CS FOR SENATE BILL NO. 124(L&C) "An Act relating to unemployment contributions for the Alaska technical and vocational education program and 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 Stedman specified that the intent today was to hear an explanation of the bill from its sponsor, hear public testimony, and address Committee questions. The bill would be held in Committee. 2:07:40 PM Senator Olson, the bill's sponsor, informed the Committee that this legislation would increase training opportunities for the workforce that would be required to support the anticipated Alaska gas pipeline project. The University of Alaska participated in the development of the bill. 2:08:29 PM DAVID GRAY, Chief of Staff to Senator Olson, explained that the original version of the bill solely proposed expanding the Alaska Training and Vocational Education Program's (ATVEP) vocational and technical (Voc-Tec) training opportunities to include the Voc-Tec training center in Nome. Subsequently however, as specified in the Senate Labor and Commerce (L&C) committee substitute before the Committee, the training opportunities were broadened as the result of discussions with Alaska Work Products, Inc. and the University. Mr. Gray noted that to support the additional training opportunities, funding for ATVEP would be increased as reflected in the Department of Labor and Workforce Development's revised fiscal note dated April 27, 2007. Mr. Gray pointed out that the funding levels for current ATVEP participants would be increased under this legislation and three additional Voc-Tec entities would be added: the Northwest Alaska Career and Technical Center in Nome; the Delta Career Advancement Center, and the Alaska Works Partnership Program (AWPP). AWPP is "a consolidation of many union training programs that are available to both union and non-union Alaskans". Mr. Gray communicated that AWPP has a history of working with the University and technical centers throughout the State, specifically those in rural areas, to train individuals. Mr. Gray clarified that ATVEP's current and proposed funding levels are depicted on page 3 of the revised fiscal note. Existing program participants' funding levels would simply be increased were the legislation adopted; else wise they would be unaffected. 2:11:38 PM Senator Dyson asked how the school selections were made. 2:12:08 PM Mr. Gray reiterated that the original bill only proposed expanding the program to include the North Arctic Career Center in Nome. The Delta Career Center and the Alaska Work Products training program were added at the recommendation of the University and Alaska Work Products, Inc. 2:12:35 PM Senator Dyson qualified his concern. The question was whether other qualified Voc-Tec training schools had been considered or notified of this opportunity. 2:13:01 PM Mr. Gray was uncertain whether "a broad solicitation" had been conducted. To that point however, he attested that the University was aware of the spectrum of Voc-Tec programs in the State. The Alaska Works Partnership program has also coordinated Voc-Tec efforts throughout the State. Mr. Gray emphasized that the intent of this legislation was to enhance pipeline construction training center opportunities. 2:13:57 PM Senator Dyson worried that only government or union schools had been considered to the detriment of private trade schools. 2:14:23 PM GUY BELL, Assistant Commissioner, Department of Labor and Workforce Development, informed the Committee he was available to answer questions about the Department's fiscal note. No questions were forthcoming. 2:15:05 PM MIKE ANDREWS, Director, Alaska Works Partnership Inc., testified via teleconference from Anchorage and attested to the benefits the bill would provide. It "would significantly increase the ability of our State's trained workers for good paying jobs in Alaska, particularly those in construction and pipeline construction jobs". Mr. Andrews stated that Alaska Works Partnership has a good working relationship with the training centers supported by ATVEP. Alaska Works Partnership has trained hundreds of workers from all regions of the State, including rural and remote areas. Programs include building construction, highway construction, student programs, and electrical and plumbing programs. Mr. Andrews also noted that training is provided regardless of union or non-union status. Mr. Andrews informed the Committee that the bill is supported by a wide range of the State's construction industry including Associated General Contractors of Alaska, numerous homebuilder associations in the State, the North Slope Contractors Association, Bristol Bay Housing Authority, and Wilder Construction. Several school districts also work with Alaska Works Partnership to train youth. The entities that support the bill are involved in such things as road construction, commercial and residential building construction, and pipeline construction in rural and urban areas of the State. 2:18:08 PM Mr. Andrews addressed Senator Dyson's concern regarding how the training entities were chosen. For the past several years, the Legislature selected six entities to receive State Voc-Tech training funds: the University of Alaska, AVTEC, Kotzebue, SAVEC in King Salmon, Yuut in Bethel, and the Galena Regional Training Center. It has been determined that additional training centers were necessary and places such as the Delta Career Advancement Center and the Nome training center were recommended. Mr. Andrews stated that Alaska Works Partnership was "engaged" because it "was constructing a pipeline training facility in Fairbanks" that would offer four types of construction training. Mr. Andrews urged the Committee to advance the bill. 2:19:10 PM Senator Thomas acknowledged there being widespread support for vocational technical training. While there has been mention of school districts' involvement with construction training programs, he has not heard about an outreach to the State's military population; particularly young veterans. 2:19:36 PM Mr. Andrews informed the Committee that Alaska Works Partnership offers a statewide "Helmets to Hardhats" program with outreach to veterans, their spouses, particularly those involved with the Alaska National Guard and National Guard Reserves. He shared details of the program and characterized it as "a very active program". Only one other state has such a program. 2:20:19 PM MICHAEL SEXTON, Executive Director, Mechanical Contractors of Fairbanks, testified via teleconference from Fairbanks on behalf of contractors in the welding, plumbing, and pipefitting industry. He appreciated Senator Olson's effort to expand this training program as these contractors place tremendous emphasis on hiring local Alaskan workers. They have worked for the past six years with Alaska Works Partnership to further training and hiring of rural Alaskans. Expanding this program would strengthen the Alaska workforce that will be required to support the pipeline industry. It would also support the operation of the Fairbanks pipeline training center. He urged the Committee to support the bill. 2:22:38 PM Co-Chair Stedman invited Guy Bell to discuss the Department's $2,912,200 fiscal note dated April 27, 29007. He also noted the bill was accompanied by a $129,600 fiscal note from the University, dated April 30, 2007. A one page spreadsheet titled "SB 124: Allocation Changes to Alaska Workforce Investment" [copy on file] has been developed by his office for reference purposes. Mr. Bell directed attention to the comparison of current and proposed Program funding as depicted on page 3 of the fiscal note. The total status quo program funding for FY 08 is estimated to be $6,043,600. The cost of the program would be expanded to $9,166,100 if this bill was enacted. 2:24:41 PM Mr. Bell stated that the net program increase of $3,122,500 consisted of the projected increase in program revenues and the increase in distribution amounts to the existing program entities and the three new program participants. 2:26:35 PM Senator Olson thanked the Committee for scheduling this hearing on the bill. It would benefit the future needs of Alaska and its citizens. The bill was HELD in Committee. 2:27:13 PM