanks, Kenai,
Juneau, and Ketchikan. He offered that the DLWD is beginning to
use the Denali Training Fund with the help of the Denali
Commission. The Denali Commission is an innovative federal-
state partnership designed to provide critical utilities,
infrastructure, and economic support throughout Alaska. He
stated that DLWD hopes to deliver the same type of training in
rural Alaska. Thus, the model fits both urban and rural
settings, he stated. The State Training and Employment Program
focuses on partner contributions to the training efforts in the
program. He pointed out the DLWD also tracks industry
contributions. In FY 08, the department received over $5
million from industry for training, he noted. He then turned to
the Division of Labor Standards & Safety, Occupational Safety &
Health and commented that its role is focused on compliance. He
acknowledged that enforcement is also important. He commended
the program's record in reducing workplace injuries and the
cooperative relationships that help address workplace safety.
Another example of close relationships with the private sector
is the Medical Services Advisory Committee, which offers advice
on medical cost control with respect to workers' compensation,
he stated.
MR. BELL referred to slide 11, titled "FY 08 Key Program
Accomplishments", and reviewed the workforce development
accomplishments. He informed members that last year the Alaska
Job Center Network connected 31,274 Alaskans with jobs, provided
training opportunities for over 6,000 people, and 94 percent of
trained participants entered employment. He mentioned other
accomplishments of the DLWD such as the Division of Vocational
Rehabilitation (DVR) assisted 529 people obtain jobs. He
surmised that represented the highest record for the division;
over 1,500 General Equivalency Diplomas (GEDs) were issued,
while the Alaska Vocational Technical Center (AVTEC) trained
nearly 900 Alaskans. Finally, he noted that the department
published an Alaska Gasline Inducement Act Training Plan.
MR. BELL outlined the DLWD accomplishments on the regulatory
side of the department. He applauded the significant reduction,
down by 21 percent in accidental injuries and illnesses. He
offered his belief that the reduction in accidental injuries and
illnesses is partially attributed to the DLWD workplace safety
efforts as well as the reduced cost of workers' compensation.
Additionally, he noted that incentives to employers also
encourage them to focus on a safe workplace to reduce workers'
compensation costs.
3:26:45 PM
COMMISSIONER BISHOP added that the DLWD has ramped up its audio
and visual public service announcements (PSA). Additionally,
the department now includes a safety trends minute in each of
its Alaska Economic Trends publications. He characterized the
DLWD as being very aggressive in raising the awareness of
workplace safety.
3:27:08 PM
MR. BELL said the DLWD is also proud of its Wage and Hour
Program's enforcement activity. He informed members that the
legislature added funding for a Fraud Investigation Section
within the Division of Workers' Compensation, which has been
quite successful in identifying uninsured employers and
uninsured injuries. He noted that the Workers' Compensation
Benefits Guaranty Fund has also provided some measure of
compensation for persons injured when the employer is unable to
cover the costs.
3:27:43 PM
MR. BELL referred to slide 12, titled "A Note about
Apprenticeship". He emphasized that this slide recaps the
DLWD's apprenticeship efforts. He explained that apprenticeship
refers to a registered program within the state through the
Bureau of Apprenticeship and Training (BAT), a federal agency
responsible for the administration of the National
Apprenticeship System in the United States. He outlined that in
order to become a registered program, an employer must register,
set up an approved wage scale, and offer a specific curriculum
of instruction. He emphasized the process to become a
registered apprenticeship. He characterized that the DLWD's
goal is to increase apprenticeship opportunities, particularly
in non-traditional fields such as the mining industry. He
commented that Deputy Commissioner Stone, DLWD, as well as other
staff, have been working very closely with the mining industry
to develop specific apprentice opportunities and occupations
within the mining industry. He noted that the DLWD has a
coordinator and is proud to have achieved an apprenticeship data
sharing agreement with the U.S. Department of Labor (USDOL). He
said he anticipated a forthcoming Alaska Economic Trends Report
will capture the last 10 years of apprenticeship data. Finally,
he offered that apprenticeship works by keeping residents
working in Alaska and by offering wages on which a family can
live, as well.
