HB 100-EXTEND WORKFORCE INVEST BOARD ALLOCATIONS  5:47:58 PM CO-CHAIR FIELDS announced that the first order of business would be HOUSE BILL NO. 100, "An Act relating to allocations of funding for the Alaska Workforce Investment Board; and providing for an effective date." 5:48:12 PM CO-CHAIR FIELDS opened public testimony on HB 100. 5:48:23 PM BRYAN CRISP, Fire Chief, Nikiski Fire Department, shared that he supports the reauthorization of Technical Vocation Education Program (TVEP) funding. The Kenai Peninsula College benefits from that funding, particularly its paramedic program, he explained. The Nikiski Fire Department currently employees 21 people who were educated through this paramedic program. Without this program, he continued, it would be very difficult to find qualified employees in the area for the fire department. He emphasized the importance of recruiting paramedics within Alaska, which would require that the state provide accessible and adequate education and training to interested individuals. 5:50:21 PM JAY STINSON, President, Alaska Research Consortium, explained that the Alaska Research Consortium (ARC) is a nonprofit that advocates for sustainable fisheries, marine science, and Alaska's "blue economy." He noted that the seafood industry is Alaska's largest private employer, with over 60,000 employees. Seafood is Alaska's number one manufacturing employer, he continued, and contributes more that $162 million in taxes. He said that ARC recently completed an 18-month study on the workforce training needs of the Alaska seafood processing industry, surveying over 46 seafood plant managers and 3 catcher processer companies and encompassing 24 companies based in 25 communities and representing over 15,000 workers. He shared that 88 percent of the survey participants responded that additional training for seafood workers would be helpful for business. Regarding HB 100 specifically, he noted that annually, seafood workers contribute about $600,000 to the state's TVEP fund but shared his understanding that very little of these funds are used to benefit seafood workers. He stated that ARC supports the reauthorization of TVEP funding but emphasized that ARC would like the funds to be balanced in a way that supports the seafood industry. 5:54:54 PM CHRIS GUNDERSON, CEO, Denali Family Services, stated his support of HB 100 and the reauthorization of TVEP funding. He shared that Denali Family Services (DFS) benefits from this funding through a partnership with the University of Alaska Anchorage (UAA). Specifically, he added, this funding supports the recreational therapist position shared jointly through UAA and DFS. He said that this position provides guidance and support to the Trailblazers program under DFS, which is a wilderness therapy program for individuals aged 13 to 21 who experience psychiatric disability. He explained that it provides human support through connection with the Alaska wilderness, as well as teaching practical outdoor skills and wilderness survival skills. He highlighted that youth in this program have experienced improved physical fitness, decreased psychiatric disturbance, and increased self-confidence. He concluded by asking the committee to support HB 100 to enable the continued partnership of UAA and DFS and the work to support Alaska's youth. 5:57:06 PM CO-CHAIR SPOHNHOLZ asked Mr. Gunderson to describe how the partnership works between DFS and UAA. MR. GUNDERSON responded that the [recreational therapist] position is partially based on loan on a non-pay basis at DFS, and the individual provides guidance and technical support. He emphasized that all of the TVEP funds are distributed to UAA to support the position, and as part of the duties of the position, the employee is outposted to DFS to support the Trailblazers program. CO-CHAIR SPOHNHOLZ thanked Mr. Gunderson for the work DFS is doing to help youth in Alaska. 5:58:14 PM KATHERINE MITCHELL, Member, Homer Marine Trades Association, shared that she is speaking in favor of the marine training coordinator position at Kenai Peninsula College (KPC) in Homer. She said that KPC has been lucky to have a marine coordinator and that it has made a huge difference. She explained that KPC has been able to teach specialized classes in the marine trades and that there have been over 30 young people who have gotten jobs due to this education. She concluded that she supports HB 100 and supports the continuation of the marine training classes in Alaska. 6:00:09 PM LUCINDA MARTIN, Member, Homer Marines Trade Association, stated that the Homer Marines Trade Association supports HB 100. She emphasized that the association supports the reauthorization of TVEP funds primarily for UAA and the support of the continuation of the workforce development coordinator at KPC. She highlighted that the coordinator has made a significant impact by increasing job readiness levels for students of the marine trades at the college. She illustrated this by sharing that over the last 18 months, 30 to 40 students have earned certifications in the marine trades, which equates to employability and increased wages. She said that the need for employees in the marine trades industry is significant, particularly as seasoned workers begin to retire. She explained that it is important to educate workers of all ages in order to find quality employment for these workers as soon as possible. She concluded that this education makes a significant impact on the Homer community and the fishing industry statewide, and stated that she hopes the committee will support the reauthorization of TVEP funds. 