Legislature(2015 - 2016)BELTZ 105 (TSBldg)
01/29/2015 01:30 PM Senate LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| Overview: Department of Labor and Workforce Development (dolwd) | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
January 29, 2015
1:29 p.m.
MEMBERS PRESENT
Senator Mia Costello, Chair
Senator Cathy Giessel, Vice Chair
Senator Gary Stevens
Senator Johnny Ellis
Senator Kevin Meyer
MEMBERS ABSENT
All members present
COMMITTEE CALENDAR
OVERVIEW: DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT (DOLWD)
- HEARD
PREVIOUS COMMITTEE ACTION
No previous action to record
WITNESS REGISTER
HEIDI DRYGAS, Commissioner Designee
Department of Labor and Workforce Development (DOLWD)
Anchorage, Alaska
POSITION STATEMENT: Delivered an overview of the Department of
Labor and Workforce Development.
ANNA LATHAM, Legislative Liaison
Department of Labor and Workforce Development (DOLWD)
Juneau, Alaska
POSITION STATEMENT: Answered a question during the overview.
ACTION NARRATIVE
1:29:02 PM
CHAIR MIA COSTELLO called the Senate Labor and Commerce Standing
Committee meeting to order at 1:29 p.m. Present at the call to
order were Senators Stevens, Ellis, Giessel, and Chair Costello.
Senator Meyer arrived soon thereafter.
^OVERVIEW: Department of Labor and Workforce Development (DOLWD)
OVERVIEW: Department of Labor and Workforce Development (DOLWD)
1:30:04 PM
CHAIR COSTELLO announced the business before the committee would
be an overview of the Department of Labor and Workforce
Development (DOLWD)
1:30:12 PM
HEIDI DRYGAS, Commissioner Designee, Department of Labor and
Workforce Development (DOLWD), introduced her staff and reviewed
her resume. She began the overview by reading DOLWD's mission
and the three key program priorities. She then displayed a map
of different offices statewide. She explained that the job
centers provide employment and training services and the
vocational rehabilitation offices provide employment and
training services to disabled Alaskans. The Alaska Vocational
Technical Center (AVTEC) resides in Seward and the other program
offices include Unemployment Insurance, Division of Labor
Standards and Safety, and Workers' Compensation.
CHAIR COSTELLO asked if she has a plan for how the department
will address the projected loss of $3.6 million in federal funds
over the next two years.
COMMISSIONER DRYGAS replied part of the reduction scenario that
DOLWD put forward was accepting that the job centers would lose
federal funds. Some of the offices will be closed, but the
specific locations has not been determined. When a job center is
closed, there will be an effort to partner with private
nonprofits that provide similar services. Online services to
Alaskans in locations that do not have a job center is another
option.
1:36:07 PM
COMMISSIONER DRYGAS reviewed DOLWD's organization chart showing
the three program priorities: 1) to protect workers, 2) develop
an Alaskan workforce; 3) and provide income replacement. She
noted that the Division of Employment Security and the Division
of Vocational Rehabilitation have programs that cross priority
program lines.
CHAIR COSTELLO asked her to comment on the status of the work to
change the workers' compensation fee schedule.
COMMISSIONER DRYGAS replied she has had several meetings to
ensure the department is aware of the legislation that passed,
how it affects workers' compensation, and what changes need to
be implemented in the future.
1:37:56 PM
COMMISSIONER DRYGAS reviewed the components of the department.
The Alaska Labor Relations Agency administers the Public
Employment Relations Act (PERA) and the labor provisions of the
Alaska Railroad Corporation Act pertaining to collective
bargaining for public employers. The agency also facilitates the
resolution of disputes between organized labor and public
employers.
The Alaska Workforce Investment Board provides policy oversight
of state and federally funded job training and vocational
education programs. It also provides an annual report to the
legislature on the performance and evaluation of the state's
training programs. One of her priorities will be to enhance the
work of the board and provide policy guidance to the department
on workforce development opportunities.
1:39:33 PM
CHAIR COSTELLO recognized that Senator Meyer joined the
committee.
She asked how many Alaskan students enter the job market
directly from high school as opposed to going on to college.
COMMISSIONER DRYGAS replied she did not have the statistics but
this administration recognizes that not every student who
graduates from high school will head directly to a four-year
institution. DOLWD believes it needs to refocus on career and
technical training for Alaskan, particularly in the key
industries that need workers.
CHAIR COSTELLO noted that the transition report suggested career
awareness for young people. She asked how that plan might be
implemented.
COMMISSIONER DRYGAS replied the department is looking at how to
ensure that there are opportunities for young Alaskans and that
they are aware of them. This Governor has placed a priority on
interdepartmental work and she's worked with both the university
and education commissioner to ensure that efforts are not
duplicated and training is streamlined. Half the battle is to
ensure that Alaskans are aware of DOLWD services that are
already available, she said.