3:29:17 PM
COMMISSIONER BISHOP reiterated the DLWD's efforts that went into
securing the data sharing agreement with the USDOL, which
represents more than a year's worth of effort. He also offered
his belief that Alaska is the only state to have formalized this
specific agreement with the USDOL in order to conduct research.
He characterized the DLWD's relationship with the federal agency
as good. He pointed out the 10-year result is that over 91
percent of the 3,439 active or completed apprentices are Alaska
residents and are currently working.
3:30:18 PM
MR. BELL also referred to slide 13, titled "Key Legislative
Issues". He offered that this slide touches on two key
legislative issues: the State Training and Employment Program
(STEP) and Workers' Compensation medical costs. He explained
that the STEP is in the Division of Business Partnerships (DBP).
He explained that the program includes a required set-aside from
employee contributions to an unemployment insurance account.
Additionally, the FY 10 budget includes $8.5 million for job
training and assistance for underemployed and unemployed. He
estimated this funding would support training for approximately
2,500 Alaskans who are unemployed or underemployed. The program
is set to expire on June 30, 2010, unless it is extended by the
legislature, he advised. He pointed out that last session the
program was extended with the caveat that the DLWD bring
together a task force comprised largely of private sector
members to provide advice on how the STEP should be structured
or restructured. He said he anticipates that legislation will
be introduced shortly as a result of the task force
recommendations.
MR. BELL referred to slide 13, titled "Key Legislative Issues".
He highlighted the "Workers' Compensation Medical Cost" portion
of the slide. He pointed out the current medical fee schedule,
which was based on a Consumer Price Index (CPI) adjustment to
the existing medical fee schedule that is set to expire on March
31, 2009. He further cautioned the committee that unless the
medical fee schedule is extended by the legislature, that there
will be no statutory or regulatory cost controls on workers'
compensation medical charges.
3:32:20 PM
CHAIR OLSON advised that bills would be introduced soon in both
bodies to address the issue of workers' compensation medical
cost.
3:32:33 PM
MR. BELL referred to his last slide, slide 14, titled "The
Training Continuum", which he said shows a snapshot of all
training offered by the DLWD, the number of people served, and
the funding source for the training. He characterized the slide
as a one page summary of the DLWD's entire training program
ranging from secondary and postsecondary training to on the job
and re-employment training.
COMMISSIONER BISHOP offered to provide further details to any
members who wished to have more information.
3:34:20 PM
REPRESENTATIVE COGHILL asked for clarification on slide 3, with
respect to the figure of 250,000 new workers each year. He gave
his understanding that the total workforce in Alaska is
comprised of only 315,000 workers.
MR. BELL agreed that the figure also caught him by surprise. He
explained the DLWD's process to calculate new workers such that
it reviews the unemployment insurance database to track new
hires. The question the DLWD considers is whether an individual
has been employed in the past four quarters by a firm. If not,
the person is counted as a new hire. Thus, the figure not only
tracks job growth, but also job turnover. He characterized the
state's job turnover as tremendous. However, he surmised that
many of the jobs that turnover are the lower entry level
positions. He offered to provide a further breakdown of the
statistical figures in order to give a different perspective.
REPRESENTATIVE COGHILL acknowledged that he would like to see
further detail to examine whether people are changing jobs to
take opportunities for advancement or if people are laterally
changing jobs from one grocery store to another, which he
opined, would not be good.
MR. BELL reiterated his offer to provide the committee with
additional information on the labor market.
3:36:38 PM
COMMISSIONER BISHOP, in response to Representative Neuman agreed
to meet with him for further discussion.
REPRESENTATIVE NEUMAN also inquired as to the primary industry
for the 80,000 nonresident jobs.
COMMISSIONER BISHOP answered that 29 percent of the nonresidents
were employed in the oil & gas industry, and that figure is down
less than 1 percent; the mining industry employs between 20 to
44 percent of the nonresident, depending on the mine location.
