Legislature(2021 - 2022)SENATE FINANCE 532
04/08/2021 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB10 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 10 | TELECONFERENCED | |
| + | TELECONFERENCED |
SENATE FINANCE COMMITTEE
April 8, 2021
9:02 a.m.
9:02:24 AM
CALL TO ORDER
Co-Chair Bishop called the Senate Finance Committee meeting
to order at 9:02 a.m.
MEMBERS PRESENT
Senator Click Bishop, Co-Chair
Senator Bert Stedman, Co-Chair
Senator Lyman Hoffman
Senator Donny Olson
Senator Natasha von Imhof
Senator Bill Wielechowski
MEMBERS ABSENT
Senator David Wilson
ALSO PRESENT
Senator Tom Begich, Sponsor; Luki Tobin, Staff, Senator Tom
Begich.
PRESENT VIA TELECONFERENCE
Teri Cothren, Associate Vice President, Workforce
Development, University of Alaska; Don Etheridge, Alaska
AFL-CIO, Juneau; Ed Martin Jr., Self, Sterling; Ed Martin
III, Self, Sterling.
SUMMARY
SB 10 FREE/REDUCED TUITION FOR ESSENTIAL WORKER
SB 10 was HEARD and HELD in committee for further
consideration.
SENATE BILL NO. 10
"An Act establishing a grant program to provide to
essential workers the tuition and fees to attend a
state-supported postsecondary educational
institution."
9:02:54 AM
Co-Chair Bishop relayed that the bill was being heard for
the first time, and his intention was to hear the bill and
set it aside.
9:03:55 AM
SENATOR TOM BEGICH, SPONSOR, shared that the bill would
establish a temporary grant program to provide essential
workers free and reduced college tuition. He discussed the
important role and work of frontline workers during the
COVID-19 pandemic, many of whom took personal risks and
made sacrifices. He cited a study from the Occupational
Environmental Medicine Journal that indicated over 20
percent of grocery store employees tested positive for
COVID-19, 95 percent of whom contracted the virus while on
the job. He referenced testimony from the Department of
Labor and Workforce Development (DLWD) that the income
class of low-income frontline workers was about 25 percent
lower than before the pandemic.
Senator Begich asserted that the free and reduced tuition
would serve as a "thank you" to frontline workers. He did
not think the offer of free and reduced tuition was
extravagant and highlighted that the only way to qualify
for the funds proposed in the bill was to fill out a
federal aid form. He thought the financial recovery from
COVID-19 would be uneven between economic levels. He
thought the bill offered a hand up for frontline workers
wishing to continue higher education.
Senator Begich continued to introduce the bill. He cited
research that showed higher education attainment equated to
higher earnings by approximately $20,000. He discussed the
high proportion of University of Alaska (UA) students that
were residents. He highlighted that the Committee
Substitute (CS) contained new language to include all
state-supported postsecondary education programs such as
the Alaska Vocational Technical Center (AVTEC). There had
been updates to the eligibility criteria to allow for
individuals that had been laid. off. The legislation now
had a more comprehensive definition of frontline and
essential workers. The program report and repeal dates were
updated to reflect the limited nature of the program.
Applications of interest would be taken until the end of
2021, and there would be four years for successful
applicants to take advantage of the program.
9:09:01 AM
Senator Olson asked how many applications were expected.
Senator Begich cited that there was a similar program in
the state of Michigan. Less than one percent of the overall
population had applied, and he expected less than that to
apply in Alaska. He estimated that $10 million from the
Higher Education Fund would be sufficient. He pointed out
that the program could easily qualify under Coronavirus
Aid, Relief, and Economic Security (CARES) Act funding that
was expected. He added that there would be a funding
ceiling of $10 million and applications beyond that point
would be considered on the basis of need.
