CS FOR HOUSE BILL NO. 123(FIN) "An Act relating to the allocation of money appropriated to the Alaska Workforce Investment Board; and providing for an effective date." This was the first hearing for this bill in the Senate Finance Committee. Co-Chair Wilken stated this bill, sponsored by Representative Carl Moses "adds the Southwest Alaska Vocational and Education Center in King Salmon to the roster of entities eligible to receive money under the technical vocational education program." TIM BENINTENDI, Staff to Representative Carl Moses, noted three changes were made to the original version of the bill. One reflects the name change from the Alaska Human Resources Investment Council to the Alaska Workforce Investment Board. The second change makes the effective date July 1, 2004, and the third change eliminated the inclusion of the Bethel People's Learning Center contained in the original version of the bill. Mr. Benintendi reiterated Co-Chair Wilken's statement. Mr. Benintendi added this would provide the Southwest Alaska Vocational and Education Center (SWAVC) a four percent share of available funds through the workforce development program, thus reducing the amount available to the University of Alaska to 59 percent. The University of Alaska does not oppose this legislation, which would provide $183,000 to SWAVC for operating expenses. Mr. Benintendi informed this funding is generated from the one- tenth of one percent assessment collected from each employee's contribution to the unemployment insurance fund for the technical vocational education program within the Department of Labor and Workforce Development. Mr. Benintendi assured this legislation would not require additional general funds. The SWAVC would join the Galena Project Education Vocational Center, the Kotzebue Technical Center, the Alaska Vocational Technical Center and the University, in eligible recipients of these funds. Mr. Benintendi stated the SWAVC is located in a region in which economic fisheries disasters have been declared in three of the last eight years. An emphasis has been placed on retraining workers from fisheries related activities to other occupations that would enhance employment. In the two-year operation of the Center, SWAVC has provided services to over 900 area residents. The region is "ripe with potential" for new oil and gas development as manifested by the recent passage of SB 265 and SB 266. Mining opportunities also exist and demonstrate a need for skilled workers. Senator Dyson asked about training for commercial operators licenses as referenced in the sponsor statement. He asked if this pertains to truck drivers or vessel operators. Mr. Benintendi replied the training is for truck drivers. Senator Dyson then referenced computer hardware training and asked if software training would be available. Mr. Benintendi understood the intent is to expand into the entire information technology field. Senator Dyson asked the training programs currently offered. Co-Chair Wilken directed Senator Dyson's attention to a report listing the Center's mission statement and highlighting the current activities and goals of the program [copy on file.] Amendment #1: This amendment would restore language in the original version of the bill and would include the Bethel Yuut Elitnaurviat, Inc. People's Learning Center as an eligible recipient of four percent of the funding available through the technical vocational education program. Senator Hoffman moved for adoption and deferred to Ms. Vanasse to speak to the motion. Co-Chair Wilken objected for an explanation. JANELLE VANASSE, Yuut Elitnaurviat, Inc. People's Learning Center, testified via teleconference from an offnet location in Bethel to "discuss the value of the amendment". She informed that the Yukon- Kuskokwim region has been identified as the poorest in the State; yet has great opportunity for workforce development. Despite high poverty rates, jobs are available in the region, up to 300 positions at any time. The issue is that the local residents do not have the education and training to fill the higher wage jobs. To address this, nine agencies, including the Alaska National Guard and the largest school district in the region, the City of Bethel, the University of Alaska, and the Yukon-Kuskokwim Health Corporation, and the Native corporations, have joined efforts to provide training to the local workforce. This is important not only for the quality of life of workers, but also for the economic development of the region. Ms. Vanasse assured that the training to be provided is in fields identified as high priority and because jobs are available within the region. She listed education and early childhood development, construction trade, health care, and aviation. Local employers who are willing to invest in the training of local workers drive this project. This project would be sustainable and would utilize a variety of funding sources. Once the facility is fully operational, nine funding sources would sustain operations. Ms. Vanasse stated the purpose of this legislation and this amendment is "investing in this as a model of the State." The commissioners of the Department of Labor and Workforce Development, the Department of Education and Early Development and the Department of Community and Economic Development have characterized the Center as a valuable pilot project that should be invested in. Ms. Vanasse reported that although the intent is to construct a new facility, services are being provided currently. Programs are being developed and delivered utilizing any available locations. Because of this ability, the Center is currently serving over 300 local residents. Ms. Vanasse stressed that including the Center in the programs eligible for funding through the technical vocational education program would be a "solid investment in the State". Senator Bunde congratulated the witness on the efforts made with this project. Many community colleges utilized the practice of "storefront education" whereby classes were held at various available locations near the people in need of the training. He asked if the facility were constructed whether the practice of locating classes near the students would discontinue. Ms. Vanasse replied that the opportunity to "mobilize training" would remain. However, only inadequately equipped facilities are currently available for some training such as nursing courses. The new facility would have a nursing laboratory equipped with gurneys and other necessary equipment. Construction trades also require "hands on" training that is not available in the classrooms currently used. She predicted that distance training would continue with travel to the Center required only for those courses requiring the equipped facilities. Senator Bunde understood the need for equipped facilities, but cautioned that with the establishment of a centralized location, it becomes more convenient for the instructors to remain at that location rather than "reach out" to students. Senator Dyson surmised that allocating funds to one or both of the vocational technical education centers would result in less funding available for the University. Mr. Benintendi responded that the funding would be received from the University portion of the technical vocational education program. Senator Dyson asked the activities of the University that would not be funded if this legislation were adopted. Mr. Benintendi deferred to the University of Alaska. PETE KELLY, Director, Government Relations, University of Alaska, testified in support of this bill and the amendment. The University would accommodate the reductions to its budget. The University supports the workforce development efforts in those areas affected by this legislation, and the University supports delivery of services to residents of those regions. This legislation is a viable method to accomplish this. Co-Chair Green qualified she did not support this legislation. She asked the status of the People's Learning Center and questioned the ability for students to achieve certification without the establishment of the Center. Senator Hoffman replied that no structure currently exists and deferred to Ms. Vanasse. Ms. Vanasse responded that many organizations were already attempting to fill the "workforce development gap", but the results would be limited. It was agreed that existing successful programs would be combined into a new system. The existing programs are continuing and expanding, regardless that the new facility has yet to be constructed. Co-Chair Green wanted to know how the funding would be expended. She pointed out that in many areas of the State, nursing assistance and other vocational training is provided by the high schools as part of the regular curriculum. These programs do not require a new learning center and those communities are not requesting additional funding from the legislature to provide the same services. She also was unsure why funding should be appropriated for a Center that does not exist. She also wanted to know why the request is only for FY 05 and FY 06. Mr. Benintendi replied this is the cycle in which the allocations are made, once the appropriation has been granted. The appropriation is made annually. Co-Chair Green asked if the provisions of this legislation are passed every two years. Senator Kelly responded that this legislation corresponds to the lapse date of the original program established approximately four years prior. Ms. Vanasse stressed the potential of the Bethel center to serve as a model, particularly before the construction of a new facility. SFC 04 # 101, Side B Co-Chair Wilken removed his objection to the adoption of the amendment with the understanding that the bill would not be reported from Committee at this hearing. He expressed the University should review the impacts of the reduced funding. Without further objection Amendment #1 was ADOPTED. Mr. Benintendi commented that the sponsor supports the amendment. Co-Chair Wilken ordered the bill HELD in Committee.