He noted that large numbers of nonresidents are also employed in
the seafood and tourism industries. However, the DLWD will
target capturing high skills, high wage jobs for Alaskans that
are currently being held by nonresidents. This will allow
Alaskans to make a good living in jobs in construction, health
care, oil and gas, and mining industries, he asserted.
3:38:13 PM
REPRESENTATIVE NEUMAN acknowledged that many jobs in the seafood
and tourism industry range are lower paying jobs, in the $7-8
dollar range. He surmised that many Alaskans choose to avoid
the lower paying jobs. He offered his support for the DLWD goal
to target better jobs so Alaskan workers can afford to raise a
family. He expressed interest in knowing how the labor and
university system come together to improve the lower paying jobs
in the industries. He asked President Hamilton to elaborate on
the cooperative partnerships between agencies in his
presentation on the University of Alaska's (UA) workforce
development efforts.
3:39:27 PM
REPRESENTATIVE BUCH offered his appreciation for the expertise
and continuity that Commissioner Bishop has brought to the
administration. He also stressed his interest in
interdepartmental cooperation and creativity, particularly
between the Department of Education and Early Development (EED),
the DLWD, and the UA, to provide opportunities to Alaskans,
especially given the downturn in the economy.
REPRESENTATIVE JOHANSEN also expressed his interest in agency
cooperative efforts. He commented that he is a member of one of
the House Finance Committee's subcommittees, which will give him
additional information on programs. He expressed gratitude for
the construction academy in Ketchikan, which he characterized as
successful and helpful to the outlying areas such as Prince of
Wales Island. He informed members that the apprenticeship
program for mining is ongoing. He stressed the importance of
mining to his community. He inquired as to what regional
training sites currently exist and their locations.
COMMISSIONER BISHOP answered that training is being conducted
throughout the state ranging from rural Alaska communities such
as Galena, King Salmon, and Fort Yukon to cities such as
Fairbanks and Anchorage, and in the maritime communities of
Sitka, Seward, and Ketchikan. He related his goal to visit all
school district sites in the state and noted that he has nearly
reached that goal. He closed with the comment that each
committee member can help to inspire Alaskan youth in his/her
home districts. He emphasized the importance of encouraging
Alaskan youth to complete school and also become aware of the
job opportunities available to them.
3:44:17 PM
MR. BELL, in response to Representative Johansen, agreed that
the figures on slide 7 are in millions of dollars.
REPRESENTATIVE JOHANSEN stressed his interest in meeting with
the Commissioner Bishop to review the "massive amount of money
that's going towards workforce development." He expressed
further interest in learning how this dovetails with proposed
gasline work. He noted Chancellor Pugh's presence and noted
that he saw this as an opportunity to promote Ketchikan. He
opined that his community has all the necessary tools for
Alaskans to build up the workforce development, from students
including a branch UA campus, to industrial shipyard area owned
by Alaska Industrial Development and Export Authority (AIDEA).
He further highlighted his high expectations for the DLWD and
his hope that the UA's efforts will put Alaskan youth from all
areas of the state to work on gasline projects.
3:47:07 PM
FRED ESPOSITO, Director, Alaska Vocational Technical Center
(AVTEC), Division of Business Partnership, Department of Labor &
Workforce Development (DLWD), began his presentation by giving a
brief overview of AVTEC. He stated AVTEC's tagline of "great
careers" and noted that AVTEC has been training Alaskans since
1969. He commented that the main office and vocational training
facility is located in Seward, but AVTEC also provides Allied
Health Care training at its Anchorage facility. Additionally,
the AVTEC has worked to develop distance learning opportunities
over the past six-seven years. He pointed out that the average
age of students has reduced from 26 years to 25 or possibly even
24 this year, with about 70 percent male and 30 percent female
student enrollment. While every region and every community are
among AVTEC's graduating students, about half of the students
are from Southcentral, he noted. He offered statistics such
that 83 percent of AVTEC students graduate, which is well above
national average. Students must have adequate math and reading
skills, he stressed. He said that when he visits schools that
he counsels students to graduate from high school. He pointed
out that students can enroll and also receive 28 credits toward
an associate degree in a related program at the university due
to the strong articulation agreements in the Tech Prep program.