Senator von Imhof thought helping essential workers was the
right thing to do. She considered looking at emerging jobs
that included a lot of computer related fields. She hoped
that UA was responding to the situation. She noted that the
program was temporary. She questioned the use of the Higher
Education Fund and asked what other withdrawals were being
made from the fund. She recounted that there was $40
billion coming into colleges from the Higher Education
Emergency Relief Fund, $14 billion from the CARES Act, and
another $23 billion from the Coronavirus Response and
Relief Supplemental Appropriations Act (CRRSAA).
Senator von Imhof continued her remarks. She qualified that
to the degree that the state could harness some of the
funds, perhaps the program should go beyond the planned
four years. She wanted to ensure the proposed program would
not add more burden to the Higher Education Fund when there
were already extra federal funds coming.
Senator Begich pointed out that the proposed program would
be one of the only programs taking funds from the Higher
Education Fund that was related to education. He thought
the proposed program would clearly qualify for the new
federal funds. He stated that the program was terminal for
a reason, and he had wanted to ensure that the program was
strictly related to COVID-19. He mentioned the sunset date
and termination date of the program. He noted that there
was invited testimony from UA online to answer questions.
9:13:52 AM
Senator von Imhof wanted to know how much UA was receiving
out of the incoming federal funds and how the funds would
be spent. She wondered if there were other grant programs
being considered. She relayed that when the committee
considered the operating budget, she would be looking at
what was coming out of the Higher Education Fund.
Co-Chair Bishop thought that the committee could get an
actuarial look at the Higher Education Fund. He mentioned
that the committee had yet to discuss DLWD and thought
there would be a great deal of funding coming to the agency
for training.
Senator Begich noted that the state of Michigan had used
discretionary CARES Act funds that had come to the
governor.
Senator Wielechowski liked the idea of using CARES Act
funds to assist people in getting better jobs. He asked if
there was a way to expand the program and make it available
to more people using CARES Act funding.
Senator Begich relayed that he had hoped for a more
ambitious program but understood the financial constraints.
He welcomed ideas from members. He noted that the number of
Alaskans that would take advantage of the proposed program
was finite. He noted that the definition of who could apply
had been expanded to include those that had lost jobs in
reduction of workforce.
9:17:15 AM
Senator von Imhof thought ideally what would happen was
that colleges, organizations, corporations, donors, and
individuals would endow a program. She thought Alaska
tended to fund things each year rather than endowing. She
thought there was a rare opportunity to endow a higher
education job retraining fund. She thought the state should
take some of the money and make an endowment in perpetuity,
rather than ending the program in four years, and making it
available to more individuals. She hoped to have
conversations on the matter. She hoped UA was creating an
endowment for assistance with the CARES Act funds.
Co-Chair Bishop dovetailed on Senator von Imhof's comments.
He asked Senator Begich to discuss the statistics he
referenced about the program in Michigan.
Senator Begich reiterated that almost 1 percent of the
total population participated in a similar program in
Michigan. He noted that the proposed program was different
and estimated it would have about half the number of
applicants as in Michigan.
Co-Chair Bishop thought if the program generated a great
deal of interest, the committee could revisit the issue
before the sunset date. He did not think there would be a
shortage of training assets. He encouraged working with
employers and DLWD. He had heard that employers were unable
to fill jobs and discussed training to remedy the matter.
He was concerned that employers would take work out of the
state.
9:21:01 AM
LOKI TOBIN, STAFF, SENATOR TOM BEGICH, discussed a
Sectional Analysis (copy on file):
Section 1.
Establishes an Essential Worker Grant Program as new
uncodified law of the State of Alaska by directing the
Alaska Commission on Postsecondary Education (ACPE) to
establish a postsecondary tuition grant program for
and award post-secondary tuition grants to essential
workers employed at the start of or during the
declared federal public health emergency or those who
were temporarily or permanently laid off as a direct
consequence of the declared federal public health
emergency.
Directs ACPE to establish policies and procedures for
application and admission to the program, including
consulting the Department of Health and Social
Services and reviewing the Alaska Essential Services
and Critical Workforce Infrastructure Order in
determining applicant eligibility.