6:02:35 PM JEFF JESSEE, Dean, College of Health, University of Alaska, noted that he also serves as Vice Provost for Health Programs at UAA. He shared that Alaska has a "tremendous" health workforce shortage and that many customers have to hire travelers to fill important health care positions. He emphasized that TVEP is a critical component in funding university health care programs, and that the funds help support UAA's nursing expansion, physical therapy, and dietetics and nutrition, as well as help purchase important materials such as mannequins for simulations. He pointed to the significant education budget reductions as a reason why TVEP funding is even more critical for UAA. He concluded by urging the committee's support of HB 100. 6:04:06 PM CO-CHAIR FIELDS asked what the average wait time is for admitted students into the nursing program. MR. JESSEE responded that it can be up to a couple of years. The students are ranked based off of grade point averages (GPAs) and test scores, so some students get in right away and others may have to wait some time. CO-CHAIR FIELDS asked how many students have been admitted to the program but couldn't attend due to limited capacity. MR. JESSEE responded that the program has approximately two to three times the applicants that the program has the capacity for. CO-CHAIR FIELDS asked if the capacity increased and all applicants were able to attend, to what extent that would limit the need to hire travelers to come to Alaska and fill healthcare positions. MR. JESSEE responded that Alaska would be pretty close [to not needing travelers]. 6:05:12 PM REPRESENTATIVE KAUFMAN asked what the graduation rate is for students in the program. MR. JESSEE replied that the program graduates 90 percent of students and that student success is a high priority. 6:05:39 PM REPRESENTATIVE NELSON asked if the 90 percent graduation rate is due to the fact that students with higher GPAs are admitted into the program quickly and do not have to wait as long to join. MR. JESSEE responded that the program admits highly qualified students, but also UAA employs highly skilled faculty and has advanced facilities, such as the simulation center which allows student nurses to practice procedures in a safe environment. He stated that there is a systemwide commitment to student success. 6:06:44 PM REPRESENTATIVE KAUFMAN asked what the average age is of the typical applicant to the program. MR. JESSEE responded that he would have to check, but guessed that it is in the mid-20s. 6:07:04 PM REPRESENTATIVE MCCARTY asked about Mr. Jessee's understanding of the challenges for nurses who are entering the workforce. MR. JESSEE responded that student nurses have to pass the National Council Licensure Examination (NCLEX) upon graduation. He shared that a high percentage of graduates do pass that exam, and many student nurses already have job offers before graduation because they have done clinicals in health care facilities and have made connections. He emphasized that even if a student doesn't pass the first time, that student will pass eventually and will definitely become employed. REPRESENTATIVE MCCARTY asked for clarification that Mr. Jessee is saying that a high percentage of students pass the NCLEX the first time and enter into the workforce. MR. JESSEE responded yes, consistently over 85 percent of students pass on their first attempt. However, COVID-19 has had an impact on that success rate because it has been difficult to provide health programs during the pandemic, he explained. 6:08:41 PM CO-CHAIR SPOHNHOLZ opined that the nursing training program is a great example of a public/private partnership where the training is done in partnership with health care organizations across the state. She asked if Mr. Jessee could share with the committee how many education sites across the state provide nursing education. MR. JESSEE responded that UAA has 14 outreach sites throughout Alaska. Additionally, there is a "pop-up" program in Petersburg, Alaska, and while there is not a campus there, the hospital sponsors students and provides the facilities for instructors to teach local students through the nursing program. He explained that many of the major hospitals also provide substantial financial support to the program, and these contributions are dependent upon how many graduates the program produces. 