HOUSE BILL NO. 2 "An Act relating to the vocational education account and appropriations from that account; and providing for an effective date." REPRESENTATIVE MARK NEUMAN, sponsor, explained that HB 2 is a way to obtain private industry's money for vocational education. He cited problems related to No Child Left Behind and the need to assure credits for vocational education classes. He related statistics regarding graduation rates and the need for skilled labor. He noted support for the bill by AFL-CIO. 2:08:49 PM Co-Chair Chenault asked who would control the money that is put into this account. REX SHATTUCK, STAFF, REPRESENTATIVE MARK NEUMAN, replied that the legislature has total appropriation of that money. Recommendations would be made by the Department of Labor and Workforce Development (DLWD) in consultation with the Department of Education and Early Development (DEED). 2:09:55 PM Representative Gara wondered if this bill would divide the money going to the general fund instead of bringing in new money. Representative Neuman indicated out that that information is in HB 61. Representative Foster pointed out that a handout from Carl Rose, Executive Director of AASB, states that under the current foundation formula 20 percent of school education funds are for special education, bilingual education, and vocational education. In the Bush, no money is left for vocational education. He asked if HB 2 might alleviate this problem. Representative Neuman agreed that that situation happens. This bill would allow private industry to put money into vocational education. Vice Chair Stoltze inquired what percentage of kids do not go on to college. Representative Neuman reported that 47.3 percent of Alaska Natives and 62.2 percent of other races graduate high school. Overall, about 8 percent go on to a 4-year college program. 2:13:16 PM CARL ROSE, EXECUTIVE DIRECTOR, ALASKA ASSOCIATION OF ALASKA SCHOOL BOARDS, reported on the history of the 20 percent block grant. In 1999, the 20 percent block grant was put into place to share the responsibility for special education, vocational education, and bilingual education. Currently, with the immigration policy, those requirements can't be met. There is no money left for vocational education. He questioned, "Don't we want to say what we mean and mean what we say?" If vocational education is a priority, there should be an account for it. He testified in support of the bill. 2:15:22 PM Co-Chair Meyer asked how the money would be appropriated. PAULA SCAVERA, LEGISLATIVE LIAISON, DEPARTMENT OF LABOR AND WORKFORCE DEVELOPMENT, explained that the bill creates a special account in the general fund. The funds are appropriated by the legislature to the Department of Labor for programs approved by the Commissioner of the Department of Education and Early Development. Co-Chair Meyer wondered if the account could be susceptible to being swept into the CBR. Co-Chair Meyer asked if the Alaska Workforce Investment Board would develop criteria for the programs. Ms. Scavera replied that there is no criteria and the board serves to advise. 2:19:14 PM Representative Foster emphasized how important training programs are in his district for jobs that are not state jobs. Less than 1 percent of jobs in his district are state jobs and require training which is not available in the area. Often workers are imported from other areas to do the work. Representative Thomas related how workers in his area were trained by unions and then had no jobs to come back to. He requested follow up after training is completed. Ms. Scavera recalled the example Representative Thomas was referring to. She reported that this is a concern of the new commissioner. Representative Thomas added that it is difficult to get hired without work experience. 2:23:05 PM Representative Kelly asked about the Department of Labor's role. Representative Neuman repeated that the Department of Labor would work in consultation with the Department of Education. Representative Kelly voiced concern about the Department of Labor's role. Representative Neuman addressed who controls the funds; the Department of Labor has the awareness and flexibility to meet the demands of the state where they are needed. He suggested that the two departments would work together. Representative Kelly voiced a preference for it to be handled in the Department of Education. Representative Neuman explained that the needs of No Child Left Behind have to be met. Grade level standards have to be met. Representative Kelly repeated his concern. 2:27:12 PM Vice Chair Stoltze thought that the Department of Labor was the right place for this account. He wondered what issues arose in the previous committee regarding this bill. Representative Neuman reported that over the past two years there was some discussion about structure. He questioned if a board was necessary. He thought the commissioners could do the job. Representative Joule recalled a time when post-secondary level vocational training programs were in the Department of Labor. He pointed out the advantage of the fund coming before the legislature to be appropriated. 2:31:34 PM Representative Gara said he is not overly concerned about where the money goes because it goes into the general fund. He thought the worry about the language was not a big concern. Representative Crawford related his experience with apprentice training programs for construction workers. He noted a problem with trained workers not getting employment. Representative Neuman reported how helpful the applied sciences are. 2:34:09 PM Representative Foster recalled a survey of his district. He pointed out how training has improved. Representative Foster MOVED to REPORT HB 2 out of committee with individual recommendations and accompanying fiscal note. There being NO OBJECTION, it was so ordered. HB 2 was REPORTED out of Committee with a "do pass" recommendation and with zero fiscal note #1 by the Department of Administration. 2:35:56 PM