Section 2.
Establishes an Essential Worker Grant Program Report
as new uncodified law of the State of Alaska and
directs ACPE to submit the report of program efficacy
to the Alaska State Legislature on or before December
31st.
Section 3.
Repeals Section 1 on December 31, 2025.
Section 4.
Repeals Section 2 on December 31, 2026.
9:22:54 AM
AT EASE
9:23:18 AM
RECONVENED
TERI COTHREN, ASSOCIATE VICE PRESIDENT, WORKFORCE
DEVELOPMENT, UNIVERSITY OF ALASKA (via teleconference),
discussed the presentation" Reskilling & Upskilling for
Alaskans" (copy on file). She asserted that with
legislation such as SB 10, the University of Alaska (UA)
could train more Alaskans and support the state's economic
recovery. She asserted that the value of postsecondary
education was present in employment outcomes of nearly
18,000 UA graduates across nine key industries important to
the economy.
Ms. Cothren looked at slide 2, "Alaska's System of Higher
Education," which showed locations of UA campuses. She
explained that UA included three separately accredited
universities that had distinct missions that were all
responsible for serving the community college mission
through 13 community campuses. She cited UA was the most
comprehensive workforce provider in the state.
Ms. Cothren spoke to slide 3, "UA's Critical Workforce
Mission":
Alaska's most comprehensive provider of workforce
training
? UA offers more than 200 programs in workforce
development
Non-credit industry recognized certifications,
endorsements, certificates
? Associate Degrees
? Bachelor, Masters and Doctorate Degrees
? Programs in high-demand industries needed for
Alaska's economic growth
Ms. Cothern noted that growing a strong workforce was at
the core of UA's mission and was one of the Board of
Regents' five strategic goals. She added that data would
show how UA's programs contributed to workforce needs
across key industries.
9:25:47 AM
Ms. Cothren referenced slide 4, "Value of Postsecondary
Education":
? Median earnings jump from:
? $35,328 for high school graduates
? $44,619 for Alaskans with an associate degree
? $57,708 for those with a bachelor's degree
? $77,402 for holders of graduate or professional
degrees
? Lower unemployment rates and upward mobility
? Provide skills required for employment and career
advancement
Ms. Cothren noted that the data on slide 4 were from
research analysis from DLWD. She thought one could see the
impact on earning potential and upward mobility as
education increased. She referenced a labor market analysis
of high-demand occupations that indicated that careers
would continue to require advanced skills, greater
knowledge and greater flexibility than ever before.
Ms. Cothren turned to slide 5, "UA Workforce Reports
Industries Highlighted," which showed pictures representing
reports from nine key industries in the state. She
explained that UA had done a recent project doing research
on graduate outcomes across key Alaska industries such as
construction, health, internet technology, mining, and oil
and gas.
Ms. Cothren considered slide 6, "UA Workforce Reports,"
which showed an example of graphics and data from one of
the reports listed on the previous slide. Each of the
reports highlighted graduate outcomes across three key
program areas important to the industry, such as wages,
hiring trends, and lists of programs related to the
industry sector.
Ms. Cothren displayed slide 7, "Summary of First-Year
Employment," which showed a pie chart showing industries
where first-year graduates worked. She highlighted that
nearly 24 percent of UA graduates worked in the healthcare
sector. Educational services included secondary and
postsecondary teachers as well as employment in IT,
accounting, and human resources.
Ms. Cothren highlighted slide 8, "Average Wages of UA
Graduates," which showed a bar graph entitled 'UA grads'
average wages.' She noted that Alaska was fortunate to have
access to some of the best employment data in the country
from research and analysis at DLWD. The graph represented
wages earned over a ten-year period of the nearly 18,000 UA
graduates across different levels of certificates and
degrees. She pointed out that more education and training
correlated strongly with greater earning potential. The
average first-year graduate wage was more than $50,000, and
the fifth-year wages exceeded the average Alaska wage by
nearly $10,000.
