Legislature(2017 - 2018)SENATE FINANCE 532

04/14/2017 01:30 PM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Moved SCS CSHB 49(L&C) Out of Committee
Uniform Rule 23 Waived
Heard & Held
Uniform Rule 23 Waived
+ Bills Previously Heard/Scheduled: TELECONFERENCED
Moved CSSB 104(FIN) Out of Committee
HOUSE BILL NO. 141                                                                                                            
     "An Act relating to allocations of funding for the                                                                         
     Alaska Workforce Investment Board; and providing for                                                                       
     an effective date."                                                                                                        
2:41:29 PM                                                                                                                    
REPRESENTATIVE ZACH FANSLER, SPONSOR, introduced himself.                                                                       
MARY   SCHLOSSER,   STAFF,  REPRESENTATIVE   ZACH   FANSLER,                                                                    
introduced herself.                                                                                                             
Representative Fansler introduced  the legislation. The bill                                                                    
was  the renewal  of funding  allocations  for ten  programs                                                                    
through  the  Technical  and  Vocational  Education  Program                                                                    
(TVEP). The purpose of the  funding was to put Alaskans back                                                                    
to work and into the  job market. The program was regionally                                                                    
aimed at  ten different  institutions across the  state. The                                                                    
institutions  concentrated on  the skills  that were  needed                                                                    
for  the  jobs  in  the  region. He  went  through  the  ten                                                                    
programs and the allocations in the bill.                                                                                       
2:45:21 PM                                                                                                                    
Senator von Imhof wondered whether  TVEP analyzed the number                                                                    
of people  obtained jobs after  training, and  whether those                                                                    
jobs  were retained  a  year  later. Representative  Fansler                                                                    
replied in the affirmative.                                                                                                     
Senator Olson queried the reason  for the change to the one-                                                                    
year  extension.  Representative  Fansler  replied  that  he                                                                    
assumed  that  there  was  a   concern  about  changing  the                                                                    
reporting  requirements to  ensure  that  the programs  were                                                                    
adequately  serving   and  accomplishing  their   tasks.  He                                                                    
stressed that  there was  a hope  to provide  stable funding                                                                    
for the programs. He remarked  that the programs depended on                                                                    
the funding.                                                                                                                    
2:50:23 PM                                                                                                                    
Senator   Olson  stressed   that  the   concern  was   about                                                                    
addressing the same issue in a year.                                                                                            
Co-Chair MacKinnon  queried information about the  change to                                                                    
a one-year extension.                                                                                                           
Senator Hughes  felt there  was a  varied cost  per student.                                                                    
She   felt   that   there  would   be   consideration   with                                                                    
recommendations  of how  to be  sure that  the dollars  were                                                                    
well spent.  The hope was  that the  funds would be  used to                                                                    
assist students  in preparation for  needed jobs.  She noted                                                                    
that there  was funding for  office training, but  there may                                                                    
be redundancies in the programs.                                                                                                
2:55:01 PM                                                                                                                    
Senator   Micciche   wondered    whether   there   reporting                                                                    
requirements  could  be  improved  while  the  training  was                                                                    
occurring as  normal. Representative Fansler replied  in the                                                                    
Senator Micciche felt  hoped that there may  be a compromise                                                                    
on the length of effectiveness of the bill.                                                                                     
Co-Chair MacKinnon  announced that  amendments were  due the                                                                    
following day at noon.                                                                                                          
2:58:09 PM                                                                                                                    
DOUG  WALRATH,   DIRECTOR,  NORTHWESTERN   ALASKA  TECHNICAL                                                                    
CENTER, NOME  (via teleconference), spoke in  support of the                                                                    
3:00:25 PM                                                                                                                    
DENNIS  DISHION,  EXECUTIVE   DIRECTOR,  YUUT  ELITNAURVIAT,                                                                    
BETHEL (via teleconference), he  felt that a one-year sunset                                                                    
would be detrimental to the rural training centers.                                                                             