1:43:21 PM
COMMISSIONER DRYGAS displayed a picture of the new Alaska
Vocational Technical Center (AVTEC) dormitory in Seward and
reviewed the mission. In FY 2014, AVTEC had 382 long-term
program enrollees and 898 short-term program enrollees. The FY
2014 completion rate was 89 percent, and 89 percent of the FY
2013 graduates were placed in training-related jobs in the
following year.
CHAIR COSTELLO asked if she has made a decision about moving
forward on the tuition increases at AVTEC.
COMMISSIONER DRYGAS replied a decision has not been made, but an
increase is likely since tuition has remained static since 2010.
1:45:32 PM
SENATOR STEVENS asked if all DOLWD's training is centered in
Seward.
COMMISSIONER DRYGAS replied all the training that is
administered through the department is at AVTEC, but multiple
grantees are awarded step grants and TVEC grants to do training
throughout the state.
CHAIR COSTELLO asked her to define the acronyms she uses.
COMMISSIONER DRYGAS reviewed the Division of Business
Partnerships (DBP). It administers DOLWD's competitive and pass-
through workforce development grant programs. In FY 2014, DBP
administered training to 2,954 Alaskans through the State
Training and Employment Program (STEP), and 87 percent of the
graduates entered training-related jobs in Alaska.
CHAIR COSTELLO asked if she had reviewed the efforts to engage
private partnerships in expanding broadband throughout Alaska.
COMMISSIONER DRYGAS answered that she had not seen anything
about the broadband program, but her staff is now aware and she
will get up to speed to further that.
1:48:44 PM
COMMISSIONER DRYGAS reviewed the Employment Security Division.
It provides: employment and training services through the Alaska
Job Center Network and online through the Alaska Labor Exchange
System (ALEXS); economic stability to unemployed Alaskans
through Unemployment Insurance; and Adult Basic Education to
advance opportunities for employment.
The Labor Standards and Safety Division provides enforcement,
training, and monitoring of laws governing: occupational safety
and health, wages and hours, child labor, and electrical and
mechanical codes. The division also supports the Alaska Safety
Advisory Council that is responsible for the annual Governor's
Safety Conference. In 2014 the division developed a 10-hour
Occupational Safety and Health Administration (OSHA) safety
course for seafood processing. The direct result was that the
state experienced record low workplace lost time for illness and
injury. The majority of the decrease was from the seafood
processing industry.
1:50:16 PM
COMMISSIONER DRYGAS reviewed The Division of Vocational
Rehabilitation (DVR). It assists Alaskans with disabilities to
secure and maintain employment and provides economic stability
to disabled Alaskans through Social Security disability
determinations. In FY 2014, DVR had 607 individuals employed
upon exit from their individualized plan for employment. It was
an increase from FY 2013 and represents the second highest level
on record. The average wage of employed individuals exiting the
DVR program was $14.31, an increase from $13.84 the previous
fiscal year. She noted that Alaska is regularly in the top 15
states in the nation for average wage.
She explained that the Workers' Compensation Division aids
Alaskans with employment-related injuries and illnesses by
administering the Alaska Workers' Compensation Act, the
Fishermen's Fund, The Workers' Compensation Benefits Guaranty
Fund, and The Second Injury Fund. She noted that a current focus
is working with the Medical Services Review Committee on a
revised medical fee schedule to reduce workers' compensation
medical costs in Alaska.
1:51:49 PM
SENATOR MEYER asked if she was working with members of the
Alaska State Chamber of Commerce because they bring that issue
forward every year.
COMMISSIONER DRYGAS answered yes; she attended a reception for
the chamber last night and has bumped into several members in
the hallway. A number of members have expressed a desire to talk
with DOLWD about workers' compensation and the department
understands the importance of bringing rates down. She noted
that the department has proposed legislation and she is
reviewing it with the division director and the legislative
liaison.
SENATOR MEYER asked if the legislature could expect to see the
legislation this session.
COMMISSIONER DRYGAS replied "yes, I believe so, probably."
SENATOR MEYER asked if Alaska has the highest workers'
compensation rates in the nation.
COMMISSIONER DRYGAS deferred to Ms. Latham.
1:54:13 PM
ANNA LATHAM, Legislative Liaison, Department of Labor and
Workforce Development (DOLWD) stated that Alaska has had the
highest or second highest workers' compensation rates for the
last ten years. The rates this year are lower, but still in the
top five.
COMMISSIONER DRYGAS reviewed the FY 2016 endorsed budget that
totals $179,412,800. Federal funds represent 52 percent or
$94,386,600. The department's unrestricted general funds totals
$29.2 million. This is $4.2 million less than FY 2015 and
equivalent to a 12.5 percent reduction. To implement this
reduction, DOLWD is focusing on the Governor's goal of
redesigning administrative infrastructure to maintain maximum
program and services delivery. She stated her commitment to
streamlining services, finding inefficiencies, and developing
partnerships to maintain key services and program priorities.