He offered that the AVTEC program is nationally accredited by
the Council on Occupational Education, which will also undergo
accreditation renewal this spring. He offered that all the
programs are industry certified, as well as that students are
eligible to apply for federal PELL grants.
3:52:14 PM
MR. ESPOSITO referred to a handout dated January 23, 2009, which
lists the available AVTEC training programs. He reiterated
AVTEC training helps workers obtain the high skill, high wage
industry jobs discussed earlier in fields such as
transportation, construction, health care, hospitality, and
information technology. Thus, the training covers a broad range
of programs that feed a wide range of industries. He mentioned
that one of the newer programs expands the pipe welding program
in Seward, increasing from training about 4 pipe welders per
year to 15 pipe welders per year. Additionally, the AVTEC will
also create a medium to heavy duty truck training program
designed to feed the registered apprenticeship program for truck
mechanics. He noted the AVTEC also developed green energy
training with the addition of a hydroelectric and wind turbine
program. He offered that AVTEC provides housing and food
service, recreation, tutoring, learning resources, and
counseling for its students. Therefore, AVTEC provides all of
the services to get in school, stay in school, and graduate,
along with placement services to connect students with good
jobs, he asserted.
3:55:23 PM
MR. ESPOSITO, in response to Representative Holmes, agreed that
many students who drop out of high school lack adequate reading
and math skills would not qualify for the AVTEC trade programs.
However, he offered that while students must test to assure they
meet the entry level requirements, students who don't meet the
minimum requirements can obtain tutoring through AVTEC or are
referred to the local Adult Basic Education (ABE) program to
acquire the necessary skills. He further reiterated that AVTEC
works with high school students and encourages them to stay in
school, graduate, and then apply to AVTEC or to another
technical program for training.
3:56:42 PM
MR. ESPOSITO, in response to Chair Olson, answered that AVTEC
runs programs year round in Anchorage, and nearly year round in
Seward, with a break in July and half of August.
MR. ESPOSITO, in further response to Chair Olson, welcomed the
committee to visit its Seward facilities during the legislative
interim. He opined that a tour of all its Seward facilities
would take about three hours.
3:58:10 PM
The committee took an at-ease from 3:58 p.m. to 3:59 p.m.
3:59:17 PM
CHAIR OLSON announced that the committee would now hear from the
University of Alaska.
MARK HAMILTON, President, Statewide Programs & Services,
University of Alaska (UA), began his presentation by providing a
brief overview of the University of Alaska (UA). He stated that
the UA is involved in workforce development because the
overwhelming majority of Alaska's workforce attends school at
UA. He offered that UA currently graduates about 2,600 students
specifically in workforce development jobs. He explained that
the UA is unique in that UA also provides the community college
system in Alaska. Additionally, the UA has initiated nearly 100
new programs during his 11-year tenure, with 85 programs
consisting of two-years or less, he elaborated. Thus, those
programs represent the workforce development programs normally
offered at a community college.
MR. HAMILTON stressed the UA's involvement in the workforce
development effort, which he said has been developed from
information provided by the DLWD. He noted statistics such that
in 1950, 20 percent of all jobs required a 4-year degree.
However, in 2009 only 23 percent of jobs required a 4-year
degree. However, he acknowledged that the other 77 percent of
jobs generally required some postsecondary education, either
through AVTEC or training acquired through a union hall. He
stated that UA's mission is to develop and train workforce
leaders in Alaska.
