HB 150-TECHNICAL/VOCATIONAL EDUCATION PROGRAM  3:46:35 PM VICE CHAIR REINBOLD announced that the next order of business would be HOUSE BILL NO. 150 "An Act extending the unemployment contributions for the Alaska technical and vocational education program." 3:46:42 PM CATHY TILTON, Staff, Representative Mark Neuman, Alaska State Legislature, speaking on behalf of the sponsor, Representative Neuman, explained that HB 150 relates to the Alaska Technical and Vocational Education Program (TVEP), which was created in 2000 under AS 23.15.840 and sunsets on June 30, 2014. This bill will extend the sunset date. The TVEP was created to provide financial assistance and support facilities throughout the state for technical and educational programs for industry-specific training. In 2008, a bill passed that updated the TVEP by creating a vocational education account comprised of funds collected from unemployment insurance contributions at a rate of .15 percent. These funds are then allocated according to the statute, which is illustrated in a flow chart in members' packets entitled, "State of Alaska Tax Flow Chart". In 2008, the unemployment rate in Alaska was 50 percent above the national average. Figures recently released by the state Department of Labor & Workforce Development (DLWD), relate that the unemployment rate in Alaska for December 2012 was at 6.6 percent, while the national average was at 8.1 percent. In fact, Alaska has maintained a lower than national average rate for 46 months, which is a good indicator that the technical and vocational training programs work. From 2006-2011, 63 percent of youth who graduated from Alaska's high schools attended some college. In part, the TVEP program works since it allows youth to train in their local communities and also live and work where they were raised. In 2012, DLWD tracked nearly 18,000 training program students as they moved into the work force. The department discovered that 67 percent of the students who completed the program had salaries and employment in the fourth quarter. Additionally, these participants earned 29 percent more during that time [as compared to those not in the program]. 3:49:16 PM MS. TILTON pointed out Alaska's workforce is an aging workforce. As the baby boomers retire a lack of skilled workers and tradesmen exist to meet the growing demand for replacements. In 2008, 9.9 percent of construction workers and 11.8 percent of mining and logging workers were between the ages of 55-65. As this group retires the state will need skilled tradesmen to fill their spots. The Anchorage Daily News (ADN) on March 21, 2013, reported that the U.S. is not producing enough qualified workers to meet the needs of the mining and energy sectors, which is another reason to continue with these vocational education training programs. REPRESENTATIVE MARK NEUMAN, Alaska State Legislature, speaking as the sponsor of HB 150, stated that this is a great program with federal funds for vocational education programs. He asked members for their support. 3:50:45 PM REPRESENTATIVE SADDLER moved to adopt the proposed committee substitute (CS) for HB 150, labeled 28-LS0599\N, Mischel, 4/4/13, as the working document. VICE CHAIR REINBOLD objected for the purpose of discussion. 3:51:11 PM REPRESENTATIVE SADDLER asked the sponsor to identify the most effective vocational education training program. REPRESENTATIVE NEUMAN replied it would depend on the university or job skills a student would like to pursue. He related that this program funds a multitude of vocational education programs, such as nursing, mining, heavy equipment, construction, electricity, and almost every trade. 3:51:50 PM VICE CHAIR REINBOLD referred to the fiscal note and asked for clarification. REPRESENTATIVE NEUMAN directed attention to the explanation attached to the $5.4 million fiscal note. He then explained the fiscal note is an estimate since the state is unsure of the amount of the program's funding. VICE CHAIR REINBOLD asked whether the fiscal note represents growth or if the program has been steady. REPRESENTATIVE NEUMAN answered that the program has been fairly steady. Unfortunately, as less people are working, less money goes into this program. He explained the program increased from approximately .10-.15 percent six years ago once the core of the fund had grown to a point where additional funds could be distributed for vocational education without affecting the core. 3:53:35 PM REPRESENTATIVE CHENAULT commented that he supports workforce development and vocational education training. He wondered if some of the funds should be spent in K-12 or if additional funding should be applied to the K-12 sector. He expressed an interest in having high school students consider vocational education as an option rather than waiting until students are of college age. He said he likes the bill, but he thinks the state needs to do more in the education system at an earlier time to promote vocational education. VICE CHAIR REINBOLD stated she previously lived in a country that promoted vocational education and it was fascinating to see kids choose a college path or vocational path in 9th grade. 3:54:46 PM REPRESENTATIVE CHENAULT asked for an explanation of the changes in the proposed committee substitute (CS) for HB 150, Version N. KONRAD JACKSON, Staff, Representative Kurt Olson, Alaska State Legislature, on behalf of the House Labor & Commerce Standing Committee, Representative Kurt Olson, Chair, explained the changes in Version N. Referring to page 1 line 6, he pointed out that the immediate effective date would change from 2014 to 2024 to help prevent any lapse in funding for the funding. REPRESENTATIVE NEUMAN interjected that he wanted to address HB 150 this year to avoid any lapse in funding. VICE CHAIR REINBOLD removed her objection. [No further objection was stated and the committee treated Version N as before it.] 3:56:12 PM JUDY WALGENBACH, Program Director, Amundsen Education Center/New Frontier Vo-Tech Center, began by thanking the members for the TVEP funding, which allowed expansion of the programs. For