COMMISSIONER DRYGAS reported the vision for the department is to
streamline programs and revamp the workforce development system
to ensure maximum effectiveness and efficiency within a
sustainable budget. She said she is currently reviewing a
proposal that would return the department to its FY 2003
structure of having workforce development grants administered by
the Employment Security Division instead of having a separate
Business Partnerships Division. This could result in an $850,000
savings to the department. She described the revamp as critical
to ensure that the maximum funds possible are going out on the
street as grants for training and workforce development
opportunities for Alaskans.
Another goal is to increase Alaska resident hire in priority
industries and occupations to ensure that Alaskans are getting
Alaska's jobs. This will be addressed through more targeted
workforce development funding in areas with high nonresident
hire rates and increased focus on Alaska resident hire
enforcement. This is a statutory requirement and is critical to
the economic success of the state and its residents. Alaska has
one of the highest ratios of nonresident to resident workers in
the nature, which impacts the rate of unemployment among
residents. Nonresident workers use services provided by the
state but do not contribute fairly to the cost of those
services. She said she will continue to focus on ensuring the
economic stability for injured, unemployed and disabled Alaskans
and ensuring safe and legal working conditions for Alaska's
workers.
1:58:36 PM
SENATOR GIESSEL asked how she would address fisheries that is
the occupational group with the highest nonresident hire.
COMMISSIONER DRYGAS replied she committed is to taking a closer
look at recognizing fisheries as a priority industry.
2:00:04 PM
SENATOR ELLIS asked where she expects innovative ideas for
efficiencies will come from.
COMMISSIONER DRYGAS explained that she envisions elevating the
Alaska Workforce Investment Board to a policy role and she
expects that they will generate a lot of ideas. Another
efficiency will be to streamline administrative services by
combining the Division of Business Partnerships with the
Division of Employment Security. The 26-member Alaska Workforce
Investment Board also may be restructured to be more effective
and efficient. Staff input has been solicited and the transition
team reports have been reviewed looking for ways to do more with
less. That will be the theme of this legislative session and
everyone is taking it very seriously, she said.
SENATOR STEVENS commented on the potential to develop year-round
opportunities and value-added products in the fishing industry.
He noted the opportunities associated with Pollack and
highlighted that many people have lived in Kodiak and worked in
the fish processing plant for several generations. The
processing plant at Ship Creek provides job opportunities for
300 people in Anchorage, and the largest number of permit
holders in the state reside in that municipality. The Governor
in the State of the State address talked about the important
issue of value added and he hopes that will result in more
Alaska hire and year-round jobs. He related that he visited a
plant in Spain that produces fish patties made from Alaska
Pollack and he believes that could be done in Alaska.
COMMISSIONER DRYGAS said she likes the idea and believes that in
lean times it is particularly important to think outside the box
to find efficiencies. The Governor and his staff have empowered
commissioners to do that.
SENATOR STEVENS noted that in 2000 the legislature used federal
funds to develop a tax credit program to help canneries update
and purchase new equipment to flash-freeze salmon filets. The
program still exists and has worked remarkably well.
SENATOR MEYER expressed hope that people going through the
workforce training programs will be warned that safety standards
will not be lowered just because marijuana has been legalized.
If a worker does not pass the drug test, he or she will not be
hired. He asked if that information is part of the training.
COMMISSIONER DRYGAS replied the department has not been tasked
with that, but it may have to engage in that education of the
public.
CHAIR COSTELLO asked what her commitment is to seeing a gas
pipeline project come to fruition.
COMMISSIONER DRYGAS replied DOLWD's role in developing a gasline
is to ensure that there is a ready and trained workforce and her
department is committed to this. Secondly, she sits on the
Alaska Gasline Development Corporation (AGDC) Board and she
takes the responsibility very seriously. The gasline is critical
to the future of the state.
CHAIR COSTELLO asked if she plans to work with the Department of
Education to prepare young Alaskans to fill those jobs in the
future and if DOLWD has identified the number and types of jobs
that will be filled.
COMMISSIONER DRYGAS replied she has a meeting tomorrow with
Commissioner Hanley to look at current technical education (CTE)
to make sure that DOLWD and DEED are working together on that.
She said she has not reviewed the report DOLWD prepared before
her tenure identifying the occupations that would result from a
gasline, but that will be a priority this year.
CHAIR COSTELLO emphasized the value of including hands-on
activities like Lego robotics in the DEED curricula.
She thanked Commissioner Drygas for the presentation.
2:14:10 PM
There being no further business to come before the committee,
Chair Costello adjourned the Senate Labor and Commerce Standing
Committee meeting at 2:14 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| 20150129 L&C Agenda.pdf |
SL&C 1/29/2015 1:30:00 PM |
|
| 20150129 Heidi Drygas DLWD.pdf |
SL&C 1/29/2015 1:30:00 PM |