SB 10-FREE/REDUCED TUITION FOR ESSENTIAL WORKER  9:10:53 AM CO-CHAIR DRUMMOND announced that the first order of business would be CS FOR SENATE BILL NO. 10(FIN) am, "An Act establishing a grant program to provide to essential workers and laid-off workers the tuition and fees to attend certain postsecondary institutions." 9:11:11 AM SENATOR TOM BEGICH, Alaska State Legislature, as prime sponsor, presented CSSB 10(FIN) am. He first noted that if the bill progresses, some dates will need to be changed because "the dates have become quickly outpaced by the circumstances." He emphasized that frontline workers have given so much [during the COVID-19 pandemic], and with the receipt of COVID-19 relief funds, comes the opportunity to give back to those workers. He gave examples of frontline workers as those delivering food, transporting people, and cleaning offices all exposing themselves to COVID-19. He cited a study by The Occupational Environmental Medicine Journal reporting that over 20 percent of grocery store employees tested positive for the initial phase of COVID-19 when [non-frontline workers] were infected at rates of 1-3 percent. He pointed out that the lowest income workers were "required by the jobs office to stay in those jobs." SENATOR BEGICH opined that CSSB 10(FIN) am, which would give free tuition to frontline workers, was the right step in expressing thanks to those workers. It would provide a "limited avenue for financial support" for those who wish to continue their education. He spoke about the correlation between higher education and higher earnings and offered some numerical comparisons. He stated that going to school in Alaska keeps people in Alaska. He spoke about paraprofessionals ready to advance their education and how the proposed legislation would help them to do so. 9:15:00 AM SENATOR BEGICH highlighted the changes made to the proposed legislation by means of CSSB 10(FIN) am. First, language was updated to ensure the grant program would be available for all state-supported postsecondary education programs, such as the Alaska Vocational Technical Center (AVTEC) and the University of Alaska Certificates Program. Changes were made to the eligibility criteria to allow those laid off as a direct result of the pandemic to take advantage of the grant program. The legislation now references the definition of essential worker established under the administration's 3/27/20 Essential Services and Critical Workforce Infrastructure Order. Program report repeal dates were updated to reflect the limited nature of the grant program, with an application window of "a couple of years" and a period of use up to four years. He highlighted that there is a cap of $2.5 million a year for up to four years. Further, the funding source is not the undesignated general fund (UGF) but rather COVID-19 resources. He emphasized that so often the legislature uses federal funding in ways that are "less than appropriate" because of the flexibility of the funds. He opined that the proposed legislation puts forth a way to use the funds appropriately, in a manner that would be understood and accepted by the public. 9:18:08 AM L?KI TOBIN, Staff, Senator Tom Begich, Alaska State Legislature, on behalf of Senator Begich, prime sponsor, read the sectional analysis to CSSB 10(FIN) am [available in the committee packet]. She echoed the need for an amendment to the effective date. The sectional analysis read as follows [original punctuation provided]: 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 June 30, 2025. Section 4. Repeals Section 2 on June 30, 2026. 9:20:52 AM SENATOR BEGICH, in response to Co-Chair Drummond, confirmed he would like the House Education Standing Committee to make the aforementioned amendment to the dates. 9:22:39 AM REPRESENTATIVE PRAX opined that all workers are essential and questioned whether the scope of the bill was broad enough. He suggested that it may help people more to have access to skills training rather than a four-year college program, and he asked whether the bill sponsor had considered that. SENATOR BEGICH responded that the short answer is yes, the bill was expanded to include vocational education; however, it does not apply to everyone. He explained that there are always limits to what can be encompassed. He said CSSB 10(FIN) am focuses on a limited amount of money and to aid those most deeply affected by the pandemic. 9:25:45 AM MS. TOBIN directed attention to language on page 2, line 23, which provides for an individual who does not have a four-year degree to apply for funding to get vocational training. REPRESENTATIVE PRAX surmised that it would be possible, under CSSB 10(FIN) am, for the Alaska Commission on Postsecondary Education (ACPE) to define "a program that helps you pass the insurance exams." SENATOR BEGICH replied that he believed that is true. 9:27:52 AM REPRESENTATIVE CRONK asked for conformation that the goal of the proposed legislation was "to get people an AA degree or a four- year degree." SENATOR BEGICH answered yes. He added that a person would have to go for federal support before using the support proposed under the bill as a last means of support. In response to a follow-up question, he stated that there are criteria listed on page 2, beginning on line 18, outlining what a recipient of the fund must do, including maintaining a grade point average (GPA) [above a specified minimum], making satisfactory progress toward a degree, and maintaining enrollment as a half- or full-time student. Further, he said ACPE would be required to report back to the legislature regarding the progress of the program. He noted that the amount of money going into the program would be limited. 