3:02:23 PM                                                                                                                    
ANNETTE   CARUSO,  EXECUTIVE   DIRECTOR,  SOUTHWEST   ALASKA                                                                    
VOCATIONAL   AND   EDUCATION   CENTER,  KING   SALMON   (via                                                                    
teleconference), spoke in support of  the bill, with a five-                                                                    
year reauthorization.                                                                                                           
3:04:32 PM                                                                                                                    
PEARL    BROWER,    ILISAGVIK     COLLEGE,    BARROW    (via                                                                    
teleconference),  supported the  five-year extension  in the                                                                    
3:05:24 PM                                                                                                                    
FRED  VILLA, ASSOCIATE  VICE PRESIDENT,  WORKFORCE PROGRAMS,                                                                    
UNIVERSITY OF ALASKA,  FAIRBANKS (via teleconference), spoke                                                                    
in support of the bill.                                                                                                         
3:07:23 PM                                                                                                                    
CHERYL   EDENSHAW,   DIRECTOR,  ALASKA   TECHNICAL   CENTER,                                                                    
KOTZEBUE  (via  teleconference),  spoke in  support  of  the                                                                    
five-year extension in the bill.                                                                                                
3:08:45 PM                                                                                                                    
JOEY CRUM,  SELF, ANCHORAGE (via  teleconference), supported                                                                    
the current version  of the bill, in order  to determine the                                                                    
effectiveness of the programs.                                                                                                  
3:11:23 PM                                                                                                                    
CATHY  LECOMPTE, DIRECTOR,  ALASKA VOCATIONAL  AND TECHNICAL                                                                    
CENTER,  SEWARD (via  teleconference), spoke  in support  of                                                                    
the bill.                                                                                                                       
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
3:13:07 PM                                                                                                                    
GREG CASHEN,  DEPUTY COMMISSIONER,  DEPARTMENT OF  LABOR AND                                                                    
WORKFORCE DEVELOPMENT, introduced himself.                                                                                      
PALOMA   HARBOUR,  DIRECTOR,   DIVISION  OF   ADMINISTRATIVE                                                                    
SERVICES,  DEPARTMENT OF  LABOR  AND WORKFORCE  DEVELOPMENT,                                                                    
introduced herself.                                                                                                             
Co-Chair MacKinnon queried  comments regarding the reduction                                                                    
from  five years  to one  year. Mr.  Cashen replied  that an                                                                    
extension of more  than one year would  allow for stability,                                                                    
and allow for examination of the performance measures.                                                                          
Co-Chair MacKinnon noted that  there was approximately $12.5                                                                    
million  distributed  between   the  programs.  Ms.  Harbour                                                                    
agreed. She stated  that there was an average  cost of $1215                                                                    
per student, which was an affordable training program.                                                                          
Co-Chair  MacKinnon queried  the percentage  of unemployment                                                                    
contributions overall.  Ms. Harbour replied that  she needed                                                                    
a moment to collect that information.                                                                                           
3:15:05 PM                                                                                                                    
AT EASE                                                                                                                         
3:15:47 PM                                                                                                                    
3:15:53 PM                                                                                                                    
Co-Chair  MacKinnon  restated   her  question.  Ms.  Harbour                                                                    
replied that  the contribution that  the employee  made into                                                                    
TVEP was 0.16 percent of  their taxable wage base, which was                                                                    
a maximum  of $63.84 in  2017 per employee. She  stated that                                                                    
the overall collection percentage  in 2017 was approximately                                                                    
11 percent  of total  unemployment insurance  from employers                                                                    
and employees in 2017.                                                                                                          
Co-Chair MacKinnon  queried comments  on the  assertion that                                                                    
there were  no clearly  defined goals  for the  program. Ms.                                                                    
Harbour replied  that there were statutory  requirements for                                                                    
reporting performance  of the program. She  noted that there                                                                    
was  an  examination  of  the  fact  that  some  performance                                                                    
measures were implemented at establishment,  but did not fit                                                                    