9:29:54 AM
Ms. Cothren looked at slide 9, "Percent of UA Graduates
Working in Alaska":
96.3 percent of working graduates are Alaska residents
For comparison, residency for all Alaska workers is
79.3 percent.
Ms. Cothren cited that data showed that UA graduates
working in Alaska were Alaska residents at a much higher
rate than the overall workforce. In every case, the
residency rate was higher for UA graduates compared to the
residency rate of all workers within each industry sector.
Ms. Cothren addressed slide 10, "Where UA Graduates Work in
Alaska," which showed a map of the state denoting
percentages of graduates working in each region. She
reminded that UA had campuses in every region of the state,
where graduates obtained employment across all six economic
regions.
Ms. Cothren advanced to slide 11, "UA is Key to Meeting
AK's High-Demand Workforce Needs," which showed a graphical
list of projected job growth or loss by Alaska industry,
2018 to 2028. She highlighted three high-growth industries
in oil and gas, mining, and health care. She cited that
health care was projected to grow at twice the rate of the
economy overall.
Ms. Cothren looked at slide 12, "UA Workforce Report Oil
and Gas":
UA Oil and Gas Graduate Highlights
How many programs serve the oil and gas industry? 54
? Do these programs boost the Alaska hire rate?
o 93.5% of working grads are Alaska residents
o Residency is 70.9% for all oil and gas workers
? What percentage of grads obtain employment in Alaska
on average in their first-year? 79.3%
? What are the wages above the State average?
o +$3,381 Year 1
o +$43,197 Year 5
Ms. Cothren listed oil and gas industry-related programs
such as welding, structural technology, process technology,
occupational safety and health, engineering, and several
graduate programs. She noted that the graduates were also
hired in other industries such as mining and construction.
She highlighted that data showed a strong demand for
process technology graduates. She cited that 89 percent of
the graduates found employment within a year of graduation
and averaged $74,000 in wages the first year of employment
and more than $130,000 by the fifth year. She discussed
partnerships and used the example of the process technology
program through the University of Fairbanks Community and
Technical College, delivered at the Fairbanks Pipeline
Training Center. She mentioned a dual enrollment pathway
and partnership with the Fairbanks North Star School
District.
9:33:28 AM
Ms. Cothren addressed slide 13, "UA Workforce Report
Mining":
UA Mining Graduate Highlights
? How many programs serve the mining industry? 44
? Do these programs boost the Alaska hire rate?
o 92.7% of working grads are Alaska residents
o Residency is 65.3% for all mining workers
? What percentage of grads obtain employment in Alaska
on average in their first-year? 79.9%
? What are the wages compared to the State average
wage by year five? +$44,413 for a total of $104,401
Ms. Cothren referenced slide 14, "UA Workforce Report
Health":
UA Clinical & Behavioral Health Grad Highlights
? How many health programs does UA offer? 50
? Do these programs boost the Alaska hire rate?
o 96.7% of working grads are Alaska residents
o Residency is 85.5% for all health workers
? What percentage of first-year grads work in health
care and social assistance?
o 82.2% of clinical graduates
o 57.8% of behavioral health graduates
? What are the grads average five-year wages?
o $64,388 for clinical graduates
o $52,304 for behavioral health graduates
Ms. Cothren listed certified nurse aid, nursing, medical
billing, health information technology, and paramedicine as
areas of clinical study at UA. She noted that an additional
25.5 percent of the health care graduates were working in
the related sectors of educational services and public
administration. The graduates had a wide range of
opportunities.
Co-Chair Bishop asked about nursing capacity for the
Registered Nurse Program at UA and questioned whether there
was still a waiting list.
Ms. Cothern believed there was a wait list and offered to
provide more specifics at a later time. She noted that the
College of Health at the University of Alaska Anchorage and
all satellite programs were working to expand the nursing
programs.
Co-Chair Bishop asked Ms. Cothern to get back to the
committee with more detailed information.
Ms. Cothern agreed to provide the information.