4:03:08 PM
MR. HAMILTON reiterated that the DLWD provides the UA with lists
of jobs. Commissioner Bishop has joined him with concern over
the $1.7 billion that leaves the state in the form of
nonresident payroll, he stated. He characterized the
nonresident payroll as "rentals" and mentioned that many of the
jobs are two weeks on and two weeks off. He pointed out that in
those instances the worker's payroll check is spent out-of-
state, plus most of these workers also retire out-of-state.
Meanwhile, businesses are spending more to hire "rentals", who
often cost more. For example, in the health care industry,
contracts can cost up to three times the normal wage. He
related a scenario in which Bartlett Memorial Hospital
discovered it will save about $250,000 a year due to the recent
graduation of 2 radiology technologists in Juneau since the
hospital previously had to contract for those services from a
nonresident pool. MR. HAMILTON offered his belief that there is
a desperate need to improve reading and math skills in the
state. He opined that the UA is the only university in the
country that has requested K-12 outreach as a priority in its
operating budget in order to address workforce preparedness.
4:07:09 PM
FRED VILLA, Associate Vice-President, Workforce Programs,
University of Alaska (UA), prefaced his PowerPoint overview by
explaining that he has a large family so he has a vested
interest in educating Alaska's youth. He provided a brief
background of his work experience, noting that he has spent
nearly 20 years working at the North Pole oil refinery. He said
he has been with UA for nearly four years. He stressed that his
work in the oil refinery has helped him bring an industry
perspective to UA, including the hiring of interns and
apprenticeships. He referred to a handout titled, "Workforce
Programs." He explained that the UA's role in workforce
development is threefold: First, the role is to support pre-
college activities and career pathways, which are the building
blocks of educational programs and courses that guide youth
through elementary and secondary school. Second, the community
college or university mission is to educate and prepare students
for entry-level positions. Third, the community college or
university role is to provide mechanisms and opportunities for
professional growth. He offered an example, of military
personnel who transition into the private sector and can use
their skills to find employment. He referred to slide 4, titled
"Award Levels", which summarizes the award levels offered at UA.
The UA offers Occupational Endorsement: 9-29 credits;
Certificate Awards: 30 credits minimum, which focuses on
industry standards; Associates Degree: 60 credits minimum,
which also acts as a building block for the Bachelor of Arts
(BA) degree: 120 credits minimum; the Master's degree which is a
BA degree plus 30 credits minimum; and the Doctor's degree, with
credit hours varying by program, he explained.
MR. VILLA further explained that the workforce development
programs with a workforce or technical education emphasis are
programs that consist of two years or less. However, these
programs often bridge to the next level. He offered the example
of the Construction Management Degree program that is a two-year
Associates Degree program but is also offered in a four-year BA
degree program. He highlighted that the UA offers 200 degree
and award programs in its system. He noted that the DLWD's AGIA
Training Plan identifies 113 occupations directly associated
with the pipeline construction. However, the combined total of
all university and campus programs system wide equates to 485
programs available in Alaska in those occupations, he stated.
He offered his belief that the plan creates great opportunities
for Alaskans.
MR. VILLA referred to slide 5, titled "Main Administrative
Units", stating that the UA statewide has three administrative
units: the University of Alaska Fairbanks (UAF), the University
of Alaska Anchorage (UAA), and the University of Alaska
Southeast (UAS). He offered that each main administrative unit,
(MAU) lists the community and technical college campuses
associated with the unit. Thus, UAA has the Anchorage main
campus, plus a community college within it called the Community
and Technical College which is comprised of the Chugiak-Eagle
River campus, the Kodiak College, the Kenai Peninsula College,
the Matanuska Susitna campus, military programs, and Prince
William Sound Community College. The UAF has a broader
geographic distribution, which consists of the Fairbanks Main
Campus, the College of Rural and Community Development, which
include the Bristol Bay campus, the Chukchi Campus, Cooperative
Extension, Interior-Aleutians Campus, the Kuskokwim Campus in
Bethel, the Northwest Campus in Nome, and Tanana Valley Campus.