instance, now there is a professional medical coding program on the peninsula, which is a national certification. The average salary students receive ranges from $13-$15 per hour with benefits. She then pointed out that the Alaska Commission on Post-Secondary Education just approved an Internet Technology network technician program which will allow the center to attract more students from the village. The center also provides support to assist students as they transition in from the villages to the program; the center hopes to obtain more residential housing for students. She indicated the center has been assisting students seeking new careers. A new facility was donated to Amundsen Education Center this fall and TVEP enabled the center to have adequate teaching staff as it expands its program. She reported the TVEP grant has been a great benefit to the organization and the center appreciated being awarded a grant to cover operating expenses. VICE CHAIR REINBOLD remarked that she understood that the number of medical codes will increase from 10,000 to over 100,000 under the [new proposed] federal law. 3:58:17 PM CHRIS REITAN, Superintendent, Galena School District (GSD), spoke in support of HB 150. He explained that the GSD uses the TVEP funding to build a bridge program, primarily for rural Alaska Native students, for long-term post-secondary training opportunities. The GSD has a high school boarding school where students are engaged in one of the career and technical education programs. Further, students can transition into a post-secondary program. For example, the TVEP funds support the GSD's aviation program and students can transition and obtain their private pilot's license and instrumentation certification in Galena, and then move on to more advanced training at the university level. Additionally, students can work toward cosmetology certification, primarily at the high school level to obtain hours and then transition into Galena's fifth year post- secondary program. These TVEP funds have been hugely important to Galena, in terms of building programs that high school students can use to begin working towards certification. Upon graduation students can move into post-secondary certification programs, which are relatively short-term programs [due to the vocational technical training they receive in Galena]. He said GSD is in full support of HB 150. He offered his belief that this funding has created a great model in Galena to offer post- secondary education and training to high school students, which allows them to move on to final certification upon graduation. REPRESENTATIVE SADDLER remarked that he was part of a trip that the Community and Regional Affairs Standing Committee took last year to Galena. He said he was very impressed by the auto shop and aviation technology program. He offered his support for the bill, in part, to assist Galena in its continued efforts. 4:01:07 PM FRED VILLA, Associate Vice-President, Workforce Programs, University of Alaska Fairbanks (UAF), stated that UAF has over 200 workforce development programs in three areas, including pre-college programs to connect youth with career pathways; the certificate degree and occupational endorsement; as well as professional development of students across the state with priority areas for economic and community development, career pathways, and high demand jobs. He related that the UAF program uses the TVEP money as one-time funds to keep technology current, startup funds for programs that meet the immediate needs of employers in the regions and across the state through grants or other resources until sustainable sources of funding are found. The office implements the program using a comparative process with the university campuses that aligns with the state priorities as identified by the Workforce Investment Board and use the TVEP's rules and guidelines to develop proposals. Then the proposals are vetted through the provost and the chief academic officers of each university to ensure the program meets the campus priorities. The UAF's review committee includes representatives from each university and the Department of Labor & Workforce Development (DLWD). He characterized this effort as one that uses the state perspective to help prevent duplication of programs. 4:03:38 PM MR. VILLA offered his belief that all of the educational training programs are associated with industry standards and criteria or certificates. For example, in the pre-college area, the robotics program has gone statewide and is almost viral at this point. The robotics program helps introduce kids to the fun and creativity of robotics, but may also generate interest in more students becoming engineers. The dual credit tech-prep program and the professional development journeyman apprenticeship program allows credit for prior learning for associate degrees by using experience students obtained during the journeyman training. He pointed out that high demand areas are programs in health, mining, and a mining core drilling program - which is an apprenticeship program. The new mine training offered in Juneau and in the oil and gas sectors are process technology provided in partnership with the Pipeline Training Center. He offered his belief that this funding has been critical funding and wisely used by the university. He thanked members for their time. VICE CHAIR REINBOLD remarked that the robotics programs have just started at the high school in her district. She said she also loves the science, technology, engineering, and math (STEM) program, as well. She said after listening to the testimony on workforce development, she believes the philosophy and training is aligned with the needs of Alaskans. VICE CHAIR REINBOLD, after first determining no one else wished to testify, closed public testimony on HB 150. 4:05:54 PM REPRESENTATIVE SADDLER moved the proposed committee substitute (CS) for HB 150, labeled 28-LS0599\N, Mischel, 4/14/13, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 150(L&C) was reported from the House Labor and Commerce Standing Committee.