Senator Hoffman asked if the numbers being presented
included the individuals that were in the Alaska Native
Science and Engineering Program (ANSEP) program.
Ms. Cothren answered in the affirmative.
Senator Hoffman asked how the ANSEP numbers compared to the
average numbers being presented.
Ms. Cothren offered to get back to the committee with
specific information related to graduates of ANSEP.
9:37:43 AM
Senator Olson wondered about the national nursing shortage.
He asked how many UA nursing graduates, including
Washington, Wyoming, Alaska, Montana, and Idaho (WWAMI)
program students, came back to the state.
Ms. Cothren stated she could provide the specific numbers
at a later time. She anecdotally thought nursing graduates
from within the state frequently stayed to work within the
state, and that WWAMI often students returned as well.
Senator Olson was concerned that after academic and
clinical training, students that went to residency outside
Alaska would be tempted not to come back. He asked how many
students from rural Alaska had been accepted into nursing
programs or the WWAMI program.
Co-Chair Bishop asked Ms. Cothren to forward the requested
information to his office for distribution.
Senator von Imhof thought the presentation was good but
thought the committee supported UA's mission. She pointed
out that the presentation failed to include how much
federal COVID-19 funding UA would receive, and how it would
be spent. She asked if a free and reduced tuition endowment
fund was a priority of the University. She referenced Co-
Chair Bishop's comments and asked if the University had
capacity in the high-value industries mentioned in the
presentation. She asked if UA was expanding its nursing
department. She wanted some follow up information regarding
priorities of the University and plans for the COVID-19
funding.
Co-Chair Bishop thought the committee might have a separate
hearing related to COVID-19 funds and workforce
development.
Ms. Cothren broadly stated that UA was committed to
figuring out all the pathways to train Alaskans. She added
that the University worked through the UA Foundation, which
worked with partners across the state to build endowment
funds and use state and federal grant resources to train
Alaskans. She agreed to work with the committee to provide
the requested information.
9:42:13 AM
Senator von Imhof appreciated Ms. Cothern's remarks. She
referenced Senator Olson's comments about WWAMI students.
She discussed endowments in other parts of the country
which had been started with money seeded from a corporation
or other source, which offered scholarships which graduates
later paid back into to replenish the fund for future
students. She had learned about such a program in relation
to coding, and suggested a similar program would be a good
fit for WWAMI students.
Co-Chair Stedman added that the state did not know exactly
what federal funding would be coming. He thought there was
discussions of doubling federal monies coming into the
capital budget, to roughly $2 billion for roads and
airports for eight years. He pondered how to look forward
and train the state's workforce. He thought there would be
a potential shortage of workers in Alaska. He wanted to
know the University's thoughts on the coming construction
workload.
Co-Chair Bishop asked if Ms. Cothren could go back to slide
10 and consider the 1,618 jobs estimated in growth for the
construction industry. He emphasized that the numbers had
been put together in October 2020 and considered that the
large increase mentioned by Co-Chair Stedman would cause
the numbers to go up. He expressed appreciation for Senator
Begich bringing up such an interesting topic and thought
the topic would warrant future meetings.
9:46:22 AM
DON ETHERIDGE, ALASKA AFL-CIO, JUNEAU (via teleconference),
testified in support of the bill. His organization
represented over 60,000 workers in a variety of fields
throughout the state. He explained that many of the union
members had been working hard throughout the pandemic,
including first responders, hospital personnel, state
employees, and grocery store workers. He asserted that the
AFL-CIO represented many front-line workers, many of whom
did not have the benefit of a collective bargaining
agreement. He mentioned childcare workers, delivery
workers, and personal care attendants. He thought it was
necessary to give people a chance for improvement. He
relayed that many members were out of work and needed
training in order to secure jobs. He referenced Co-Chair
Bishop's remarks about the increase in construction jobs.
He mentioned the importance of the IT industry and jobs. He
affirmed that AFL-CIO and its affiliates supported the
bill.