The UAS has the Juneau Main Campus including a marine campus,
the Ketchikan Campus, and the Sitka Campus, he stated. He
advised that each of the three MAUs was asked to highlight all
of its programs and any contributions to the communities it
serves. Mr. Villa encouraged members to look at the areas of
emphasis in individual member's regions.
4:15:52 PM
MR. VILLA continued. He acknowledged that attending UA is not
right for everyone. However, he noted that many campuses have
small centers affiliated with them such as the Copper River
Basin Center in Glenallen, the extension center in Cordova,
Kachemak Bay in Homer, the McGrath center in McGrath, the Nenana
Center in Nenana, the Tok Center in Tok, and several others in
the Kuskokwim associated with the Interior Aleutians Campus.
Additionally, he noted that the UA also has a presence on the
military installations in the state, including Eielson Air Force
Base, Elmendorf Air Force Base, Fort Richardson, and Fort
Wainwright. He stressed that programs are offered throughout
the state in close proximity to Alaskan citizens.
MR. VILLA referred to slide 9, titled "Alaska's Pathways to
Successful Careers." He pointed out that the model identifies
career clusters or groups of careers that require the same
levels of need in math and science. He explained that the UA
reviewed its programs and organized them into clusters to
identify and demonstrate a career pathway. He offered a
scenario, such that a student interested in environmental
science could examine the programs that the university provides
by degree level. Mr. Villa emphasized that the student could
translate this into tangible credits needed to qualify for a
job. Further, the person could also clearly identify a career
path, the additional education and number of credits needed to
qualify for the next higher program. He explained that UA
developed every program, including career clusters with pathways
for the entire college and community college system. Mr. Villa
held up a binder and noted it contains all UA programs,
pathways, including recommended high school courses, degree
options, required time to complete the program, all
requirements, and electives. He further noted that a copy of
this binder was sent to every high school and middle school in
Alaska.
4:20:02 PM
MR. VILLA stressed the importance of providing this information
to students. He pointed out that the information contained in
the binder is also posted online. He acknowledged that
summarizing and preparing this information was possible due to
funding provided by the legislature last year in House Bill 2,
which provided funding for vocational and technical education
program.
MR. VILLA referred to slide 10, titled "Program Highlights, K-12
Outreach. He explained that the UA Tech Prep Program provides a
dual credit program in which students take two courses at the
secondary level and a third course that articulates into a
program at the postsecondary level. He noted that last year
Tech Prep was involved in 30 school districts, with 1,200 high
school students statewide that were designated as Tech Prep
students, while an additional 340 students completed their high
school courses and subsequently enrolled in UA courses. He
highlighted that the Tech Prep program represents UA's outreach
and provides a bridge between high school and college. He
pointed out that UA often partners with EED and DLWD in outreach
activities. He mentioned other outreach categories, including
the career academies located in communities such as Ketchikan,
Sitka, and Juneau. He stated the UA provides faculty, staff, or
facilities in order to assist the academies.
MR. VILLA pointed out that in Fairbanks, the construction
academies provide flexible schedules to provide education
according to student availability such as during holiday,
spring, and summer breaks, as well as on weekends. He
highlighted this student-centric approach is different than the
typical faculty-centric approach. Thus, the schedule is
adjusted for when students are available. He offered that the
construction academies offer process technology, painting,
construction, electrical, drywall, and heavy equipment. He
stressed the UA's goal is not to take over all training, but
rather to provide assistance and support for these trades. He
noted the UA promotes students in rural Alaska to obtain
training and education and return to their home community to
teach. He explained that the Future Farmers of America (FFA)
and 4-H, a youth organization administered by the Cooperative
State Research, Education, and Extension Service (CSREES) of the
U.S. Department of Agriculture (USDA) are considered part of the
UA due to its land grant status. He applauded the 4-H program
that requires youth to learn leadership skills, perform public
service, public speaking, documentation, and create business
plans.