the program.                                                                                                                    
3:18:38 PM                                                                                                                    
Co-Chair  MacKinnon wondered  whether  the investment  board                                                                    
had created a master list  of education opportunities in the                                                                    
state.  Mr.  Cashen  replied   that  the  Eligible  Training                                                                    
Providers list had  all the training providers  in the state                                                                    
that may receive funding.                                                                                                       
Co-Chair   MacKinnon  remarked   that  there   was  training                                                                    
opportunities available  in multiple  regions in  the state.                                                                    
She wondered whether there may  be a duplication of services                                                                    
by  providing additional  state money.  Ms. Harbour  replied                                                                    
that the Workforce Investment Board  outlined areas of high-                                                                    
demand  occupations and  industries to  invest in  training.                                                                    
The board did a review  to determine a workforce demand, the                                                                    
training capacity, and the possible  gaps. She stressed that                                                                    
the training  did not meet the  needs in the state.  She did                                                                    
not believe that there was a program by program review.                                                                         
Co-Chair  MacKinnon  noted  that the  department  had  never                                                                    
quantified  private  training   sources,  so  other  similar                                                                    
training was available.                                                                                                         
Senator Olson  wondered whether any for  profit corporations                                                                    
that received  TVEP funding. Ms.  Harbour replied  that TVEP                                                                    
funding was only available for  not for profit entities. She                                                                    
furthered that  there was the State  Training and Employment                                                                    
Program (STEP)  which had private entities  that applied for                                                                    
that program.                                                                                                                   
Senator Olson  wondered whether the private  entity received                                                                    
TVEP  funding.  Ms.  Harbour  replied  in  the  negative;  a                                                                    
private entity could only receive STEP funding.                                                                                 
Co-Chair MacKinnon  requested a  list of recipients  of STEP                                                                    
grant   program.  Ms.   Harbour  agreed   to  provide   that                                                                    
Vice-Chair  Bishop queried  the list  of all  the Individual                                                                    
Training Accounts  (ITA) recipients.  Ms. Harbour  agreed to                                                                    
provide that information                                                                                                        
Co-Chair Hoffman requested a list  of the areas of the state                                                                    
with the  highest unemployment rates. Ms.  Harbour agreed to                                                                    
provide that information.                                                                                                       
Co-Chair MacKinnon  stated that  the fiscal notes  needed to                                                                    
be corrected.                                                                                                                   
3:22:38 PM                                                                                                                    
AT EASE                                                                                                                         
3:23:10 PM                                                                                                                    
3:23:19 PM                                                                                                                    
JULI  LUCKY, STAFF,  SENATOR ANNA  MACKINNON, explained  the                                                                    
forthcoming fiscal notes.                                                                                                       
Co-Chair  MacKinnon  remarked  that  the  numbers  would  be                                                                    
replicated in  the out years,  based on the number  of years                                                                    
in the extension.                                                                                                               
HB  141  was  HEARD  and   HELD  in  committee  for  further                                                                    
3:26:32 PM                                                                                                                    
AT EASE                                                                                                                         
3:28:05 PM                                                                                                                    
3:28:09 PM                                                                                                                    
Co-Chair MacKinnon announced the following day's schedule.                                                                      
3:28:33 PM                                                                                                                    
3:45:10 PM                                                                                                                    

Document Name Date/Time Subjects
HB 49 Supporting Document Medicaid Cost Savings CDMs 2015.pdf SFIN 4/14/2017 1:30:00 PM
HB 49
HB 49 Supporting Document Licensing Fees FY06-17.pdf SFIN 4/14/2017 1:30:00 PM
HB 49
HB049 Support Letters 020217.pdf SFIN 4/14/2017 1:30:00 PM
HB 49
HB049 Supporting Documents-Full Sunset Audit 01.30.17.pdf SFIN 4/14/2017 1:30:00 PM
HB 49
SB 104 Amendment Consolidated 1 MacKinnon.pdf SFIN 4/14/2017 1:30:00 PM
SB 104