9:49:35 AM
Co-Chair Bishop OPENED public testimony.
9:49:47 AM
ED MARTIN JR., SELF, STERLING (via teleconference), spoke
in support of the bill. He was a retired operating engineer
and over 50-year resident of the state. He believed he had
some issues with the bill but thought it was a good way to
spend CARES Act funding. He was concerned about the people
that might be excluded from the definition of "essential
worker." He mentioned people that had lost jobs due to the
pandemic.
Mr. Martin continued his remarks. His family had worked in
the construction industry for many years. He had a son that
had a training facility for CDL drivers and had benefitted
from training individuals that had received grants from the
state. He mentioned the AVTEC Center in Seward. He
encouraged the sponsor to improve upon definitions in the
bill to make it more broadly inclusive to all Alaskans.
9:53:24 AM
ED MARTIN III, SELF, STERLING (via teleconference),
testified in support of the bill. He was the owner of a
truck driving training business. He thought the vocational
education in the state needed to be expanded, specifically
in CDL and heavy equipment operating training. He thought
the state was lacking in postsecondary education,
particularly with vocational areas. He acknowledged the
upcoming expansion of infrastructure and a lack of Alaskan
workforce. He mentioned the need to hire out of state
workers, particularly in the trucking workforce. He saw the
need for students to get funding and elevate themselves in
life. He emphasized the importance of trucking.
9:56:39 AM
Co-Chair Bishop CLOSED public testimony.
Senator Begich commented that one of the changes made to
the bill in the last committee of referral opened the
program eligibility to those that had lost employment due
to COVID-19. He thought the comments about essential
workers were worth noting. He noted that the description in
the March 27, 2021, order (amended April 10) included
essential construction. He wanted to be clear that the
reason the program was currently aimed at public
instruction institutions such as AVTEC was because the law
prohibited the provision of public funds. It was possible
to provide the funds through a loan or grant program. There
was an opportunity to have a partnership with UA or perhaps
a future loan program to assist with other vocational
opportunities.
Co-Chair Bishop relayed that there were other avenues for
the previous testifiers through DLWD.
Senator Begich encouraged the committee to pass the bill
expeditiously.
Co-Chair Bishop set the bill aside.
SB 10 was HEARD and HELD in committee for further
consideration.
9:58:32 AM
AT EASE
9:58:58 AM
RECONVENED
ADJOURNMENT
9:59:02 AM
The meeting was adjourned at 9:59 a.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 10 v. W Sectional Analysis 3.24.2021.pdf |
SFIN 4/8/2021 9:00:00 AM |
SB 10 |
| SB 10 v. B Sponsor Statement 1.26.2021.pdf |
SFIN 4/8/2021 9:00:00 AM SL&C 2/8/2021 1:30:00 PM |
SB 10 |
| SB 10 Univ. of Alaska - Workforce Reports Summary.pdf |
SFIN 4/8/2021 9:00:00 AM SL&C 2/8/2021 1:30:00 PM |
SB 10 |
| SB 10 v. B Supporting Document Essentail Workers and COVID Infection.pdf |
SFIN 4/8/2021 9:00:00 AM |
SB 10 |
| SB 10 v. B Supporting Document Union calls on state to treat Alaska grocery workers as first responders ADN.pdf |
SEDC 3/17/2021 9:00:00 AM SFIN 4/8/2021 9:00:00 AM |
SB 10 |
| Letter in support of SB10 2-2021.pdf |
SEDC 3/17/2021 9:00:00 AM SFIN 4/8/2021 9:00:00 AM |
SB 10 |
| SB 10 2021 04 08 - Sen. Fin. UA Presentation.pdf |
SFIN 4/8/2021 9:00:00 AM |
SB 10 |
| SB 10 v. W Summary of Changes.pdf |
SFIN 4/8/2021 9:00:00 AM |
SB 10 |
| SB 10 Paquette free and reduced tuition.pdf |
SFIN 4/8/2021 9:00:00 AM |
SB 10 |