4:25:23 PM
MR. VILLA noted that the UA sponsors 4-H and FAA students to
come to Juneau during the legislative session. He also
mentioned that engineering programs are increasing, in part due
to the Alaska Native Science and Engineering program, and Lego
robotics competitions which also spur youth to go into
engineering and math. He added that the pre-engineering program
encourages high school students to sign up for courses. As a
result, nearly 150 students participate in the program at Dimond
High School, 50 students at Lathrop High School, and 30 to 40
students at the Juneau-Douglas High School, he stated. He noted
that the UA supports the program with faculty and facilities.
MR. VILLA mentioned that a third area of the UA workforce
development is professional development. He pointed out that UA
Corporate Programs (UACP) provide training for regulatory and
workforce development in mining and petroleum. He added that
the service provides timely training at the demand of the
employer, and at the employer's work site. He characterized
UACP as UA's marketing arm for workforce development such that
it produces a quarterly publication, UA @ Work. He offered to
provide members with a copy of the publication if members have
not already received it in the mail.
4:28:49 PM
MR. VILLA turned to slide 15, titled "Workforce Programs
Performance Summary, Technical Vocational Education Program, FY
01- FY 08." He stated that the UA received $25.9 million from
the Technical and Vocational Education Program (TVEP). He
emphasized that the UA's investments and priorities are guided
by the Workforce Investment Board. As a result, enrollment has
increased 47 percent. Additionally, graduation rates have risen
to 48 percent, he stated. He provided current distribution of
the funds: UAA received about 55 percent, UAF received 25
percent, UAS 18 percent, and Corporate Programs and Mining and
Petroleum Programs received about 2 percent of the funds.
MR. VILLA referred to slide 17, titled "Workforce Programs
Performance Summary, Technical Vocational Education Program, FY
01 - FY 08." He expanded on the program distributions,
explaining that about 17 percent supported the Allied Health
programs, with the remainder spread to Information Technology,
Transportation, Nursing, Early Childhood, and Process Technology
programs.
MR. VILLA referred to slide 18, titled "Program Performance,
High Demand, High Growth Occupation, Degree Production." He
explained the number of degrees in each category ranging from
407 degrees issued in its Allied Health and Nursing programs and
46 degrees issued for its Construction programs. He stressed
that the UA has developed partnerships which have created "a
buzz within the university system" with its alignment to address
important issues. He mentioned a scenario, in which the DLWD
decided to produce a publication for high school students to
demonstrate opportunities in the health industry. The UA worked
with the DLWD to produce a publication to provide high school
students with "hot jobs", which also identifies where students
could obtain specific training. He pointed out that industries
such as health or welding identify the apprenticeship jobs they
need, while the UA develops the program and education to fit the
needs of the industries. He noted that beginning in April, the
UA will offer a 15-week Nondestructive Testing (NDT) training
course that will help people obtain jobs much more quickly. He
further noted that the UA relies on the statistical and research
data produced by the DLWD in order to understand the
demographics of where students work and their specific job. Mr.
Villa explained that a person who holds a degree in Process
Technology may work in the oil and gas industry. However, the
technical skills acquired in another field may be used and
applied to the position he/she currently holds.
4:35:27 PM
MR. VILLA moved on to slide 13, titled "UA Private Sector
Partnerships in Workforce Training." He asked to touch briefly
on them, mentioning the Alaska Workforce Investment Board
identifies the state's priorities for workforce needs as well as
setting guidelines and policies for workforce development. The
UA has a close relationship with the Alaska Commission on
Postsecondary Education (ACPE), ranging from the scholarships it
issues to the management of its Alaska Learning Exchange System
(ALExSys). He informed members that every program within the UA
system associated with workforce development has an advisory
council based on community and industry advisors.
MR. VILLA referred to slide 14, titled "Campuses and Regional
Training Centers." He noted that the DLWD met with regional
training centers to understand and align their respective
interests. He stated that every training center has a
university campus with which it is closely affiliated, such as
the Partners for Progress in Delta and the Tanana Valley Campus.
He said, "I attend the Regional Training Center meetings on
behalf of the university and all our campuses. They recognize
that our campuses that are in those regions also serve as
regional training centers in partnership." He opined that it is
"incredibly smart" to share faculty, facilities, and programs
whenever possible.