6:10:34 PM DOUG WALRATH, Director, Northwestern Alaska Career and Technical Center (NACTC), shared that NACTC focuses training on Alaska's priority industries, the main five being health care, construction, transportation, hospitality/tourism, and seafood harvesting and processing. He shared that Norton Sound Health Corporation (NSHC) is the largest regional employer and health care is a significant priority for NACTC. He continued that NSHC partners with NACTC to provide dual-credit high school courses, such as introduction to health careers and emergency trauma training. He shared that TVEP funding supports health care education with advanced technical training for high school students, which transitions these students immediately into employment as certified nurse aides, village health aides, and in the future, personal care attendants. He added that TVEP funding would also support a large project near Nome at Graphite Creek, which has been designated a high priority infrastructure project by the federal government. The creek is the largest known graphite deposit in the United States, he explained, and would have application for electric vehicles and lithium-ion batteries of all types. He reiterated that TVEP funding would support the training required for this project. In addition, the driver education training in Nome would be supported by TVEP funding. He shared that the Division of Motor Vehicles (DMV) office in Nome shut down a few years ago, and so NACTC applied to become a third-party DMV affiliated driving school so that it can educate and train commercial drivers. He restated NACTC's support of HB 100. 6:13:12 PM MARK ZEISET, Member, Homer Marines Trade Association, stated that he supports HB 100 and shared that the Homer Marines Trade Association has seen high school students in Homer attend the marine technology classes and, in some cases, these students have been able to enter directly into the workforce. He shared that there are other cases where students who are already employed are able to get promoted due to the education received from the classes. 6:14:29 PM TOM BRICE, University of Alaska Fairbanks (UAF) Alumni Association, recalled that the UAF Alumni Association met with members of the committee in February 2021 and wanted to follow up on that meeting. On behalf of the UAF Alumni Association's Legislative Advocacy Committee, he expressed his support of HB 100. The proposed bill would continue the Technical Vocation Education program for another three years, which he opined is a program that greatly benefits Alaskans since its inception in 2000. Due to the university's crucial role in training Alaska's workforce, he continued, it has received a large portion of TVEP funds in the past and this helps the university system support a number of important industries in the state, like maritime and health care. He stated that the reauthorization of TVEP funds would allow the universities across Alaska to continue to educate Alaska's workforce and keep Alaskans employed. 6:16:51 PM CO-CHAIR FIELDS, after ascertaining that there was no one else who wished to testify, closed public testimony on HB 100. 6:17:19 PM REPRESENTATIVE MCCARTY said he believes in the TVEP program. He asked about the efficacy of the allocations of the funds and if a different allocation or a different duration of the program should be considered. He shared his understanding of an example in Delta Junction, Alaska, where the average participant seemed to receive $80,000, but stated that it appears that the number should be $8,000 annually. 6:18:56 PM ASHLEY CARRICK, Staff, Representative Adam Wool, Alaska State Legislature, on behalf of Representative Wool, prime sponsor of HB 100, noted that the figure that Representative McCarty referenced on the TVEP Annual Report [included in the committee packet] for Partners for Progress in Delta Junction referred to participants having a median income earning of $80,000 after 1 to 12 months of employment. She stated that that figure does seem anomalous and that she did follow up with the Department of Labor and Workforce Development (DLWD) to ask about that number. She shared that DLWD initially also thought that it might be a typo, but after extensive investigation by the department's Research Analysis Division and by the individuals who compiled the TVEP report, it was determined that the number was not inaccurate. She said that it is important to note that many students entering this program already have extensive technical training. She explained that it is difficult to compare TVEP recipients on any metrics because TVEP funds are distributed differently depending on the recipient, and some receive a disproportionate amount compared to others. The funds are distributed to these recipients, but do not necessarily represent all of the funding given to TVEP recipients. She added that it is also worth noting that the TVEP report states that the average median income for Ilisagvik College graduates is $49,000 annually, and this is reflective of being in a rural community with a high average wage. She reiterated that this is not necessarily a useful metric by which to compare recipients. 