9:31:05 AM REPRESENTATIVE HOPKINS, following up on the question from Representative Cronk, asked for confirmation that if a person does not graduate from a four-year program, for example, he/she does not have to repay the funds. He indicated that the skills developed to that point would still be of value. SENATOR BEGICH confirmed that is correct. He said the proposed legislation acknowledges that "a grant is a grant." REPRESENTATIVE HOPKINS pointed to bill language on page 2, lines 10-12, regarding a required qualification of an applicant to have "earned a cumulative grade point average of 2.0 or higher in high school" or to have "otherwise demonstrated an equivalent academic ability", and he asked whether a general education diploma (GED) would count. SENATOR BEGICH answered that he believed it would count as a qualification. He noted a similar law in Michigan. 9:35:05 AM CO-CHAIR DRUMMOND noted that GED was listed on page 2, line 9. 9:35:19 AM CO-CHAIR STORY expressed appreciation for the acknowledgement that there are federal dollars to be used first. She commented on the shortage of skilled workers in Alaska, and said she views CSSB 10(FIN) am as an answer. SENATOR BEGICH advised that bi-partisan infrastructure legislation passed by Congress would result in federal money coming to Alaska in the next five years, and Alaska does not have the trained workforce necessary. 9:37:36 AM CO-CHAIR DRUMMOND announced the committee would hear invited testimony. 9:38:08 AM SARAH PERMAN, Government Relations Manager, University of Alaska, gave a PowerPoint presentation, titled "Reskilling & Upskilling for Alaskans," [hard copy included in the committee packet], during the hearing on CSSB 10(FIN) am. She commented on the lack of skilled workforce in Alaska, and she said the University of Alaska (UA) views CSSB 10(FIN) am as an opportunity to train more Alaskans. She presented slide 2, which was an overview with a map of Alaska showing campus locations. She said UA is the most comprehensive workforce provider in the state, which is one of UA's core missions, as shown on slide 3. She pointed out the degrees offered by UA and that many of the degrees serve toward filling those gaps in the workforce. Slide 4 addressed the value of postsecondary education; high school graduates earn a median of $35,000 annually, while those with professional degrees earn a median of $77,000 annually. She also shared the correlation between higher education levels and lower unemployment rates. 9:43:14 AM CO-CHAIR STORY pointed out that there are certificate programs that result in higher earnings starting out in the workforce compared to someone starting work with a bachelor's degree. 9:44:03 AM MS. PERMAN acknowledged the point. She then continued to slide 5, which shows a snapshot of 18,000 UA graduates and their earnings upon graduation compared to five years later, from $50,000 average to just under $70,000 average, respectively. As shown on slide 6, she spoke about UA's work with the Department of Labor & Workforce Development (DLWD) to put together nine industry workforce supports in the areas of administration and finance, aviation, construction, fisheries and marine science, health, information technology, mining, oil and gas, and teacher education. Statistics gathered showed the number of people in those industries, the average wage, and the projected trend for those industries. MS. PERMAN showed a 10-year projection, from 2018 to 2028, reflecting anticipated workforce needs, as shown on slide 7. She noted this information came out "before the infrastructure bill." She highlighted some of the services, and she emphasized the need to train people for the workforce. She said slide 8 shows to which industries UA graduates go in the first year following graduation. Ms. Perman showed slide 9 while expressing hope that the presentation underscored the value of higher education to the state. She reaffirmed that UA supports CSSB 10(FIN) am. 9:48:56 AM MS. PERMAN, in response to Co-Chair Drummond confirmed that the job loss trajectory addressed on slide 7 is "a moving target." 9:50:04 AM DON ETHERIDGE, Lobbyist, Alaska American Federation of Labor and Congress of Industrial Organizations (AK AFL-CIO), testified in support of CSSB 10(FIN) am. He said training people gives them "a hand up, not a handout." He related that he had supported a relative through journeyman training that he otherwise would not have been able to afford, and he said the proposed legislation would provide that opportunity to people. He emphasized there is already a shortage of skilled workers, and he opined that any time there is opportunity to train workers, that opportunity should be taken. 9:52:31 AM CO-CHAIR DRUMMOND shared she had learned that every student that completes the programs at AVTEC has a job waiting; there are more jobs than students who complete the program. 9:53:15 AM CO-CHAIR DRUMMOND opened public testimony on CSSB 10(FIN) am. After ascertaining there was no one who wished to testify, she closed public testimony. CO-CHAIR DRUMMOND announced that CSSB 10(FIN) am was held over.