4:41:20 PM
MR. HAMILTON, in response to Representative Neuman, agreed that
the 4-H program is a wonderful program in that it can reach
youth. He acknowledged the reality that programs are
prioritized according to available budget levels. Thus, many
programs are underfunded since many higher priorities exist. He
reiterated his belief that the experimental farm in the
Matanuska-Susitna valley is important to the region.
4:42:52 PM
REPRESENTATIVE BUCH congratulated Mr. Hamilton on the service
and success of the UA system. He suggested that the legislature
should consider reinstating the forgiveness clause on student
loans to assist Alaskan students and provide for their future.
He closed by offering his genuine appreciation for the community
oriented university that the UA system represents.
4:47:48 PM
MR. HAMILTON, in response to Chair Olson, welcomed the committee
to visit the UAF campus. He stated that partnerships and the
workforce development programs represent the most expensive
programs in the UA system. He explained technical instructors
are expensive; that welding classes must be small with the
typical class size serving about 8 students instead of serving
120 students in an auditorium being taught by one professor. He
acknowledged that the equipment and technology must be relevant
or students enter the workplace with little familiarity with the
latest technology. He said, "You train the workforce today in
all of these areas that we're dealing with; you're entering into
something that is going to cost money. It's going to pay off
enormously when Alaskans get Alaskan jobs. That's the goal."
In further response to Chair Olson, Mr. Hamilton provided Mr.
Villa's binder for the committee library.
4:51:00 PM
MR. HAMILTON, in response to Representative Buch, agreed to give
a "smart board" demonstration to the committee.
4:54:17 PM
MR. VILLA, in response to Representative Coghill, noted that
scholarships and grants are available to students for travel and
tuition for programs. He explained another transitional piece
available is through grants to students, which was established
in legislation that passed last year. He further explained that
an individual vocational education account is set up and
administered through the DLWD which allows students to apply for
competitive grant funds for job specific vocational education.
Additionally, he noted that scholarships are also offered by
industry and businesses.
MR. VILLA, in response to Representative Coghill, offered that
it is challenging to keep counselors up-to-date on vocational
educational training and grant opportunities since most high
school counselors have heavy work loads.
4:57:01 PM
COMMISSIONER BISHOP interjected that one of the outcomes of the
AGIA Training Plan is to identify all of the segments of
training and to identify all training providers ranging from the
UA to the private sector for the public. He emphasized the
necessity to provide a "one-stop shop" as part of the AGIA
Training Plan outcomes. He reiterated his support to gather,
compile, and analyze the details to "put the meat on the bones."
He said, "It's a great question and I just wanted you to know
we're on that."
4:58:06 PM
REPRESENTATIVE COGHILL inquired as to whether Alaska is
competitive on a national and international basis and whether
Alaska will be able to be an exporter of education.
MR. HAMILTON responded not at higher levels since the UA only
offers about 66 percent of the BA degrees, 50 percent of the
Master's Degrees, and about 20 percent of the Doctorate Degree
programs that other states offer. He reiterated that the UA
lags behind at the upper half of the spectrum, since it does not
have the full spectrum of degrees. However, he offered his
belief that with respect to workforce development, Alaska's UA
program is "absolutely the best in the west. We have the best
workforce development program of any university in any state in
this union. There's no question about it," he said.
5:00:03 PM
MR. VILLA, in response to Chair Olson, offered to provide a copy
of the binder previously distributed, which contains all UA
programs, pathways to each of the legislative offices for
constituent use.
5:01:11 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
5:01 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| AVTECOverviewHLC123092.pdf |
HL&C 1/23/2009 3:00:00 PM |
|
| Overview on Jan 23 2009 by Dept Labor |
HL&C 1/23/2009 3:00:00 PM |
|
| UofA Presentation to L&C 1-23-2009.pdf |
HL&C 1/23/2009 3:00:00 PM |