6:21:33 PM CO-CHAIR SPOHNHOLZ noted that the TVEP Annual Report shows that the Amundsen Educational Center had an average cost per pupil of almost $12,000. She asked if someone could describe why the cost is so high. 6:22:06 PM REPRESENTATIVE ADAM WOOL, Alaska State Legislature, as prime sponsor of HB 100, addressed the question from Co-Chair Spohnholz and responded that he can look at the amount of money that the program received and how many graduates there were and "do the division," which he stated he imagines is what Co-Chair Spohnholz did to get the cost per pupil. He said that 11 students served at $249,000 at the Amundsen Educational Center. He explained that he hasn't talked to anyone at the center, but thinks that it is similar to the situation in Delta Junction. He added that the Delta Junction Partners for Progress had a low sample number of students to determine the numbers seen in the report, and reiterated that many of these students already have extensive technical training, which can warp the median annual earning figure as these individuals are at a higher earning level when they enter the program. CO-CHAIR SPOHNHOLZ asked if anyone from DLWD would be able to answer her question. She shared the math that she did on each of the programs and noted that the Amundsen Educational Center is an outlier. 6:24:17 PM GREG CASHEN, Assistant Director, Grants, Alaska Workforce Investment Board, Office of the Commissioner, Department of Labor & Workforce Development, provided clarification that [the department's Research & Analysis staff] compiled data that is provided by each of the regional training centers to arrive at the numbers presented on the TVEP report. He explained that Amundsen is a small training center, and instructors cost the same if they are teaching a small number of students as they would if these instructors were teaching a large number of students. He said that the department could investigate it to see if there is any more important information to glean, and he could share that information with the committee. He reiterated that the training center is very small, and said that he thinks the center primarily teaches office technology, and that the type of training that the center provides should be viewable in the report. 6:25:40 PM CO-CHAIR SPOHNHOLZ opined that it's important for TVEP to get reauthorized for a longer period of time for the purpose of fiscal stability and certainty for organizations. She shared her understanding that it's important to look at the return on investment of TVEP funds in various communities, and noted that she feels very strongly that the committee [should not] suggest that rural communities are the same as urban communities. There are higher costs in rural communities and there are good reasons for that, she opined, and she thinks that the rural way of life in these communities should be preserved. She expressed her concern that some of these rural programs have a cost that is "six times higher" than other programs, when many of these less expensive programs are also effective at delivering training throughout the state. She said that UAA promotes workforce development programs successfully across the state and has seen its percentage of TVEP funds decline in a way that she thinks undermines the state's ability to train and develop workers. She concluded that she supports HB 100, but said that the Amundsen Education Center deserves more investigation. 6:27:09 PM REPRESENTATIVE MCCARTY stated that he concurs with Co-Chair Spohnholz. He said that he understands that there are a lot of variables to consider, but doesn't think that the variables are matching well, and that there is more information needed to understand those variables. He restated that he supports the TVEP program, but said that he suggests that the committee reduce the duration of the reauthorization of the funds from three years to one or two years. 6:28:06 PM REPRESENTATIVE KAUFMAN questioned if the committee would like to pass HB 100 with the proposed time period that would reauthorize the TVEP funds until 2024. He considered that there may be other opportunities, some of which are fleeting, to address certain needs that would not be able to be addressed should the reauthorization be "locked in" for that duration. He echoed Representative McCarty's thoughts and suggested that the committee consider a shorter reauthorization duration in order to be able to respond more quickly and to further investigate the committee's questions. 6:28:56 PM CO-CHAIR FIELDS commented that he will not support a shorter reauthorization. He offered the example of NACTC in Nome, which cannot hire and retain high quality staff if there is only a one-year authorization and replacement revenue is not available. He shared his understanding that when considering Alaska's rural facilities, that kind of uncertainty would devastate the program. HB 100-EXTEND WORKFORCE INVEST BOARD ALLOCATIONS  7:24:03 PM CO-CHAIR FIELDS announced that the final order of business would be a return to HOUSE BILL NO. 100, "An Act relating to allocations of funding for the Alaska Workforce Investment Board; and providing for an effective date." 7:24:06 PM REPRESENTATIVE SCHRAGE moved to report HB 100 out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, HB 100 was reported out of the House Labor and Commerce Standing Committee.